MATACHEWAN, ON – Northgate Minerals Corporation (“Northgate”) entered into a dynamic new stage of development for its Young-Davidson Gold Mine after a groundbreaking ceremony was held this morning at the site near the town of Matachewan, Ontario.

“This groundbreaking marks the achievement of a key milestone in the development of the Young-Davidson mine.  Our first gold pour is scheduled for early 2012 and in its first 15 years of production, the Young-Davidson mine will produce over 2.5 million ounces of gold.” said Ken Stowe, President and CEO of Northgate. “Young-Davidson represents a long-life, low-cost operation located in one of the best mining jurisdictions in the world.  We are extremely proud to be standing here today, five years after Northgate first set foot on the property, as we realize our vision of building this mine. It is also gratifying  to participate in the creation of 875 new jobs, which will reinvigorate the economy of Matachewan and the surrounding region.  I would like to extend our thanks once again to the town of Matchewan and the Matachewan First Nation for their unwavering support over the past five years, and to the various  government agencies involved in helping the project come to life. ”

In attendance at the groundbreaking was Michael Gravelle, Minister of Northern Development, Mines and Forestry, MPP – Thunder Bay-Superior North, David Ramsay, MPP Timiskaming-Cochrane, Charlie Angus, MP Timmins-James Bay, Reeve Beverly Hine, Town of Matachewan, Chief Richard Wincikaby, Matachewan First Nation, and several other dignitaries from the surrounding communities of Elk Lake, Kirkland Lake, Temiskaming Shores, and Timmins.

 “We commend Northgate Minerals for being a model responsible corporate citizen in developing this mine,” said Michael Gravelle, Minister of Northern Development, Mines and Forestry. “Our government is committed to advancing mineral exploration throughout the province so that the mines of tomorrow are developed in a sustainable manner for the benefit of all.”

Beverly Hine, Reeve of Matachewan, also, "Everybody in Matachewan is so excited that this day has finally come. We know that it is a historic event and we couldn't be happier. We realize that this project will be a huge boost to the economy and we welcome the opportunity that Northgate has brought back to the town of Matachewan with the revitalization of the mine, continuing on with the success and prosperity that the mine brought over 50 years ago."

Development at the site is well underway with over $140 million in contracts having been awarded.  Ongoing activities include mobilization of heavy mobile equipment for construction of the main plant site area, the open pit and tailings dam and clearing the area to construct the main process building. Other development activities  scheduled to begin in the next few months include the deepening of the existing shaft, construction of the tailings impoundment area and the realignment of Highway 566.

During the construction phase, the project will create 600 new jobs and once the construction is completed, the mine will provide ongoing direct employment for 275 people for a minimum of 15 years based on currently known reserves.  Using today's spot prices, the mine is expected to generate $2.2 billion in pre-tax operating cash flow, a pre-tax net present value calculated at 5% of $865 million and a pre-tax internal rate of return of 25%.