Drilling at Paulsens returns 12178 gpt Exploration Update | Drilling Report 17-11-2011 Drilling at Paulsens returns one of the richest results in Australian gold mining history … 12,178gpt Highlights * Drilling at Paulsens Gold Mine in WA returns 0.8m at 12,718gpt (12.7 kg/t or 1.27%); Total intersection of 5.6m at 1,713gpt * Intersection comes from the Voyager 2 lode at Paulsens, where recent drilling has produced a host of outstanding results; Maiden resource estimate for Voyager 2 scheduled for next year * Latest results follows significant intersections at Voyager 1, including 0.85m at 773gpt, 0.6m at 638gpt and 2m at 345gpt * Resource upgrade for Voyager 1 underway, along with subsequent upgraded mine plan, production forecasts and cashflow projections * New mine plan will underpin Northern Star’s strategy to grow production from 80,000ozpa to 200,000ozpa Northern Star Resources (ASX: NST) advises that drilling at its Paulsens Gold Mine in WA has returned an intersection of 0.8m at 12,178gpt gold (12.7kg/t or 1.27%). The spectacular result was part of an overall diamond drill hole intersection of 5.6m at 1,713gpt. The results will form part of the maiden resource estimate for Paulsens' Voyager 2 lode, which is scheduled for release next year. The intersection is believed to contain one of the highest grades ever recorded in the Australian gold mining industry. For purposes of context, it is interesting to note that Ramelius Resources reported in 2007 that it had intersected 16m at 482gpt, including 1m at 6770gpt, at its Wattle Dam gold mine in WA. Goldstar Resources reported an intersection of 0.35m at 5604gpt at its Walhalla Gold Project in Victoria in 2006. In 2007, Barra Resources announced that it had intersected 0.21m at 10,300gpt at its Burbanks mine near Coolgardie. This was part of a 4.69m intersection at 462gpt. Dominion Mining unveiled a host of spectacular results at its Challenger gold mine in South Australia in 2008, including 1.8m at 1079gpt. In addition to the maiden resource estimate for Voyager 2, Northern Star is also preparing a resource upgrade on the Voyager 1 lode, which has supplied all the ore mined by the Company at Paulsens to date. The upgraded Voyager 1 resource estimate will underpin a revised mine plan, including increased production, cashflow and mine life projections, for Paulsens. This new mine plan will play a pivotal role in Northern Star's strategy to grow annual production from 80,000oz currently to 200,000oz. About half of this total output will flow from an expanded mill at Paulsens, with the rest being produced at the Ashburton Sulphide Project (see ASX announcement dated 26 September 2011). Recent drilling at Voyager 1 has also produced a series of outstanding results, including 6.6m at 82.2gpt (with 0.6m at 638gpt), 7m at 140.7gpt (with 0.85m at 773gpt) and 6.4m at 120.2gpt (with 2m at 345gpt). Northern Star Managing Director Bill Beament said the latest results showed Voyager 2 stood to play a significant role in the future of Paulsens. "These intersections are obviously spectacular and highlight the ongoing ability of Paulsens to deliver outstanding results," Mr Beament said. "But more importantly, they show that the scope for resource upgrades and further increases in production and cashflow is substantial. "We look forward to plugging these recent intersections into our growing forecasts for Paulsens and updating the market on the Company's increasingly exciting outlook." Yours faithfully, Bill Beament Managing Director Northern Star Resources Ltd |