Off-Take Agreement (6910J)

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RNS Number : 6910J

Norseman Gold PLC

04 July 2011

Norseman Gold plc / Epic: NGL / Index: AIM & ASX / Sector: Mining & Exploration

Norseman Gold Plc ('Norseman Gold' or 'the Company')

Norseman Gold Enters Into Gold Off-Take Agreement With Exp T1 Ltd, A Member Of The Red Kite Group

Norseman Gold, the AIM-listed and ASX-listed Australian gold production company is pleased to announce that it has entered into a gold off-take agreement with EXP T1 Ltd ('EXP'), a subsidiary of RK Mine Finance Trust 1, a member of the Red Kite group of funds ('Red Kite').

Under the terms of the off-take agreement, Norseman Gold's wholly owned subsidiary, Central Norseman Gold Corporation Limited ('CNGC'), will supply Red Kite with its gold production up to a total of 300,000 ounces. The off-take agreement includes market pricing and is based on Australian dollars thereby removing any foreign currency exposure to the Norseman Gold project.

**ENDS**

For further information visit www.norsemangoldplc.com or contact:

 
 Barry Cahill        Norseman Gold Plc           Tel: +61 (0) 8 9473 
                                                  2200 
------------------  --------------------------  -------------------- 
 Guy Wilkes          Ocean Equities Ltd          Tel: +44 (0)20 7786 
                                                  4370 
------------------  --------------------------  -------------------- 
 Nandita Sahgal      Seymour Pierce Ltd          Tel: +44 (0)20 7107 
                                                  8000 
------------------  --------------------------  -------------------- 
 Jeremy Stephenson   Seymour Pierce Ltd          Tel: +44 (0)20 7107 
                                                  8000 
------------------  --------------------------  -------------------- 
 Hugo de Salis       St Brides Media & Finance   Tel: +44 (0)20 7236 
                      Ltd                         1177 
------------------  --------------------------  -------------------- 
 E-mail              investors@ngold.com.au 
------------------  --------------------------  --------------------

Note to editors:

Norseman Gold plc is an AIM listed and ASX listed Australian gold production company, which acquired the Norseman Gold Project in May 2007, Australia's longest continually running gold operation. The Norseman Gold Project is located in the Eastern Goldfields of Western Australia in the highly prospective Norseman-Wiluna greenstone belt, 725km east of Perth and 186km from Kalgoorlie.

Gold was first found on the Norseman field in 1894 and over the last 65 years, it has produced over 5.5 million ounces of gold. The mine is currently producing from three high-grade narrow-vein underground mines - the Bullen, the Harlequin and the OK Declines and developing the North Royal Open Pit. Currently, it has a total resource inventory of 3.8 million ounces of gold at an average grade of 5.3 g/t.

The tenements cover a 2,180 sq km area centred on the Norseman Township. The landholding comprises 221 tenements consisting of 16 Exploration Licences, 107 Mining Licences, 64 Prospecting Licences, 15 Miscellaneous Licences, 5 Exploration Licence Applications, 13 Prospecting Licence Applications and 1 Mining Lease Application.

The Company's strategy is focused on extending the mine life through the conversion of resources into reserves and identifying additional resources and obtaining additional ore for the operating mill through the development of additional mines. The Company has fifteen advanced resource projects under review of which three have pre-development work being undertaken on them. It is anticipated that at least one, if not all the pre-development projects will develop into mining propositions.

About RK Mine Finance Trust 1

RK Mine Finance provides mining companies with financing and metal off-take agreements for initiation or expansion of mine production. Red Kite operates across the global metals industry from offices in Bermuda, Denver, Hong Kong, London, New York, Shanghai and Sydney.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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