NORTHERN STAR RESOURCES LTD — M&A Activity 2018

Mar 7, 2018

NORTHERN STAR AGREES TO ACQUIRE SOUTH KALGOORLIE OPERATIONS FROM WESTGOLD

Purchase will help underpin strategy to organically grow production to 300,000ozpa at Northern Star’s Kalgoorlie operations

Northern Star Resources (ASX: NST) is pleased to advise that it has agreed to acquire Westgold Resources’(ASX: WGX) South Kalgoorlie Operations for a total consideration of A$80 million.

The acquisition comprises the project’s operating processing facility, which has an annual throughput capacity of 1.2 million tonnes, a JORC Resource of 4Moz, including 250,000oz in Reserves, and 800sqkm of prospective gold tenure[1] .

ASX ANNOUNCEMENT 08 March 2018

Australian Securities Exchange Code: NST

Board of Directors

Mr Bill Beament Executive Chairman

Mr Chris Rowe Non-Executive Director

Mr Peter O’Connor Non-Executive Director

Mr John Fitzgerald Non-Executive Director

Ms Shirley In’tVeld Non-Executive Director

Mr David Flanagan Non-Executive Director

Issued Capital

Shares 603.2 million Options 0.8 million Performance Rights 10 million

Current Share Price A$6.63

Market Capitalisation A$4 billion

Cash, Bullion & Investments 31 Dec 2017 - A$433.1 million

South Kalgoorlie Operations, which is located 50km from Northern Star’s Kundana operations (see Figure 1), is currently producing at the rate of 30,000-40,000ozpa. The plant is also toll-treating ore for third parties.

Under the agreement, Northern Star will pay Westgold A$80 million, comprising 9.5 million Northern Star shares at a ten-day VWAP of $6.30 per share, representing a total of A$60 million in NST shares and A$20 million in cash.

Northern Star Executive Chairman Bill Beament said the acquisition would be an economical means of ensuring the Company met its 300,000ozpa production target from organic sources at its Kalgoorlie Operations.

The transaction would also provide an outstanding example of how gold companies can work together to rationalize their operations, generate economies of scale and ultimately increase returns for both groups of shareholders.

“Our highly successful exploration strategy in Kalgoorlie has generated huge growth in our inventory and paved the way for us to grow production there to 300,000ozpa,” Mr Beament said.

“To capitalise on this success, we were considering the option of expanding our Kanowna Belle facility.

“However, the South Kalgoorlie Operations purchase will enable us to achieve our organic growth target in a more timely and economical fashion and at the same time provide us with significant exploration potential, including a Resource inventory.

“The 1.2Mtpa South Kalgoorlie processing facility is one of the best-run facilities in the district and is well within trucking distance of our Kundana Operations.”

Settlement of the transaction is due for completion on 01 April 2018.

Projects

Paulsens Mine Kanowna Belle Mine Kundana Mine Kundana Mines (51% of EKJV) Jundee Mine Central Tanami (25% of JV) Western Tanami

Listed Investments

1 The information is extracted from the report entitled ‘2017 Annual Update of Mineral Resources & Ore Reserves’ created on 4 September 2017 and is available to view on Westgold Resources Limited’s website (www.westgold.com.au) and the ASX (www.asx.com.au). Northern Star confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. Northern Star confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

ASX: VXR, DAU, RND, TBR, ALY, EAR TSX[-] V: SGI

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ASX ANNOUNCEMENT – 08 MARCH 2018

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Figure 1 – Kalgoorlie Operations Location Plan including 100% NST Kundana, EKJV and newly acquired South Kalgoorlie Operations

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BILL BEAMENT Executive Chairman Northern Star Resources Limited

Investor Relations Enquiries: Luke Gleeson Northern Star Resources Limited T: +61 8 6188 2103

E: lgleeson@nsrltd.com

Media Enquiries: Paul Armstrong Read Corporate T: +61 8 9388 1474 E: paul@readcorporate.com.au

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ASX: NST

ASX ANNOUNCEMENT – 08 MARCH 2018

Competent Persons Statements

The information in this report that relates to Exploration Results, Mineral Resources and Ore Reserves is based on information compiled by Mr Jake Russell B.Sc. (Hons) MAIG, Mr Paul Hucker B. Eng (Hons) MAusIMM and Mr Anthony Buckingham B.Eng (Mining Engineering) MAusIMM. All have sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activities which they are undertaking to qualify as a Competent Person as defined in the 2012 Editions of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC 2012)”. All consent to the inclusion in this report of the matters based on his information in the form and context in which it appears. All are full time senior executives of Westgold Resources Limited and are eligible to, and may participate in short-term and long-term incentive plans of Westgold Resources Limited as disclosed in its annual reports and disclosure documents.

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.

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ASX: NST