NORTHERN STAR ACQUIRES HERMES GOLD PROJECT

ASX ANNOUNCEMENT

24 February 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 592.4 million Options 3.9 million

Current Share Price A$2.08

Market Capitalisation

A$1.23 billion

Cash and Cash Equivalents

31 Dec 2014 - $119.1 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

KEY POINTS

 Northern Star agrees to acquire the Hermes gold project located within trucking distance of its Plutonic gold operations

 Deal includes 212,000oz of Indicated Resources at the Hermes deposit and surrounding exploration tenements, and a further 87,000oz of Resources on tenements elsewhere in WA's Bryah Basin

 Tenements known to host numerous walk-up drilling targets as well as additional exploration upside

Northern Star Resources Limited (ASX: NST) is pleased to announce that it has entered into an agreement to acquire the Hermes gold deposit in WA from Alchemy Resources Limited (ASX: ALY).

Hermes is located in the Bryah Basin and within close proximity to Northern Star's Plutonic gold operations. It has a 212,000oz Resource and additional walk-up drill targets.

Northern Star has also entered into a Farm-in and Joint Venture agreement with Alchemy covering additional tenements in the Bryah Basin. These include the Wilgeena gold deposit which has an Indicated Resource of

87,000oz.

These Resources were calculated by Alchemy in line with JORC 2004 guidelines (refer to ALY announcement to the ASX 22 October 2012). Northern Star will immediately commence an exploration program aimed at both expanding the Resource and bringing it into line with JORC 2012 guidelines.

The acquisition is designed to provide additional near-surface mill feed for the Plutonic gold operations.

Under the terms of the agreement, Northern Star will:

1. pay Alchemy A$1.45M for the Hermes tenements,

2. acquire Alchemy shares valued at A$500,000 via a placement at

1.5 cents a share, giving Northern Star 15% of the Company and Board representation,

3. earn an interest of up to 80% in Alchemy's Bryah Basin project (excluding the areas under an existing Independence Group JV) by spending A$400,000 a year over three years, and

4. pay Alchemy a royalty of 1% of Net Smelter Return on refined gold recovered from the Hermes tenements in excess of 70,000 ounces and up to 90,000 ounces.

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ASX ANNOUNCEMENT - 24 FEBRUARY 2015

Figure 1: Location and geology of the Hermes gold deposit and other tenement areas within the Bryah Basin project area

The Hermes gold project comprises 136km2 of mining and exploration tenements located approximately 70km by road from Plutonic. The Farm-In and JV agreement allows NST to earn up to 80% in an additional 219km2 of both mining and exploration tenements located within the Bryah Basin by expending funds over a three year term.

Alchemy has submitted programs of work applications to enable a major program of both infill and extensional drilling of the Hermes deposit, and currently have permits in place for drilling at other known targets across the tenement base. Northern Star plans to begin these drilling programs in the first half of CY2015 to accelerate the upgrades to JORC 2012 standards.

Figure 2: Plan view of the Hermes Gold Deposit and

Indicated Resource model

Figure 3: Cross section of the Hermes Gold Deposit

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ASX ANNOUNCEMENT - 24 FEBRUARY 2015

Yours faithfully

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]

Competent Persons Statements

The information in this announcement that relates to exploration results is based on information compiled by Mr Simon Lawson, Member of the Australasian Institute of Mining and Metallurgy (AusIMM), who is a full-time employee of Northern Star Resources Limited. Mr Lawson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity w hich he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserve s" for the Hermes deposit. Mr Lawson consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears.

Forward Looking Statements

Northern Star Resources Limited has prepared this announcement based on information available to it. No representation or war ranty, 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 direct ors, 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 ot her 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, pur chase 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 believe d that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions whic h 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 ch anges, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates.

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