Highly Successful Blair North Drilling Programme Completed

Assays confirm extension of significant gold mineralisation and indicate new, near surface nickel sulphide occurrence in E25/268

Aeromagnetic survey and diamond drilling programmes planned

GOLD HIGHLIGHTS:

?                     Southern Zone: Lower Lode up to 100m long, up to 25m wide; Upper Lode up to 80m long

?                     Northern Zone: Significant gold mineralisation up to 39.82g/t gold

NICKEL HIGHLIGHTS:

?                     Significant nickel intersections indicate new, near surface nickel sulphide occurrence

?                     Nickel sulphides up to 4.4%

EAST KALGOORLIE PROJECT, WA

(Northern Mining earning 75%,

Cazaly Resources 25%, ASX: CAZ)

The 3,750m reverse circulation (RC) drilling programme at the Company?s East Kalgoorlie Project has successfully tested gold targets at the Blair North (E25/268), Snake Hill (P25/1800 and P26/3206) and Hake (P25/1663) Prospects, together with a massive nickel sulphide target at Blair North Prospect (E25/268).  The programmes were designed by and supervised by Newexco Services Pty Ltd (Newexco).

E25/268 GOLD:

The focus of the drilling programme was to delineate extensions to two previously identified gold targets; BNRC010 in the south and BNRC017 in the north of E25/268, which recorded encouraging gold assays from an RC drilling programme undertaken in early 2008 (refer Quarterly Report to ASX June 2008).

Gold assays confirm the extension of significant mineralisation at the southern zone of E25/268 (BNRC010 locality) with values up to 34.55g/t Au (Table 1).

These results demonstrate a main Lower Lode up to 100 metres long and up to 25 metres wide, located up dip from and including hole BNRC010, together with a thinner Upper Lode up to 80 metres long (Figure 1).

Drilling on sections 6590275N and 6590325N, located 50 metres and 100 metres to the north respectively (of the southern zone), encountered only minor gold intersections, suggesting that the mineralisation may be striking to the northeast rather than to the north, or may be offset by a crosscutting structure (refer Figure 4).

Table 1:  Significant Gold Results ? Follow-up RC Drilling at BNRC010 Locality (July 2008)

Northern Mining Chairman Alan Lockett commented ?the results from this recent round of drilling have confirmed the Company?s view that there may be a significant gold mineralized system in the southern zone of our Blair North Project. The area lies just north of Southern Gold?s Cannon prospect which was recently reported as being a broad, low grade, zone of mineralisation. The Blair North Prospect will continue to be a major focus for the Company moving forward?. 

Gold assays have also confirmed the existence of significant mineralisation at the northern zone (BNRC017 locality), with values up to 39.82g/t Au (Table 2, Figure 2). The high grade gold intersected in BNRC017 and BNRC033 occurs in highly weathered bedrock just beneath the base of transported overburden, and is probably the result of local supergene enrichment. This area of mineralisation remains open to the north and south (refer Figure 4)

An aeromagnetic survey is planned for the near future, followed by diamond drilling to gain a better understanding of the structural and lithological controls for the gold mineralisation.

E25/268 NICKEL:

RC drill testing of a massive nickel sulphide target, identified from a downhole TEM survey undertaken in hole BNRC008 earlier in the year, intersected significant nickel sulphides, assaying up to 4.4% Ni, in two of three holes drilled in the programme (Table 3, Figure 3)..

Table 3:  Significant Nickel Results ? RC Drilling of Nickel Sulphide Target (July 2008)

These results indicate the discovery of a new, near surface, nickel sulphide occurrence with the intersection of 1 metre @ 1.77% Ni in BNRC036 occurring approximately 30m up dip from the intersection of 8 metres @ 1.84% Ni in BNRC019. Identification of primary and supergene sulphides is based only on visual inspection of drill cuttings on site. The nickel sulphide occurrence remains open along strike (Figure 4).

Diamond drilling is planned to delineate the extent of this nickel sulphide occurrence, and to gain a better understanding of the stratigraphic and structural setting of the mineralisation.

EAST KALGOORLIE PROJECT, WESTERN AUSTRALIA

SNAKE HILL PROSPECT: P25/1800, P26/3206

(Northern Mining earning 75%, Cazaly Resources 25%, ASX: CAZ)

RC drilling to test historic low grade gold rotary air blast (RAB) anomalies has confirmed the presence of low grade gold mineralisation in metasedimentary rocks at Snake Hill (Table 4). These results are being assessed in a regional context with further work programs being planned.

Table 4:  Significant Gold Results ? RC Drilling, Snake Hill Prospect (July 2008)

HAKE PROSPECT: P25/1663

(Northern Mining earning 75%, Cazaly Resources 25%, ASX: CAZ)

RC drilling to test gold mineralisation intersected in historic drilling, failed to duplicate the high gold values (best intersections of 1 metre @ 23.45g/t Au and 1m @ 12.67g/t Au) reported by earlier explorers.  However, the drilling was successful in demonstrating low grade gold mineralisation associated with quartz veining occurring in altered mafic rocks beneath shallow old workings (Table 5). A comprehensive review of the potential of this prospect will be undertaken prior to further drilling being undertaken. 

Table 5:  Significant Gold Results ? RC Drilling, Hake Prospect (July 2008)

Craig Dawson

Managing Director

Information in this announcement that relates to Exploration Results is based on information compiled by Adrian Black, Newexco Consulting Geologist, who has sufficient experience which is relevant to this style of mineralization 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?. Adrian Black as an independent consultant to Northern Mining Limited and is a member of the Australasian Institute of Geologists  and consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

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