NL: TSX-V

June 17, 2008

Northern Lion Gold Corp. has entered into an option agreement with Katla Exploration Ltd. to acquire a 90-per-cent interest in an exploration permit covering a 312-hectare area (the property) near the villages of Pano Panayia and Asproyia, in the Paphos district (Greek-Cyprus) of the Republic of Cyprus.
Under the agreement, the company will earn a 90-per-cent interest in the property by making payments totalling $175,000 (U.S.) and issuing 220,000 common shares of the company to Katla over two years, and incurring expenditures on the property totalling $2,625,000 (U.S.) over a period of three years.
The agreement is subject to the approval of the TSX Venture Exchange.
Katla has also, on the company's behalf, submitted an application to the Department of Mines for an additional seven exploration permits in Greek-Cyprus, covering a total of 3,190 hectares. The company will hold a 95-per-cent interest in the additional property, subject only to reimbursement of Katla for its expenses.
During management's initial visit to the area, six grab samples were collected from within the new application areas. Highlights include one sample which returned 4.1 per cent copper, and another sample which returned 7.3 grams per tonne gold and 17.6 g/t silver.
The history of mineral exploitation (copper, gold and other metals) on the island of Cyprus dates back to the Bronze age, approximately 5,000 years ago, and has continued through the ages, first by the Phoenicians and then the Romans. The evidence of this long history of mining is seen by the extensive slag heaps and numerous ancient surface and underground workings, as well as other manifestations of small-scale underground workings.
The major deposits of Cyprus are the copper-bearing, volcanogenic-hosted massive-sulphide (VHMS) deposits. These deposits are hosted within the pillow lava sequence of the Troodos ophiolite. The pillow lava sequence is divided into upper and lower pillow lavas according to their place in the stratigraphy, with the majority of massive-sulphide bodies forming between the two pillow lava sequences. All seven of the company's applications overlie this important contact. The other major mineralization on Cyprus, apart from the massive-sulphide deposits and associated stockwork mineralization, are the interstitial and overlying sedimentary umber and ochre deposits. Ochres are manganese-poor ferruginous sediments, generally associated with sulphide ores located between the upper and lower pillow lavas, while umbers are manganese-rich ferruginous mudstones overlying the upper pillow lavas. Umbers and ochres have historically been mined for dyes and are known locally to contain significant gold values.
Company president, John Lando, commented: "We are very impressed with the geological potential in Cyprus. An excellent opportunity for new discoveries is clearly present. Cyprus has been known throughout history to be rich with copper and has over 5,000 years of production history. Due to the geopolitical instability, there has been very little activity since the early 1960s. Now that Greek-Cyprus is a member of the European Union, we believe there is a truly exceptional opportunity for new discoveries by applying modern exploration technologies in a copper-rich environment."The company's field activities in Cyprus are to be supervised by Dr. Kyriacos Louca, under the direction of Joan McCorquodale, PGeo (British Columbia), a consultant to the company and a qualified person, as defined by National Instrument 43-101.