Northern Star Resources : December Quarter Trading Update

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December Quarter Trading Update

PRODUCTION OF 145,253OZ AT A$1,040/OZ UNDERPINS SUBSTANTIAL FREE CASHFLOW Cash, bullion & investments rise to A$226m at 31 Dec 2015

ASX ANNOUNCEMENT

14 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$2.52

Market Capitalisation A$1.5 billion

Cash and Cash Equivalents 31 Dec 2015 - A$226 million

Level 1, 388 Hay St

Subiaco WA 6008

T [phone]

F [phone]

E [e-mail]

www.nsrltd.com ABN: 43 092 832 892

KEY POINTS

 Outstanding December Quarter with production at the top end and costs below the bottom end of guidance respectively

 Production totalled 145,253oz at an all-in sustaining cost (AISC) of A$1,040/oz (FY16 guidance is 535,000-570,000oz at AISC of A$1,050-A$1,100/oz)

 142,017oz sold at an average price of A$1,484/oz for A$211m

 Cash, bullion and investments rose by A$30m in the Dec Quarter to A$226m after paying out A$18m in interim dividends and A$23.5m on organic growth and development; Northern Star remains debt-free

 Production for six months to 31 Dec totalled 285,494oz at AISC of A$1,062/oz

 Northern Star is on track to grow production to 700,000ozpa in FY18 from organic sources

Northern Star Resources Limited (ASX: NST) is pleased to advise that it enjoyed an extremely strong December Quarter on all fronts, culminating in the Company's total cash, bullion and investments rising by another A$30 million to A$226 million.

Northern Star produced 145,253oz in the quarter, which was at the upper end of its FY16 guidance of 535,000-570,000 ounces.

All-in sustaining costs (AISC) for the quarter were A$1,040/oz, which is below the bottom end of its A$1,050-A$1,100/oz guidance range for FY16.

Gold sold totalled 142,017oz at an average realised price of A$1,484/oz.

The strong operational performance resulted in Northern Star finishing the quarter with A$226 million in cash, bullion and investments. This was a A$30 million increase from 30 September and came despite the Company paying out A$18 million in interim dividends and spending A$23.5 million on exploration and development as part of the organic growth strategy aimed at increasing production to 700,000ozpa by FY18.

The Company has no bank debt.

The latest results took production for the six months to 31 December to 285,494oz at an AISC of A$1,062/oz.

Northern Star Managing Director Bill Beament said the combination of the strong operational results and the healthy Australian-dollar gold price highlighted the Company's capacity to generate substantial cashflow.

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ASX ANNOUNCEMENT - 14 JANUARY 2016

"We produced gold at the rate of 580,000ozpa in the December Quarter," Mr Beament said. "We did this at an AISC of A$1,040/oz compared with the current gold price of ~A$1,550/oz.

"This has enabled us to continue growing our cash balance while also paying dividends and investing in an organic growth strategy that will see us increase production to 700,000ozpa without losing our debt-free status."

Yours faithfully

BILL BEAMENT

Managing Director

Northern Star Resources Limited

Investor Enquiries:

Luke Gleeson, Investor Relations, Northern Star Resources Limited T: [phone]

E: [e-mail]

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 believed 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.

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