Northern Freegold Closes Financing of $3.45 Million

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/26/10 -- Northern Freegold Resources Ltd. (TSX VENTURE: NFR) has closed a private placement announced on Oct. 21, 2010. The financing was comprised of 6,437,000 non-flow-through units (the 'Units') and 4,347,373 flow-through shares (the 'Shares') for gross proceeds of CDN $3,452,681.

The Shares were priced at $0.35 per Share and the Units at $0.30 per Unit. Each Unit consists of one common non-flow-through share of the Company and one-half of a warrant. Each full warrant entitles the holder to purchase one additional non-flow-through common share of the Company at a price of $0.45 per share for a period of 12 months from the closing date. Net proceeds from the private placement will be applied towards advancement of the Company's Yukon mineral properties and for general working capital purposes.

A total of CDN$16,025 and 463,734 units in finder's fees were paid in connection with the financing. The finder's fee units have the same terms as the Units.

All of the securities are subject to a hold period expiring February 26, 2011.

Insider participation:      Bill Harris (100,000 Shares) and Susan Craig
                            (60,000 Shares)

Pro-group participation:    Gord Medland (85,000 Units); Joe DaSilva (16,000
                            Shares); Noel Chow-How (18,000 Shares); Peter
                            Tabbitt (16,000 Shares) and Shaun Chin (15,000
                            Shares)

The Company also announces that subject to TSX Venture Exchange approval, it has granted 1,900,000 incentive stock options to officers, directors, employees and consultants of the Company. Some of the options granted were to replace options that had expired and the remainder were new grants. The options are set for a period of 5 years for directors and 3 years for all other optionees, expiring on October 26, 2015 and October 26, 2013 respectively and are subject to vesting provisions according to Company policies. 100,000 options are being awarded to an investor relations consultant with vesting provisions in accordance with TSX-V policy. The options will allow the holder to purchase a share in the Company at a price of $0.35. Any shares issued on the exercise of these stock options will be subject to a four-month hold period from date of grant.

Northern Freegold is a rapidly advancing Canadian-based precious metals exploration and development company that 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 Craig, President & CEO

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts:

Northern Freegold Resources Ltd.

Julie Hajduk

Investor Relations Manager

1-877-893-8757 or 604-893-8757

604-893-8758 (FAX)
www.northernfreegold.com