Disclaimer
Competent Persons Statements
The information in this announcement that relates to mineral resource estimations, exploration results, data quality and geological interpretations for the Company’s Kanowna, EKJV, Kundana and Carbine Project areas is based on information compiled by Nicholas Jolly, a
Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy and a full-time employee of Northern Star Resources Limited. Mr Jolly has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to
the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Jolly consents to the inclusion in this announcement of the matters based on
this information in the form and context in which it appears.
The information in this announcement that relates to mineral resource estimations, exploration results, data quality and geological interpretations for the Company’s Project areas is based on information compiled by Darren Cooke, a Competent Person who is a Member of the
Australian Institute of Geoscientists and a full-time employee of Northern Star Resources Limited. Mr Cooke has sufficient experience that is relevant to the styles of mineralisation and type of deposits under consideration and to the activity being undertaken to qualify as a
Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" for the Company’s Project areas. Mr Cooke consents to the inclusion in this announcement of the matters based on this
information in the form and context in which it appears.
The information in this announcement that relates to ore reserve estimations for the Company’s Project areas is based on information compiled by Jeff Brown, a Competent Person who is a Member of the Australian Institute of Mining and Metallurgy and a full-time employee of
Northern Star Resources Limited. Mr Brown has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" for the Company’s Project areas. Mr Brown consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears.
Forward Looking Statements
Northern Star Resources Limited has prepared this announcement based on information available to it. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in
this announcement. To the maximum extent permitted by law, none of Northern Star Resources Limited, its directors, employees or agents, advisers, nor any other person accepts any liability, including, without limitation, any liability arising from fault or negligence on the part of
any of them or any other person, for any loss arising from the use of this announcement or its contents or otherwise arising in connection with it.
This announcement is not an offer, invitation, solicitation or other recommendation with respect to the subscription for, purchase or sale of any security, and neither this announcement nor anything in it shall form the basis of any contract or commitment whatsoever. This
announcement may contain forward looking statements that are subject to risk factors associated with gold exploration, mining and production businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of
variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including but not limited to price fluctuations, actual demand, currency fluctuations, drilling and production results, Reserve estimations, loss of market, industry
competition, environmental risks, physical risks, legislative, fiscal and regulatory changes, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates.
All currency conversions in this presentation have been converted at a currency of AUD/USD conversion rate of A$0.76
(1) EBITDA is earnings before interest depreciation, amortisation and impairment and is calculated as follows: Profit before Income tax plus depreciation, amortisation, impairment and finance costs less interest income.
(2) Free Cash Flow is calculated as operating cash flow minus investing cash flow.
(3) Underlying Free Cash Flow is calculated as follows: 31 Dec 2016 - free cash flow ($12.8 million) plus bullion awaiting settlement ($10.6 million), plus stamp duty paid on prior acquisitions ($1.7 million), plus investments in Available for sale assets ($0.8 million), plus FY2016
tax ($33.6 million), less working capital adjustment ($3.4 million). 31 Dec 2015 - free cash flow ($66.4 million) plus bullion awaiting settlement ($9 million), plus acquisition and exploration of Central Tanami Project ($17.3 million), plus stamp duty paid on prior period acquisitions
($5.0 million), less working capital adjustment ($1.0 million).
EBITDA, Underlying Free Cash Flow and All-in Sustaining Costs (AISC) are unaudited non IFRS measures.
* All Data from Bloomberg referenced sources has had all N.A. and erroneous data points removed in the associated sector comparisons and all GDX data point comparisons have had streaming company data removed for a better reflection of the producing companies within the
indices
2
6.7Moz of gold production over the past 24
years, average of 280kozpa with a peak
year of 370koz
Resource/Reserve upgrades now provide
10 years of mine life visibility across the
Kalgoorlie operation: Reserve up 117% to
2.0Moz and Resource up 25% to 4.5Moz
Our Objective is to grow Kalgoorlie
operations to 300-325koz pa within 24
months
Significant opportunities to achieve this
increased production via developing 100%
owned Kundana deposits, extending
Kanowna at depth and mining satellite pits
Kalgoorlie Operations: Rapid, low-cost growth
3
Kalgoorlie Operations: The Journey
Geology overview of each of
the areas.
What we have achieved with
the Resource and Reserve
additions.
An overview of the mining
and how we turn the
reserves into gold bars.
25km50km
KALGOORLIE
CARBINE / PARADIGM
KUNDANA
KANOWNA
4
Kundana
25km50km
KALGOORLIE
CARBINE / PARADIGM
KUNDANA
KANOWNA
New Tenements
Acra Joint Venture
Existing NST Interest
Acra
6
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Cu
mu
lati
ve G
old
Pro
du
ctio
n (
Ou
nce
s)
Ore
Res
erv
e /
Min
eral
Res
ou
rce
s (O
un
ces)
Kundana CampAnnual Reserve & Resource Versus Cumulative Production
Ore Reserves Mineral Resources Cumulative Production
Case Study - The Rebirth of Kundana
Raleigh, Rubicon &
Hornet Discoveries
South Pit,
North Pit
Strzelecki, Barkers,
Centenary Pits & UG
Plunging Shoot
Theory
Pegasus, Millennium,
2.1km Link Drive:
INVESTMENT IN
EXPLORATION
7
Kundana: Applying the Pegasus Exploration LearningsMILLENNIUM
Strong South plunge of mineralisation observed at the
Centenary Underground Mine (Similar orientation to
Pegasus & Frogs Leg)
Development may have stopped at south dipping low grade
flexures as seen at Pegasus
Unlike Pegasus, the north plunge is absent at Centenary (or
is it?)
The Drake target is to test the theory as we begin to explore
the next potential mining front adjacent to Pegasus
SOUTH PIT / CENTENARY UNDERGROUND MINE (d.1999)
MILLENNIUM
TARGET
North
8
DRAKE
Past production on the 100% NST ground has yielded 1.25Moz at 6gpt, between 1990-2004
FY17 Reserves increased to 0.8Moz, Resource of 1.8Moz; now larger than EKJV Reserves and Resources
Current development at Millennium is ahead of schedule, first production ore due in the Dec quarter, 2017
Exploration success will drive multiple development decisions in FY2018 to drive organic growth – all lodes
remain open at depth
Page 11
Kalgoorlie Operations – Kundana (100% NST)
11
12
ARCTICRSC 233koz (+179koz)
MILLENNIUM-CENTENARYRSC 411koz (-8koz)RSV 250koz (+6koz)
POPE JOHNRSC 240koz (-41koz)
RSV 210koz (+210koz)
MOONBEAMRSC 233koz (+159koz)
RSV (incl w. Strz)
STRZELECKIRSC 293koz (+293koz)RSV 196koz (+196koz)
BARKERSRSC 268koz (+131koz)
RSV 55koz (+55koz)
Kundana (NST 100%) Mining Centre re-established
Resources 1.3Moz (+478koz) Reserves 738koz (+533koz)
Over 38,000m of drilling completed
Host structures strike length 4km (K2) and 2km (Strzelecki)
Visibility on LOM extensions at all deposits
Kundana (NST 100%) Growth Delivery
N S
13
Strzelecki is Raleigh-style mineralisation on 100% NST tenure.
Narrow 0.2 – 1.0m laminated veins with significant VG component.
0.2m @ 65.7g/t
(ZMV)
0.63m @ 296.0g/t
(ZMV)
2.0m @ 7.74g/t
(ZMV)0.31m @ 296.0g/t
(HW VN)
0.2m @ 65.2g/t
(HW VN)
0.36m @ 48.7g/t
(HW VN)
Strzelecki – Another near-mine success
N
StrzeleckiDeposit
1.4Mt @ 10g/t for
443koz (mined)
Moonbeam Pit
ChristmasShoots
HW Veins
SectionLine
5630mRLRaleigh Lower Levels
Carbine / Paradigm
25km50km
KALGOORLIE
CARBINE / PARADIGM
KUNDANA
KANOWNA
New Tenements
Acra Joint Venture
Existing NST Interest
Acra
15
Paradigm emerging as another deposit in the plan to
grow production
>14,000m of Reserve definition drilling targeting Natasha
and Arina mineralised trends completed during Q3
Paradigm Maiden JORC Resource:
873kt @ 6.7g/t for 187koz
Paradigm Maiden JORC Probable Reserve:
183kt @ 7.6g/t for 45koz
Mineralisation open in all directions – potential to grow
Follow up extensional and stratigraphic drilling underway
within the Project area
Exploration programs underway at nearby Drago (500m
south of Paradigm), Zorro and Eremenco.
Pit dewatering near completion, development options are
under review16
Current drilling
confirms mineralisation
extensions
Arina
Lode
Arina
FW ZoneArina
HW Zone
Natasha
Lode
Mishka
Lode
Paradigm Prospect
17
CBRC16129
18m @ 1.2g/t (57m) incl.
3m @ 4.46g/t (57m)
CBRC16134
6m @ 4.2g/t (133m)
CBAC16068
4m @ 3.44g/t (32m)
CBRB16213
16m @ 0.98g/t (32m)
Phantom OPProduction 1996-99
22.5 koz @ 5.7g/t
Paradigm OPProduction 2001-03
48.3 koz @ 5.7g/t
Paradigm UGProduction 2005-07
24.8 koz @ 9.0g/t
Carbine OPResource
317 koz @ 1.4g/t
Carbine/Paradigm Project Area
NST Attributable Reserves increased 36% to 0.6Moz at 5.8gpt, Resource increased 35% to 1.3Moz
The high grade core still exists, with lower grade additional material discovered through exploration (hanging wall lodes, Pode)
Drilling has successfully informed the step-change resource/reserve work– drill drive will provide the next step-change for EKJV
development
The new 2.1km drill drive is now ~40% complete, this drive will provide the next long term drill platform to explore the depth
potential
Page 19
Kalgoorlie Operations - EKJV (51% NST)
19
2016 Resource and Reserve mining shapes
Resource
2016
5670RL
Pegasus Rubicon Hornet
Reserve
2016
5780RL
Reserve Resource Stoped
20
Pegasus Hornet
Reserve and Resource growth
focus
Discovery of 3 new ore bearing
lodes and further growth and
evolvement of all 24 lodes
Reserves across EKJV (51%)
0.6Moz (1.2Moz 100%)
Increase of 165,000 ounces (51%)
from 2016
Resource across EKJV (51%)
1,.28Moz (2.5Moz 100%)
Increase of 337,000 ounces (51%)
from 2016
Depleted 223,435 ounces in 2016
2017 Targets and Achievements
Resource
2017
5360RL
Rubicon
Reserve
2017
5780RL
Reserve
2017
5580RL
Avg Resource Vertical Increase
of 300m
Avg Reserve Vertical Increase
of 200m
Avg Reserve Vertical Increase
of 105m
Reserve ResourceDrill Sites Stoped Reserve focus 2016/17
21
Additional HW Opportunities to add ounces per vertical metre
Additional to K2 there are multiple hanging wall
lodes at Rubicon, Hornet and Pegasus
As we develop and grow our geological
knowledge and mindsets, we grow our ore bodies
Drilling and re-assessment / interpretation of
historical datasets will continue into FY18
Focus on reproducing the FY17 exploration and
growth success
22
2017 Resource and Reserve
Reserve Resource Stoped
Raleigh
Reserve and Resource
Focus
6 Surface drill rigs
targeting the Upper
Raleigh South region
Currently 9 active ore
headings
Up to 6 stopes in
production during the
month
Focus on the HG
southerly plunging trends
24
Raleigh South – This Year’s Targets
Future Drill Drive Development
HG Plunges
2017/2018 Target Zone
Drilling to focus on the promising
high grade plunging shoots to the
south and at depth
Consistent continuity of both
geology and grade of the Raleigh
Main Vein as we develop to south
High grade Raleigh Main Vein rich
in visible gold identified between
the 6017RL and 5800RL
2x additional drill platforms
planned at Raleigh South and
Raleigh Deeps
Drill Drive currently being
excavated and then drilling will
commence
100m
RRCD16009RURD359
1.05m @ 268g/t (67g.t.m)
25
Up to 25 Stopes per month (2,000t stopes, 500t blasts) – iterative, continuous, productive, paste or CRF backfilled
Up to 30 active development headings per month (50m per day developed) – specialised crews, highly motivated and invested in the business
Capital infrastructure to enable independent activity – vent, power
Page 27
EKJV Operations: Rapid, low-cost production growth
Current Link Drive Development
PEGASUS RUBICON HORNET
Current Production Fronts
Future Production Fronts
Grade
2.29 - 4 g/t
4 - 8 g/t
8 - 12 g/t
12 - 16 g/t
16 - 20 g/t
20+ g/t
RALEIGH
27
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
Jan
-13
Ma
r-1
3
Ma
y-1
3
Jul-1
3
Se
p-1
3
No
v-1
3
Jan
-14
Ma
r-1
4
Ma
y-1
4
Jul-1
4
Se
p-1
4
No
v-1
4
Jan
-15
Ma
r-1
5
Ma
y-1
5
Jul-1
5
Se
p-1
5
No
v-1
5
Jan
-16
Ma
r-1
6
Ma
y-1
6
Jul-1
6
Se
p-1
6
No
v-1
6
Jan
-17
Ma
r-1
7
Ma
y-1
7
Devt Ore t Stope Ore t
EKJV Production Growth – Development Investment
28
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Jan
-13
Ma
r-1
3
Ma
y-1
3
Jul-1
3
Se
p-1
3
No
v-1
3
Jan
-14
Ma
r-1
4
Ma
y-1
4
Jul-1
4
Se
p-1
4
No
v-1
4
Jan
-15
Ma
r-1
5
Ma
y-1
5
Jul-1
5
Se
p-1
5
No
v-1
5
Jan
-16
Ma
r-1
6
Ma
y-1
6
Jul-1
6
Se
p-1
6
No
v-1
6
Jan
-17
Ma
r-1
7
Ma
y-1
7
Vertical Metres Capital Metres Operating Metres
NST Ownership NST Ownership
EKJV Production Growth
NSMS Model
Development and Production Experts
Focused and accountable for People, Equipment, Productivity
Technical Expertise
Extensive local knowledge of the orebody, built over years
Robust technical processes to ensure we derive good value from the orebody
Challenging the status quo
Highly active and engaged management / executive team
Pushing through “accepted” limits
Modification of established production sequences
Doubled production capability from active production levels
Introduction of alternative methods
Cemented Rock Filling & bottom-up mining sequence in Pegasus
Better equipment, automated guidance on boggers = increased
productivity without increasing development29
Faulting interpretation in the 5945N. Note the predominant dextral faulting orientation.
Excellent Geological Control
To this!
To this!
From this… 5945 N face #31 Raw photo
5945 North backs; faces # 23 - 36
Faulting
To this…
Ore drive directions
Shears
CMV Boundaries
PHOTO
GRAMMETRY
(SIROVISION)
SAMPLE & DIRECTION
INSTRUCTIONS
Uses:
Geological interpretation
Dilution monitoring (eg. digitising of half-barrels)
Geotechnical mapping and structural modelling
Geological modelling
Ore domaining prior to Resource estimation
Identify and extrapolate structures known to be
responsible for high grade zones, and target
areas for further drill testing.
30
Millennium
Pope John
Centenary Deeps
Historical
Centenary UG
Workings
South Pit Pope John PitStrzelecki Pit (Backfilled)
Historical Strzelecki
UG Workings
Historical Barkers UG
Workings
Barkers Pit
34
Kundana 100% NST - the next phase of growth
Millennium – What have we done so far
Development commenced August 2016:
3,873m development completed to the end of June
Averaging 313m/month (one Jumbo) in single heading development, 50% faster than tendered physicals
Averaging 453m/month (one Jumbo) for multi heading development.
$5M (25%) cost saving compared with tendered pricing
First Development ore intersected in June 2017
First Production ore due in December quarter
Established all surface infrastructure
35
Kanowna Belle
25km50km
KALGOORLIE
CARBINE / PARADIGM
KUNDANA
KANOWNA
New Tenements
Acra Joint Venture
Existing NST Interest
Acra
37
Page 38
Kanowna Belle is a +5Moz orebody, averaging 4,000oz
per vertical metre and open at depth
In FY17 NST completed 83,400m of U/G drilling focused
on Velvet, A Block, E Block and Lowes Extension at depth
NST’s operational cost reduction strategy has enabled
existing Resources to be bought into the mine plan
After review a number of geological opportunities have
been identified throughout the Lowes orebody complex
The Velvet deposit remains open up dip, along strike and
down plunge back towards the main Lowes ore body
Lowes ore body remains open along E Block with recent
exploration success at Lowes West and E Block East
Mineralisation has been encountered up to 450m below
the existing E Block production area
Kalgoorlie Operations: Rapid, low-cost production growth
38
Velvet
9245
Drill Drive
Resources currently outside of mine plan
Troy and Sims Lodes
Lowes Mineralisation
Stopes - 5Moz Produced
Looking North
Kanowna Belle - Reserves and Resources
Reserves grew 120% to
0.5Moz
Velvet only added
105,000oz to the
Reserves, or 21%
Still significant
mineralisation in and
around the existing
orebody
Significant review of the
geology and models
has further expanded
our knowledge
Reserves: 6.8Mt @ 2.7g/t for 596,000oz
39
Kanowna Belle – A 5Moz endowment in a tier 1 jurisdiction
Looking north
Looking north
KDU3605
10.35m @ 3.59g/t
KDU3667 6.0m
@ 8.43g/t
KDU3485
6.0m @ 4.47g/t
KDU3843
35m @ 4.64g/t &
15.5m @ 7.69g/t
KDU3604
10.70m @ 15.80g/t
KPU053
4.0m @ 6.95g/t
KDU3730
4.95m @ 8.38g/t
KDU3668
23.09m @ 8.86g/t
Due to the significant lowering of costs since NST took ownership, further exploration and mine planning work is being done
with a view of further increasing mine life
FY 17 Reserve stope shapesFY 16 Reserve stope shapes
40
Velvet – Open in a number of directions
Mining of Velvet is being
conducted on 4 levels so far
Accounts for 25% of FY17 and
FY18 production
High grade plunges have been
identified in Velvet
This year testing will occur up dip
and down dip back towards the
main Lowes orebody
Mineralised intercepts have been
achieved in the hanging wall of
Velvet, potential for further offsets
KDU3478
15m @ 5.1g/t
KDU3872
19m @ 9.4g/t
KDU3481
4m @ 17.2g/t
KDU3826
36m @ 6.4g/t
KDU3832
13.1m @ 2.9g/t
KDU3410
10.9m @ 13.6g/t
KDU3475
4.5m @ 28.1g/t
KDU3630A
33.0m @ 28.7g/t
KDU3464
2.1m @ 19.8g/t
KDU3425
7.4m @ 8.4g/t
KDU3472
15.7m @ 20.6g/t
VELVET MINERALISATION
Looking north
KDU3512
38m @ 5.3g/t
Proposed DD
41
Kalgoorlie Operations
We have demonstrated the tenure of the Kalgoorlie region is highly
prospective.
We have demonstrated we have a great geological understanding
and can find and convert resources
Putting ounces on the books is one thing turning these to gold bars is
another
Our pedigree of taking assets and applying the mining and contractor
foundations is paying dividends
We can show the full story of how we will continue to find and rapidly
develop these resources to add mine life and continued gold
production in to the future
43