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1 This announcement lifts the trading halt requested by the Company on the 13 September 2012 Announcement to the Australian Securities Exchange Monday 17 September 2012 COMPANY UPDATE PARTIALLY UNDERWRITTEN RIGHTS ISSUE DIAMOND DRILLING EXTENDS GOLD MINERALISATION AT NORTHERN ZONE DEEPS RIGHTS ISSUE: ******************* Northern Mining Limited ( NMI ) is pleased to announce a renounceable rights issue of up to approximately million New Shares at an issue price of $0.02 per share to raise approximately $2.7 million (before issue costs). The rights issue is partially underwritten by Patersons Securities Limited for $1 million. The rights issue will be offered on the basis of one new share for every two shares held by eligible shareholders held at 5pm on 27 September 2012, at an application price of 2 cents per share. The Company will apply for quotation of the new shares on ASX. Funds raised will be applied to the ongoing evaluation of prospects in Western Australia, the Northern Territory and Poland, meet issue costs and to working capital requirements. The Prospectus relating to this rights issue is expected to be lodged with ASIC and ASX on Monday 17 September 2012 and will be available after lodgement on the ASX website and on NMI s website ******************* EXPLORATION UPDATE EAST KALGOORLIE PROJECT: DIAMOND DRILLING EXTENDS GOLD MINERALISATION AT NORTHERN ZONE DEEPS FLAT LYING EXTENSIONAL QUARTZ VEIN SYSTEM IDENTIFIED, CONTAINING VISIBLE GOLD NORTH-SOUTH STRUCTURAL CORRIDOR IDENTIFIED WITH GOLD MINERALISATION OVER 300 METRE STRIKE WITHIN BROAD ZONE OF MINERALISATION, OPEN TO NORTH AND SOUTH STRUCTURAL CORRIDOR LINKS NORTHERN ZONE WITH GEORGE S REWARD GOLD DEPOSIT 2 KILOMETRES OF STRIKE BETWEEN THE TWO PROSPECTS REMAINS UNTESTED NEW DRILLING PROGRAMS TO EVALUATE EXTENSIONS OF MINERALISATION SYSTEM PO Box 1007, Scarborough WA 6922 : Suite 24, Level 3, 25 Walters Drive Osborne Park WA admin@northernmining.com.au : Website Telephone (08) : Facsimile (08) ABN: Page 1 of 8

2 NORTHERN MINING LIMITED BLAIR NORTH PROSPECT NORTHERN ZONE Diamond drilling at Northern Zone Deeps has reinforced the interpretation of a north-south trending structural corridor and has now identified gold mineralisation over a 300 metre strike length at depth within a broad zone of mineralisation open along strike to both the north and south. Results from this drilling include: ¾ 19 metres grading 1.14 g/t Au from 132 metres; including metres grading g/t Au from metres, and - 1 metre grading 6.47 g/t Au from 149 metres. ¾ 4.59 metres grading 2.72 g/t Au from metres; including metres grading g/t Au from metres. ¾ 22 metres grading 0.87 g/t Au from 336 metres; including - 1 metre grading 9.57 g/t Au from 338 metres, and - 1 metre grading 2.81 g/t Au from 355 metres. The two hole program was designed to compliment previous diamond drilling by Northern Mining and although broad spaced, it provides further insight and increased geological understanding of three gold mineralisation targets interpreted for the Northern Zone Deeps prospect. A flat lying extensional quartz vein system has been revealed from the program: these veins typically contain visible gold and occur within a broad (~1000 metre wide), +1g/t mineralised zone and immediately above an IP anomaly between 200 metres and 300 metres below surface. Figure 1: Blair North Prospect, showing gold trends and location of IP Survey IP Anomalies Page 2 of 8

3 Figure 2: Cross Section of Diamond Drill Hole BNRC034 On the 6,592,600N section (Figure 2), diamond hole BNRC034 intersected a 90 metre wide granodiorite intrusive returning gold intercepts of: 19 metres grading 1.14 g/t Au from 132 metres; including metres grading g/t Au from metres, and - 1 metre grading 6.47 g/t Au from 149 metres 15 metres grading 0.47 g/t Au from 172 metres; including - 1 metre grading 3.95 g/t Au from 177 metres 12 metres grading 0.40 g/t Au from 205 metres 2.83 metres grading 1.49 g/t Au from 338 metres Gold mineralisation within the granodiorite intrusive is associated with pervasive hematite-carbonate alteration, fine disseminated pyrite and shallow dipping east-west to northwest-southeast striking quartz veins. Previous near-surface drilling identified gold mineralised envelopes occurring in an en echelon array centred on the granodiorite and extending into the adjacent country rock. The intercepts in BNRC034 confirm this interpretation, however, this hole as with the previous drilling, was drilled on an orientation sub-parallel to the mineralised envelopes and as a consequence, Northern Mining believes the current drilling has not conclusively tested the extent of the mineralised envelopes or the high grade, quartz vein system. Drilling programs will continue. Page 3 of 8

4 Two hundred metres to the north, on the 6,592,800N section (Figure 3), diamond hole BND004 intersected a 65 metre wide granodiorite intrusive returning gold intercepts of: 4.59 metres grading 2.72 g/t Au from metres; including metres grading g/t Au from metres 15 metres grading 0.78 g/t Au from 279 metres 22 metres grading 0.87 g/t Au from 336 metres; including - 1 metre grading 9.57 g/t Au from 338 metres, and - 1 metre grading 2.81 g/t Au from 355 metres Mineralisation is again associated with pervasive hematite-carbonate alteration, fine disseminated pyrite and shallow dipping quartz veins. Previous drilling on this section has not tested this mineralised granodiorite closer to surface. The Company believes there is strong potential for en echelon mineralised zones to be identified up-dip of drillhole BND004. This interpretation is supported by RAB drilling 100 metres to the south on the 6,592,700N section where drillhole BNR407 (6,592,700N 381,550E) recorded an intercept of 16m grading 1.12 g/t Au from 34 metres, drillhole BNR377 (6,592,700N 381,600E) recorded an intercept of 8m grading 0.61 g/t Au from 34 metres and drillhole BNR376 (6,592,700N 381,700E) recorded an intercept of 3m grading 0.39 g/t Au from 33 metres. Figure 3: Cross Section of Diamond Drill Hole BND004 Page 4 of 8

5 Diamond holes BNRC034 and BND004 were also designed to test a broad 500m x 300m IP chargeability anomaly (see ASX Reports 15 September 2010 and 15 May 2012). Both holes encountered varying lithologies in the position of the IP anomaly and it is unclear what has generated the IP response. The orientation of the IP anomaly parallel to the trend of the mineralisation and gold mineralisation reported in drillhole BND004 coincident with the IP response suggests the IP anomaly is in part, associated with gold mineralisation. Further work is to be conducted on the drillcore to determine the geophysical properties of the core. These results will then be used to determine whether the source of the surface IP response has been adequately tested. The four diamond holes completed to date on the Northern Zone Deeps have been broad spaced (Figure 4). Geological interpretations from the recent drilling indicate the drilling direction has not conclusively tested the style and nature of the gold mineralisation observed in drill core. The Company is now planning a diamond drill program with an optimal drill direction to effectively test the style of mineralisation observed. Figure 4: Isometric View of Northern Zone Induced Polarisation Chargeability Shells (8 mv/v) in green, Gold Grade Shell (0.5 g/t) displayed in red, near surface drill traces shown in grey, diamond holes BNDH066 and BNDH079W1 drill traces shown in red. BNRC034 BNDH079W1 1.59g/t BND004 BNDH g/t Multiple Gold Intercepts Refer Table m Page 5 of 8

6 Table 1: Northern Zone Deeps Two Hole Diamond Drilling Intercept Summary Hole ID Co ordinates * Total From To Down Hole Grade Northing Easting Depth (m) (m) Interval (m) (g/t) BNRC Incl Incl Incl Incl BND Incl Incl Incl Please Note: Drillhole coordinates provided in MGA9: holes were angled 60 o towards 090 o Magnetic. Sampling was conducted on either geological boundaries or 1 metre intervals and assayed using a total digest of a 40g charge by fire assay method. Reported intercepts are based on a 0.1 g/t lower cut off grade with a maximum of three samples included which record lower than 0.1 g/t Au. PO Box 1007, Scarborough WA 6922 : Suite 24, Level 3, 25 Walters Drive Osborne Park WA admin@northernmining.com.au : Website Telephone (08) : Facsimile (08) ABN: Page 6 of 8

7 SNAKE HILL PROSPECT, WESTERN AUSTRALIA Assay results for the diamond hole completed at Snake Hill in July 2012 have been received. As discussed in the June 2012 Quarterly Report, the diamond hole, in conjunction with the maiden 3 RC drillhole program, was designed to confirm the geological interpretation. The diamond hole encountered a deep weathering profile (185 metres below surface) before intersecting highly altered ultramafic lithologies and passing into a lesser altered felsic volcaniclastic sequence, however, no significant results were recorded. The deep weathering profile encountered in both RC drillhole SHRC004 and diamond hole SHD003 (Figure 5) is believed to be the result of preferential weathering along a significant structure on, or adjacent to the ultramafic/felsic volcaniclastic contact. The presence of a significant structure, the intense mineral alteration observed in drillcore, coincident with bedrock gold anomalism identified in RAB drilling, indicates that the Snake Hill prospect is a significant gold mineralised area. Based on the information obtained from the diamond drillhole, planning has now commenced for a RC drill program to evaluate the 1,500 metre long RAB bedrock gold anomaly. Figure 5: Snake Hill Prospect Drill Section mN Page 7 of 8

8 The Snake Hill Prospect is located 7 kilometres west of Northern Mining s George s Reward deposit and is considered highly prospective for gold mineralisation with extensive surficial gold anomalism (3.0 kilometres long x 1.5 kilometres wide gold in auger geochemical anomaly), coincident with the regional scale Mt Monger Fault and subsidiary structures (Figure 5). Figure 5: East Kalgoorlie JV Location Map BACKGROUND OF THE EAST KALGOORLIE PROJECT The East Kalgoorlie Project = 35 licences comprising 21 licences JV NMI 76%, Balagundi Gold 24%,14 licences NMI 100% The East Kalgoorlie Project comprises Blair North (George s Reward and Northern Zone), Snake Hill, Hake and Golden Ridge prospects situated 20 kms east-southeast of Kalgoorlie and the Kanowna Lights prospect situated 20 kms north-east of Kalgoorlie. All prospects are ideally located to key infrastructure and gold processing facilities. Greg Wilson Chief Executive Officer Competent Person Statements Information in this report that relates to Exploration Results is based on information compiled by Mr Greg Wilson, full time employee of Northern Mining Limited, who is a Member of The Australasian Institute of Mining and Metallurgy and who 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 Wilson consents to the inclusion in the report of the matters based on the information in the form and context in which they appear. Page 8 of 8