NORTHERN STAR SET FOR MORE GROWTH WITH COMPLETION OF CENTRAL TANAMI DEAL

Outstanding potential to increase current 1moz Resource;

Production set for 2017

Northern Star Resources (ASX: NST) is pleased to advise that it has completed settlement of the agreement with Tanami Gold under which Northern Star can progressively acquire a 60 per cent joint venture interest in the 2.7 million- ounce(1) Central Tanami Project.
Settlement follows the payment of A$20 million by Northern Star to Tanami Gold. This comprises a cash payment of A$11 million and the issue of 4.29 million Northern Star shares which have a value of A$9 million based on their five-day volume weighted average price prior to the ASX announcement of the deal on 26 February 2015.

ASX ANNOUNCEMENT

31 July 2015

Australian Securities

Exchange Code: NST

Board of Directors

Mr Chris Rowe

Non-Executive Chairman

Mr Bill Beament

Managing Director

Mr Peter O'Connor

Non-Executive Director

Mr John Fitzgerald

Non-Executive Director

Ms Liza Carpene

Company Secretary

Issued Capital Shares 600 million Options 4.3 million

Current Share Price A$2.08

Market Capitalisation

A$1.25 billion

Cash and Cash Equivalents

30 June 2015 - A$178 million

Level 1, 388 Hay St

Subiaco WA 6008

T +6 8 6188 2100

F +6 8 6188 2111

E [email protected]

www.nsrltd.com

ABN: 43 092 832 892

As a result of this payment, Northern Star now has a 25 per cent interest in the
Central Tanami Project.
Northern Star can increase its stake from 25 per cent to 60 per cent by sole funding the expenditure required to bring the existing processing plant back into commercial production (see ASX release dated 26 February 2015 for full details of the agreement).
Northern Star has also granted Tanami Gold two put options to sell all its remaining interests in the Central Tanami Project ("CTP"):
a. the first put option grants Tanami the right to sell 15 per cent of CTP for A$20 million in cash or NST shares (valued at the 5 day VWAP prior to exercise) at Tanami's election, at any time up to the earlier of 30 calendar days following achievement of Commercial Production or three years after Completion. If Commercial Production is achieved more than three years after Completion, Tanami may exercise this option at any time up to
30 calendar days following achievement of Commercial Production; and
b. the second put option grants Tanami the right to sell the remaining 25 per cent of the CTP for A$32 million in cash or NST shares (valued at the 5 day VWAP prior to exercise) at Tanami's election any time up to six calendar months after the achievement of Commercial Production.
With the joint venture agreement now settled, Northern Star will proceed with its strategy to bring the Central Tanami Project back into production in 2017.
Central Tanami is an outstanding high-grade project which will form a key
part of Northern Star's pipeline of emerging production assets.
The flagship deposit at Central Tanami, Groundrush, produced 611,000oz at
4.3gpt over four years under Newmont's ownership. Current Resources at
Groundrush stand at one million ounces at 4.8gpt(2).
Northern Star's immediate objective is an aggressive drilling program to upgrade existing Resources and extend known mineralisation along strike and at depth at Groundrush to optimise mine designs and the refurbishment plan for the processing plant.
Northern Star Managing Director Bill Beament said he was confident Central
Tanami would quickly become a major low-cost producer with long mine life.
"I believe we will soon demonstrate that Central Tanami will be a low-cost
150,000ozpa producer" Mr Beament said.
"In the process, the project will help ensure Northern Star maintains its record
of strong production and outstanding Shareholder returns."

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ASX ANNOUNCEMENT - 31 JULY 2015

BILL BEAMENT Managing Director

Northern Star Resources Limited

Investor Enquiries:

Luke Gleeson, Investor Relations, Northern Star Resources Limited

T: +61 8 6188 2103

E: [email protected]

(1) The information is extracted from the Tanami Gold NL ASX announcement entitled "Quarterly Report for the Period Ending 31 March

2014" released on 1 May 2014 and is available to view on www.tanami.com.au. The Company 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. The Company 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.

(2) The information is extracted from the Tanami Gold NL ASX announcement entitled "Groundrush Deposit Update - Significant Growth In Measured and Indicated Mineral Resource and Increase In Resource Grade At Groundrush" created on 7 January 2013 and is available to view on www.tanami.com.au. The Company 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. The Company 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.

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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