Northern Star on track to be 200,000ozpa producer after exceeding all 2011 guidance

Transcription

1 Northern Star on track to be 200,000ozpa producer after exceeding all 2011 guidance QUARTERLY REPORT DECEMBER 2011 ASX ANNOUNCEMENT 30 JANUARY 2012 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 Farris Non-Executive Director Ms Karen Brown Company Secretary Key Points CY2011 guidance exceeded by 15 per cent: 75,116oz gold poured, 74,575oz recovered and 73,854oz mined 74,473oz gold sold at $1,504/oz for $112M revenue Cash cost $657/oz and total site expenditure $885/oz $46M generated in operational cashflow Strong December 2011 Quarter at Paulsens: 19,924oz mined, 18,081oz recovered and 17,982oz gold poured 15,995oz gold sold at $1,642/oz for $26.3M revenue Cash cost $647/oz and total site expenditure $915/oz $41.7M in cash and bullion at December 31, 2011 December Quarter mining and processing physicals the best achieved since acquisition. Achieved 30% reduction in total operating cost per tonne at Paulsens during the December Half Resource update and 2012 production guidance on track for Q as part of plan to lift Paulsens production to 100,000ozpa Spectacular drilling results of up to 12,178g/t in Voyager 2 lode Discovered two new quartz zones with potential to replicate the 500,00oz Paulsens orebody Ashburton metallurgy shows encouraging results, highlighting ability to host 100,000ozpa stand-alone project Operations - Underground Operations - Processing Issued Capital Shares 352 M 90,000 80,000 70,000 60,000 27,000 24,000 21,000 18,000 90,000 80,000 70,000 60,000 27,000 24,000 21,000 18,000 Options 24M 50,000 40,000 15,000 12,000 50,000 40,000 15,000 12,000 Current Share Price $ ,000 20,000 10,000 9,000 6,000 3,000 30,000 20,000 10,000 9,000 6,000 3,000 Market Capitalisation $340 million 0 Mar-11 Qtr Jun-11 Qtr Sep-11 Qtr Dec-11 Qtr Ore Tonnes Contained Ounces 0 0 Mar-11 Qtr Jun-11 Qtr Sep-11 Qtr Dec-11 Qtr Milled Tonnes Gold Recovered 0 Cash/Bullion in Bank: 31 Dec2011 $41.7 million 22,000 Gold Sales & Revenue 33 1,000 Operations - Development 1,000 Projects Paulsens Ashburton Range Emull Commodities gold gold gold, silver Zn, Cu, gold 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6, , , Mar-11 Qtr Jun-11 Qtr Sep-11 Qtr Dec-11 Qtr 0 0 Mar-11 Qtr Jun-11 Qtr Sep-11 Qtr Dec-11 Qtr 0 Ounces Sold Revenue A$ Million Total Development Capital Development

2 Quarterly Overview Northern Star Resources (ASX: NST) is pleased to report that a strong performance in the December Quarter has resulted in the Company exceeding its 2011 calendar year production guidance of 75,000oz. This in turn led to Northern Star generating $46 million in surplus operating cashflow for the year and cemented the Company's position as a highly profitable Australian gold miner with outstanding growth prospects. The Company's flagship Paulsens Gold Mine in Western Australia poured 75,116 ounces for the year, generating gold sales of $122 million and an operating surplus of $46 million -- exceeding guidance by 15 per cent. The surplus is after allowing for $6 million in underground exploration/drilling expenditure. The outstanding operational and financial performance has been made even more remarkable by the fact that during the year, Northern Star changed out the mining contractor at Paulsens with its in-house mining services division. The financial results were boosted in the December Quarter by a combination of continued lower operating costs per tonne and the fact that Northern Star has no hedging and no bank debt. Total operating cost per tonne is now down 30 per cent from the first and second Quarters of The results show the Company has exceeded all its key production and financial targets, while at the same time generating a host of significant exploration results which will help underpin further increases in resources, production, cashflow and mine life. Northern Star is in the process of growing annual production at Paulsens from 80,000oz per annum to 100,000oz per annum by expanding the Paulsens plant and underground mine and developing an open pit mine. It is also conducting studies to establish a stand-alone 100,000oz per annum operation at its neighbouring Ashburton Project which will lift company-wide production to 200,000oz per annum. The increased production at Paulsens will be based on a growing resource inventory that will stem from a host of significant results over the past year. These results will form part of a resource upgrade and new production guidance to be released for Paulsens in the March Quarter On the exploration front, the high-grade Upper Zone ore position of the Voyager 1 lode, which is the main source of current production, was extended 100m along strike on the back of some sensational drilling results. Of note was the spectacular intersection of 12,178g/t in Voyager 2 which shows the potential of this newly discovered lode to add to the Company's resource base later in In addition, the geological team has further revised the strike direction of the mineralisation-bounding Gabbro structure, creating substantial opportunity to increase the resource potential. During the quarter the Company intersected two new gabbro offset positions with high-grade assays up to 14gpt which have the potential to replicate its 500,000 ounce Paulsens gold deposit immediately next door. These quartz veins are located within an offset position similar to Paulsens mineralisation but outside the main gabbro rock unit which has historically been seen as a 'fence' either side of Paulsens, acting as a natural perimeter on the extent of the mineralisation. Regional Exploration activity increased dramatically during the quarter as part of the $20 million drilling/exploration budget outlined over the coming 12 months.

3 Paulsens Calendar Year Guidance Key Performance Figures Paulsens Units Mar Qtr Jun Qtr Sep Qtr Dec Qtr CY 2011 Ore hoisted Tonnes 50,643 49,068 60,795 76, ,501 Mined grade g/t Au Gold in ore hoisted Oz 19,284 17,445 15,495 19,311 71,535 Low grade hoisted Tonnes 7,060 8,686 18,469 10,760 44,975 Grade g/t Au Gold in low grade Oz ,319 Total ore hoisted Tonnes 57,703 57,754 79,265 87, ,476 Mined Grade g/t Au Gold in ore hoisted Oz 19,626 17,941 16,363 19,924 73,854 Milled Tonnes Tonnes 69,882 76,393 84,735 85, ,457 Head grade g/t Au Ounces Produced Oz 21,007 21,401 18,368 19,313 80,090 Recovery % Gold Recovered Oz 19,380 20,072 17,043 18,081 74,575 Ounces Poured Oz 17,350 21,161 18,623 17,982 75,116 Ounces Sold Oz 19,159 21,161 18,158 15,995 74,473 Average gold price A$/oz 1,384 1,415 1,607 1,642 1,504 Revenue A$M Ore high grade stockpile Tonnes 19,459 11,396 4,267 4,729 4,729 Stockpile grade g/t Au Contained gold in stockpile Oz 5,276 2, ,018 1,018 Ore low grade stockpile Tonnes 10,888 2,408 1, Stockpile grade g/t Au Gold in low grade stockpile Oz Total Stockpiles contained gold Oz 5,977 2, ,068 1,068 Gold in circuit (GIC) Oz 3,649 2, ,080 1,080 Gold in transit (GIT) Oz 465 2,451 2,451 Table 1: Paulsens production statistics

4 Organic Growth Strategy During the quarter, the Company provided an update on its strategy to increase its annual production from 75,000 ounces to 200,000 ounces in two stages. This involves upgrading the plant at its Paulsens Gold Mine and developing its Ashburton project. Under Stage One, plant capacity at the Paulsens mine will be increased from 350,000 to 450,000tpa. This will initially see production rise from the current level of 75-80,000ozpa to 100,000ozpa. First production increases are expected to flow in the December 2012 quarter. As part of the 100,000oz per annum Stage 1 expansion strategy at Paulsens, Northern Star during the quarter commissioned the third underground truck and has subsequently taken delivery of a second development jumbo. Once this unit arrives, development of the upper levels, rapid extension of the decline and mining in other known zones of mineralisation will commence. To enable this additional mining equipment to operate at maximum capacity, the ventilation system is being upgraded. The civil construction of the raise bore pad has been completed with the machine pilot drilling in early January ahead of schedule. The mine is already experiencing a ramp-up in physical performance with mined tonnage in the six months to December 31 exceeding the 2011/12 budget. The study to increase plant throughput from 350ktpa to 450ktpa is underway with optimisation results due in early The additional ore will be supplied from a combination of the open pit development and high-grade underground zones at Paulsens which are currently classed as either unmined resource blocks or remnant ore. The combination of the un-mined resource blocks and the open pit material is expected to provide three to four years' ore feed to the expanded mill. Infill pit drilling was successfully completed during the quarter. This should enable more of the inferred resource to be reclassified as indicated. This will enable a maiden reserve to be estimated for the open pit. During the December Quarter, work began on Stage Two of the 200,000ozpa growth strategy by undertaking studies on the Ashburton Sulphide Project, where preliminary indications point to a stand-alone operation producing 100,000ozpa. The Company received encouraging preliminary flotation test-work results, indicating up to 99.4% gold recovery to a flotation concentrate from its 668,000-ounce Ashburton Gold Project. All samples indicated that high-grade gold concentrates can be produced with grades of up to 29.5g/t being achieved. Preliminary analysis has identified a number of deleterious minerals, including mercury, copper, nickel, zinc and tellurides, are below concern levels. Further test work to determine the optimum process and gold extraction from the sulphide concentrates continues, with more results expected early in This two-staged strategy will enable the Company to take even greater advantage of record gold prices in a very short timeframe and for a relatively small capital outlay. Success on executing this substantial growth phase should catapult the Company into the next league of gold producers.

5 Paulsens Operation Safety There was one Loss Time Injury ("LTI") during the quarter, with an operator missing one shift due to a hand injury. Until this injury occurred, the mine had reached 527 days LTI free, which is a site record. Underground production Mine Development: 3 months to 3 months to 3 months to 3 months to 31 March June September December 2011 Decline 255.0m 160.0m 127.1m 88.0m Level 142.3m 241.0m 554.7m 572.6m Strike driving 392.3m 373.0m 290.0m 247.8m Total (metres) 789.6m 774.0m 971.8m 908.4m The main focus on capital development has been the completion of the major drill drive platform on the 610 level. Significant advance rates were achieved during the quarter, opening up more working areas in the mine which will provide great operational flexibility for stope production in subsequent quarters. This bodes well for the expanded mill scenario. Ore development was carried out on the Voyager 1 upper and lower zones on the 625 and 610 levels. Development yielded 17,046 tonnes of ore at an average reconciled grade of 10.7 g/t. Low-grade ore intersected whilst accessing the main ore zones yielded 10,760 tonnes at 1.8 g/t. The development grade improved substantially from the previous quarter as more of the main upper zone of Voyager 1 was developed. Stoping contained a large proportion of lower zone during the quarter which has enabled the mine to record its highest quarter of mining physicals under Northern Star's ownership. The lower zone contains 40 per cent of the ounces in the current Voyager 1 resource but has accounted for only 15 per cent of production to date. More of this material is expected to be mined in the future mine plan. 3 months to 3 months to 3 months to 3 months to 31 March June September December 2011 Development ore (t) 14,574 22,735 19,300 17,046 Development grade (g/t) Stope ore (t) 36,069 26,333 41,495 59,949 Stope grade (g/t) Low grade ore (t) 7,060 8,686 18,469 10,760 Low grade (g/t) Total ore (t) 57,703 57,754 79,265 87,755 Total grade (g/t) Contained gold (oz) 19,626 17,941 16,363 19,924 t=tonnes, g/t= grams per tonne, oz= ounces Stope production was 59,949 tonnes at 6.9 g/t. This was predominately from the Voyager 1 Lower Zone 655/674 stopes, Upper Zone 689/674 stopes and some remanent ore in 1161/928. Gold Production 85,447 tonnes were milled during the quarter at 7.03 g/t and 93.6% recovery for 18,081 ounces produced. Mill feed consisted of mainly Voyager 1 and some minor low grade tonnage. Ore stocks at the end of the quarter totalled 5,593 tonnes containing 1,068 ounces of gold.

6 Gold Sales 15,995 ounces were refined and sold at an average realised price of A$1,642/oz for $26.3 million. Gold in circuit and transit was 3,531 oz. Unit Costs Cash cost 1 for the quarter were A$647 per oz. Units Mar-11 Qtr Jun-11 Qtr Sep-11 Qtr Dec-11 Qtr CY2011 Cash Cost 1 A$/oz Capital development cost 2 for the quarter were A$274 per oz. Units Mar-11 Qtr Jun-11 Qtr Sep-11 Qtr Dec-11 Qtr CY2011 Capital Development cost 2 A$/oz Total Expenditure cost 3 for the quarter were A$915 per oz. Cost Centre Units Mar-11 Qtr Jun-11 Qtr Sep-11 Qtr Dec-11 Qtr CY2011 Cash Operating Cost 4 A$/oz Capital Development cost 2 A$/oz Royalties A$/oz Total Expenditure Cost 3 A$/oz Average realised price A$/oz 1,384 1,415 1, Revenue A$ Mil Table 2: Paulsens financial statistics Notes to Table 2. 1: Cash costs include all direct underground and processing costs during the period of occurrence. 2: Capital Development costs include all underground capital decline development, drill drive development and waste ore access development costs during the period of occurrence. 3: Total Expenditure cost is inclusive of cash operating costs, waste development cash costs and state government royalties. A one off cost to purchase the crushing circuit has been deducted ($1.8M) from the total expenditure cost. 4: Cash Operating cost is Cash Costs less stockpile adjustments and government royalties.

7 DECEMBER 2011 QUARTERLY REPORT - ASX ANNOUNCEMENT Exploration and Development - Paulsens Resource Drilling High grade Voyager 1 mineralisation continues to be intersected down plunge and strike from existing resource estimates. Of extreme treme significance was the ASX announcement confirming the 100 metre strike extension of the high-grade grade hinge component of the Voyager 1 lode (refer to Figure 1). 1) FIGURE 1 - VOYAGER ONE DOWN PLUNGE AND STRIKE EXTENSION In addition, the geological team has further revised the strike direction of the mineralisation bounding Gabbro structure, creating substantial opportunity to increase the resource potential. As this gabbro unit is now interpreted to gently fold south into the regional foliation direction a much larger target area has opened up in the Voyager 1 high grade hinge structure, which will now be vigorously drill tested down plunge and across strike (refer to Figure 2). FIGURE 2 - PLAN VIEW OF UPDATED BOUNDING GABBRO WITH MINERALISED LODES Voyager 2 continues to report spectacular high-grade intersections up to 12,718gpt. Drilling is in progress from the recently commissioned 610 level drill platform which has substantially reduced reduce hole lengths. More high-grade drilling results were received from the recently discovered fault offset limb which runs parallel to the main Voyager One lode at the Paulsens (refer to Figure 3). The Th mineralisation is outside the existing mine plan and therefore will help underpin increases in production and mine life. E info@nsrltd.com Website:

8 The new high grade zone is a fault offset of the Voyager One lode immediately adjacent to the area currently being mined. This means it can be included in the 2012 mine plan easily and quickly. Development to access this lode is currently underway from the 750 level. Figure 3 - High grade drilling in un-development resource outline of the upper zone offset limb One hundred and fourteen underground diamond drill holes were completed for a total of 15,296 metres this quarter. The holes drilled were resource definition, grade control and exploration holes in Voyager 1, as well as further Voyager 2 testing. A full list of assays received for the quarter is appended. Also refer to ASX announcements 09 November, 17 November and 25 November High-grade drilling results were received from the open-pit resource infill program (refer to Figure 4). This program was designed to improve the classification of the current 65,000 ounce Paulsens openpit resource. The expected upgrade in resource classification will enable a reserve to be estimated. This is an important step for the Company's strategy to increase the production profile of Paulsens to 100,000ozpa. Also refer to ASX announcement 20 December 2011 Figure 4 - High grade in-fill drilling at Paulsen Open-pit

9 Paulsens Near-Mine Exploration The Company's top priority exploration target is a repeat of the Gabbro offset beneath and adjacent to the existing Gabbro offset that hosts the 500,000 ounce Paulsens mineralised vein structure. During the quarter the Company intersected two new gabbro offset positions and received high-grade drilling results up to 14gpt, providing strong evidence of the potential to replicate the Paulsens gold deposit immediately next door (refer to Figure 5). The quartz veins intersected are located within an offset position similar to Paulsens mineralisation but outside the main gabbro rock unit which has historically been seen as a 'fence' either side of Paulsens, acting as a natural perimeter on the extent of the mineralisation. Importantly, this drilling was aimed only at gaining further knowledge of the structural geology on the other side of the gabbro rather than ascertaining whether it was mineralised. In light of this, the results are considered particularly promising, though Northern Star emphasises that it is early days in its bid to establish the gold content and potential viability of this new quartz lode. The mineralised quartz intercept was drilled from underground and is located around 1067mRL (133m below surface) and 167m down-hole (around 160m from existing workings). Although it is a relatively narrow intercept, it does confirm the existence of a gabbro offset quartz lode position with ore-grade mineralisation in the immediate vicinity of the existing operations. The drilling, both diamond and RC, has now confirmed the continuity of quartz bounded by the gabbro unit over 250m down plunge extent and up to 13 metres thick. FIGURE 5 - GABBRO OFFSET TARGET, PAULSENS VEIN REPETITION Also refer to ASX announcements 17 November and 20 January 2012.

10 Paulsens Regional Belvedere Prospect: High grade gold values hosted by quartz veins were defined by previous explorer drilling at Belvedere, just 8km from Paulsens. RC drilling (15 holes, 2,380m) during the quarter successfully defined the down-dip extent of the quartz veins into fresh rock with assays pending. Blacks Vein Prospect (near Belvedere): RC drilling was completed (8holes, 875m) to follow up on anomalous gold assays returned from rock chips along a quartz vein-filled structure. Minor quartz veins were intercepted with assays pending. Gossan Hills Prospect (5km north of Paulsens): First pass RC drilling by previous explorers returned anomalous gold values. Second pass RC drilling by Northern Star has commenced (1 hole, 163m), program to be completed early next quarter. Also over the Paulsens Project, a total of 80 rock chip samples were taken from various prospects including some targets generated by aeromagnetic interpretation. No significant results were returned, however only half of the aeromagnetic targets have been field checked. Exploration and Development - Ashburton Gold Project Electric Dingo/Cheela Prospects: RC drilling (16 holes, 1,623m) was completed to infill gaps in historic drilling along the Electric Dingo/Cheela anomalous gold trend, within which there are isolated higher grade zones. The aim of drilling was to extend higher grade zones along strike. Not all assays results have been returned to date and as such will be reported once all assays are received. Agricola Prospect: RC drilling (8 holes, 892m) focused on a gold in soil anomaly. Sulphides were intercepted with assays pending. In addition to drilling, 378 soil samples were taken at Charlie's Patch Prospect (located near the area of past open pits, covering zones of structural interest and quartz veins (assays pending). Peake Prospect: Geological reconnaissance in the vicinity of the Peake open pit located an altered horizon with a similar appearance to and running parallel to the Peake mineralisation. A rock chip program (52 samples) covered the m strike length with assays pending. Mt Olympus Deep Copper: The Company was successful in achieving a $142,000 co-funded drilling grant from the State Government. The grant will be used to help fund a drilling and downhole geophysical program to evaluate the significance of an isolated historic deep drill intercept of 2.6g/t Au from 363m including 2.2% Cu from 375m, hosted by massive sulphides. This intercept is located between the Mt Olympus and Zeus open pits along the Zoe Fault which is an important regional structure which acted as a conduit for gold bearing fluids to flow and form the Mt Olympus and Zeus orebodies. High grade copper intercepts such as this are not seen in the area and it is possible this is part of a different mineralised system which could be rich in copper.

11 Exploration and Development - Cheroona & Beatty Park Projects (Copper/Gold) Interpretation of the VTEM and aeromagnetic survey data was completed, with numerous exploration targets generated. These were field checked and three of the most significant VTEM targets were followed up with ground fixed loop electromagnetic surveys ('FLEM'). FLEM data interpretation indicates the VTEM anomalies are a result of a particular rock type rather than mineralisation. However, some aeromagnetic and VTEM anomalies are still unexplained and some correlate with interpreted structural trends which show a similar alignment with regional structural trends along which historic gold / copper workings exist. Regolith and selective geological mapping of the main tenement was completed, during which 80 rock chip samples were collected. Half of the assay results have been returned and although there were no significant gold values, one rock chip taken close to a major structure returned 2.4g/t silver. Three soil sampling programs (684 samples) were carried out over the unexplained geophysical anomalies and regions of structural interest (including the location of the 2.4g/t silver value), assays pending. A heritage survey covering walk-up drill targets such as the Reef Prospect (gold) and any precious/base metal anomalies defined from soil assay results is booked for early next quarter. Finance Due to another solid quarter of mining and processing, cash balance at the end of the quarter has increased to A$37.8 million ($1.1M held as security for Bonds). In addition, gold in transit amounted to 2,454 ounces ($3.8M). Gold in circuit and ore stocks totalled 2,122 ounces. During the quarter an additional new Atlas Copco 6020 truck was purchase funded through a hire purchase facility with Atlas Copco Finance. Cash Flow Per Ounce Dec 2011 Quarter (A$/oz) Gold Recovered (oz) 18,081 Average Realised Gold Price 1,642 Total Expenditure Cost Total Cash outflow per ounce 915 Cash margin per ounce 727 Table 3: Cash Flow per ounce Note 1: Refer to table 2.

12 Corporate Investor Relations: Northern Star presented to a number of stockbroking companies/institutions in Australia and Overseas to raise awareness of the Company and its' activities. Northern Star presented at the Gold Symposium conference in Sydney and the Brisbane Mining conference. Northern Star has and continues to review a number of mining projects and Companies with a view to making suitable acquisitions. Issued Capital Class of Securities Issued capital Fully Paid Ordinary Shares 351,990,153 Unlisted Options 24,205,206 For more information about Northern Star Resources and its projects please visit our website at or contact Bill Beament. Competent Persons Statements The information in this announcement that relates to Paulsens and Mt Olympus mineral resource estimation, 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, (Member AIG), who is a full-time employee of Northern Star Resources Ltd. 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 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves in the Exploration section of this report is based on information compiled by Jason Boladeras, who is a Member of the Australian Institute of Geoscientists (AIG) and Exploration Manager and casual employee of Northern Star Resources.Mr Boladeras 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 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Boladeras consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. 1 Exploration Potential The information in this announcement that relates to exploration targets at Belvedere refers to targets that are conceptual in nature, where there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource. The information on exploration targets at Belvedere are based on a conceptual range of targets as follows: Tonnage range: 30,000 to 40,000 tonnes Grade range: 4 g/t Au to 5 g/t Au Ounces: 4,000 to 6,000 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.

13 Hole # Downhole Intersection Est. True Thickness VOYAGER ONE RESOURCE DRILLING Uncut cut to (100g/t) Gram/mts Ore zone and comments RL of intersection PDU VOY UZ SPLAY 641m RL PDU1667 NSR dyke in UZ position 595m RL PDU VOY UZ 570m RL including (inc 638g/t) PDU1669 NSR dyke in UZ position 592m RL PDU VOY UZ 573m RL PDU VOY UZ 591m RL PDU VOY LZ 602m RL PDU VOY UZ2 602m RL PDU VOY UZ 601m RL PDU VOY UZ 600m RL PDU VOY LZ 595m RL PDU1715 NSR 612m RL PDU VOY UZ SPLAY 621m RL Hole # Downhole Intersection Est. True Thickness VOYAGER ONE GRADE CONTROL DRILLING Uncut cut to (100g/t) Gram/mts Ore zone and comments RL of intersection PDU VOY LZ 589m RL PDU VOY LZ 583m RL PDU VOY LZ 580m RL PDU VOY UZ 575m RL PDU VOY LZ or FW SPLAY 592m RL PDU VOY LZ 586m RL PDU VOY LZ 581m RL PDU VOY UZ 576m RL PDU VOY UZ 575m RL PDU VOY FW SPLAY 596m RL PDU VOY LZ 597m RL PDU VOY LZ 598m RL PDU VOY FW SPLAY 595m RL PDU VOY LZ 593m RL PDU VOY LZ 590m RL PDU VOY LZ 578m RL VOYAGER TWO EXPLORATION DRILLING Hole # Downhole Intersection Est. True Thickness Uncut cut to (100g/t) Gram/mts PDU including Ore zone and comments VOY2 Dolerite associated RL of intersection

14 OFFSET LIMB VOYAGER ONE DRILLING Hole # Downhole Intersection Est. True Thickness Uncut cut to (100g/t) gram/m Ore zone and comments RL of intersection PDU ECHO LZ 713mRL PDU ECHO UZ2 740mRL PDU ECHO UZ 750mRL PDU ECHO UZ2 741mRL PDU ECHO UZ 750mRL PDU ECHO UZ2 728mRL PDU ECHO UZ 733mRL PDU ECHO UZ 740mRL PDU ECHO UZ 740mRL PDU ECHO UZ SPLAY1 746mRL PDU ECHO UZ SPLAY1 747mRL PDU ECHO LZ 706mRL PDU ECHO UZ2 717mRL PDU ECHO UZ2 724mRL PDU ECHO UZ 738mRL PDU ECHO UZ SPLAY1 741mRL PDU ECHO LZ 695mRL PDU ECHO UZ2 706mRL PDU ECHO UZ2 715mRL PDU ECHO UZ2 716mRL PDU ECHO UZ2 724mRL PDU ECHO UZ2 740mRL PDU ECHO UZ 742mRL PDU ECHO UZ 747mRL PDU ECHO LZ 700mRL PDU ECHO UZ 765mRL PDU ECHO LZ 739mRL PDU ECHO LZ 698mRL PDU ECHO UZ 715mRL PAULSENS OPENPIT INFILL DRILLING Hole # Downhole Intersection Est. True Thickness cut to (100g/t) gram/m Ore zone and comments RL of intersection PDU Pit shell infill, interp pos CAS 1111mRL PDU Pit shell infill, interp pos CAS 1111mRL PDU Pit shell infill, approx SOY 1122mRL PDU Pit shell infill, interp pos CAS 1115mRL PDU Pit shell infill, Pauls UZ2, re-ass 1124mRL PDU Pit shell infill, CAS / Pauls LZ 1121mRL PDU Pit shell infill, Pauls UZ, SOY 1128mRL PDU Pit shell infill, CAS 1129mRL PDU Pit shell infill, CAS 1128mRL PDU Pit Shell Infill, GEM 1138mRL

15 PDU Pit Shell Infill, GEM 1140mRL PDU Pit Shell Infill, GEM 1140mRL PDU1677 NSR 0.0 Pit shell infill, CAS 1130mRL PDU1677 NSR 0.0 Pit Shell Infill, GEM 1145mRL PDU Pit Shell Infill, GEM 1152mRL PDU Pit Shell Infill, GEM 1156mRL PDU Pit Shell Infill, GEM 1157mRL PDU Pit shell infill, QTZ betw C+S 1127mRL PDU Pit shell infill, QTZ betw C+S 1127mRL PDU Pit shell infill, QTZ betw C+S 1127mRL PDU Pit Shell Infill, GEM 1128mRL PDU Pit shell infill, CAS/Pauls LZ 1130mRL PDU Pit shell infill, QTZ betw C+S 1135mRL PDU Pit shell infill, QTZ betw C+S 1137mRL PDU Pit shell infill, QTZ betw C+S 1140mRL PDU Pit shell infill, QTZ betw C+S 1122mRL PDU Pit shell infill, QTZ betw C+S 1131mRL PDU Pit shell infill, CAS 1125mRL PDU Pit shell infill, QTZ betw C+S 1133mRL PDU Pit shell infill, SOY 1151mRL PDU Pit shell infill, QTZ betw C+S 1120mRL PDU Pit shell infill, QTZ betw C+S 1122mRL PDU Pit shell infill, SOY 1125mRL PDU Pit shell infill, QTZ betw C+S 1109mRL PDU Pit shell infill, SOY 1109mRL PDU Pit shell infill, SOY 1108mRL PDU Pit shell infill, SOY 1108mRL PDU Pit shell infill, QTZ betw C+S 1128mRL PDU Pit shell infill, SOY 1131mRL PDU Pit shell infill, SOY 1132mRL PDU Pit shell infill, QTZ betw C+S 1115mRL PDU Pit shell infill, QTZ betw C+S 1116mRL PDU Pit shell infill, SOY 1117mRL PDU Pit shell infill, SOY 1135mRL PDU Pit shell infill, SOY 1140mRL GABBRO OFFSET DRILLING Hole # Downhole Intersection cut to (100g/t) Ore zone and comments RL of intersection PDU1743 PDU1744 PDU1745 NSR NSR NSR PDU1766A VEIN IN GABBRO 1095mRL PDU1766A QUARTZ WITH SULPHIDES 1067mRL At a nominal 3g/t lower cut off and a 100g/t upper cut off NSR means no significant result

16 Quality Control - Paulsens All core is logged and whole core samples (if LTK60 size, NQ2 sized core is cut and half cored) are marked and prepared for shipping at the Paulsens Mine Property and sent to an independent Laboratory for assay. The remaining half core is stored on site. All samples from which information in this document is derived were received by ALS Chemex Australian Laboratory Services Pty ( ALS ) Limited in Karratha, Western Australia. Samples are weighed and crushed to 70% passing -6mm mesh. The crushed material is split and a portion is pulverised. A 100-gram pulp is sent to ALS Perth, Western Australia for assay. A 30-gram portion of the pulp is treated by fire assay method with atomic absorption finish (Au-AA25). A second pulp sample split ( g) is kept in Karratha. Sample rejects are discarded after 90 days. Limit samples ( >100 grams per tonne gold) are re-analysed using ALS dilution method (Au-DIL). Northern Star Resources inserts one standard in each hole, and one blank is now inserted in each ore zone. Laboratory standards and blanks are inserted by ALS and several pulp duplicates are also assayed as a determinant of mineralisation variability. ALS has AS/NZS ISO 9001:2000 certification in Perth. This does not cover the sample preparation facilities; however these preparation laboratories follow the same quality management system. They are not audited by NCSI but are audited internally by ALS. Indicated Inferred Total 31 December 2010 Tonnes Grade (g/t) Tonnes Grade (g/t) Tonnes Grade (g/t) Oz Au Open Pit Paulsens Upper Levels Voyager Paulsens Stockpiles GIC and CIT Total Paulsens 3.0g/t Au Lower Cut-Off Underground and 1.2g/t Au Lower Cut-Off Open Pit (Rounding errors apparent, 2 GIC/GIT represent gold in circuit and transit) Oxide and Transitional Measured Indicated Inferred Total Tonnes Grade (g/t) Oz Au Tonnes Grade (g/t) Oz Au Tonnes Grade (g/t) Oz Au Tonnes Grade (g/t) , Sulphide , , , Total 1, , , , Ashburton 0.9g/t Au Lower Cut-Off Oz Au