Mr. Dick Whittington reports

NORTHERN VERTEX FILES FIRST QUARTER FISCAL 2015 FINANCIAL RESULTS

Northern Vertex Mining Corp.'s unaudited interim consolidated financial results for the first quarter fiscal 2015 ended Sept. 30, 2014, have been filed on SEDAR. The full version of the financial statements, and management's discussion and analysis, can be viewed on the company's website and on SEDAR.

Financial and corporate highlights for the quarter ended Sept. 30, 2014:

• Total gold and silver sales (net of royalties and selling costs) to date from the phase I pilot plant of $5,612,000;
• Excluding non-cash, unrealized foreign exchange gains or losses, net loss for the quarter was $360,000, compared with a net loss of $1,849,000 for the comparative period last year. Net gain for the quarter was $1,243,000 (1.7 cents per share), primarily due to a $1,602,000 non-cash, unrealized foreign exchange gain, compared with a net loss of $2,202,000 (4.2 cents per share) for the same period last year;
• Cash and cash equivalents was $3,952,000 at Sept. 30, 2014, down $101,000 since Sept. 30, 2013, mainly due to expenditures at the mine site and offset by cash from financing activities;
• Average realized prices per ounce of gold and silver from year-to-date sales proceeds were $1,263.08 (U.S.) and $20.21 (U.S.), respectively;
• Working capital increased to $3,673,000 at Sept. 30, 2014, compared with $3,098,000 last year;
• Continuing commitment to stringent cost control in response to tough market conditions facing the industry.

Dick Whittington, president and chief executive officer, states: "The Moss mine project is now significantly derisked following the many technical successes of the pilot plant phase. Our focus now moves to completion of the feasibility study, currently under way, targeted for completion in the second calendar quarter next year. The recently announced updated resource, along with the associated technical analysis, provides us with the foundation to further differentiate ourselves in the market as a development stage project."

Cost management

On July 1, 2014, the company implemented significant reductions to senior management compensation and consulting fee arrangements that included a substantial write-off of amounts previously recorded as amounts owing following temporary salary suspensions. Going forward, cuts of up to 50 per cent for both the chairman, and president and CEO, were implemented and remaining senior management and directors experienced significant reductions. Furthermore, with the winding down of the leaching operation at the mine site, the company anticipates the layoff of the remaining field staff later in the calendar year. The company remains committed to stringent cost control and continues to respond and adapt to the tough external environment. These cost reduction measures continue to have a significant impact on overall costs and ultimately, increased cash preservation.

Operating results

Gold and silver sales proceeds

Money received from the pilot plant to date have totalled $5.2-million (U.S.), from 3,851 ounces of gold at an average selling price of $1,263.08 (U.S.) per ounce and 16,747 ounces of silver at an average selling price of $20.21 (U.S.) per ounce. Approximately $300,000 (U.S.) is anticipated before the end of the calendar year, for total sales proceeds from the pilot plant operations phase of approximately $5.5-million (U.S.).

Operations

The heap leach pad operation has transitioned into shutdown mode, and the neutralizing of the solutions in the ponds and on the heap has commenced. Small quantities of gold and silver continue to be recovered from the heap solutions and are being adsorbed in the carbon columns. Carbon is being chemically stripped at an off-site facility, and gold and silver sales are continuing. Final closure is expected in early December. At that time, the company will place the leach facilities on care and maintenance in advance of a future construction decision relating to commencement of operations.

Exploration

Based on the presence of several structures and vein trends across the Moss and adjacent Silver Creek properties, the company initiated a rock sampling and geological mapping program on areas away from the Moss deposit area. The objective of the program is to identify and prioritize areas for future drilling where new resources may be discovered. Only approximately 5 per cent of the property has been explored to date.

Corporate

On Sept. 25, 2014, the company amended the expiration date of 1,321,500 warrants exercisable at $1.15 from Oct. 4, 2014, to Oct. 4, 2015. In all other respects, the terms of these warrants remain unchanged.

On July 11, 2014, the company completed the second tranche of its non-brokered private placement for total gross proceeds of $3,760,525 by issuing a total of 15,042,098 units at a purchase price of 25 cents per unit. The initial tranche of the private placement closed on July 3, 2014, with an issuance of 11,042,098 units. Each unit consists of one common share of the company and one-half transferable share purchase warrant.

We seek Safe Harbor.