N E W S
• R E L E A S E •

FOR IMMEDIATE RELEASE
Tuesday August 18, 2009

NEW LIFE FOR TWO VICTORIAN GOLD MINES AS

OUTPUT-RESERVES LIFT UNDER NEW OWNER

The new owners of two of Victoria"s gold mines - Fosterville and Stawell - have projected higher total production for calendar 2009 of 206,500 ounces under a turnaround program to maximise the performance of both sites.

Addressing the second day in Melbourne of the Paydirt 2009 Resources Victoria Conference, Northgate Minerals Corporation"s Executive General Manager Mr Luc Guimond, said today there had been a successful operational turnaround at both mines with improving productivity and lowering costs since the Company"s acquisition of the mines in February last year.

"Under the previous ownership, both mines were undercapitalised which prevented them from operating efficiently and from developing additional reserves through exploration in what is a prolific gold mining region," Mr Guimond said.

"The turnaround at Fosterville particularly has generated higher gold recoveries year over year while at Fosterville, cash costs have come down and trending downwards by the opening quarter of 2009," he said.

"Fosterville has delivered around 25,500 ounces for each of the opening quarters and we are expecting around 31,000 ounces for the current September quarter and around the same for the final December period for a total of 110,000 ounces at an average cost of $500 an ounce.

"We expect much the same for this full year for Stawell which generated 22,392 ounces in the March quarter, 20,066 in the June period, and we expect around 24,000 ounces this quarter building to 30,000 in the final period for a year total of 96,500 ounces at $510 an ounce."

Mr Guimond said gold recoveries at Fosterville had moved to 86% from 65% in the opening half of last year with a dramatic decline in cash costs - from $1,207 an ounce to $483 currently.

"We are looking to push that to 90% recovery levels with new systems and equipment contributing to the mine"s increasing production profile."

On Fosterville, Mr Guimond said the mine was a 1700 hectare mining lease and there was potential for primary sulphide mineralisation under 21 previously mined open pits, with a drilling program instigated last year already adding 150,000 Measured and Indicated resources at 4.01 grams per tonne Au.

Further infill drilling work would continue to explore the full extent of the mine, particularly the Harrier and Osprey gold lenses.

The Harrier deposit is potentially scheduled for mining and production by 2012.

Northgate has also invested in infrastructure and equipment for the Stawell mine - lifting mine life by a further 18 months, easing cash costs from $596 to $515 an ounce currently, and improving mine productivity to 2,016 tonnes per day ore milled (tpd) from 1,855 tpd previously.

The Company is also currently elevating the height of Stawell"s existing tailings dam to extend the mine"s capacity by five years.

"We have taken Stawell from closure mode to renewed life and will continue to target an increase in reserves in the Golden Gift ore bodies and Magdala trend as there is potential to find additional reserves that can be mined at low development costs."

MEDIA CONTACT:

Kevin Skinner
Field Public Relations
0414 822 631