NORTHERN STAR RESOURCES LTD — Capital/Financing Update 2012

Mar 28, 2012

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High-grade results from new deposit at Paulsens Project 6m at 17gpt gold and 175gpt silver highlights potential for nearmine exploration to help underpin planned production increase

Highlights

29 MARCH 2012

Code: NST

Board of Directors

• High-grade gold and silver results received at the Belvedere Prospect, part of Paulsens Gold Project

• Belvedere located just 8km south-east of Paulsens processing plant

• Significant results include:

• 9m at 12.7 g/t Au and 124 g/t Ag Inc 6m at 17.0 g/t Au and 175 g/t Ag

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Managing Director
Mr Michael Fotios
Non-Executive Director
Mr Peter Farris
Non-Executive Director
Ms Karen Brown
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Issued Capital

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$0.87
Market Capitalisation
$350 million
Cash/Bullion in Bank: 06 Mar 2012
$80 million
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Projects Commodities

Zn, Cu, gold

• 3m at 3.7 g/t Au

• Geological setting very similar to Paulsens deposit

• Latest intercepts highlight strong potential to grow maiden 18,000oz[1] gold resource at Belvedere

• Belvedere drilling part of wider near-mine exploration program underway at Paulsens Project

• Minimal exploration undertaken within 50km radius of Paulsens mine

Northern Star Resources (NST) is pleased to announce that it has taken another key step towards growing resources and production at its Paulsens Gold Project in WA with drilling at a relatively new deposit returning high-grade gold and silver results.

The intersections at the Belvedere deposit, which is located just 8km from the Paulsens processing plant, include 9m at 12.7gpt gold and 124gpt silver, including 6m at 17gpt and 175gpt silver. The drilling intersected a shallow plunging quartz vein which remains open down plunge.

The drilling at Belvedere is part of Northern Star's $20 million exploration program, which is designed to increase the Company's resource and reserve base both at Paulsens and the neighbouring Ashburton gold project.

Northern Star has previously announced plans to grow production at Paulsens from ~80,000ozpa to 100,000ozpa by the end of 2012. This strategy involves increasing the plant throughput capacity to 0.45Mtpa and growing the existing 318,000oz[1] resource base at and around the Paulsens mine.

ASX ANNOUNCEMENT 29 MARCH 2012

The exploration campaign is focused on the key Voyager 1 and Voyager 2 lodes at Paulsens mine, the potential to replicate Paulsens on the other side of the bounding gabbro rock unit and the green and brownfields prospects within a 50km radius of the mine, including Belvedere.

At the same time as it pushing towards the 100,000ozpa production target at Paulsens, Northern Star is progressing plans to establish a 100,000ozpa stand-alone sulphide operation at Ashburton. Ashburton has resources of 668,000oz[2] , including free-milling and sulphide ore.

Northern Star Managing Director Bill Beament said the latest results from Belvedere supported the Company's view that the area surrounding the Paulsens mine was highly prospective.

"We are confident that we can grow resources at the Paulsens mine, which is continuing to generate significant high-grade results, on the other side of the gabbro immediately next door and in the wider surrounding areas at prospects such as Belvedere," Mr Beament said.

"We have allocated $20 million this year alone to increasing resources at Paulsens and Ashburton as part of the Company's strategy to grow total production to 200,000ozpa, providing a huge lift in mine life and cashflow in the process."

The Belvedere prospect occurs in the Wyloo Dome, situated within Fortescue Group mafic volcanics and sediments. Locally, rock types include basalt, dolerite, sandstone and conglomerate.

Gold mineralisation at Belvedere is hosted by quartz veins which outcrop. Rock chips taken by previous explorers returned maximum values of 31.5gpt gold and 763gpt silver. Small scale historical workings have taken place to shallow depths.

Previous exploration drilling down-dip and along strike of the old workings returned high grade gold intercepts including 8m at 7.2gpt from 26m, 8m at 6.2gpt from 5m and 7m at 6.5gpt.

A maiden Resource for Belvedere of 168,000t at 3.3g/t for 18,000oz[1] gold was recently announced by NST (ASX announcement 21 February 2012).

Recent RC drilling at Belvedere was focused on mineralisation down-dip and along strike of known goldbearing quartz veins. Significant assay results included;

• 9m @ 12.7 g/t Au & 124 g/t Ag from 73m (PBERC0021)

• Including 6m @ 17.0g/t Au & 175g/t Ag from 75m;

• 3m @ 3.7 g/t Au from 75m (PBERC0010)

Drilling targeted down dip extensions to the orebody. Results show there is a high grade plunge component to the mineralisation (see Figure 1) . This has similarities to the Paulsens Gold Mine orebody, where gold is contained within a plunging quartz vein system. Other geological similarities are high gold grades, quartz vein-sulphide host, location near the fold hinge and proximity to key structures.

This drilling has extended mineralisation by approximately 60m down-plunge, giving a total plunge length of 140m from surface. The mineralisation remains open down-plunge and further drilling is planned.

Yours faithfully,

Bill Beament Managing Director

24 Mumford Place, Balcatta WA 6021 Tel: +6 8 6241 1866 Fax: +6 8 6241 1811

Email: info@nsrltd.com Website: www.nsrltd.com

ASX ANNOUNCEMENT 29 MARCH 2012

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Figure 1 - Plan and long section of Belvedere gold mineralisation.

24 Mumford Place, Balcatta WA 6021 Tel: +6 8 6241 1866 Fax: +6 8 6241 1811

Email: info@nsrltd.com Website: www.nsrltd.com

ASX ANNOUNCEMENT 29 MARCH 2012

Drill Hole # PBERC0001 PBERC0002 PBERC0008 PBERC0010 PBERC0021	Northing (MGA94)	Easting (MGA94)	Azimuth (magnetic, degrees)	Dip (degrees)	Downhole From (m)	Downhole To (m)	Downhole Intersection (m)	Au (g/t) Uncut
	7498894	427054	130	-60	101	102	1	1.5
	7498923	427062	140	-60	108 134	109 135	1 1	1.3 2.0
	7498863	427061	130	-60	97	100	3	1.8
	7499076	427034	040	-60	75	78	3	3.7
	7498847	427082	130	-60 including	73 75 87	82 81 89	9 6 2	12.7 17.0 3.5

Table 2. Assays >=1g/t Au reported; uncut, 2m maximum internal dilution, rounded to 0.1g/t. Intervals are downhole length, Metres are from surface (AHD). 1m sample collected from static cone splitter. Analysis by 50g Fire Assay, ICPOES finish.

Competent Persons Statements

The information in this report that relates to Exploration Results is based on information compiled and reviewed by Jason Boladeras, who is a Member of the Australian Institute of Geoscientists(AIG) and Exploration Manager and casual employee of Northern Star Resources Limited. Mr Boladeras has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he has undertaken, 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 this announcement of the matters based on this information in the form and context in which it appears.

The information in this announcement that relates to the Belvedere Prospect mineral resource estimation, exploration results, data quality, geological interpretations and potential for eventual economic extraction, 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 Persons as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Ekers consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears.

31 December 2011	Measured	Measured	Indicated	Indicated	Inferred	Inferred	Total	Total	Total
	Tonnes (,000)	Grade (g/t)	Tonnes (,000)	Grade (g/t)	Tonnes (,000)	Grade (g/t)	Tonnes (,000)	Grade (g/t)	Oz Au (,000)
Open Pit			573	2.5	169	2.5	742	2.5	61
Paulsens Upper Levels			136	7.1	32	5.0	168	6.7	36
Voyager 1	57	11.1	318	8.9	101	15.5	476	10.5	161
Paulsens Stockpiles									5
Belvedere			45	2.8	123	3.5	168	3.3	18
Merlin					523	1.4	523	1.4	24
Mt Clement JV					226	1.8	226	1.8	13
Total	57	11.1	1073	5.0	1174	3.2	2304	4.3	318

1Table 1 - Paulsens Resources @ 2.5g/t Au Lower Cut-Off Underground and 1.0g/t Au Lower Cut-Off Open Pit

	Measured	Measured	Measured	Indicated	Indicated	Indicated	Inferred	Inferred	Inferred	Total	Total	Total
	Tonnes (,000)	Grade (g/t)	Oz Au (,000)	Tonnes (,000)	Grade (g/t)	Oz Au (,000)	Tonnes (,000)	Grade (g/t)	Oz Au (,000)	Tonnes (,000)	Grade (g/t)	Oz Au (,000)
Oxide and **Transitional **	611	2.40	47	342	2.52	28	237	2.28	18	1,189	2.41	92
Sulphide	901	2.83	82	1,070	2.66	92	3,984	3.14	402	5,956	3.01	576
Total	1,512	2.66	129	1,412	2.63	119	4,221	3.09	420	7,145	2.91	668

2 Table 2 - Ashburton Resources @ 0.9g/t Au Lower Cut-Off

24 Mumford Place, Balcatta WA 6021 Tel: +6 8 6241 1866 Fax: +6 8 6241 1811

Email: info@nsrltd.com Website: www.nsrltd.com