MORE SOLID RESULTS FROM CENTRAL TANAMI INFILL DRILLING PROGRAM

ASX ANNOUNCEMENT

20 January 2016

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 600M Options 4M

Current Share Price A$3.09

Market Capitalisation A$1.85 billion

Cash and Cash Equivalents 31 Dec 2015 - A$226 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

 Second round of solid results from infill holes drilled by Northern Star at the Central Tanami Project in the Northern Territory

 Latest results continue to support Northern Star's strategy to enhance its confidence in the key Groundrush deposit at Central Tanami ahead of developing a +125,000ozpa operation

 The 20,000m diamond drill program is aimed at improving the confidence level of the existing 1Moz Resource by infill drilling down to a vertical depth of 300m below the surface

 Northern Star is sole-funding this drilling program, in addition to refurbishing the processing plant, to earn 60% of the Project

 As at end of December, 16,000m (80%) of the drilling program had been completed with results to date in line with Tanami Gold's previous drilling

 Significant results from these latest holes at Groundrush include (uncut and true widths):

• 0.3m @ 359gpt gold

• 0.5m @ 317gpt gold

• 0.3m @ 160gpt gold

• 0.3m @ 99.4gpt gold

• 0.5m @ 46.7gpt gold

• 2.8m @ 32.2gpt gold

• 2.0m @ 19.7gpt gold

• 4.0m @ 19.5gpt gold

• 2.1m @ 15.0gpt gold

• 3.0m @ 8.4gpt gold

• 6.0m @ 5.0gpt gold

• 12.5m @ 3.9gpt gold

• 8.5m @ 3.6gpt gold

• 10.5m @ 3.5gpt gold

Northern Star Resources Limited (ASX: NST) is pleased to advise that its infill drilling program at the Central Tanami Project in the Northern Territory has returned a second batch of solid results.

The assays for the latest 23 infill diamond holes at the Project's key Groundrush deposit are in line with those from the first 22 holes (see ASX release dated 10 December 2015) and those recorded by Tanami Gold previously (refer to Figure 1).

The drilling is aimed at establishing Northern Star's confidence in the Central Tanami Project in the lead-up to a decision to commence refurbishing the Project's processing plant and start production in the 2018 financial year.

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The 20,000m drilling program and proposed plant refurbishment is being sole-funded by Northern Star as part of its agreement with Tanami Gold NL (ASX: TAM) to earn 60% of the Project.

Northern Star has earmarked Central Tanami as one of the sources of organic growth which will lift the Company's production to 700,000ozpa by FY18.

The current infill drilling program, now 80% completed, is focusing on establishing the continuity of mineralisation to a vertical depth of 300m below the surface providing Northern Star with the knowledge and confidence needed to design an underground mining operation via declines from the existing Groundrush open pit.

From these preliminary mine designs, Northern Star will then determine the capacity for the processing plant refurbishment to earn its 60% interest in the Central Tanami Project.

The remaining drilling program is expected to be completed in late January this year with final assays in by the end of the March Quarter.

Figure 1: Long section view (looking west) of significant drill results for Groundrush

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, data quality, geological interpretations and potential for eventual economic extraction, is based on information compiled by Simon Lawson , (Member Australian Institute of Geoscientists), 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 which 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 Reserves" for the Groundrush prospect. 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 warranty, 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 directors, 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 other 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, purchase 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 which 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 changes, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates.

APPENDIX 1 - RESULTS