KEY POINTS

u Pegasus remains open at depth and along strike; recent high- grade drilling results outside the new resource point to potential resource increases, significant results include (uncut):

· 2.4m at 50.2gpt (est true width 1.7m) from 495m K2

· 2.4m at 25.7gpt (est true width 1.7m) from 562m K2

· 3.0m at 20.7gpt (est true width 2.7m) from 207m Pode

· 4.0m at 18.9gpt (est true width 3.6m) from 164m K2B

· 3.0m at 18.2gpt (est true width 2.3m) from 192m K2

u Pegasus on track to be in production by mid-2015

u Success at Pegasus highlights the significant potential for further discoveries along the 14km-long Kundana corridor

u Exploration results at Pegasus confirm Northern Star's geological model; that high-grade shoots at Kundana plunge to the north and south, not only steeply north as previously thought

u Another seven targets along strike at the K2 structure that are analogous to the Pegasus deposit are currently being drill tested

u This geological understanding is also now being applied with drilling underway at several areas of known mineralisation, established deposits and past-producing mines along the Kundana corridor

u Northern Star also plans to apply this theory to the adjacent  Strzelecki structure at Kundana

u Revised Pegasus Resource coincides with increased Resource at Jundee project (see separate ASX release today) and the recent high-grade results pointing to a potential resource increase at Paulsens (see ASX release dated 13 January 2015)

u Resource increases and strong drilling results demonstrate that Northern Star's $50m exploration campaign is already succeeding in growing mine lives

Northern Star Resources Limited (ASX: NST) is pleased to announce that its Pegasus deposit near Kalgoorlie is emerging as a world-class discovery, with total JORC Resources increasing by a further 350,000oz to 1.1 million ounces.
The total revised Resource at Pegasus, which is part of the Kundana Project, is three million tonnes at 11.6gpt. Northern Star has a 51% interest and Joint Venture Partners, Rand Mining Ltd (ASX: RND) and Tribune Resources Ltd (ASX: TBR), own 12.25% and 36.75% respectively.
In addition to the Resource increase, infill drilling has substantially increased Northern Star's confidence in the estimate. The Indicated Resource has increased by 199,000oz to 743,000oz, and now constitutes 66% of the total Resource. Historic conversion rates at Kundana from Resource to Reserve are 80%.

Further step out drilling undertaken since this calculation was completed has returned more high-grade results, pointing to a further increase in Resources.
The Pegasus deposit is located on the K2 structure at Kundana. Significant results have been received on the main K2 structure both north and south of Pegasus.
In addition, exceptional results have been returned on other mineralised structures, including the Pode Vein and the K2B structure. This mineralisation also remains open down-plunge, at depth and along strike (refer to Figure 1 and 2).
Northern Star Managing Director Bill Beament said the Resource increase showed the Kundana corridor was fast becoming the hottest gold exploration property in Australia.
He said the success at Pegasus highlighted the significant exploration potential of the 14km-long Kundana corridor because its proved Northern Star's theory that high-grade gold shoots plunge to the north and south, not only steeply north as previously thought.
In light of this new understanding, Northern Star is drilling seven other targets of known mineralisation along the K2 structure. As part of this program, it is testing for high-grade shoots plunging to the north in areas where they are already known to be plunging to the south (refer Figure 3).
Mr Beament said this "shoot geometry" theory had led to the substantial growth in Resources at Pegasus.
"We are confident that our new understanding of the geology at Kundana will lead to further substantial discoveries and Resource increases along the Kundana corridor," he said.
"We also believe we are well on the way to cracking the code at Kundana and that we are now poised to unlock the full potential of this mining camp."
As well as Pegasus, Kundana hosts the producing Raleigh, Rubicon and Hornet mines and the recent Millennium discovery.
In Northern Star's current FY2015 production guidance, Kundana is forecast to produce 100,000-110,000oz at an all-in sustaining cost of A$800-850/oz. This represents Northern Star's 51% share of Kundana. Actual Kundana production for the December Quarter was 29,566oz at an all-in sustaining cost of A$632/oz.
Yours faithfully

BILL BEAMENT Managing Director