Northgate Minerals Corporation is a mid-tier gold and copper producer with mining operations, development projects and exploration properties in Canada and Australia.  The company is forecasting over 400,000 ounces of unhedged gold production in 2008 and is targeting growth through further acquisitions in stable mining jurisdictions around the world. 

Northgate prides itself in its strong operating abilities and has gained a reputation as one of the finest operators in the business. This reputation is based on the Corporation's outstanding track record of delivering on its promises. Over the past eight years, a dedicated and knowledgeable workforce has transformed Kemess into one of the most efficient open pit mines in the world. In 2006, exceptional operating performance at Kemess, combined with a strong metal price environment, produced record earnings of $107 million and record cash flow of approximately $147 million. In 2007, despite a significant modification to the production schedule in the fourth quarter, which was necessitated by the realignment of the main haul road out of the Kemess open pit, Northgate still generated strong cash flow of $125 million, producing 245,631 ounces of gold and 68.1 million pounds of copper.

While Northgate has proven its strong operating abilities, the company has focused its growth strategy on the acquisition of one or more mines and/or late-stage development projects, in order to become a multi-mine gold producer.  Northgate successfully achieved this goal in late 2007 and emerged as a mid-tier gold producer when the company announced its proposal to acquire Perseverance Corporation Ltd., an Australian gold producer with two operating mines with combined production of 200,000 ounces per year.  The acquisition closed in mid-February 2008.

With an experienced management team, continued strong cash flow from operations and an excellent platform to make additional acquisitions in the future, Northgate is well equipped with excellent upside potential at its operating mines and projects. 

Our 2007 Achievements:

• Completed major acquisition of Perseverance Corporation Ltd.
  –  Two fully-permitted operating mines with combined production of 200,000 oz / year.
• Produced 245,631 ounces of gold and 68.1 million pounds of copper at a cash cost of negative $22 per ounce
• Generated solid cash flow from operations of $125 million
• Increased Young-Davidson total resource base to 2.34 million oz
  –  Increased underground indicated resources by 137%
• Northgate is now an un-hedged multi-mine, gold producer with three operating mines in politically stable jurisdictions.

Our 2008 Objectives:

• Kemess
  –  Generate substantial free cash flow
• Fosterville Mine
  –  Convert to owner mining
  –  Improve gold recovery
• Stawell
  –  Significant exploration on numerous in-mine and near-mine targets to  extend mine life
• Young-Davidson
  –  Complete Preliminary Assessment Report
  –  Increase total resource base to approximately 3 million ounces
  –  Complete Feasibility Study
• Produce over 400,000 ounces of gold and 64 million pounds of copper