NSGold secures loan facility with van hoof industrial holdings

Bedford, Nova Scotia – December 11, 2012 – NSGold Corporation (NSX:TSXV) is pleased to announce that it has secured a commitment for a loan facility of up to $500,000 from Van Hoof Industrial Holdings Ltd. (“VHIH”), a company controlled by Mr. Hans Van Hoof, Chairman of the Corporation.  The loan facility is being made available without any fees, options or warrants.  As the loan is drawn upon, it will bear interest at the rate of 6% per annum.  As collateral for the loan facility, the Corporation will pledge its shareholding in NSX Silver Inc., representing 1,875,804 shares.

Hans Van Hoof, Chairman commented:

“My view is that real money tends to be made at the bottom, rather than at the top of the market. The current junior mining environment however has seen many ‘false bottoms’.  It seems to me to be very much like the reversal of the dot-com boom of the late 1990’s and early 2000’s.  At our annual meeting in June 2012, I was talking to one of our shareholders, a very theoretical man, with an impressive knowledge of mining company history.  I mentioned that the junior mining market felt a bit like the 1998 Asian/Russian Crisis followed by the record low commodity prices of 2001-2003.  He then commented that the liquidity crisis was the worst experienced in 64 years. That was June 2012 and everyone expected the investment environment to improve from there on and yet here we are in December 2012.

Recently I read a very well researched article by John A. Kaiser regarding the pending ‘extinction’ of a significant number of TSX and TSX-V listed junior mining companies.  That in turn reminded me of a phrase from Milton Keynes, that has, or should have, saved many good investment managers over the years:

’The market can stay irrational longer than you can stay solvent.’

Now back to NSGold Corporation, although we expect our current cash and receivables position will cover our overhead into mid-2013, the current environment does create some incredible opportunities.  Rather than having to make those opportunities contingent upon securing funding before getting an exclusive due diligence period, this loan facility should position the Corporation to be at the forefront for executing on the right opportunities, as well as for strategically advancing its 100% owned Mooseland Gold Project.”

The Corporation and VHIH will proceed with the preparation of a standard loan agreement to formalize the foregoing arrangement.

Due to the fact that VHIH, the lender, has ownership of more than 10% of the outstanding common shares of the Corporation, the loan facility may be considered a “related party transaction” for the purposes of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions and the Corporation is relying on exemptions from the formal valuation and minority approval requirements of Multilateral Instrument 61-101.

About NSGold

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

For further information, please contact:

Glenn A. Holmes

Chief Executive Officer, NSGold Corporation

(902) 798-1148


Forward-Looking Statements

This news release contains statements that may constitute “forward-looking information” or “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking information and statements may include, among others, statements regarding the future plans, costs, objectives or performance of NSGold Corporation (“NSGold”), or the assumptions underlying any of the foregoing.  In this news release, words such as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate” and similar words and the negative form thereof are used to identify forward-looking statements.  Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved.  No assurance can be given that any events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that NSGold or its shareholders will derive.  Forward-looking statements and information are based on information available at the time and/or management’s good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond NSGold’s control.  These risks, uncertainties and assumptions include, but are not limited to, those described under “Risks and Uncertainties” in NSGold’s Management Discussion and Analysis for the Year ended December 31, 2011, which is available on SEDAR at www.sedar.com, and could cause actual events or results to differ materially from those projected in any forward-looking statements.  NSGold does not intend, nor does NSGold undertake any obligation, to update or revise any forward-looking information or statements contained in this news release to reflect subsequent information, events or circumstances or otherwise, except if required by applicable laws.

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.