Northgate Minerals Receives Key Permit for the Development of the Young-Davidson Mine

Construction Set to Begin in August

VANCOUVER, July 2 /CNW/ - (All figures in US dollars except where noted) Northgate Minerals Corporation ("Northgate") (TSX: NGX, NYSE Amex: NXG) is pleased to announce that it has received notice from the Ontario Ministry of Northern Development, Mines and Forestry ("MNDMF") of acceptance of the Closure Plan for the Young-Davidson Mining Project. Acceptance of the Closure Plan allows Northgate to commence construction and development of the Young-Davidson mine, which is forecast to produce an average of 180,000 ounces of gold per year at a cash cost of $350 per ounce over a 15-year mine life starting in 2012.

Ken Stowe, President and CEO, commented: "We are extremely pleased that our Closure Plan has been accepted by the MNDMF and we will be proceeding with construction of the Young-Davidson mine as soon as the appropriate resources have been mobilized. Young-Davidson is an important project for northern Ontario, providing significant economic and social benefits for the local and surrounding communities. We look forward to breaking ground in early August, with advanced preparatory work having positioned us well to achieve our key scheduled objectives. In addition to the work that is underway at site, our exploration team has already completed over 11,600 metres of Diamond drilling this year and results to date indicate the strong potential for us to expand the current 2.8 million ounce reserve."

The Closure Plan sets out the framework for the development, operation and ultimate closure of the Young-Davidson mine and outlines the plans for rehabilitation of those areas affected by historic and future mining. Construction of the main process building for Young-Davidson is scheduled to commence in early August and the mill building is expected to be enclosed by the end of the year, so that construction of the process plant can continue during the winter months. Other projects scheduled to begin in the coming months are the deepening of the existing shaft, construction of the tailings impoundment area and the realignment of Highway 566.

Over $140 million of contracts for the development of the mine have already been awarded including the engineering, procurement and construction management ("EPCM") contract, the shaft deepening and raise boring contract and a contract for upgrading the existing 47 kilometre ("km") transmission line connecting Young-Davidson to the provincial grid. Additional contracts have been tendered and are currently being reviewed. Purchase orders have also been awarded for major, long lead equipment.

Northgate will provide a more detailed update on construction activities at Young-Davidson during its second quarter conference call and webcast that will be held on August 10, 2010.

Young-Davidson is located near the town of Matachewan, 60 km west of Kirkland Lake. Northgate completed its final feasibility study for Young-Davidson at the beginning of the year (see press release dated January 25, 2010), which confirmed that the mine provides strong returns in the current economic environment. Using today's spot prices, the mine is expected to generate $2.2 billion pre-tax operating cash flow, a pre-tax net present value 5% of $865 million and a pre-tax internal rate of return of 25%.

Northgate Minerals Corporation is a gold and copper producer with mining operations, development projects and exploration properties in Canada and Australia. Our vision is to be the leading intermediate gold producer by identifying, acquiring, developing and operating profitable, long-life mining properties. We are forecasting gold production of 310,000 ounces in 2010.

Cautionary Note Regarding Forward-Looking Statements and Information:

This Northgate press release contains "forward-looking information", as such term is defined in applicable Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, concerning Northgate's future financial or operating performance and other statements that express management's expectations or estimates of future developments, circumstances or results. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "expects", "believes", "anticipates", "budget", "scheduled", "estimates", "forecasts", "intends", "plans" and variations of such words and phrases, or by statements that certain actions, events or results "may", "will", "could", "would" or "might" "be taken", "occur" or "be achieved". Forward-looking information is based on a number of assumptions and estimates that, while considered reasonable by management based on the business and markets in which Northgate operates, are inherently subject to significant operational, economic and competitive uncertainties and contingencies. Northgate cautions that forward-looking information involves known and unknown risks, uncertainties and other factors that may cause Northgate's actual results, performance or achievements to be materially different from those expressed or implied by such information, including, but not limited to gold and copper price volatility; fluctuations in foreign exchange rates and interest rates; the impact of any hedging activities; discrepancies between actual and estimated production, between actual and estimated reserves and resources or between actual and estimated metallurgical recoveries; costs of production; capital expenditure requirements; the costs and timing of construction and development of new deposits; and the success of exploration and permitting activities. In addition, the factors described or referred to in the section entitled "Risk Factors" in Northgate's Annual Information Form for the year ended December 31, 2009 or under the heading "Risks and Uncertainties" in Northgate's 2009 Annual Report, both of which are available on the SEDAR website at www.sedar.com, should be reviewed in conjunction with the information found in this press release. Although Northgate has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in forward-looking information, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information in this press release is made as of the date of this press release, and Northgate disclaims any intention or obligation to update or revise such information, except as required by applicable law.

Cautionary Note to US Investors Regarding Mineral Reporting Standards:

Northgate prepares its disclosure in accordance with the requirements of securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. Terms relating to mineral resources in this press release are defined in accordance with National Instrument 43-101-Standards of Disclosure for Mineral Projects under the guidelines set out in the Canadian Institute of Mining, Metallurgy, and Petroleum Standards on Mineral Resources and Mineral Reserves. The Securities and Exchange Commission (the "SEC") permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. The Company uses certain terms, such as, "measured mineral resources", "indicated mineral resources", "inferred mineral resources" and "probable mineral reserves", that the SEC does not recognize (these terms may be used in this press release and are included in the Company's public filings which have been filed with securities commissions or similar authorities in Canada).

For further information: Ms. Keren R. Yun, Director, Investor Relations, Tel: 416-363-1701 ext. 233, Email: ngx@northgateminerals.com