NSGold Options Gold Properties

Press Release For immediate distribution

Vancouver, British Columbia – December 7, 2010 -NSGold Corporation (NSX : TSXV) is pleased to report that it has entered into an option agreement whereby it can acquire a 100% interest in two prospective gold properties located in Nova Scotia. The properties, Moosehead and Ecum Secum, are located along an anticlinal structure that is known as a favourable host of gold prospects.

The Moosehead Property consists of 8 claims on the old Moosehead Mine located 20 km east along the coast from Sheet Harbour. The Moosehead claims optioned cover a 1.5 km section of this structure which hosts the Harrigan Cove Deposit a few kilometers to the west and the Tangier Mine further to the west. The mine operated for several years in the early part of the last century by the “Boston and Goldenville Gold Mining Company” closing last in 1913 and producing less than 1000 tons of ore (reported) at an average grade of 0.2145 oz/t. The property has many shallow pits and trenches as well as a main shaft of 180 ft depth with 500 ft of drifting, and several other peripheral shafts. There has been no recorded drilling on this property. All the workings are reportedly well out on the south limb of an anticline and there has been little or no exploration activity in the area of the projected hinge of the anticline.

The Ecum Secum Property consists of 6 claims on the coast approximately 33 km east of Sheet Harbour. There is ample evidence of historic mining onsite including pits and trenches, three shafts and an old “Arasta” Mill (a stone wheel propelled by animals to grind ore). The current holder of the mineral claims has taken numerous samples of coarse gold that were missed by early mining efforts, from ore and waste piles on the surface. Another structure a few hundred meters to the north of the primary zone has 2 shallow shafts and several pits. A recent short hole of 17 meters was drilled by the current holder of the mineral claims in one of the pits which intersected 5 quartz veins. Traces of sulphide mineralization commonly associated with gold were seen in a couple of the veins but no visible gold was evident.

Both properties have limited exploration work carried out on them but were producing mines at one point in their history. They represent excellent exploration targets, and due to their relative proximity to the Mooseland property, are complimentary to NSGold’s current exploration efforts.

NSGold can acquire a 100% interest in the two properties by making aggregate option payments of $120,000 payable in instalments based on project milestones over a period of 3 years or until one or both of the properties is advanced to production. The properties are subject to a Net Smelter Royalty of 1.5% on commencement of production which is capped at $1,000,000.

Mooseland Phase 1 Drilling Update

As of this date, a total of twelve (12) diamond drill holes in the Phase 1 Drilling Program have been completed on the East Zone of the Mooseland Project with the final hole currently being drilled., A total of thirteen (13) diamond drill holes have been completed on the West Zone for a total of twenty (26) drill holes. The Phase I Program is expected to total more than 6,000 meters of drilling. Weather and flooding have made it necessary to reschedule some of the planned holes to a later date and to re-position and realign others to achieve intended targets.

Samples for the first 9 holes have been shipped to Laboratoire Expert of Rouyn – Noranda, Quebec for assay and results are pending. Reporting from the laboratory has been slow due to the heavy volume of samples received at the lab.

Qualified Person

Perry MacKinnon P. Geo., Chief Geologist for NSGold, a qualified person as defined by National Instrument 43-101, has reviewed and approved the information provided in this news release.

About NSGold

NSGold Corporation is a mineral exploration company actively exploring for gold in Nova Scotia, Canada. NSGold’s flagship property is the Mooseland Gold Project. NSGold’s shares are listed on the TSX Venture Exchange under the symbol NSX.

For further information, please contact:

Glenn A. Holmes
Chief Financial Officer,
NSGold Corporation
(902) 483-2308
glenn.holmes@nsgoldcorp.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.