NSGold intercepts 3.7 meters grading 27 grams per tonne gold at its Mooseland Gold project

Vancouver, British Columbia – December 22, 2010 – NSGold Corporation (NSX:TSXV) is pleased to report additional assay results from the recently completed Phase 1 drilling campaign (26 drill holes) at its Mooseland Gold Project in Halifax County, Nova Scotia. Significant intercepts of quartz structures known to be gold bearing have been encountered throughout the drilling program.

The most significant gold intercept in terms of grade and width occurred in hole NSG 5-10 with 26.97 grams per tonne over a width of 3.7 meters. This intercept occurs in a section of core from 103.3 meters to 107.0 meters, a zone which includes favorable quartz structures with both anomalous and higher grade intercepts (see table attached).

Assay results have now been received for holes NSG 3-10, NSG 5-10, NSG 6-10 and NSG 7-10. The highest assay result was 122.9 grams per tonne of gold over 0.5 meters in hole NSG 3-10. A total of 7 samples assayed in excess of 10 grams per tonne gold and 28 samples assayed in excess of 1 gram per tonne gold (see table below). Assay results for holes NSG 1-10 and NSG 2-10, as well as partial results for hole NSG 3-10, were previously announced in the Company’s press release dated November 18, 2010.

Anomalous values of gold in favorable quartz structures and sulfides assaying between 0.1 and 1.0 grams per tonne have been encountered throughout the drill holes. Some of these anomalous zones accompany structures where higher gold values are reported, thus increasing the potential for increased mining widths.

Table Mooseland Drill Intercepts Greater Than 1 Gram per Tonne

From To Interval Grade
(meters) (meters) (meters) (g/t)
NSG-3-10 59.85 147.90 60.40 148.50 0.55 0.60 26.87 1.20
152.40 158.80 152.90 159.30 0.50 0.50 122.89 2.27
NSG-5-10 82.30 82.50 0.20 1.13
Including 103.30 103.30 107.00 104.10 3.70 0.80 26.97 87.29
Including 105.50 124.80 106.00 125.30 0.50 0.50 58.71 1.29
143.30 200.40 143.90 200.90 0.60 0.50 3.44 7.9
NSG-6-10 9.90 10.40 0.50 3.29
63.90 103.40 64.40 104.00 0.50 0.60 1.31 1.33
132.90 146.80 133.40 147.00 0.50 0.20 1.94 1.92
152.20 163.90 152.70 164.50 0.50 0.60 4.08 13.62
168.70 209.50 169.00 210.00 0.30 0.50 1.3 6.74
217.00 230.00 217.50 230.60 0.50 0.60 5.28 1.21
NSG-7-10 45.40 45.90 0.50 17.16
93.80 106.30 155.10 162.40 196.00 247.10 95.10 106.80 155.70 163.00 197.00 247.60 1.30 0.50 0.60 0.60 1.00 0.50 1.61 1.20 5.83 1.67 10.42 1.89

Leipsigate Drilling Update

The Company has completed two of three planned drill holes at its wholly owned Leipsigate gold property located in Lunenburg County, Nova Scotia, approximately 120 km west of Halifax. The third drill hole is expected to be completed later this week.

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.