HITS OF UP TO 379GPT SHOW POTENTIAL FOR BIG …...Page 1 of 8 HITS OF UP TO 379GPT SHOW POTENTIAL...

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HITS OF UP TO 379GPT

SHOW POTENTIAL FOR BIG

INCREASE IN MINE LIFE

The significant results come from three areas

outside the existing Paulsens Resource

KEY POINTS

Drilling returns numerous high-grade intersections of up to 379gpt from gabbro host rock adjacent to Paulsens orebody

The results include the first mineralisation intersected in the gabbro host rock on the northern side of the Paulsens orebody

The results confirm that the gabbro host rock – which was long thought to be unmineralised – in fact contains high-grade gold and could led to a significant increase Paulsens’ mine life

Significant results from Gabbro include (downhole and uncut);

0.7m @ 379.2gpt gold 501mRL Gabbro









The latest results also include the deepest mineralisation intersected at Paulsens, 350m vertically below the current production level, further highlighting the potential for increases in Paulsens’ mine life

Plus drilling in the shallow levels left behind by previous operator’s returns outstanding hits of up to 60gpt. These areas will be added to Paulsens’ inventory, providing increases in production and cashflow for the next 5-7 years. Significant Shallow Level results (downhole and uncut);

1.2m @ 60.3gpt gold 859mRL LZ




Results from drilling in the Apollo Zone which sits ~100m to the northeast of the main Paulsens orebody, also show strong potential for Apollo to add to resources and mine life. Significant results from the Apollo Zone (downhole and uncut);

1.9m @ 6.3gpt gold 961mRL Apollo

1.6m @ 4.3gpt gold 943mRL Apollo

ASX ANNOUNCEMENT

09 MAY 2013

Australian Securities

Exchange Code: NST

Board of Directors

Mr Chris Rowe

Non-Executive Chairman

Mr Bill Beament

Managing Director

Mr Michael Fotios

Non-Executive Director

Mr Peter O’Connor


Mr John Fitzgerald


Ms Liza Carpene

Company Secretary

Issued Capital

Shares 424M

Options 5.25M

Current Share Price $0.82

Market Capitalisation

$348 million

Cash/Bullion and Investments

31 Mar 13 - $66.5 million

Level 1, 1 Puccini Court, Stirling

WA 6021

T +6 8 6188 2100

F +6 8 6188 2111

E [email protected]

www.nsrltd.com

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ASX ANNOUNCEMENT - 09 MAY 2013

Northern Star Resources Limited (ASX: NST) is pleased to announce that its strategy to increase resources and mine life at its Paulsens Gold Mine in WA by targeting three new sources of mineralisation is generating significant results, with drilling in these areas returning hits of up to 379gpt.

The latest drilling results confirm that the Gabbro host rock, which sits either side of the one million-ounce Paulsens orebody and was previously considered to be unmineralised, contains extremely high-grade mineralisation.

The results confirm the presence of additional structures that may supplement or even replicate the existing Paulsens mineralisation, with far-reaching benefits for the Project's resources and mine life (see Figure 1).

Figure 1 - Plan View of Significant Drill Results for Gabbro and Offset Mineralisation

Two of these intersections are particularly notable. The hit of 0.7m at 379.2gpt is the first mineralised intersection in the Gabbro rock unit which sits on the northern side of the main Paulsens mineralisation. Secondly, the intersection of 3m at 10.5gpt (952m below surface and 350m below the current production level), within the Southern Gabbro Unit, is the deepest mineralised intersection in Paulsens’ history.

These results are highly significant because they show that the Gabbro rock unit on both sides of the Paulsens quartz lode is now a potential target from at least 950m underground and continues all the way up-plunge to the surface.

In addition to the Gabbro drilling, Northern Star recently announced a 156% increase in resources at the Upper Levels at Paulsens, taking them to 92,000oz1 at 10.2gpt. This arose from a review of the shallow levels at Paulsens where large portions of the orebody were left unmined by previous owners due to their gold price hedging, mine scheduling and a lack of surplus funds for exploration and extensional drilling.

These areas have strong potential to boost Paulsens' mine life as well as the Company’s cashflow and production for the next five to seven years. Some areas in the Upper Levels remain open along strike, offering further potential for additional mineralisation which will further increase the Resources.

Previous drilling on these shallow levels has returned intersections of up to 857gpt (see ASX announcement 07 November and 19 December 2012).

The latest results from the follow-up program returned grades up to 60.3gpt. Figure 2 below shows the shaded hatched area which has been mined and, outside of this, the quartz structure which has generated the results contained in this announcement.

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Figure 2 - Plan View of New Significant Drill Results for Upper Paulsens

The third potential source of increased mine life is the Apollo Zone. This sits on the other side of the Northern Gabbro rock unit and is the only mineralised lode that has been mined outside the bounding Gabbro structures. The Apollo Zone produced 23,000oz at a reconciled grade of 7.3gpt and at the time provided a reliable source of supplementary feed for the Paulsens processing plant.

Mining of the Apollo Zone was abandoned by previous owners because it delayed mining of the main ore body. This abandonment came despite Apollo generating historical drilling results in unmined area such as:

1.1m @ 80.8gpt

1.7m @ 43.6gpt and

1.2m @ 36.0gpt

Three recently drilled exploration holes designed to test down plunge from the previously mined Apollo Zone intersected the quartz structure 200m down plunge with assays including (see Figure 3):

1.9m @ 6.3gpt and

1.6m @ 4.3gpt

Figure 3 - Plan View of New Significant Drill Results for Apollo Zone

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Northern Star Managing Director Bill Beament said the Company's low costs, high margins and strong dividend yield of 5 per cent fully franked ensured that returns for shareholders were among the best in the industry.

"Our financial results have been, and continue to be, outstanding," Mr Beament said. "And now these latest results show that the question of mine life is being answered in the same highly favourable manner.

"We have three sources with strong potential to grow our mine life significantly. This is in addition to further growth in resources and reserves at the main Paulsens orebody.

"We know Paulsens is enjoying a good life. Now it is becoming increasingly clear that it will also have a long one."

Further announcements will be released regarding the ongoing underground diamond drilling as results become available.

Assay results from underground diamond drilling are listed in the attached tables.

Yours faithfully

BILL BEAMENT Managing Director Northern Star Resources Limited

1Table 1 - Paulsens and Ashburton Mineral Resources inclusive of Reserves effective December 31 2012

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Paulsens Grade Control Drilling Lower Zone

Drill Hole # Easting (Mine Grid)

Northing (Mine Grid)

Drill hole collar RL

(Mine Grid)

Dip (degrees)

Azimuth (degrees, Mine Grid)

End of Hole Depth

(m)

Downhole From (m)

Downhole To (m)

Downhole Intersection

(m)

Au (gpt) uncut

PDU2300 9797 50271 1000.7 -22 63 135 80.1 81.9 1.8 27.4

PDU2300 9797 50271 1000.7 -22 63 135 89.6 92.4 2.8 10.8

PDU2302 7997 50271 1000.5 -44 45 107 79.3 80.0 0.7 5.4

PDU2313 9645 50375 881.8 -20 104 107 83.2 83.4 0.2 8.9

PDU2313 9645 50375 881.8 -20 104 107 83.2 83.7 0.5 2.8

PDU2314 9645 50375 881.8 -28 104 101 81.5 82.2 0.7 5.2

PDU2322 9644 50374 881.1 -19 116 93 42.2 43.0 0.8 5.2

PDU2322 9644 50374 881.1 -19 116 93 62.9 64.9 2.1 4.3

PDU2324 9644 50374 880.9 -58 114 77 67.5 68.0 0.4 8.0

PDU2332 9644 50373 881.1 -26 135 65 47.5 48.7 1.2 60.3

PDU2333 9644 50374 881.1 -36 135 65

NSI

PDU2336 9797 50270 1000.8 -31 95 47

NSI

PDU2337 9797 50270 1000.8 -29 88 39 37.0 38.0 1.0 2.6

PDU2338 9797 50270 1000.4 -42 92 34 31.3 32.0 0.7 2.2

PDU2339 9797 50271 1000.4 -25 86 54 40.3 40.9 0.6 3.0

PDU2339 9797 50271 1000.4 -25 86 54 42.2 44.7 2.5 14.4

PDU2340 9797 50270 1000.3 -30 86 46 36.2 37.7 1.5 3.1

PDU2341 9797 50270 1000.3 -37 86 45 33.1 33.9 0.8 8.7

PDU2342 9797 50270 1000.2 -46 85 41 29.0 29.9 0.9 40.3

PDU2343 9797 50270 1000.9 -20 77 68 50.4 51.3 1.0 2.6

PDU2344 9797 50270 1000.9 -28 76 52

NSI

PDU2346 9797 50271 1000.5 -51 77 40 30.4 32.2 1.8 5.6

PDU2347 9797 50271 1000.6 -29 63 68 57.4 58.1 0.7 12.8

PDU2349 9797 50271 1000.4 -52 60 50 35.2 37.6 2.4 7.1

PDU2402 9640 50373 880.9 -16 139 71 63.2 67.0 2.0 14.2

PDU2402 9640 50373 880.9 -16 139 71 63.2 67.0 3.9 7.9

PDU2420 9796 50272 1000.6 -40 37 142 111.8 113.4 1.6 16.9

PDU2424 9640 50373 880.8 -22 138 64

NSI

PDU2425 9640 50373 880.8 -27 138 62 45.3 46.6 1.4 43.0

PDU2425 9640 50373 880.8 -27 138 62 45.3 46.6 1.4 43.5

PDU2426 9640 50373 880.8 -36 138 62 52.9 54.1 1.3 2.4

PDU2469 9640 50373 880.8 -27 143 61 28.2 28.4 0.2 12.4

PDU2471 9640 50373 881.3 -16 149 64 55.3 55.6 0.4 2.3

PDU2516 9640 50373 880.8 -29 149 56 43.1 43.5 0.4 9.1

PDU2517 9640 50373 881.7 -35 149 53 43.3 44.0 0.7 3.8

PDU2517 9640 50373 881.7 -35 149 53 45.8 46.0 0.3 2.5

PDU2518 9640 50373 880.8 -45 149 60

PDU2543 9640 50373 881.3 -19 154 60 51.0 52.4 1.4 2.0

PDU2548 9640 50373 880.7 -28 159 50

NSI

PDU2549 9640 50373 881.7 -45 159 56 32.8 33.7 0.9 19.9

PDU2552 9628 50371 882.8 -67 159 110 45.4 45.9 0.5 3.6

Paulsens Resource Definition Drilling Lower Zone




(Mine Grid)

Dip (degrees)


End of hole depth

(m)

Downhole From (m)

Downhole To (m)


(m)

Au (g/t) uncut

PDU1968 9796 50271 1000.6 -35 52 123 91.4 92.3 0.9 2.3

PDU2415 9797 50271 1000.4 -14 63 172 126.1 127.0 1.0 5.4

PDU2418 9796 50272 1000.6 -34 46 137 97.9 98.8 0.9 9.8

PDU2418 9796 50272 1000.6 -34 46 137 131.0 131.6 0.6 4.5

PDU2419 9796 50272 1000.6 -30 46 179 111.7 112.1 0.4 2.1

PDU2419 9796 50272 1000.6 -30 46 179 128.7 129.1 0.4 2.7

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Paulsens Grade Control Drilling Gabbro Mineralisation




(Mine Grid)

Dip (degrees)


End of hole depth

(m)

Downhole From (m)

Downhole To (m)


(m)

Au (g/t) uncut

PDU1970 9796 50272 1000.5 -32 52 155 27.5 28.2 0.5 48.4

PDU1975 9796 50272 1000.5 -22 52 260 43.1 43.3 0.2 5.7

PDU2300 9797 50271 1000.7 -22 63 135 43.8 44.3 0.5 3.0

PDU2301 9797 50271 1000.5 -31 58 90 23.3 23.7 0.4 8.3

PDU2303 9796 50272 1000.5 -53 36 96 25.0 26.0 1.0 2.2

PDU2319 9644 50374 881.2 -20 110 94 57.3 58.6 1.2 3.3

PDU2320 9644 50374 881.0 -31 110 82 51.0 52.0 1.1 2.7

PDU2340 9797 50270 1000.3 -30 86 46 6.6 7.6 1.0 6.6

PDU2348 9797 50271 1000.6 -36 65 66 4.7 5.1 0.3 4.0

PDU2357 8928 50373 530.2 -12 13 139 134.0 135.0 1.0 5.7

PDU2361 8928 50372 530.4 -23 357 173 107.1 108.0 0.9 3.3

PDU2375 8924 50373 533.1 29 327 68 18.2 19.4 1.2 4.3

PDU2375 8924 50373 533.1 29 327 68 31.0 31.7 0.8 3.5

PDU2378 8924 50371 532.2 24 302 96 47.4 47.9 0.5 3.0

PDU2378 8924 50371 532.2 24 302 96 51.8 54.3 2.5 2.7

PDU2379 8924 50371 532.3 22 294 98 45.4 45.9 0.5 6.8

PDU2379 8924 50371 532.3 22 294 98 54.3 54.6 0.3 13.5

PDU2463 8997 50472 529.8 -42 50 59 28.5 28.8 0.3 7.2

PDU2470 8791 50407 530.2 -61 313 204 156.2 156.7 0.5 48.4

Paulsens Resource Definition Drilling Gabbro Mineralisation




(Mine Grid)

Dip (degrees)


End of hole depth

(m)

Downhole From (m)

Downhole To (m)


(m)

Au (g/t) uncut

PDU2227 8905 50472 588 -42 262 291 199.0 200.9 1.9 2.2

PDU2228 8997 50473 530 -25 36 86 41.0 41.3 0.3 2.2

PDU2417 9797 50271 1001 -17 58 193 17.3 18.4 1.1 4.5

PDU2419 9796 50272 1001 -30 46 179 35.6 38.0 2.4 1.7

PDU2439 8921 50469 588 -61 38 146 74.4 75.7 1.3 2.4

PDU2439 8921 50469 588 -61 38 146 77.2 79.6 2.5 2.8

PDU2439 8921 50469 588 -61 38 146 101.0 102.3 1.3 8.9

PDU2441 8922 50468 587 -58 57 152 94.0 95.6 1.6 5.5

PDU2441 8922 50468 587 -58 57 152 102.6 103.4 0.9 29.3

PDU2442 8922 50468 587 -49 56 149 113.7 115.7 1.7 2.3

PDU2443 8922 50468 587 -47 58 181 98.0 100.0 2.0 37.7

PDU2443 8922 50468 587 -47 58 181 110.0 110.0 1.0 17.2

PDU2443 8922 50468 587 -47 58 181 113.0 113.7 0.7 379.2

PDU2443 8922 50468 587 -47 58 181 119.1 120.0 0.8 6.9

PDU2447 8996 50473 530 -43 19 99 38.9 39.3 0.4 3.0

PDU2447 8996 50473 530 -43 19 99 58.0 58.7 0.7 4.4

PDU2448 8996 50473 530 -54 18 62 20.8 21.7 1.0 4.8

Paulsens Resource Definition Drilling Southern Gabbro Mineralisation




(Mine Grid)

Dip (degrees)


End of hole depth

(m)

Downhole From (m)

Downhole To (m)


(m)

Au (g/t) uncut

PDU2350 8905 50473 590 -32 238 491 266.5 267.5 1.1 5.1

PDU2350 8905 50473 590 -32 238 491 311.2 311.9 0.7 57.5

PDU2350 8905 50473 590 -32 238 491 337.0 338.8 1.8 3.1

PDU2350 8905 50473 590 -32 238 491 387.4 389.0 1.6 16.2

PDU2352 8905 50472 588 -31 243 668 188.0 189.8 1.8 2.7

PDU2352 8905 50472 588 -31 243 668 285.0 286.2 1.2 19.8

PDU2352 8905 50472 588 -31 243 668 301.4 302.0 0.6 3.9

PDU2352 8905 50472 588 -31 243 668 307.1 308.2 1.1 5.5

PDU2352 8905 50472 588 -31 243 668 311.0 311.5 0.5 41.5

PDU2352 8905 50472 588 -31 243 668 314.0 314.7 0.7 15.5

PDU2352 8905 50472 588 -31 243 668 432.6 433.2 0.6 19.2

PDU2352 8905 50472 588 -31 243 668 631.0 634.0 3.0 10.5

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Paulsens Resource Definition Drilling Southern Gabbro Mineralisation (continued)




(Mine Grid)

Dip (degrees)


End of hole depth

(m)

Downhole From (m)

Downhole To (m)


(m)

Au (g/t) uncut

PDU2398 8925 50367 531 -8 223 195 122.6 123.8 1.2 38.0

PDU2399 8925 50367 531 -15 223 248 51.0 54.0 3.0 19.5

PDU2399 8925 50367 531 -15 223 248 100.0 101.0 1.0 3.8

PDU2399 8925 50367 531 -15 223 248 118.5 119.3 0.7 24.7

PDU2399 8925 50367 531 -15 223 248 129.3 130.6 1.3 3.4

PDU2400 8925 50367 531 -23 223 359 249.7 250.2 0.5 2.7

PDU2400 8925 50367 531 -23 223 359 252.9 253.3 0.5 3.5

PDU2403 8926 50366 531 4 188 222 55.3 56.0 0.7 3.2

PDU2404 8926 50366 531 -8 188 252 87.1 88.5 1.4 9.1

PDU2404 8926 50366 531 -8 188 252 182.5 183.8 1.3 2.8

PDU2405 8926 50366 530 -18 189 318 192.0 192.5 0.5 5.2

PDU2428 8905 50471 589 -30 240 558 152.0 152.7 0.7 3.9

PDU2428 8905 50471 589 -30 240 558 234.3 237.0 2.7 3.8

PDU2428 8905 50471 589 -30 240 558 303.0 303.8 0.8 3.1

PDU2428 8905 50471 589 -30 240 558 354.0 356.0 2.1 7.6

PDU2428 8905 50471 589 -30 240 558 408.7 409.4 0.7 3.1

PDU2428 8905 50471 589 -30 240 558 522.0 523.8 1.8 5.1

PDU2429 8905 50471 588 -34 240 476 311.5 312.6 1.1 2.3

PDU2429 8905 50471 588 -34 240 476 326.0 327.4 1.4 2.2

Paulsens Resource Definition Drilling Apollo




(Mine Grid)

Dip (degrees)


End of hole depth

(m)

Downhole From (m)

Downhole To (m)


(m)

Au (g/t) uncut

PDU1976 9797 50271 1001 -11 63 234

NSI

PDU2415 9797 50271 1000 -14 63 172 129.7 131.6 1.9 6.3

PDU2417 9797 50271 1001 -17 58 193 164.7 166.2 1.6 4.3

PDU2419 9796 50272 1001 -30 46 179 161.2 161.6 0.4 0.3

PDU2354 9796 50272 1001 -25 47 245

NSI

Paulsens Unmined Historical Drilling Apollo




(Mine Grid)

Dip (degrees)


End of hole depth

(m)

Downhole From (m)

Downhole To (m)


(m)

Au (g/t) uncut

PDU102 10054 50296 1054 -5 101 39 27.6 30.4 2.8 4.2

PDU103 10054 50297 1053 -13 70 41 18.4 19.6 1.1 18.2

PDU105 10054 50297 1053 -28 52 39 17.3 18.4 1.1 80.8

PDU230 10177 50318 1085 10 165 41 28.0 34.0 6.0 14.4

PDU241 10239 50311 1101 -9 339 48 11.5 13.8 2.3 28.1

PDU261 10109 50299 1056 22 335 24 16.8 17.3 0.5 21.5

PDU264 10108 50299 1055 -24 334 65 37.8 38.8 1.0 18.6

PDU357 10214 50409 1061 1 137 75 58.7 59.0 0.3 24.8

PDU361 10215 50410 1061 -10 119 164 64.3 64.5 0.2 128.0

PDU411 10093 50295 1056 13 346 25 19.0 19.5 0.5 45.7

PDU418 10279 50356 1070 -4 291 19 11.2 12.9 1.7 43.6

PDU419 10215 50420 1059 2 117 109 92.2 92.5 0.4 33.6

PDU420 10211 50393 1063 2 138 58 47.6 50.9 3.3 11.9

PDU430 10170 50369 1047 -13 212 42 18.7 20.0 1.2 36.0

PLRC116 10054 50301 1202 -90 237 145 168.0 168.0 1.0 17.4

Competent Persons Statements

The information in this announcement that relates to Paulsens and Ashburton mineral resource estimations, exploration results, data quality, geological interpretations, potential for eventual economic extraction and estimates of exploration potential, is based on information compiled by or under the supervision of Brook Ekers, who is an AIG member who is a full-time employee of Northern Star Resources Limited. Mr Ekers has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Ekers consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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Forward Looking Statements

Northern Star Resources Limited has prepared this announcement based on information available to it. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this announcement. To the maximum extent permitted by law, none of Northern Star Resources Limited, its directors, employees or agents, advisers, nor any other person accepts any liability, including, without limitation, any liability arising from fault or negligence on the part of any of them or any other person, for any loss arising from the use of this announcement or its contents or otherwise arising in connection with it.

This announcement is not an offer, invitation, solicitation or other recommendation with respect to the subscription for, purchase or sale of any security, and neither this announcement nor anything in it shall form the basis of any contract or commitment whatsoever. This announcement may contain forward looking statements that are subject to risk factors associated with gold exploration, mining and production businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including but not limited to price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimations, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory changes, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates

JORC Table 1

Sampling techniques and data

Sampling techniques. DD_Resource Definition: Core is half cut using an Almonte Diamond Core-saw. The right half is sampled (preferentially) to sample intervals defined by the Logging Geologist along geological boundaries. The left half is archived. Where possible, sample intervals are 0.30m to 1.20m in length, and the total weight of each sample does not exceed 5kg.

DD_Grade Control: Core is whole core sampled along geological boundaries established by the Logging Geologist. Where possible, sample intervals are 0.30m to 1.20m in length, and the total weight of each sample does not exceed 5kg.

All defined orezones are sampled, plus visibly barren material associated with orezones, >5m of hangingwall/footwall, plus >0.3m quartz veins that are encountered outside the orezone and ±1m on either side.

Drilling techniques. DD – Diamond drilling is carried out using NQ2 (standard tube) and LTK60 (conventional) techniques. In most instances, Grade Control holes are drilled using LTK60 and Resource Definition holes are drilled using NQ2.

Drill sample recovery. DD – Recovery is not estimated, although core-loss and cavities are recorded by the Logging Geologist. Overall Paulsens core recovery is very good.

Logging. Core Logging is carried out by the Logging Geologist, who delineates intervals on geological, structural, alteration and/or mineralogical boundaries. All core is photographed.

Sub-sampling techniques and sample preparation.

DD - Core is half cut with Almonté diamond core saw and half core sampled, or whole core sampled. Samples are oven-dried overnight (<82.5°C), jaw crushed to <6mm, and split to <3kg in a static riffle splitter. The coarse reject is then discarded. The remainder is pulverised in an LM5 to >80% passing 75µm (Tyler 200 mesh) and bagged. The analytical sample is further reduced to a 50gm charge weight using a spatula, and the pulp packet is stored awaiting collection by Northern Star Resources Limited (NSR).

Quality of assay data and laboratory tests.

DD - For all drill samples the total gold is determined by fire assay using the lead collection technique with a 30 gram sample charge weight. An AAS finish is used.

The QAQC protocols used include the following for all drill samples: Site sourced coarse blanks are inserted at an incidence of 1 in 40 samples, Commercially prepared certified reference materials are inserted at an incidence of 1 in 40 samples. The CRM used is not identifiable to the laboratory.

NSR’s Blanks and Standards data is assessed on import to the database and reported monthly and yearly. The laboratory QAQC protocols used include the following for all drill samples:

Screen tests (percentage of pulverised sample passing a 75µm mesh) are undertaken on 1 in 100 samples. The laboratory reports its own QAQC data on a monthly basis. Failed standards are followed up by re-assaying a second 30g pulp sample of the failed standard ± 10 samples

either side by the same method at the primary laboratory.

Verification of sampling and assaying.

Significant intersections are collated and reviewed by senior staff and reviewed by corporate geologist. Twinned holes are not used.

Location of data points. Drill holes are surveyed every 30m downhole, collars are picked up post drilling by mine surveyors.

Data spacing and distribution.

Data spacing varies due tote the nature of drilling radiating fans but will be on the order of 10 to 20m.

Orientation of data in relation to geological structure.

It is not thought that drilling orientation would have a biased effect on this resource though restricted drill access has led to some less than optimal drill intersection angles.

Audits or reviews. Sampling and QAQC protocols along with the QAQC data are assessed by a consultant on a quarterly basis as part of an ongoing series of QAQC meetings.

Reporting of Exploration Results

Mineral tenement and land tenure status.

M08/196 wholly owned by NSR and in good standing. Currently contains the operating Paulsens Gold Mine.

Exploration done by other parties.

All relevant work at these depths has been drilled by NSR.

Geology. Paulsens is a high grade, quartz hosted, mesothermal gold deposit within metasediments.

Data aggregation methods.

Grades are uncut.

Relationship between mineralisation widths and intercept lengths.

Due to complex mineralisation geometry and varying intercept angles the true thickness is manually estimated on a hole by hole basis Both true width and downhole length are reported.

Diagrams. Diagrams and tables included.

Balanced reporting. All Exploration Results are reported for this period and this area (Gabbro, Lower zone). Apollo historical results have been picked to coincide with unmined extents.

Further work. Drilling will continue down plunge and as grade control in line with the mine plan.

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