Norseman Gold Regulatory News (NGL)

Norseman Gold plc / Epic: NGL / Index: AIM / Sector: Mining & Exploration

1 May 2012

NORSEMAN GOLD PLC

('Norseman Gold' or 'the Company')

Update and Three-Month Report on Activities for the quarter ended 31 March 2012

Norseman Gold Plc, the ASX and AIM listed gold producer is pleased to provide a positive update on operations at its Norseman Gold Project and the restructuring programme being implemented to improve its production profile and financial performance.

Highlights:

·; Following the appointment of L2 Project Management-Norseman Pty Ltd, a company associated with Tulla Resources Group Pty Ltd (Tulla Group), as Manager of the Norseman Gold Project, a complete review of operations has been completed and a resultant restructuring programme implemented. The technical and professional work undertaken has adopted a "return to basics" approach.

·; Operations have seen dramatic cost reductions since 1 January 2012.

·; Production activity is being focussed on mining from the North Royal Open Pit (North Royal) to generate positive cashflow. The short term Mine Plan has identified an Indicated JORC Resource of 200,000 tonnes @ 6g gold (Au) and an Inferred JORC Resource of 200,000 tonnes @ 6g Au. Additional Resources are minable at North Royal, with the aim being to produce 80,000 ounces of gold from these Resources over the next 12 months.

·; Pre-strip at North Royal is now well advanced with higher grade hard rock now exposed. A new optimised pit design and schedule for North Royal is nearing completion and importantly mining is already continuing at an accelerated rate.

·; Harlequin underground mine has consistent gold production with a new mine plan and schedule being undertaken with the objective to increase gold production.

·; Gold production for the quarter ended 31 March 2012 was 6,258 ounces. Gold production since the end of the quarter has increased and the mill is currently operating 24 hours a day, 7 days a week.

·; Pit Optimisation for potential near term future production from other historical open pit mines is soon to commence.

·; Exploration objectives are being reviewed as the Norseman Gold tenements have numerous targets with existing resources that the management aims to prioritise.

·; To ensure working capital is sufficient for all aspects of the operations, Norseman Gold agreed to place a total of 64 million shares at 6 cents (or 4 pence) per share and 32 million warrants exercisable at 12 cents each on or before 27/4/2015 to Tulla Group to raise A$3.84 million. The Tulla Group interest will increase from 7.15% to 18.93%. The warrants will be subject to shareholder approval.

·; Capital structure of Norseman prior to the completion of the placement to Tulla Group is:

Ordinary shares 428,202,223

Secured Convertible Notes:

Convertible at 6p for every £1 of nominal value up until 25/10/2013 £5,087,000

Convertible at 6p for every £1 of nominal value up until 10/2/2015 $10,000,000

Warrants:

Convertible at 12p on or before 25/10/2013 41,000,000

Convertible at 12p on or before 15/12/2013 84,783,327

Convertible at 12p on or before 27/4/2015 111,833,333

Employee options 8,600,000

(various exercise prices)

·; Strategy to become a consistent 100,000 ounce gold producer within one year is in place with the additional aim of increasing our resource base through both mine and regional exploration - current resources inventory of 3.4 million ounces of gold at an average grade 4.7 grams per tonne.

·; Corporate Restructuring and Financing arrangements agreed by shareholders on 30 March 2012 have been finalised with the issue and allotment of 20,000,000 ordinary shares and 149,833,333 warrants completed. The ordinary shares and warrants, where applicable, have been issued to the Tulla Group, L2 Project Management-Norseman Pty Ltd, EXP T1 Ltd and the directors or nominees. Application has been made for admission of the 20,000,000 ordinary shares in the Company to be admitted to trading on AIM with effect from 7 May 2012.

·; New Board appointments proposed to be made in forthcoming quarter.

·; Norseman Gold is keen to work with the local community and shire of Norseman for the benefit of the town and the operations. A number of initiatives will be discussed in the coming months.

Norseman Gold Chairman David Steinepreis said, "We are making strong progress at Norseman and our partnership with the Tulla Group is already beginning to impact positively on performance. As a result of the restructuring conducted over the first quarter, we have already dramatically reduced our costs and the mill is now working 7 days a week and 24 hours a day. The restructuring is on-going and we continue to look to build the current resource inventory.

"We look forward to working further with the Tulla Group and realise the potential of the Norseman Gold Project."

Quarterly Production:

Gold production from the Norseman Gold Project during the three-month period to 31 March 2012 totalled 6,258 ounces, down 41% on the December 2011 quarter. The restructuring programme has affected the performance over the period, but with the action being taken and the improvements already made, the Board expects an improvement in the production profile for the next quarter.

Cash Balances:

Cash balances at the end of the quarter ended 31 March 2011 totalled A$11.4 million. Approximately A$6.1 million of this cash balance is committed to cash-backed environmental bonds.

Competent Persons - Consent for Release:

The information in this report which relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Hugh Pinniger, an executive of L2 Project Manager-Norseman Pty Ltd, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Pinniger has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves' (The JORC Code). Mr Pinniger consents to the inclusion in this announcement of the statements based on this information in the form and context in which it appears.

Forward-Looking Statements:

This regulatory news release contains certain forward-looking statements, which include assumptions with respect to future plans, results and capital expenditures. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. All such forward-looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Please refer to the Company's Admission Document available from the Company's web site for a list of risk factors. The Company's actual results could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive there from. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release.

* * ENDS * *

For further information visit www.norsemangoldplc.com, email investors@ngold.com.au or contact:

David Steinepreis Norseman Gold Plc. Tel: +44 (0) 7913402727

William Vandyk / Rod Venables Northland Capital Partners Ltd Tel: 020 7796 8800

Guy Wilkes Ocean Equities Ltd Tel: 020 7786 4370

Susie Geliher / Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7236 1177

Notes

Norseman Gold plc is an AIM and ASX listed Australian gold production company, which operates the 2,360 sq km Norseman Gold Project, Australia's longest continually running gold operation. Located in the Eastern Goldfields of Western Australia in the highly prospective Norseman-Wiluna greenstone belt, the project currently has a total resource inventory of 3.4 million ounces of gold at an average grade of 4.7 g/t.