RESERVES GROW 33% TO 2MOZ AT A COST OF JUST A$50/OZ Resources up 350,000oz to 9.25Moz with four recent discoveries yet to be included in the estimate KEY POINTS Northern Star’s highly successful exploration strategy has delivered a 33% increase (500,000oz) in Reserves to 2.0Moz after mining 611,000oz in FY16 Total Resources increased by 350,000oz to 9.25Moz, including an increase in Measured and Indicated Resources of 520,000oz to 4.9Moz Reserves added organically at a cost of A$50/oz – equal to ~10% of current market acquisition prices Five discoveries made in past year but only one included in latest Resource estimate due to 30 June cut-off date ASX ANNOUNCEMENT Significant Reserve increases at major mining centres: 28 July 2016 . Jundee up 21% to 720,000oz . Kanowna up 58% to 266,000oz Australian Securities . Millennium (100% Kundana) maiden Reserve of 205,000oz Exchange Code: NST . Hermes (Plutonic) maiden Reserve of 101,000oz Significant Resource estimates at a number of centres: Board of Directors . Kanowna up 20% to 1.4Moz Mr Chris Rowe Non-Executive Chairman . Raleigh (Kundana 50% JV) up 33% to 122,000oz at 42.2gpt . Hermes up 40% to 314,000oz (Plutonic) Mr Bill Beament Managing Director . Barkers (100% Kundana) Maiden Resource 137,000oz at 23gpt Mr Peter O’Connor FY17 exploration spend of A$62M to generate future mines, Non-Executive Director grow production and to follow up significant success of FY16 Mr John Fitzgerald Non-Executive Director Northern Star Resources Limited (ASX: NST) is pleased to advise that its strategy to grow production to 700,000 ounces a year in Ms Liza Carpene Company Secretary 2018 is well on track with a 33% increase in Reserves to two million ounces. Issued Capital Resources increased by 350,000oz to 9.25 million ounces. Shares 600M Importantly, the new Resource estimate contains a 12% increase Options 3.2M in the Measured and Indicated category, taking that total to 4.9 million ounces. Current Share Price A$4.71 Market Capitalisation The increases come despite Northern Star mining 611,000 ounces A$2.8 Billion since the previous estimate was calculated a year ago. Cash/Bullion and Investments The additional Reserves have been delivered at a cost of just A$50 30 June 2016 - A$326 million per ounce, which is a remarkably low figure given global transaction multiples equated to ~A$500 per reserve ounce over Level 1, 388 Hay Street the past 12 months. Subiaco WA 6008 T +6 8 6188 2100 These revised estimates also include just one of the five discoveries F +6 8 6188 2111 made by Northern Star over the past year. Further work is now E [email protected] underway with the goal of bringing the other four discoveries into www.nsrltd.com the JORC estimate. ABN: 43 092 832 892 ASX: NST Page 1 of 176 ASX ANNOUNCEMENT - 28 JULY 2016 The substantial inventory growth reflects the significant success of Northern Star’s exploration strategy and shows that the Company is meeting the objectives of increasing its mine lives and supporting future production growth. Much of the increased inventory is at the Jundee and Kalgoorlie operations, though Northern Star has also replaced the ounces produced at Paulsens and Plutonic and improved the confidence of the Resource at the Central Tanami Project during the year. Northern Star Managing Director Bill Beament said the success of the Company’s organic growth strategy was central to its strong financial returns. “The fact that we are growing Reserves for A$50 per ounce, with a very low level of capital intensity associated to those ounces will further strengthen our ability to maintain superior rates of return,” Mr Beament said. “This discovery cost is the foundation of our outstanding return on invested capital, which was 28% in the past financial year. “By combining this cost with our tight production costs, we maximise margins, cashflow and overall financial returns. “At the same time, our Resource base of 9.25 million ounces shows we have a substantial inventory to underpin our mine lives and future production rates.” At Jundee, where total Reserves increased by 21% to 720,000 ounces, further drilling has discovered high-grade mineralisation in a number of areas that have not yet been included in this Resource/Reserve update due to time constraints (Refer to ASX announcement 30 June 2016). Mineral Resource and Reserve Summary Group Mineral Resource Estimate is 83 million tonnes at 3.5gpt Au for 9.25 million ounces. Group Mineral Reserve Estimate is 13.1 million tonnes at 4.7gpt Au for 2.0 million ounces. These figures, which are estimated to 30 June 2016, represent JORC 2012 combined Resource for the five assets owned by Northern Star. 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] ASX: NST Page 2 of 176 ASX ANNOUNCEMENT - 28 JULY 2016 Competent Persons Statements The information in this announcement that relates to data quality, geological interpretations and Mineral Resource estimations for the Company’s Paulsens, Ashburton, Jundee and Plutonic Project areas is based on information compiled by Brook Ekers (Member Australian Institute of Geoscientists), who is a full-time employee of Northern Star Resources Limited. Mr. Ekers 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 Group reporting. Mr. Ekers consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears. The information in this announcement that relates to exploration results, data quality, geological interpretations and Mineral Resource estimations for the Company’s Kanowna, EKJV, Kundana and Carbine Project areas is based on information compiled by Nick Jolly and fairly represents this information. Mr. Jolly is a Member of the Australian Institute of Mining and Metallurgy who is a full-time employee of Northern Star Resources Limited who 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”. Mr. Jolly consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears. The information in this announcement that relates to Ore Reserve estimations for the Company’s Project areas is based on information compiled by Jeff Brown and fairly represents this information. Mr. Brown is a Member of the Australian Institute of Mining and Metallurgy who is a full-time employee of Northern Star Resources Limited and 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". Mr. Brown consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears. The information in this announcement that relates to the Central Tanami Gold Project is extracted from the Tanami Gold NL ASX announcement entitled “Quarterly Report for the Period Ending 31 March 2014” released on 1 May 2014 and is available to view on www.tanami.com.au. The information in this announcement that relates to mineral resource estimations, data quality, geological interpretations and potential for eventual economic extraction for the Groundrush deposit at the is Central Tanami Gold Project based on information compiled by Brook Ekers (Member Australian Institute of Geoscientists), who is a full-time employee of Northern Star Resources Limited. Mr. Ekers 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 Group reporting. Mr. Ekers consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears. The Company confirms that it is not aware of any further new information or data that materially affects the information included in the original market announcement entitled “Quarterly Report for the Period Ending 31 March 2014” released on 1 May 2014 and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. To the extent disclosed above, the Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. 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.