September 2015 Quarterly Activities Report

NORTHERN STAR POSTS SOLID QUARTER AS IT LAYS FOUNDATIONS FOR STRONG ORGANIC GROWTH

ALMOST $200M CASH BALANCE, NO DEBT; PRODUCTION SET TO HIT 700,000OZPA IN FY18

ASX ANNOUNCEMENT

26 October 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$3.13 Market Capitalisation

$1.87 billion

Cash, Bullion & Investments 30 Sep 2015 - A$196 million

KEY POINTS

 141,556oz sold in the September Quarter, upper end of FY16 guidance

 All-in sustaining costs (AISC) for the September Quarter of A$1,083/oz, in line with FY16 guidance

 Normalised free cash flow of A$46 million for the quarter as a result of A$76M cash flow from operations

 A$196m in cash, bullion and investments on hand at 30 September 2015, up from A$178 million at 30 June 2015

 Increase in cash comes despite spending A$11m on Central Tanami Project acquisition and A$14m on improving working capital

 Strong progress made on mine development as part of strategy to grow production to 600,000ozpa in FY17, and 700,000ozpa by FY18 from organic sources

 Organic growth strategy reflects Northern Star's ongoing commitment to maximising financial returns for its Shareholders, including an industry- leading return on equity

 Sharp turnaround at Paulsens, grade up 34% from June Quarter

 September Quarter production:

• Jundee Gold Operations:

  • 54,442oz mined and 54,162oz sold at AISC A$1,097/oz

• Kundana Gold Operations:

  • 19,820oz mined and 21,219oz sold at AISC A$962/oz

• Kanowna Belle Gold Operations:

  • 28,597oz mined and 27,074oz sold at AISC A$763/oz

• Paulsens Gold Operations:

  • 26,892oz mined and 22,736oz sold at AISC A$1,007/oz

• Plutonic Gold Operations:

  • 20,651oz mined and 16,365oz sold at AISC A$1,832/oz

 Record underlying FY15 net profit of A$108.9m was announced in the quarter with the Company achieving a 315% increase in underlying Company free cash flow of A$185.6m in FY15

 This outstanding financial outcome saw the final year dividend increased to 3¢ from 2.5¢ previously; taking the full year payout to 5¢ in FY15 up 43% from FY14

 The success of the FY15 A$50 million exploration campaign saw Resources increase by 44% to 8.9Moz generating substantial increases to mine lives across all operations at a discovery cost of A$19/oz1

 Settled deal with Tanami Gold to acquire up to 60% of 2.7Moz Central Tanami project2

 Northern Star will host a Quarterly conference call today at 8.30am AWST (11.30am AEDT), Monday, 26 October. The call can be accessed at http://www.brrmedia.com/event/140556

1 Refer ASX announcement dated the 4 August 2015.

2 Refer ASX announcement dated the 3 August 2015.

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Northern Star Resources Limited (ASX: NST) is pleased to advise that its strategy to maximise Shareholder returns by growing production to 700,000 ounces a year from organic sources is well on track, with results for the September Quarter firmly in line with guidance.

Northern Star sold 141,556oz in the quarter at an average price of A$1,509/oz, with AISC of A$1,083/oz. This generated normalised free cash flow of A$46 million.

Cash, bullion and investments on hand at 30 September 2015 stood at A$196 million, up from A$178 million at 30 June 2015. The increase came after spending $11 million on settlement of the Central Tanami Project acquisition and A$14 million towards improved working capital. The Company has no bank debt.

Northern Star has budgeted to spend A$74 million this financial year on targeted exploration and investing/expansionary capital. This underpins its strategy to grow production to 600,000ozpa next financial year and to 700,000ozpa in FY18.

Northern Star Managing Director Bill Beament said the foundations were being laid to grow both production and mine lives at the Company's existing assets.

'The results we are generating continue to demonstrate that this organic growth will continue to deliver far superior financial returns,' Mr Beament said.

'We recently added 2.7Moz to our Resource base at a cost of just A$19/oz. Now we are investing in targeted exploration and investing/expansionary capital to continue advancing that inventory in our pipeline of organic growth.

'This strategy will result in increased production and mine lives with low capital and operating costs, ensuring we continue to generate substantial free cash flow, consistent dividends and outstanding returns on equity.

'The fact that we continue to grow our cash position significantly while implementing this exploration program and organic production growth, reflects the quality of our people and our assets.'

At the Paulsens Operations mined head grade increased 34% from the June Quarter to 7.9gpt. This sharp increase in head grade has resulted from the transition between the Voyager 1 and Voyager 2 lodes.

Drill rigs were also mobilised on the 24 September 2015 at the 25% Northern Star owned Central Tanami JV. Post quarter end, drilling commenced on 1 October 2015.

Table 1: Key Group Performance Figures (Quarterly)

Table 2: Key Group Cost per Ounce Measures Note:

1. Prior cost per ounce measures have been reported on a recovered ounce produced basis, all the above cost per ounce metrics are now on an ounce sold basis.

2. AISC does not include acquisition costs and any redundancy payments made.

Table 3: Key Quarterly Mine Production Performance

FINANCE

The following is a table of the cash, bullion and investments held at the end of each quarter.

Table 4: Cash, Bullion and ASX equity investments

Bullion awaiting settlement is dore which has been received by the refiner in the quarter and is awaiting settlement.

Table 5: Gold Inventories

The below waterfall chart highlights the September Quarter cash and bullion movements and operating cash flow.

The opening balance of $178m has been changed to reflect the removal of investments from the waterfall chart from 30 June 2015, refer table 4.

The below waterfall chart highlights the underlying free cash flow for the September Quarter.

The working capital credit of $14m in part offsets the $43m working capital debit made to the NST cash flow waterfall chart for 30 June 2015.

Banking Facilities

The A$100 million revolver facility remains in place and available to Northern Star.

Hedging

The below table outlines the Company's current hedging position:

Table 6: Hedging commitments

During the quarter 45,000oz were added for delivery across CY16 at an average of A$1,598/oz.

OPERATIONS

Paulsens Gold Operations

Table 7: Summary Details - Paulsens