Northern Freegold Reports Initial One Million Ounce Gold Resource

at Nucleus Zone at Freegold Mountain Project, Yukon

Vancouver, BC: July 27, 2009.  Northern Freegold Resources Ltd. (NFR: TSX-V) is pleased to announce the results from the initial NI 43-101 mineral resource estimates for the Nucleus and Tinta Zones and a project update on the district scale 166 square kilometer Freegold Mountain Project in the Yukon Territory. 

Freegold Mountain Project Highlights

Nucleus Zone

• NI 43-101 Inferred Resource of 1,082,000 contained ounces of gold within 67.57 million tonnes @ 0.50 g/t gold (0.3 g/t cutoff) within Nucleus Zone
• Nucleus Zone open to expansion in all directions and to depth
• 3-D geologic modeling has identified important new east-west structures  associated with mineralization in the Nucleus Zone, with significant implications for expansion of gold mineralization to the Revenue Zone, 4 km to the east

Tinta Zone

• NI 43-101 Inferred Resource of 70,000 contained ounces of gold, 2,010,000 ounces of silver, 8,000,000 lbs of copper, 25,700,000 lbs of lead and 42,800,000 lbs of zinc within 1,390,0000 tonnes at 1.62 g/t gold (0.3 g/t cutoff), 44.93 g/t silver, 0.26% copper, 0.84% lead, 1.04% zinc  within Tinta Zone
• Tinta Zone vein system remains open along strike and to depth

Road accessible district scale project (166 sq km) located in stable Canadian mining friendly jurisdiction with only 2% of the project drill tested.

­­­­­­­­­­­­­­Bill Harris, CEO & COO commented "We arepleased with this first fully compliant NI 43-101 resource calculation and deposit model particularly with the new recognition of the higher grade east-west trending mineralization and its implications that the Nucleus Zone is part of a substantially larger mineral system on the property. We see this initial resource estimate as a great starting point for the project and we believe it demonstrates the potential for a major gold system at Freegold Mountain. The exploration program currently underway has been designed to further confirm the newly recognized controls to higher grade mineralization and to test the potential for expansion of the Nucleus Zone along the mineralized trend."

Nucleus Zone

The main objective of the Company's drill program in 2008 was to confirm and expand historical results on a bulk tonnage, potentially open-pitable intrusion related gold mineralized system. At the Nucleus Zone, the resource is open for further expansion in all directions and to depth and geologic modeling  shows east-west oriented  gold mineralization that may be related to the mineralization at the Revenue breccia zone 4 kilometers to the east (see attached map).

The new geological model for the initial resource estimate  in the Nucleus Zone demonstrates a higher-grade east-west component for the gold mineralization which is parallel to a series of mineralized intrusive dykes and sulphide replacement zones and a broad, north-south component of more disseminated gold mineralization. An initial set of drill holes designed to test the higher grade east-west component of gold mineralization is confirming the model and expanding the continuity of structures controlling the higher grade gold mineralization. To further test and potentially expand the initial NI 43-101 compliant inferred resource, Northern Freegold has designed a 12,000 m multi-faceted Diamond drill program to:

• Confirm the new geological model which could potentially lead to discovery of additional higher grade mineralization
• Target lateral and vertical extensions of high grade mineralization intersected in 2008 (such as Hole GR08-099 which intersected 9.36 m of 70.19 g/t gold including 1.27m of 410.00 g/t gold - news release January 14, 2009)
• Step out to follow up on geochemical and/or geophysical anomalies and targets generated by previous/ongoing drilling to extend Nucleus Zone mineralization which is open in all directions and to depth.

G&T Metallurgical Services Ltd. has been commissioned by the Company to conduct preliminary gold recovery metallurgical testing  on separate composite bulk samples from selected drill holes (>70kg each) representing the lower grade and higher grade material. The metallurgical testing will involve gravity and bottle roll cyanidation tests on each composite to determine the proportion of gold that can be recovered by gravity followed by the proportion of gold that can be recovered by cyanide leaching at different grinding sizes and different cyanide concentrations.

In conjunction with the Diamond drill program, the Company has initiated a rotary air blast (RAB) drill program to further refine potential Diamond drill targets along the Nucleus-Revenue mineralized trend.  In 2008, RAB drilling lead to step out Diamond holes to the west which intersected 4.0 m of 68.95 g/t gold including 0.96 m of 256.00 g/t gold (news release March 26, 2009).  An initial 2,000 m RAB drill program is underway to test potential expansion of gold mineralization to the west of the Nucleus Zone.

Geological teams are conducting geological mapping, stream sediment sampling and have re-logged historic drill holes focused along the 4 kilometer trend encompassing the Nucleus and Revenue Zones.  Preliminary results from this detailed surface mapping, incorporated with existing geophysical, geological and geochemical data indicate a potential link between the mineralization at Nucleus with the geochemical anomaly and mineralization at Revenue.  Additional ground geophysics is being planned to further support and refine drill targets along this trend (see attached map). The recognition in the geologic modeling of the importance of the east-west orientation for higher-grade mineralization supports the view that the recognized mineral occurrences on the Freegold Mountain property are related and form part of a much larger system than previously recognized.

Approximately 6,114 m of the 2009 Diamond drill program has been completed to date in 24 holes. These holes have been confirming the new geologic model especially the east-west control on higher-grade mineralization.  Upon receipt of all assays at the end of the field season, an updated geological model will be completed in preparation for an updated resource estimate.

Tinta Zone

The Tinta Zone located within the eastern portion of the Freegold Mountain Project, 20 km from Nucleus, is dominated by northwest-trending, sub-vertical quartz-carbonate-sulphide veins containing gold, silver, copper, zinc and lead mineralization. The main vein zone at Tinta has been mapped for over 1,600 metres strike-length and has two historic underground levels that were developed but never put into production. The main focus of the drill program at Tinta was to confirm and expand historical results within a previously explored 700 metre central segment of the Tinta vein along strike, and to increase the known mineralization down to 300 metres depth.  The vein system identified to date is a steeply dipping, low sulphidation, epithermal, polymetallic system that would likely be amenable to  underground mining .

Geologic Modeling and Resource Estimate

Nucleus Zone

The inferred mineral resource estimate for the Nucleus Zone covers an area of approximately two square kilometres and is based on 167 drill holes totaling 28,974 metres and included 2006, 2007 and 2008 Diamond drill holes completed by NFR as well as historical drill hole data.

The geological model differentiated higher grade skarn zones from medium grade mineralized faults and dykes from lower grade background mineralization.  Statistically, each of the geological volumes was treated independently with individual capping grades applied to erratic higher grade gold values.

Variogram modeling was done using 5 metre composites. Bulk density was established by estimating the volume of 3,008 weighed core samples.  In the model, blocks with dimensions of 10 x 10 metres horizontal and 5 metres vertical were estimated by ordinary kriging. The global resource estimate is given in Table 1. The resource is open in all directions and to depth, indicating possible potential for increase in the resource.

Table 1:  Nucleus Inferred Resource

Tinta Zone

The inferred mineral resource estimate for the Tinta Zone covers an area approximately 700 m long and up to 20 m wide and is based on 83 drill holes totaling 9,824 metres and drift/portal development  over 941 metres and included 2007 and 2008 Diamond drill holes completed by NFR as well as historical drill hole data.

The geological model differentiated the vein system into 3 separate veins.  Statistically, the vein  volumes had capping grades applied to the gold, silver, copper, lead and zinc values.

Variogram modeling was done using 2 metre composites. Bulk density was established by estimating the volume of 599 weighed core samples.  In addition, 60 samples were sent to ALS Chemex who used the GRA08a method (meaning they were waxed).  The overall results from the field compared well with overall average from the lab.  Specific gravity showed a direct correlation to the sulphide content.  In the model, blocks with dimensions of 10 m along strike, 5 m across dip and 10 m down dip were estimated by ordinary kriging. The global resource estimate is given in Table 2 below.

Table 2:  Tinta Inferred Resource within Vein Boundaries

The Tinta Vein system remains open along strike in both directions and to depth.  Surface work including stream sediment sampling and mapping is ongoing at Tinta in 2009.

Qualified Person and Quality Control/Quality Assurance

The current work program at Freegold Mountain is supervised by Dr. Fabrizio Colombo, P.Geo.,  Exploration Manager for NFR including the quality control/quality assurance program.

All core samples from Diamond drilling completed by Northern Freegold between 2006 and 2008 followed NI 43-101 approved QA/QC protocols including blanks, commercial standards and duplicate core samples.  Samples were split and sent to EcoTech Lab in Whitehorse for sample preparation and then to EcoTech Laboratory in Kamloops for analysis.  Check samples were sent to ALS Chemex in Vancouver.  Historical drill hole data included in the NI 43-101 resource calculation were drilled before the implementation of NI 43-101 standards. 

Mr. Gary Giroux, MASc., P. Eng (B.C.), a consulting geological engineer has acted as the Qualified Person, as defined in NI 43-101, for the mineral resource estimate component of the technical report. Mr. Giroux is independent of the Company under NI 43-101.

Ms. Anna Fonseca, M.Sc., P. Geo (B.C.), a consulting geologist, has acted as the Qualified Person, as defined in NI 43-101 for the all components of the technical report except for the mineral resource estimate.  Ms. Fonseca is independent of the Company under NI 43-101.

The NI 43-101 report entitled "Technical Report on Freegold Mountain Property, Dawson Range, Yukon"  by A. Fonseca, P. Geo. and G.H. Giroux, P. Eng, will be finalized and filed on SEDAR within 45 days of the date of this news release.

About the Freegold Mountain Project

The road accessible Freegold Mountain Project is located 200 km northwest of Whitehorse, the capital of the Yukon and is situated within an active exploration and mining area in the Tintina Gold Belt of the Yukon which includes the producing Minto Mine of Capstone Mining Corp. to the north, Casino Deposit and Carmacks Copper Deposit of Western Copper Corporation to the west and east, and the White Gold Property of Underworld Resources to the northwest.  NFR controls 166 square km (64 square miles) within the district scale Freegold Mountain Project. Within the project expanse are at least 20 identified mineralized zones, including the Nucleus, Revenue and Tinta.  Many of the additional prospects on the Freegold Mountain Project are discussed in the full 43-101 technical report.

The Freegold Mountain Project is well situated within the stable, mining supportive jurisdiction of the Yukon. In 2003, control of resource management and development was devolved from the federal Canadian Government to the Territory.  Decisions on resource development in the Yukon are now made in the Yukon.  As a result of the Umbrella Final Agreement which provides a template for settlement of First Nation Land Claims in the Yukon, a single assessment approach has been developed for projects

and activities in the Yukon, including resource projects.  The Yukon Socioeconomic Environmental Assessment Act was developed in conjunction with First Nation and Yukoners.  Eleven of the 14 First Nations in the Yukon have settled their Land Claim negotiations.  The Freegold Mountain Project is located within the traditional territories of two settled First Nations: Little Salmon Carmacks First Nation and the Selkirk First Nation.  

The Freegold Mountain Project is located on the Freegold Mountain Road, a government maintained gravel road. The Freegold Road connects to the Klondike Highway, an all weather paved highway, which connects to Whitehorse, the capital of the Yukon, and the major supply centre for the Yukon.  Powerlines located along the Klondike Highway are at present 30 km from the Freegold Project boundary.  The Carmacks Copper deposit will require a 12 km power line to connect to the power grid along the Klondike Highway.  From this location, the power line would be within 7 km of the Freegold Mountain project boundary.

Other projects in the Tintina Gold Belt are the producing Fort Knox mine operated by Kinross Gold and the recently discovered Livengood Project of International Tower Hill Mines Ltd., both located in Alaska. The open-pit Fort Knox mine contains proven and probable resources of 252.8 Mt at an average grade of 0.47 g/t gold as of December 31, 2008 (www.kinross.com).  Fort Knox is currently commissioning a run of mine heap leach facility to complement their current milling operations.  In 2008, the Fort Knox Mine produced 329,105 ounces of gold.  The Livengood Project reported in June of 2009 an indicated resource of 235.0 Mt at an average grade of 0.69 g/t gold and an inferred resource of 280.6 Mt at an average grade of 0.59 g/t gold at a 0.3 g/t gold cutoff (www.ithmines.com).  Directly within the Freegold Mountain Project area, the Carmack Copper Deposit of Western Copper Corporation has received its permits and the Casino Deposit (4.4 billion lbs copper, 8.0 million ozs gold and 475 million lbs molybdenum) has entered into the Yukon Environmental Assessment Process (www.westerncoppercorp.com). These reserves and resources have not been verified by the qualified person and the information is not necessarily indicative of the mineralization at Freegold Mountain.

Northern Freegold is a well financed rapidly advancing Canadian-based precious metals exploration and development company, which brings local expertise and strong management to focus on the development of economic mineral resources on the district-scale Freegold Mountain gold and copper project in the Yukon and the Burro Creek gold and silver property in Arizona.

Northern Freegold Resources Ltd.

 On behalf of the Board of Directors

Signed "Susan P. Craig"

Susan P. Craig
President

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. 

Cautionary Note Regarding Forward-Looking Statements

The information in this press releaseincludes certain "forward-looking statements" All statements, other than statements of historical fact, included herein including, without limitation, plans for and intentions with respect to the company's properties, statements regarding intentions with respect to obligations due for various projects, strategic alternatives, quantity of resources or  reserves, timing of permitting, construction and production and other milestones, are forward looking statemenets. Statements concerning Mineral Reserves and Mineral Resources are also forward-looking statements in that they reflect an assessment, based on certain assumptions, of the mineralization that would be encountered and mining results if the project were developed and mined in the manner described. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from NFR's expectations include the uncertainties involving the need for additional financing to explore and develop properties and availability of financing in the debt and capital markets; uncertainties involved in the interpretation of drilling results and geological tests and the estimation of reserves and resources; the need for cooperation of government agencies and First Nation groups in the exploration, and development of properties; and  the need to obtain permits and governmental approval.  NFR's forward looking statements reflect the beliefs, opinions and projections of management on the date the statements are made. NFR assumes no obligation to update the forward looking statements if management's beliefs, opinions, projections, or other factors should they change.

Cautionary Note Regarding Reserve and Resource Estimates

This press release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all resource and reserve estimates included in this press release have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining and Metallurgy Classification System. NI 43-101 is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian standards, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission ("SEC"), and resource and reserve information contained herein may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, the term "resource" does not equate to the term "reserves". Investors should also understand that "inferred mineral resources" have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "inferred mineral resource" will ever be upgraded to a higher category. The estimation of quantities of resources and reserves is complex, based on significant subjective assumptions and forward-looking information, including assumptions that arise from the evaluation of geological, geophysical, engineering and economic data for a given ore body. This data could change over time as a result of numerous factors, including new information gained from development activities, evolving production history and a reassessment of the viability of production under different economic conditions. Changes in data and/or assumptions could cause reserve estimates to substantially change from period to period. No assurance can be given that the indicated level of mineral will be produced. Actual production could differ from expected production and an adverse change in mineral prices could make a reserve uneconomic to mine. Variations could also occur in actual ore grades and recovery rates from estimates.