NORTHERN STAR RESOURCES LTD — Capital/Financing Update 2012

Feb 20, 2012

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21 FEBRUARY 2012

Code: NST

Board of Directors

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----- Start of picture text ----- Managing DirectorMr Michael FotiosNon-Executive DirectorMr Peter FarrisNon-Executive DirectorMs Karen Brown----- End of picture text -----

Issued Capital

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----- Start of picture text ----- $1.085Market Capitalisation$382 millionCash/Bullion in Bank: Post Raising~$80 million----- End of picture text -----

Projects Commodities Paulsens gold Ashburton gold Range gold, silver Emull Zn, Cu, gold

Northern Star amasses ~$80m cash for growth after raising $45m in placement to leading institutions

Northern Star Resources (ASX: NST) is pleased to advise that it has raised $45.0 million (before costs) through a placement of 50.0 million shares at $0.90 per share ("Placement").

The Placement has been managed by Azure Capital Limited and is being made predominantly to a number of large London-based clients of Morgan Stanley Smith Barney. These institutional clients are some of Europe’s leading active asset managers.

The new shares will be allotted pursuant to the Company’s existing capacity under Listing Rule 7.1. On completion of the Placement Northern Star’s cash position will increase to approximately $80.0 million. The placement price represents an 8.6% discount to the Company's 30 day volume weighted average price of $0.98 per share.

This capital raising is consistent with the Company’s strategy of strengthening its institutional shareholder base and increasing its profile in financial markets.

These additional funds will give the Company a strong balance sheet with which to pursue its plans for increased production, aggressive exploration at its Paulsens and Ashburton gold projects in WA and to seize any acquisition opportunities as they arise.

Northern Star aims to lift production at Paulsens to 100,000ozpa by the end of 2012 (see today's separate ASX announcement). It is also undertaking studies and accelerated exploration at Ashburton with a view to establishing a stand-alone 100,000ozpa operation.

Northern Star's largest shareholders, InvestMet Limited and entities associated with Michael Fotios intend to reduce their holdings as part of this process to enable the large institutional investors to obtain their desired holdings in the Company. As a result, InvestMet's shareholding is expected to decrease to approximately 10% and Mr Fotios to 4% after option exercise.

Northern Star Managing Director Bill Beament said the very strong demand for the raising among some of the world's leading institutions reflected their view of the Company's outstanding growth prospects.

"This outcome is a huge vote of confidence in our strategy to use Paulsens as the foundation on which we can build a substantial mining house," Mr Beament said.

ASX ANNOUNCEMENT 21 FEBRUARY 2012

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.

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

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