NevGold Corp T.NAU

RE: An analyst update

[jaysbc44]

    Delta and all here's RBC's analyst update for NAU

Patrick Morton (Analyst)

([phone]; [e-mail]

125 WEEKS 09MAY08 - 22SEP10

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M J J A S O N

2008

D J F M A M J J A S O N

2009

D J F M A M J J A S

2010

HI-16MAY08 4.34

HI/LO DIFF -91.24%

CLOSE 2.91

LO-26JUN09 0.38

400

800

1200

PEAK VOL. 1598.3

VOLUME 61.0

40.00

60.00

80.00

100.00 Rel. S&P/TSX COMPOSITE INDEX HI-16MAY08 102.41

HI/LO DIFF -77.39%

CLOSE 85.89

LO-12DEC08 23.16

Revenue (MM)

2009A 0.0

2010E 0.0

2011E 0.0

2012E 0.0

All values in CAD unless otherwise noted.

Northland Resources SA (TSX: NAU; 2.91; OSLO: NAUR)

Rating:

Risk Qualifier:

Price Target:

Sector Perform

Speculative Risk

3.50

Feasibility Results Expected Imminently

• Expecting Generally Positive Feasibility Result. Expected additional haulage

costs to port to be offset by higher realized pricing.

• Next Step; Financing. We think Northland will aim for about a 50/25/25 ratio

of debt/equity/offtake financing, including the $50 million already pledged by

Stemcor for its 1mtpa offtake deal. In our view, the timely receipt of the

Kaunisvaara environmental permit in August should boost Northland's

financing prospects significantly.

• Valuation Unchanged For Now. Our one-year price target of $3.50/sh is

based on a 0.75x multiple to our NAV estimate and 10x multiple to our

discounted long-term EPS forecast.

September 23, 2010 CANADIAN RESEARCH AT A GLANCE

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