Northern Star Resources February 2016 An Australian gold miner for - - PowerPoint PPT Presentation

SLIDE 1

Northern Star Resources

An Australian gold miner – for global investors

February 2016

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Disclaimer

Competent Persons Statements The information in this announcement that relates to mineral resource estimations, exploration results, data quality, geological interpretations and potential for eventual economic extraction, is based on information compiled by Darren Cooke, a Competent Person who is a Member of the Australian Institute of Geoscientists and a full-time employee of Northern Star Resources Limited. Mr Cooke has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting

• f Exploration Results, Mineral Resources and Ore Reserves" for the Company’s Kanowna, EKJV, Kundana and Carbine Project areas. Mr Cooke 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 mineral resource estimations, exploration results, data quality, geological interpretations and potential for eventual economic extraction, is based on information compiled by Brook Ekers, a Competent Person who is a Member of the Australian Institute of Geoscientists and a full-time employee of Northern Star Resources Limited. Mr Ekers has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting

• f Exploration Results, Mineral Resources and Ore Reserves" for the Company’s Paulsens, Plutonic and Jundee Project areas. 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 ore reserve estimations is based on information compiled by Jeff Brown, a Competent Person who is a Member of the Australian Institute of Mining and Metallurgy and a full-time employee of Northern Star Resources Limited. Mr Brown has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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 Company’s Project areas. 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 mineral resource estimations for the Central Tanami 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 Company confirms that it is not aware of any new information or data that materially affects the information included in the

• riginal market announcement 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. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the

• riginal market announcement.

The information in this announcement that relates to mineral resource estimations for the Groundrush Project is extracted from the Tanami Gold NL ASX announcement entitled “Groundrush Deposit Update - Significant Growth In Measured and Indicated Mineral Resource and Increase In Resource Grade At Groundrush” created on 7 January 2013 and is available to view on www.tanami.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement 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. 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. 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, a Competent Person who is a Member of the Australian Institute of Mining and Metallurgy and a full-time employee of Northern Star Resources Limited. Mr Lawson has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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 Deposit. 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

• therwise 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. All currency conversions in this presentation have been converted at a currency of AUD/USD conversion rate of A$0.71c

1 Group Resources include 0.67Moz contribution from Central Tanami acquisition 2 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 2

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We are the third-biggest gold miner on the Australian stock exchange by both market cap and production Strong balance sheet; no debt; A$226m in cash, bullion & investments 31 Dec 2015 Market cap is A$2.4B and we are on track to produce 535koz-570koz at an AISC of US$745-US$780oz (A$1,050-A$1,100/oz) Strong organic growth outlook; Production set to reach 700,000ozpa in 2018 Margins insulated by flat cost environment in Australia due to commodity downturn Consensus forecast for rising AUD gold price with substantial production growth, flat cost environment & no debt delivers significant increases in free cashflow Established track record of fully-franked dividends We are governed by the adage “a business first and a mining company second”

Introduction - Third biggest Australian listed Gold Miner

Plutonic Mine

+7Moz Gold Camp

Jundee Mine

+7Moz Gold Camp

Kundana Operations

+5Moz Gold Camp

Paulsens & Ashburton Operations

+3Moz Gold Camp

Kanowna Belle Mine

+7Moz Gold Camp

Central Tanami Project

+5Moz Gold Camp

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43%

• 30%
• 40%
• 30%
• 20%
• 10%

0% 10% 20% 30% 40% 50% $33 $55 $59 $86 $89 $91 $106 $111 $113

$0 $20 $40 $60 $80 $100 $120 US$/oz US$833/oz

$0 $200 $400 $600 $800 $1,000 $1,200 $1,400

Fresnillo Roxgold Saracen Mineral Holdings Independence Group NL St Barbara Evolution Mining Regis Resources Kingsgate Consolidated Beadell Resources Northern Star Resources Newcrest Mining Agnico Eagle Mines Detour Gold Alacer Gold Richmont Mines Barrick Gold Primero Mining Tahoe Resources Goldcorp Semafo Randgold Resources B2Gold Yamana Gold Teranga Gold OceanaGold Corporation Torex Gold Resources Kinross Gold Centamin Eldorado Gold AngloGold Ashanti Alamos Gold IAMGOLD Corp Pan African Resources Medusa Mining Gold Fields Sibanye Gold Harmony Gold Mining Co Perseus Mining

US$/oz

27%

• 75%
• 60%
• 45%
• 30%
• 15%

0% 15% 30% 45%

NST is uniquely positioned to continue to deliver above average returns to its Shareholders

A business first, mining is how we deliver value

First quartile cost producer

5yr Peer Average -1% NST 5yr Average 28%

Efficiently allocating Shareholders’ capital

5yr Peer Average 0% NST 5yr Average 43%

Consistently generating returns to Shareholders Low Corporate overheads vs US Peers

US Peer Median US$90/oz NST

Source: Bloomberg Source: Bloomberg Source: Macquarie Securities

Q1 Q2 Q3 Q4

NST AISC US$748/oz

Corporate Overhead Per Ounce Macquarie Global CY16 AISC Cost Curve Return on Invested Capital (%) Return on Equity

4

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57% 25% 26% 13% 25%

0% 20% 40% 60% 80% 2011 2012 2013 2014 2015

Underlying ROIC (%)

Efficiently Allocating Capital – Organically & Inorganically

Superior returns on invested capital will continue to be the focus to drive investment decisions Capital will be forced to compete internally for project funding to continue to generate a sector leading Return on Equity 34% (annualised) and Return on Invested Capital 28% (annualised) Across the portfolio of assets NST to date has achieved an average IRR of +100%

5

NST has averaged 28% ROIC over the last 5 yrs Capital is having to compete internally within the business

SLIDE 6

2015 – Another golden year for NST

Record mine production of 622koz, up 154% Gold Sold increased by 177% to 581koz AISC improved by 3% to US$756/oz

Key Operational, Resource & Financial Outcomes

1H 2016 Financials FY15 Key Financial Outcomes

Record Underlying NPAT up 198% to A$108.9M Underlying free cash flow up 315% to A$185.6M FY15 dividends increased by 43% to A5¢ per share ROE of 32%, ROIC of 25% and TSR of 79%

* Refer ASX Announcement released 4 August 2015

Total Resources increased by 44% to 8.9Moz* Measured/Indicated Category increased by 42% to 4.4Moz* Resource Discovery cost of A$19/oz Pegasus resource increased to over 1.2Moz* at 11.2gpt Made 8 new discoveries with

• nly 1 included in Resources

Acquired the Central Tanami JV and Hermes deposit NPAT up 79% on pcp to A$65.1M Dividend increased by 50% to 3Ȼ per share Underlying free cash flow of A$96.7M ROE of 34%, ROIC of 28%

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FY16: Production and Cost Guidance

Key FY16 forecasts:

 Total gold production of 535,000-570,000oz; 1H 285,500oz produced, top end of guidance  AISC of US$745-US$780/oz; 1H costs tracking towards lower end of guidance at US$754/oz  A$74m to be spent on Investing Capital following on from the great successes in FY15, including;

 A$35m for targeted drilling to bring more Resources into mine plans and convert discoveries into resources  A$39m for Investing/Expansion capital expenditure to bring future deposits on line and lift group production

 This investing capital has the potential to unlock over 1.5Moz of Resources for future mining  Potential to increase group production from FY17 onwards  NST is now benefiting from procurement savings of A$30m per annum negotiated last year

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 Central Tanami Project commencing

production in CY17 and ramping up to +75kozpa by FY19

 Kanowna production growing to

125kozpa with the inclusion of 100% Kundana tenements, satellite deposits and the Velvet discovery replaces the Kanowna underground feed at the end of CY16

 Hermes open pit starts in FY17

providing additional feed to the Plutonic mill

 Further updates to come on Jundee

& Kalgoorlie Operations

Group Production Growing Next Financial Year

Cashflow set to lift to another level with group production growing organically next year, heading to a 700koz per annum producer in 2018 subject to the following assumptions;

*Midpoint of FY16 guidance

*

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Page 9

Jundee: still one of Australia’s best mines

FY15 gold sold 223,727oz at an AISC of US$715/oz, well above guidance FY16 guidance 210,000-220,000oz at AISC of US$710-US$745/oz Dec Qtr 60.3koz mined and 53.7koz sold at an AISC of US$700/oz Resources: 1.35Moz, up 166% and Reserves 0.6Moz, up 45% even after mining 238koz in FY15 Investing A$17m in a 2.4km drill drive that will give drill coverage to test the same volume of rock that the last +5Moz of production has come from Pipeline of additional feed; multiple open pit potential with 410koz in Resources and underground extensions

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Kundana: A corridor of riches

FY15 gold sold 103,051oz at an AISC of US$504/oz, within guidance FY16 guidance 100,000-110,000oz at AISC of US$600-US$640/oz Dec Qtr 29.3koz mined and 27koz sold at an AISC of US$637/oz Resources: 1.6Moz, up 134% and Reserves 0.45Moz, up 61% even after mining 111koz in FY15 Pipeline of additional feed; Millennium, Skinners, Pope John, Moonbeam, Centenary, Strzelecki and Barkers

10

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FY15 gold sold 96,223oz at an AISC of US$724/oz, well above guidance FY16 guidance 80,000-85,000oz at AISC of US$745-US$780/oz Dec Qtr 27koz mined and 25koz sold at an AISC of US$575/oz Resources 1.2Moz, up 8% and Reserves 0.2Moz, after mining 101koz in FY15 Pipeline of additional feed: Velvet, Carbine, Paradigm Six Mile, Kanowna pit extension and White Feather Currently reviewing the underground depth potential in light of current gold price and substantially lower cost base which could materially increase mine life Latest Velvet Drilling results include;

15.3m @ 10.5gpt (true width ~14m) 35.0m @ 3.6gpt (true width ~28m) 27.0m @ 3.4gpt (true width ~22m) 10.4m @ 6.7gpt (true width ~9m)

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Kanowna Belle: A great Goldfields address

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Plutonic: Rebuilding the Mine

FY15 gold sold 80,141oz at an AISC of US$1,100/oz FY16 guidance 75,000-80,000oz at AISC of US$960-US$995/oz Dec Qtr 21.3koz mined and 17koz sold at an AISC of US$1,167/oz down 11% Quarter on Quarter Maiden Hermes Resource of 0.22Moz at 2.7gpt, increases production to 100koz per annum from FY17

12

SLIDE 13

Paulsens: The Founding Asset

FY15 gold sold 77,642oz at an AISC of US$897/oz FY16 guidance 70,000-75,000oz at AISC of US$835-US$905/oz Dec Qtr 21koz mined and 19koz sold at an AISC of US$820/oz Resources: 0.4Moz, up 7% and Reserves 0.1Moz, after mining 76koz in FY15 Recent hit in Voyager 2 of 1.4m at 46.9gpt is 300m vertically below the bottom production level; confirming substantial orebody extension

13

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Central Tanami Project: Next Tier of Production Growth

Historically produced 2.1Moz from top 125m, last major production was from Newmont in 2005 when it produced 610,000oz at 4.3gpt over a 4 year period from the main deposit; Groundrush open pit The past 5 years has seen A$30m invested at Groundrush in exploration, drilling and feasibility studies Groundrush current Resource is 1Moz @ 4.8gpt gold (at a 1gpt grade cut-off)* A$8m drilling program underway with numerous significant results released so far. Drilling designed to improve the resource confidence and follow up significant historical down plunge results such as 17m at 109.5gpt Has the potential to be a 150koz per annum producing asset (100%) from 2018 onwards

*See ASX announcement dated 3 August 2015

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Why invest in Northern Star

Highly profitable: Net profit after tax up 79% to A$65.1m in 1HFY16; underlying free cashflow of A$96.7m; total interim dividend up 50% from 1H15 to A3¢ps Strong balance sheet: no debt; A$226m in cash, bullion & investments (31 Dec 2015) Emphasis on shareholders: Past 5 years average TSR +200% & Return on Equity of 43% One of the few ASX-listed gold miners with critical mass and asset diversity: 535koz- 570koz in FY16 at low costs: AISC of US$745-US$780/oz, margin of +US$450/oz at the current gold price, with production rising to 700koz per annum from FY18 onwards Politically and financially stable: all mines in the resources-friendly state of Western Australia, home to Kalgoorlie, the giant iron ore mines and a world-class LNG industry Northern Star is a demonstrated growth stock: A5¢ to +A$4.00 a share in five years Aggressive exploration strategy (A$50m in FY15) delivering outstanding growth; total resources rose 2.7Moz to 8.9Moz in FY15 (after depletion); average cost of discovery just A$19/oz; a further seven discoveries not included in Resource statement Committed A$74m to expansion capital in FY16; this will underpin growth in production to 700,000ozpa from 2018 Strong management team, including many former contracting executives

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Northern Star Resources

An Australian gold miner – for global investors

February 2016

Contact Details:

Luke Gleeson – Investor Relations +61 8 6188 2100 Email – info@nsrltd.com / Website – www.nsrltd.com

SLIDE 17

Shares Options Total 600M 4.1M

* As at 31 December 2015

Share price: A$4.02 Market Capitalisation (ASX: NST) ASX 200 Undiluted ~A$2.4B Cash, Bullion & Investments (31 Dec15) A$226M Debt Nil Substantial Shareholders Van Eck 13.3% Blackrock 8.67% Board – Successful record in discovering and developing mines BILL BEAMENT Managing Director (Mining Engineer) CHRIS ROWE Non-Executive Chairman – Independent (Barrister and Solicitor) PETER O’CONNOR Non-Executive Director – Independent (Investment Fund Management) JOHN FITZGERALD Non-Executive Director – Independent (Resources Finance and Banking) DISCIPLINES TO OPERATE A MINING BUSINESS ARE COVERED Senior Management STUART TONKIN Chief Operating Officer SHAUN DAY Chief Financial Officer MICHAEL MULRONEY Chief Geological Officer LIZA CARPENE Company Secretary DARREN STRALOW General Manager Business Development MANAGEMENT CAPACITY TO CATER FOR COMPANY GROWTH

Team with a track record

Institutions 70% Board & Management 3.3% High Net Worth Individuals 10% Retail 16.7%

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ASX: NST Page 18 of 24

APPENDIX 1 – RESULTS

PAULSENS SIGNIFICANT INTERSECTIONS – Resource Definition and Grade Control

Drill Hole # Easting (Mine Grid) Northing (Mine Grid) Drill hole collar RL (Mine Grid) Dip (degrees) Azimuth (degrees, Mine Grid) End of hole depth (m) Downhole From (m) Downhole To (m) Downhole Intersection (m) Au (gpt) uncut Est True Thickness (m)

PDU3275 8515 50406 306

• 29

330 71.6 22.0 25.0 3.0 2.9 2.2 PDU3275 8515 50406 306

• 29

330 71.6 28.2 28.5 0.4 2.0 0.2 PDU3275 8515 50406 306

• 29

330 71.6 34.0 37.3 3.3 7.5 2.6 PDU3278 8414 50305 324

• 23

270 589.4 NSI PDU3280 8521 50405 305

• 27

32 59.4 27.4 30.0 2.5 14.3 2.0 PDU3280 8521 50405 305

• 27

32 59.4 31.0 33.0 2.0 8.8 1.7 PDU3280 8521 50405 305

• 27

32 59.4 37.0 37.3 0.3 17.7 0.2 PDU3280 8521 50405 305

• 27

32 59.4 38.5 40.8 2.3 2.4 1.8 PDU3292 8414 50305 324

• 24

264 592.1 NSI PDU3618 8416 50306 325

• 9

300 146.9 NSI PDU3619 8328 50337 279 7 311 83.6 NSI PDU3620 8328 50337 279

• 5

311 88.2 NSI PDU3641 8460 50368 273

• 29

344 118.5 66.5 67.5 1.0 20.5 0.8 PDU3644 8414 50305 324

• 31

270 642.1 NSI PDU3645 8414 50305 324

• 33

267 609.1 NSI PDU3646 8414 50305 324

• 36

267 663.1 511.0 511.8 0.8 5.1 0.6 PDU3646 8414 50305 324

• 36

267 663.1 559.1 559.5 0.4 4.0 0.3 PDU3646 8414 50305 324

• 36

267 663.1 562.0 563.0 1.0 2.4 0.8 PDU3646 8414 50305 324

• 36

267 663.1 NSI PDU3649 8516 50407 306

• 7

326 41.3 34.2 35.6 1.4 18.4 1.1 PDU3650 8516 50406 306

• 5

342 41.4 32.0 32.9 0.9 7.4 0.8 PDU3651 8517 50406 306

• 7

15 38.1 25.1 25.8 0.7 2.0 0.7 PDU3651 8517 50406 306

• 7

15 38.1 28.0 31.0 3.0 5.4 2.7 PDU3652 8521 50405 305

• 5

52 100.0 37.0 45.0 8.0 133.2 5.1 PDU3652 8521 50405 305

• 5

52 100.0 48.8 50.7 1.9 7.5 1.3 PDU3652 8521 50405 305

• 5

52 100.0 61.2 61.6 0.4 3.1 0.2 PDU3652 8521 50405 305

• 5

52 100.0 63.1 63.9 0.9 29.5 0.5 PDU3653 8508 50406 305

• 19

303 56.8 50.0 50.7 0.7 5.7 0.5 PDU3654 8508 50406 305

• 25

312 53.4 46.4 47.6 1.2 7.8 0.9 PDU3663 8547 50438 308 9 62 83.5 17.0 17.6 0.6 3.3 0.3 PDU3663 8547 50438 308 9 62 83.5 21.7 22.5 0.8 2.3 0.4 PDU3663 8547 50438 308 9 62 83.5 37.0 37.6 0.6 12.2 0.3 PDU3664 8547 50438 308

• 2

62 77.0 54.0 54.5 0.5 3.0 0.3 PDU3665 8547 50438 307

• 13

62 69.1 14.0 14.5 0.5 2.0 0.2 PDU3665 8547 50438 307

• 13

62 69.1 20.2 21.3 1.1 17.8 0.5 PDU3665 8547 50438 307

• 13

62 69.1 25.1 26.0 0.9 18.9 0.8 PDU3667 8419 50353 385

• 80

152 50.6 NSI PDU3668 8508 50406 304

• 33

302 70.2 58.8 61.8 3.0 31.8 1.6 PDU3669 8506 50407 302

• 45

299 75.5 58.7 59.0 0.4 2.1 0.1 PDU3669 8506 50407 302

• 45

299 75.5 61.9 65.0 3.2 3.7 1.5 PDU3670 8508 50406 304

• 34

305 65.5 55.0 58.4 3.4 10.8 1.5 PDU3671 8508 50405 304

• 52

304 67.0 NSI PDU3672 8508 50406 305

• 44

315 92.4 42.8 44.0 1.2 10.3 0.7 PDU3672 8508 50406 305

• 44

315 92.4 47.5 48.0 0.5 2.3 0.3 PDU3672 8508 50406 305

• 44

315 92.4 75.0 76.4 1.4 13.2 1.2 PDU3672 8508 50406 305

• 44

315 92.4 78.8 81.7 2.9 6.9 1.7 PDU3673 8508 50406 304

• 57

317 107.6 NSI PDU3674 8508 50406 305

• 48

329 83.5 28.7 29.5 0.8 2.6 0.5 PDU3674 8508 50406 305

• 48

329 83.5 43.0 43.6 0.6 3.3 0.4 PDU3674 8508 50406 305

• 48

329 83.5 45.0 46.3 1.3 3.6 0.8 PDU3675 8508 50406 305

• 52

337 53.4 42.9 44.6 1.8 8.5 1.2 PDU3676 8460 50368 273

• 18

357 116.5 63.5 64.3 0.8 28.4 0.6 PDU3676 8460 50368 273

• 18

357 116.5 73.7 74.5 0.8 91.0 0.6 PDU3676 8460 50368 273

• 18

357 116.5 81.0 82.0 1.0 2.8 0.7 PDU3676 8460 50368 273

• 18

357 116.5 104.0 106.8 2.8 4.9 2.4 PDU3679 8416 50307 324 1 327 119.4 NSI PDU3680 8416 50307 324

• 2

320 125.4 NSI PDU3681 8417 50307 324

• 11

320 135.1 118.2 120.1 1.9 3.4 1.5 PDU3682 8416 50307 325

• 4

316 122.8 NSI PDU3683 8416 50307 324

• 10

311 143.7 124.0 124.5 0.5 2.7 0.4 PDU3691 8328 50337 278

• 25

311 110.5 NSI PDU3694 8337 50336 281 20 331 77.2 NSI PDU3696 8338 50336 279

• 7

331 81.2 70.4 70.7 0.3 9.0 0.3 PDU3697 8338 50336 279

• 20

331 103.1 75.5 77.2 1.7 14.6 1.4 PDU3698 8338 50336 278

• 36

331 125.7 102.0 105.9 4.0 5.6 3.1 PDU3699 8338 50336 279

• 8

343 84.3 68.3 68.8 0.4 5.9 0.4 PDU3700 8338 50335 279

• 21

343 95.5 76.3 79.7 3.4 38.4 2.9 PDU3703 8416 50307 324

• 15

306 164.9 140.7 142.8 2.1 6.6 1.5 PDU3704 8416 50307 324

• 20

306 170.8 150.7 151.5 0.8 13.7 0.6 PDU3705 8416 50307 324

• 14

300 167.8 NSI PDU3706 8416 50307 324

• 18

300 182.7 NSI PDU3707 8416 50307 325

• 22

297 200.5 NSI PDU3708 8240 50254 262

• 49

286 441.7 317.5 318.9 1.4 46.9 0.9 PDU3724 8338 50336 278

• 37

343 133.1 102.0 108.8 6.8 5.4 5.2 PDU3725 8338 50335 279

• 8

355 75.9 69.6 70.6 1.0 2.2 0.9 PDU3726 8338 50336 278

• 19

355 104.4 75.1 81.2 6.1 14.2 5.1 PDU3728 8338 50336 278

• 36

355 128.4 65.0 66.0 1.0 2.5 0.6 PDU3728 8338 50336 278

• 36

355 128.4 78.7 79.4 0.6 2.8 0.4 PDU3728 8338 50336 278

• 36

355 128.4 102.2 103.5 1.2 22.3 0.8 PDU3728 8338 50336 278

• 36

355 128.4 105.1 107.0 1.9 6.8 1.2

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ASX: NST Page 19 of 24

PAULSENS SIGNIFICANT INTERSECTIONS – Resource Definition and Grade Control

Drill Hole # Easting (Mine Grid) Northing (Mine Grid) Drill hole collar RL (Mine Grid) Dip (degrees) Azimuth (degrees, Mine Grid) End of hole depth (m) Downhole From (m) Downhole To (m) Downhole Intersection (m) Au (gpt) uncut Est True Thickness (m)

PDU3728 8338 50336 278

• 36

355 128.4 108.4 110.0 1.6 13.7 1.1 PDU3729 8338 50335 279

• 19

5 101.2 80.8 81.4 0.6 5.0 0.4 PDU3729 8338 50335 279

• 19

5 101.2 82.8 85.8 3.0 25.4 2.6 PDU3730 8338 50336 278

• 27

5 113.6 93.8 95.6 1.9 13.4 1.4 PDU3731 8338 50336 278

• 35

5 134.3 105.0 107.1 2.1 5.2 1.4 PDU3731 8338 50336 278

• 35

5 134.3 110.9 114.7 3.8 94.8 2.4 PDU3732 8338 50336 278

• 26

14 107.8 89.0 91.0 2.0 48.7 1.6 PDU3732 8338 50336 278

• 26

14 107.8 93.0 93.9 0.9 6.2 0.7 PDU3733 8338 50336 278

• 26

14 122.1 95.3 100.7 5.4 6.7 4.0 PDU3734 8338 50336 278

• 26

14 137.5 111.0 116.5 5.6 9.4 3.3 PDU3734 8338 50336 278

• 26

14 137.5 118.9 121.0 2.1 7.2 1.6 PDU3735 8328 50336 278

• 5

303 96.2 NSI PDU3736 8328 50336 278

• 15

303 107.8 NSI PDU3737 8328 50336 277

• 25

303 116.1 NSI PDU3738 8328 50337 279

• 5

294 122.7 NSI PDU3739 8328 50337 279

• 14

295 124.8 NSI PDU3740 8328 50337 279

• 21

294 134.9 NSI PDU3741 8328 50337 278

• 29

295 149.9 NSI PDU3742 8328 50337 278

• 35

295 189.0 132.7 134.5 1.8 10.7 1.2 PDU3743 8328 50337 279

• 13

289 137.7 NSI PDU3744 8328 50337 279

• 19

291 150.1 NSI PDU3745 8328 50336 278

• 25

287 164.9 NSI PDU3746 8328 50336 277

• 31

288 197.5 NSI PDU3752 8459 50368 273

• 14

315 101.2 86.8 90.4 3.5 11.5 3.0 PDU3754 8460 50368 273

• 15

322 92.5 77.4 80.5 3.0 4.4 2.8 PDU3755 8460 50368 273

• 27

322 116.0 72.6 73.3 0.7 7.5 0.6 PDU3755 8460 50368 273

• 27

322 116.0 79.0 79.9 0.9 12.5 0.8 PDU3755 8460 50368 273

• 27

322 116.0 100.9 101.9 1.0 27.4 0.9 PDU3757 8460 50368 273

• 17

332 80.5 70.0 73.7 3.7 4.8 3.6 PDU3758 8460 50368 273

• 28

332 110.2 73.7 74.7 1.1 16.1 1.0 PDU3760 8460 50368 273

• 17

344 113.6 64.4 65.0 0.6 5.3 0.6 PDU3760 8460 50368 273

• 17

344 113.6 105.2 106.8 1.7 2.8 1.6 PDU3765 8459 50368 273

• 13

305 113.4 96.0 101.5 5.5 38.0 5.0 PDU3772 8337 50336 279

• 39

330 131.4 110.8 113.9 3.1 23.1 2.3 PDU3774 8337 50336 278

• 47

332 176.3 117.7 117.9 0.2 18.4 0.2 PDU3774 8337 50336 278

• 47

332 176.3 143.5 144.4 0.9 16.3 0.6 PDU3775 8337 50336 278

• 41

343 134.2 109.5 110.2 0.7 2.8 0.5 PDU3775 8337 50336 278

• 41

343 134.2 113.0 117.7 4.7 10.4 3.4 PDU3776 8337 50336 278

• 45

343 149.8 134.3 135.2 0.9 3.3 0.6 PDU3777 8337 50336 278

• 48

343 175.8 138.3 139.5 1.2 2.4 0.8 PDU3778 8338 50336 278

• 41

355 140.1 117.2 120.0 2.8 2.1 2.3 PDU3778 8338 50336 278

• 41

355 140.1 123.0 123.9 0.9 2.4 0.7 PDU3778 8338 50336 278

• 41

355 140.1 125.9 128.5 2.5 7.5 2.0 PDU3779 8337 50336 278

• 45

355 136.6 113.0 114.0 1.0 2.3 0.7 PDU3779 8337 50336 278

• 45

355 136.6 129.0 130.0 1.0 15.5 0.7 PDU3779 8337 50336 278

• 45

355 136.6 135.0 135.7 0.7 14.7 0.6 PDU3780 8337 50336 278

• 49

354 170.1 139.0 140.6 1.6 2.4 1.1 PDU3781 8338 50336 278

• 40

5 136.7 NSI PDU3782 8338 50336 278

• 43

5 155.3 134.7 135.3 0.6 17.2 0.4 PDU3783 8338 50336 278

• 49

5 167.0 NSI PDU3784 8338 50336 278

• 37

55 158.5 117.0 117.5 0.5 2.4 0.4 PDU3784 8338 50336 278

• 37

55 158.5 125.9 127.1 1.2 6.0 0.7 PDU3786 8338 50336 278

• 45

14 169.6 71.3 71.6 0.3 6.7 0.2 PDU3786 8338 50336 278

• 45

14 169.6 137.3 137.5 0.2 9.0 0.2 PDU3789 8328 50336 277

• 39

314 128.5 115.0 117.5 2.5 9.1 1.3 PDU3791 8328 50336 277

• 45

314 163.1 147.0 148.6 1.6 1.8 1.0 PDU3791 8328 50336 277

• 45

314 163.1 150.9 154.0 3.1 9.8 1.9 PDU3795 8330 50337 278

• 35

325 118.9 97.8 101.2 3.3 16.0 2.5 PDU3810 8243 50256 263

• 43

340 239.7 220.0 221.0 1.0 38.2 0.8 PDU3813 8243 50256 263

• 42

350 240.0 214.5 216.9 2.4 47.0 1.5 PDU3816 8241 50255 263

• 42

329 228.0 211.0 212.0 1.0 7.4 0.8 PDU3817 8243 50255 263

• 36

328 228.0 180.7 183.6 2.9 16.9 2.2

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JORC Code, 2012 Edition – Table 1 Report: Voy2 Drill Results to 24 February 2016 Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria JORC Code explanation Commentary Sampling techniques Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling. The deposit is sampled by face sampling and diamond drilling. Sample intervals are defined by the geologist to honour geological boundaries. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Core is aligned and measured by tape, comparing back to down hole core blocks consistent with industry practice. Aspects of the determination of mineralisation that are Material to the Public

• Report. In cases where ‘industry standard’ work has been done this would be

relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information. Diamond drill core and face sampling are completed to industry standard using varying sample lengths (0.3 to 1.5m) based on geological intervals, Samples are then crushed and pulverised to produce a ~200g pulp sub-sample to use in the assay process. Visible gold is occasionally encountered in core. Drilling techniques Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is

• riented and if so, by what method, etc.).

The diamond drilling produces LTK60 and NQ2 size drill core. Drill sample recovery Method of recording and assessing core and chip sample recoveries and results assessed. Diamond drill core recoveries are recorded as a percentage calculated from measured core versus drilled intervals. Current practice is achieving >95% recovery. Greater than 0.2m discrepancies are resolved with the drill supervisor. Measures taken to maximise sample recovery and ensure representative nature

• f the samples.

Standard diamond drilling practice results in high recovery due to competent nature of the ground. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. There is no known relationship between sample recovery and grade, sample recovery is very high. Logging Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Core logging is carried out by Company Geologists who delineate intervals on geological, structural, alteration and/or mineralogical boundaries to industry standard. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography. Logging is qualitative and all core is photographed. Visual estimates are made of sulphide, quartz and alteration percentages The total length and percentage of the relevant intersections logged. 100% of the drill core is logged. Sub-sampling techniques and sample preparation If core, whether cut or sawn and whether quarter, half or all core taken. LTK 60 is generally whole core sampled, NQ2 core is generally half core sampled. If not whole core sampled, then core is half cut with Almonté diamond core saw and half core sampled. The right half is sampled, to sample intervals defined by the Logging Geologist along geological boundaries. The left half is archived. All major mineralised zones are sampled, plus associated visibly barren material, >5m of hangingwall/footwall.

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Criteria JORC Code explanation Commentary Ideally, sample intervals are 1m in length, though they range from 0.3m to 1.5m in length. Total weight

• f each sample generally does not exceed 5kg.

All samples are oven-dried overnight (max 1200C), crushed to 90% passing 3mm before a rotary split to 2.5 kg, which is then pulverised to 90% passing 75 micron. The analytical sample is further reduced to a 30gm charge weight and the pulp packet is stored awaiting collection by Northern Star Resources Limited (NSR). If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry. No non-core results are being presented For all sample types, the nature, quality and appropriateness of the sample preparation technique. Sample preparation is deemed adequate. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. For drill core, the external labs coarse duplicates are used. Commercial standards are inserted at site at a rate of 1:40. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate / second-half sampling. Field duplicates, i.e. remaining half of cut core, are not routinely assayed. Whether sample sizes are appropriate to the grain size of the material being sampled. Sample sizes are considered appropriate based on extensive experience. Quality of assay data and laboratory tests The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For all drill core samples, gold concentration is determined by fire assay using the lead collection technique with a 40 gram sample charge weight with an AAS finish. Various multi-element suites are analysed using a four acid digest with an ICP-OES finish. For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. No geophysical tools are used. Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack

• f bias) and precision have been established.

The QAQC protocols used include the following for all drill samples:  Commercial coarse blanks are inserted at an incidence of 1 in 40 samples.  Commercially prepared certified reference materials are inserted at an incidence of 1 in 40

• samples. The CRM used is not identifiable to the laboratory.

 NSR’s Blanks and Standards data is assessed on import to the database and reported monthly and yearly. The primary laboratory QAQC protocols used include the following for all drill samples:  Repeat of pulps at a rate of 5%  Screen tests (percentage of pulverised sample passing a 75µm mesh) are undertaken on 1 in 100 samples.  The laboratory and Geology department report QAQC data on a monthly basis.  Failed standards are followed up by re-assaying a second 30g pulp sample of the failed standard ± 10 samples either side by the same method at the primary laboratory. Both the accuracy component (CRM’s and umpire checks) and the precision component (duplicates and repeats) are deemed acceptable. Verification of sampling and assaying The verification of significant intersections by either independent or alternative company personnel. Significant intersections are reviewed by the Geology Superintendent and senior corporate personnel The use of twinned holes. No twinned holes were drilled for this reporting period

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Criteria JORC Code explanation Commentary Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Data is entered in the OCRIS data capture system, where it is then exported to the GBIS Geology database after validating. Internal checks are made comparing database to raw assays files. Visual checks are part of daily use of the data in Vulcan. Discuss any adjustment to assay data. No adjustments are made to any assay data. First gold assay is utilised. Location of data points Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Drill hole collar positions are picked up by survey using a calibrated total station Leica 1203+

• instrument. Drill hole, downhole surveys are recorded at 15m and 30m, and then every 30m after by

calibrated Pathfinder downhole cameras. Underground workings are tied into defined surface survey stations Specification of the grid system used. A local grid system (Paulsen Mine Grid) is used. It is rotated 41.5 degrees to the west of MGA94 grid. Local origin is 50,000N and 10,000E Conversion. MGA E = (East_LOC*0.75107808+North_LOC*0.659680194+381504.5)+137.5 MGA N = (East_LOC*-0.65968062+North_LOC*0.751079811+7471806)+153.7 MGA RL = mRL_LOC-1000 Quality and adequacy of topographic control. Topographic control is not relevant to the underground mine. For general use, Arvista survey is

• used. Resolution is +/- 0.5m

Data spacing and distribution Data spacing for reporting of Exploration Results. Exploration result data spacing can be highly variable, up to 100m and down to 10m. Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Resources not reported. Whether sample compositing has been applied. Core is sampled to geology, sample compositing is not applied until the resource estimation stage. Orientation of data in relation to geological structure Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. Intercept angles are mixed primarily due to drill site access, early exploration holes could be near sub parallel in the worst cases. Later drilling utilized hanging wall drill sits as available and are often perpendicular. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. The drill orientation to mineralised structures biases the number of samples per drill hole. As the

• pportunity arises, better angled holes are drilled with higher intersection angles.

Sample security The measures taken to ensure sample security. All samples are selected, cut and bagged in tied numbered calico bags, grouped in larger tied plastic bags, and placed in large sample cages with a sample submission sheet. The cages are transported via freight truck to Perth, with consignment note and receipts. Sample pulp splits are returned to NSR via return freight and stored in shelved containers on site. Audits or reviews The results of any audits or reviews of sampling techniques and data. Recent external review confirmed core sampling techniques are to industry standard. Data handling is considered adequate

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Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria JORC Code explanation Commentary Mineral tenement and land tenure status Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. M08/196 and M08/99 are wholly owned by Northern Star Resources (NSR) and in good standing. Surface expression of the Paulsens Gold Mine is on M08/99, most of underground workings are on neighbouring M08/196. There are no heritage issues with the current operation. Relationship with the traditional owners is good. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. M08/196 and M08/99 are valid until 2020 and 2032 respectively. Exploration done by other parties Acknowledgment and appraisal of exploration by other parties. Previous exploration at Paulsens was conducted by CRA, Hallmark, Taipan, St Barbara, Nustar and Intrepid Mines Ltd prior to NSR. Geology Deposit type, geological setting and style of mineralisation. Paulsens is a high grade, quartz hosted, mesothermal gold deposit within metasediments. Drill hole Information A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

• easting and northing of the drill hole collar
• elevation or RL (Reduced Level – elevation above sea level in metres) of the

drill hole collar

• dip and azimuth of the hole
• down hole length and interception depth
• hole length.

All holes for Voyager 2 in this report are presented in the main ASX release. If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. No information is excluded. Data aggregation methods In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated. Length weighted averages are used, cut and uncut reported (cut to 150gpt). Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. Short, high grade assays are length weighted and aggregated to relevant down hole length. The assumptions used for any reporting of metal equivalent values should be clearly stated. No metal equivalents are reported Relationship between mineralisation widths and intercept lengths These relationships are particularly important in the reporting of Exploration Results: Exploration results include an estimate of true thickness. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. Due to complex mineralisation geometry and varying intercept angles, the true thickness is manually estimated on a hole by hole basis. Both true width and downhole lengths are reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’). Both true width and downhole lengths are reported Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, Appropriate maps and plans are included in main release and previous ASX releases.

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Criteria JORC Code explanation Commentary but not be limited to a plan view of drill hole collar locations and appropriate sectional views. See ASX releases dated 04/08/2015, 13/01/2015, 19/02/2014, 05/09/2013, 23/09/2013, 02/08/2013, 29/05/2013, 16/05/2013, 20/01/2013, 12/12/2012, 1/10/2012, 24/8/2012, 04/07/2012, 07/06/12, 29/05/2012, 12/04/2012, 6/03/2012, 25/11/2011, 17/11/2011, 09/11/2011, 13/10/2011, 12/09/11, 30/05/2011, 12/04/2011, 16/03/2011, 06/01/2011, 04/01/2011, 22/12/2010, 10/12/2010, 02/12/2010, 14/10/2010, 04/08/2010. Balanced reporting Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. All material results are reported Other substantive exploration data Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. No other relevant data to report Further work The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling). Drilling will continue down plunge as well as for grade control infill as underground drill sites become available Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. Part of this ASX announcement

Figure 1 - Voyager 2 Long Section with all deep drill hole traces Figure 2 – Voyager 2 Plan View with all deep drill hole traces