Northern Freegold Increases Gold Grade and Ounces at Freegold Mountain Project, Yukon

Northern Freegold Resources Ltd. (TSX VENTURE:NFR) is pleased to announce an
updated NI 43-101 mineral resource estimate for the Nucleus deposit, which is
located on the road accessible 198 square kilometer Freegold Mountain Project in
the Yukon Territory. The new estimate shows an overall increase in grade and
expansion of the defined ounces and is open to expansion laterally and at depth.
In addition further drilling has defined a number of higher grade zones which
also remain open within the overall resource. Recent metallurgical test work of
higher and lower grade ore types shows excellent gold recoveries. The Nucleus
deposit is a near surface, bulk tonnage, potentially open-pittable intrusion
related gold deposit.


Highlights

- NI 43-101 Inferred Resource of 1,004,000 contained ounces of gold within 35.82
million tonnes @ 0.87 g/t gold (0.4 g/t cutoff) which includes a higher grade
zone of 184,000 contained ounces of gold within 2.2 million tonnes @ 2.55 g/t
gold (0.4 g/t cutoff)


- The grade of the Nucleus deposit has increased by 32% and the contained ounces
has increased by 31% from the initial NI 43-101 resource estimate released in
July, 2009 based upon 0.4 g/t Au cutoff


- Initial metallurgical testwork shows excellent gold recoveries in the 92 to
98% range on material from the Nucleus deposit


- Nucleus deposit mineralization begins at surface and is open to expansion in
all directions and at depth




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                Updated NI 43-101 Inferred Resource
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                       Total                      Higher Grade Zone
--------------------------------------------------------------------------
Cutoff                  Grade   Contained              Grade     Contained
Au (g/t)     Tonnes    Au(g/t)  Au ounces     Tonnes  Au(g/t)    Au ounces
--------------------------------------------------------------------------
0.30     51,019,000      0.71   1,173,000  2,551,000    2.28       187,000
--------------------------------------------------------------------------
0.40     35,821,000      0.87   1,004,000  2,243,000    2.55       184,000
--------------------------------------------------------------------------
0.50     25,900,000      1.03     862,000  2,078,000    2.71       181,000
--------------------------------------------------------------------------


--------------------------------------------
Initial NI 43-101 Inferred Resource
 (released July 27/09)
--------------------------------------------
                          Total
--------------------------------------------
Cutoff                     Grade   Contained
Au (g/t)         Tonnes   Au(g/t)  Au ounces
--------------------------------------------
0.30         67,570,000     0.50   1,082,000
--------------------------------------------
0.40         36,210,000     0.63     733,000
--------------------------------------------
0.50         20,470,000     0.77     509,000
--------------------------------------------



Bill Harris, Chairman & COO commented, "We are pleased with the significant
increase in both the grade and ounces in the Nucleus deposit. The identification
of higher grade zones and the potential to expand upon them and possibly find
others is of significance. The updated 3D geologic modeling has identified a
number of priority targets for follow up that have the potential to continue to
expand the resource. Planning for the 2010 exploration program is currently
underway with a focus on expanding the resource at Nucleus and to test the
potential to define new resources on the property in other target areas."


2009 Drill Program

The 2009 10,000m drill program was successful in expanding and confirming the
continuity of the overall Nucleus resource and particularly in defining the
geometry and controls to the higher grade zones identified in 2008 drilling,
allowing identification of a higher grade resource. 3D geologic and resource
modeling also shows a number of NW trending gold mineralized corridors which
remain open to further expansion. The modeling also shows mineralization to the
north and south of the Nucleus resource which warrant follow up. These areas
will be the focus of drilling at Nucleus in 2010.


The higher grade zones which formed a higher grade resource remain open for
further testing. These include a steeply dipping ore zone on the east side of
the Nucleus deposit which remains open to the east, to the west and at depth.
Selected drill holes from within this zone intersected 34.09 m of 1.95 g/t gold,
including 5.11 m of 6.82 g/t gold (GRD09-131(i)) and 46.96 m of 14.51 g/t gold
(GRD08-073(i)). A shallow south dipping zone on the west side of Nucleus which
remains open to north, south, west and at depth is also part of the higher grade
zone. Selected drill holes within this zone intersected 5.20 m grading 18.26 g/t
gold (GRD06-34(i)); 11.10 m of 1.79 g/t gold (GRD07-51(i)) and 4.14 m grading
1.79 g/t gold (GRD09-161(i)).


In 2009, NW trending corridors were defined by the drill program which
intersected zones of gold mineralization within these structures both inside and
outside of the initial resource model. For example, hole GRD09-144(i), at the
western end of one of the corridors intersected 16.22 m at 2.96 g/t gold, while
hole GRD09-128(i) towards the eastern end within the same corridor intersected
25.38 m of 1.25 g/t gold. In another NW trending corridor, hole GRD09-15(i)1
returned 15.20 m at 1.40 g/t gold at its western end, and hole GRD09-135(i)
returned 59.81 m of 0.81 g/t gold and 17.59 m of 1.89 g/t gold at its eastern
end. The 2010 drill program will target the extension of these zones to the
northwest and southeast.


Further targets have also been identified to the north and south of the Nucleus
deposit from the resource modeling and drilling. The southern edge of the
Nucleus Zone contains higher grade material and needs to be tested for the
potential to host gold mineralization similar to the northwest trending
structures mentioned above. The resource model also identified mineralization
further to the north of the Nucleus Zone from 2007 RAB drilling which warrants
follow up testing. Additional information including a video of the deposit will
be available www.northernfreegold.com within a few days.


Also in 2009, a regional mapping program conducted in conjunction with
reinterpretation of a 2006 airborne geophysical survey identified large-scale
northwest-southeast structures with potential to host mineralization within the
Nucleus zone and on a property wide scale. Based on this information, a number
of new targets were staked at Freegold Mountain at the end of the season.


2010 Exploration Program

Planning for the 2010 exploration program at Freegold Mountain is still
underway. As noted above, the 2009 drill program and updated model from the
Nucleus deposit has identified drill targets for possible expansion of the
deposit area. Expanding the ounces at the Nucleus deposit will be one of the
main priorities for the 2010 program. In addition, there are several targets
identified at the Freegold Mountain project which with additional drilling,
could lead to the development of further resources. The regional program
conducted in 2009 in conjunction with reinterpretation of a 2006 airborne
geophysical survey has identified several large scale targets for testing in
2010. The 2010 program will be announced once all compilation and and planning
work is completed.


(i) results previously released, please refer to prior news releases

Metallurgical Recovery Highlights

G&T Metallurgical Services Ltd. was commissioned by the Company to conduct
preliminary gold recovery metallurgical testing on separate composite bulk
samples that were respresentative of bulk tonnage low grade oxidized and
non-oxidized samples, as well as higher grade sulphide-rich material that
comprises the Nucleus deposit.


Initial results indicate excellent overall gold recovery from the material.
Oxidized and non-oxidized samples averaging 0.59 g/t gold and 0.54 g/t gold
respectively returned recoveries of 98% gold on a 48 hour cyanidation bottle
roll test. Higher grade sulphide-rich samples averaging 10.9 g/t gold recovered
86% gold on a 48 hour cyanidation bottle roll test, which increased to 92% when
combined with gravity concentration.


Nucleus Zone Resource Estimate

Mineral resource estimates were carried out by Mr. Joseph Campbell, B.Sc., P.
Geo., President of GeoVector Management Inc. and Dr. Allan Armitage, PhD, P.Geol
(AB), a consulting geologist with GeoVector Management inc. and independent
Qualified Person's as defined by National Instrument 43-101. The inferred
mineral resource was calculated using Gemcom GEMS 6.2.1 software.


The inferred mineral resource estimate for the Nucleus Zone covers an area of
approximately two square kilometres and is based on 265 drill holes totaling
approx. 42,000 metres and included 2006-2009 diamond and rotary air blast (RAB)
drill holes completed by NFR as well as historical drill hole data from
1988-2004 drilling. More than 25,000 assays were available to create the
resource estimate. The assay database was verified and domained into
subpopulations by rock type, oxidation level, drill method, and drilling results
by campaign. Verifications were also carried out on drill hole locations, down
hole surveys, lithology, specific gravity values (SG), trench location and assay
data, and topographic information. Average SG values chosen for the resource
estimate were 2.63 for low grade ore and 2.80 for the higher grade zones, and
these were applied to all blocks within the respective block models.


A review of grade distribution in the model shows a relatively strong
orientation in a northwest striking, near vertical orientation. This orientation
was used in the block models to control the search ellipse for interpolation of
grade within the block model. The northwest grade orientation was also the
strike direction identified for most of the higher grade, sulphide
intersections.


The composites were domained into waste, low grade and high grade ore
populations by intersecting the points with the ore models. Capping was carried
out on the populations to limit high values. The ore and massive populations
were then used to interpolate grade into their respective ore models.


For block modelling block size was set at 20x20x20 metre in size. At the scale
of the Nucleus deposit this provides a reasonable size for discerning grade
distribution, while being appropriate for the +/- 50 meter hole spacing in the
core of the deposit. To generate block grades a search ellipse was set at
200x100x150 meters in the X, Y, Z direction respectively. The long axis was
oriented at 305o to reflect the observed preferential ore control direction. The
vertical component (Z) is the intermediate direction based on the observed
vertical structural control.


Interpolation was carried out using inverse distance squared (ID2). The number
of samples used to interpolate a block grade was set at a maximum of 12. The
majority of blocks had the maximum number of samples. The size of the search
ellipse and the number of samples used filled almost all the blocks within the
ore models with grade.


Ore results were tabulated for a range of Au cut-off grades. Based on spatial
distribution of block grades a relatively contiguous body is observed at a 0.40
g/t cut-off grade. At this grade there is approximately 36Mt of ore at a grade
of 0.87 g/t Au for a total of 1.04 million ounces of gold.


Resource Classification

Mineral resources have been categorized using the classification of the Canadian
Institute of Mining, Metallurgy and Petroleum (2000), with the relevant
definitions provided below. This classification is the basis for Technical
Reports by Qualified Persons in Canada, and the classification is virtually the
same as that of the JORC code (Australia) SME guidelines (USA) SAMREC (South
Africa) and that of the European Union.


An Inferred Mineral Resource can be estimated on the basis of geological
evidence and limited sampling and reasonably assumed, but not verified
geological and grade continuity. The estimate is based on limited information
and sampling gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes.


Due to the uncertainty which may attach to Inferred Mineral Resources, it cannot
be assumed that all or part of an Inferred Mineral Resource will be upgraded to
an Indicated or Measured Mineral Resource as a result of continued exploration.
Confidence in the estimate is insufficient to allow the meaningful appreciation
of technical and economic parametres or to enable an evaluation of economic
viability worthy of public disclosure.


Qualified Person and Quality Control/Quality Assurance

All core samples from diamond drilling completed by Northern Freegold in 2009
followed NI 43-101 approved QA/QC protocols including insertion of blanks,
commercial standards and duplicate core samples. Drilling and sample collection
for 2009 was supervised by Wade Barnes, P. Geo. The program was performed to
industry standards. For the 2009 program, assay samples were split and sent to
ALS Chemex Laboratory in North Vancouver and Alex Stewart Group in Kamloops for
sample preparation and analysis. Third party checks were done at ALS Chemex,
Alex Stewart Group and Assayers Canada. The program included insertion of blanks
and reference standards for assay grade control, as well as duplicate samples.
Results were within accepted ranges. In addition the labs performed in-house
standards and assay duplicates on a batch basis for in-lab quality control.


Dr. Alan Armitage, PhD., P. Geol (AB), a consulting geologist with GeoVector
Management Inc. has acted as the Qualified Person, as defined in NI 43-101, for
the mineral resource estimate component of the technical report. Dr. Armitage is
independent of the Company under NI 43-101. A NI 43-101 report will be finalized
and filed on SEDAR within 45 days of the date of this news release.


Wade Barnes, P. Geo., Senior Geologist with Northern Freegold is a Qualified
Person as defined by National Instrument 43-101, and is responsible for quality
control of exploration undertaken by the Company and has reviewed and approved
the technical information in this release.


About the Freegold Mountain Project

The road accessible Freegold Mountain Project is located 200 km northwest of
Whitehorse, the capital of the Yukon and is situated within an active
exploration and mining area in the Tintina Gold Belt of the Yukon which includes
the producing Minto Mine of Capstone Mining Corp. to the north, Casino Deposit
and Carmacks Copper Deposit of Western Copper Corporation to the west and east,
and the White Gold Property of Underworld Resources to the northwest. NFR
controls 198 square km (75 square miles) within the district scale Freegold
Mountain Project. Within the project expanse are at least 20 identified
mineralized zones, including the Nucleus, Revenue and Tinta.


The Freegold Mountain Project is well situated within the stable, mining
supportive jurisdiction of the Yukon. In 2003, control of resource management
and development was devolved from the federal Canadian Government to the
Territory. Decisions on resource development in the Yukon are now made in the
Yukon. As a result of the Umbrella Final Agreement which provides a template for
settlement of First Nation Land Claims in the Yukon, a single assessment
approach has been developed for projects and activities in the Yukon, including
resource projects. The Yukon Socioeconomic Environmental Assessment Act was
developed in conjunction with First Nation and Yukoners. Eleven of the 14 First
Nations in the Yukon have settled their Land Claim negotiations. The Freegold
Mountain Project is located within the traditional territories of two settled
First Nations: Little Salmon Carmacks First Nation and the Selkirk First Nation.


The Freegold Mountain Project is located on the Freegold Mountain Road, a
government maintained gravel road. The Freegold Road connects to the Klondike
Highway, an all weather paved highway, which connects to Whitehorse, the capital
of the Yukon, and the major supply centre for the Yukon. Powerlines located
along the Klondike Highway are at present 30 km from the Freegold Project
boundary. The Carmacks Copper deposit will require a 12 km power line to connect
to the power grid along the Klondike Highway. From this location, the power line
would be within 7 km of the Freegold Mountain project boundary.


Numerous multi-milllion ounce gold deposits occur in the Tintina Gold Belt
including the producing Fort Knox mine operated by Kinross Gold Corporation and
the Pogo mine operated by Sumitomo Metal Mining in Alaska. Mutli-million ounce
development stage projects include the recently discovered Livengood Project of
International Tower Hill Mines Ltd., also located in Alaska. In close proximity
to the Freegold Mountain Project area, the Carmacks Copper Deposit of Western
Copper Corporation is in its final permitting stage and the Casino
Copper-Gold-Moly Deposit has entered into the Yukon Environmental Assessment
Process.


Northern Freegold is a well financed rapidly advancing Canadian-based precious
metals exploration and development company, which brings local expertise and
strong management to focus on the development of economic mineral resources on
the district-scale Freegold Mountain gold and copper project in the Yukon and
the Burro Creek gold and silver property in Arizona.


Northern Freegold Resources Ltd.

On behalf of the Board of Directors

Susan P. Craig, President & CEO

Cautionary Note Regarding Forward-Looking Statements

The information in this press release includes certain "forward-looking
statements". All statements, other than statements of historical fact, included
herein including, without limitation, plans for and intentions with respect to
the company's properties, statements regarding intentions with respect to
obligations due for various projects, strategic alternatives, quantity of
resources or reserves, timing of permitting, construction and production and
other milestones, are forward looking statements. Statements concerning Mineral
Reserves and Mineral Resources are also forward-looking statements in that they
reflect an assessment, based on certain assumptions, of the mineralization that
would be encountered and mining results if the project were developed and mined
in the manner described. Forward-looking statements involve various risks and
uncertainties. There can be no assurance that such statements will prove to be
accurate, and actual results and future events could differ materially from
those anticipated in such statements. Important factors that could cause actual
results to differ materially from NFR's expectations include the uncertainties
involving the need for additional financing to explore and develop properties
and availability of financing in the debt and capital markets; uncertainties
involved in the interpretation of drilling results and geological tests and the
estimation of reserves and resources; the need for cooperation of government
agencies and First Nation groups in the exploration, and development of
properties; and the need to obtain permits and governmental approval. NFR's
forward looking statements reflect the beliefs, opinions and projections of
management on the date the statements are made. NFR assumes no obligation to
update the forward looking statements if management's beliefs, opinions,
projections, or other factors should they change.


Cautionary Note Regarding Reserve and Resource Estimates

This press release has been prepared in accordance with the requirements of the
securities laws in effect in Canada, which differ from the requirements of U.S.
securities laws. Unless otherwise indicated, all resource and reserve estimates
included in this press release have been prepared in accordance with National
Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") and
the Canadian Institute of Mining and Metallurgy Classification System. NI 43-101
is a rule developed by the Canadian Securities Administrators which establishes
standards for all public disclosure an issuer makes of scientific and technical
information concerning mineral projects. Canadian standards, including NI
43-101, differ significantly from the requirements of the United States
Securities and Exchange Commission ("SEC"), and resource and reserve information
contained herein may not be comparable to similar information disclosed by U.S.
companies. In particular, and without limiting the generality of the foregoing,
the term "resource" does not equate to the term "reserves". Investors should
also understand that "inferred mineral resources" have a great amount of
uncertainty as to their existence and great uncertainty as to their economic and
legal feasibility. It cannot be assumed that all or any part of an "inferred
mineral resource" will ever be upgraded to a higher category. The estimation of
quantities of resources and reserves is complex, based on significant subjective
assumptions and forward-looking information, including assumptions that arise
from the evaluation of geological, geophysical, engineering and economic data
for a given ore body. This data could change over time as a result of numerous
factors, including new information gained from development activities, evolving
production history and a reassessment of the viability of production under
different economic conditions. Changes in data and/or assumptions could cause
reserve estimates to substantially change from period to period. No assurance
can be given that the indicated level of mineral will be produced. Actual
production could differ from expected production and an adverse change in
mineral prices could make a reserve uneconomic to mine. Variations could also
occur in actual ore grades and recovery rates from estimates.