nst ipo - grades to rival de grey?

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    STRONG DEMAND FOR NORTHERN STAR
    JUBILEE EMERGES AS MAJOR SHAREHOLDER

    Following strong demand, Northern Star Resources’ $5 million prospectus has closed oversubscribed with Jubilee Mines emerging as a major shareholder.

    Existing shareholder Jubilee Mines, a successful nickel producer, has reconfirmed its commitment to Northern Star by investing an additional $765,000 in the offer, and becoming Northern Star’s major shareholder with just over 25% of the stock.

    With assistance from major broker to the IPO, DJ Carmichael, the issue closed on 5 December 2003 and the company is expected to list on the ASX on Wednesday 17 December 2003, subject to regulatory approval.

    Following the issue of 25 million shares at 20 cents, Northern Star will have 51.4 million shares and 18.4 million unlisted options.

    Northern Star managing director Charles Wilkinson said the high level of interest in the IPO, together with Jubilee’s commitment, was a strong vote of support for management’s proven ability to discover ore bodies and the quality of projects secured in one of the most prospective but least explored regions in Australia.

    “Over the last two years, we have taken a patient and focussed approach to acquiring projects in the East Kimberley region of Western Australia,” said Mr Wilkinson.

    “We have an attractive land holding that is prospective for nickel, gold and diamonds. The early signs are promising with nickel targets containing elevated values of nickel, copper and cobalt in rock chip samples, and the primary gold prospect has drill holes with high grade gold intercepts, including 4m @ 64.2 g/t and 5m @ 23.0 g/t,” he said.

    The East Kimberley region already contains major deposits, such as the world-class Argyle diamond mine, the Sally Malay nickel project with reserves of 3.1mt @ 1.57% nickel, and the Panton platinum project with resources of 75.2mt @ 1.9 g/t platinum group elements plus gold.

    “It can only be a matter of time before the next major deposit is discovered. Exploration is set to accelerate, as major international mining companies join in the hunt with the juniors,” said Mr Wilkinson.

    “The oversubscription of our IPO is a clear pointer that investors are tuning in to the substantial prospectivity of the East Kimberley region,” he said.

    Exploration activities are expected to commence soon after listing with Northern Star intending to complete an airborne geophysical survey over the Red Billabong nickel and base metal prospect in January 2004.


    CONTACT:

    CHARLES WILKINSON, MD, NORTHERN STAR RESOURCES 08 9328 9292
    MAX NIND, WARD HOLT CORPORATE COMMUNICATIONS 08 9221 8722
 
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