NORD.L Regulatory News (NORD)

The following amendment has been made to the 'Final Results' announcement released on 24 February 2012 at 0700 under RNS No 0552Y.

In the penultimate bullet in full year financial highlights the net income percentage change is corrected to 89% (from 98%).

All other details remain unchanged.

The full amended text is shown below.

Nord Gold N.V. financial and operational results for the fourth quarter and the full year ended December 31, 2011

Strong Growth in EBITDA and Near Doubling of Net Income

Growth to Continue in 2012

Amsterdam, Netherlands, 24 February 2012 - Nord Gold N.V, ("Nordgold" or the "Company", LSE: NORD), an independent pure-play gold producer focused on emerging markets, announces its financial results for the fourth quarter and the full year ended 31 December 2011.

Full Year Financial Highlights

·; Production up by 28% to 754 koz (FY 2010: 589 koz)

·; Average realised gold price of US$ 1,567, up 25% (FY 2010: US$ 1,251)

·; Revenue of US$1,182m, up 57% (FY 2010: US$754m)

·; EBITDA of US$ 574m, up 55% (FY 2010: US$ 370m).

·; 2011 EBITDA margin of 49% (FY 2010: 49%)

·; Net income up 89% to US$ 252m (FY 2010: US$ 133m)

·; Cash flow from operating activityof US$ 398m, up 60% (FY 2010: US$: 249m)

Full Year Operational Highlights

·; Total volume of ore processed during 2011 was 15.6 million tonnes, a 20% increase from the previous year, driven by capacity improvements and operational optimisation at the LEFA mine in Guinea and the Berezitovy, Neryungri and Aprelkovo mines in Russia.

·; Head grade down 10% in 2011 to 1.84 g\t mainly driven by increased lower grade ore throughput at the LEFA, Neryungri and Aprelkovo mines.

·; Gold equivalent production in 2011 increased by 28% as a result of higher productivity in key business units, with particularly strong results at Berezitovy and Neryungri, up 50% and 24% respectively against 2010. The growth was also effected by acquisition of Crew Gold Corporation in August 2010.

·; 2012 production guidance of 800-850 koz.

Corporate Developments

·; Bissa project construction in Burkina Faso progressing rapidly with engineering works mostly complete; on track to deliver first gold in H1 2013.

·; Gross project in Russia on track to complete pre-feasibility in May/June 2012.

·; Separation from OAO Severstal and successful listing of GDRs on the London Stock Exchange in January 2012.

Financial Summary

Philip Baum, Chairman of Nordgold commented:

"2011 has been a year of significant progress for Nordgold. We successfully completed the corporate separation from OAO Severstal and listed GDRs on the London Stock Exchange whilst continuing to grow and build an attractive investment proposition. The full year results demonstrate very clearly Nordgold's key strengths and reflect our ability to create significant value from emerging markets assets."

Nikolai Zelenski, CEO of Nordgold, added:

"We are focused on creating shareholder value through our ability to run highly efficient mining operations across our geographically diversified emerging markets portfolio. Our development pipeline is exceptionally strong and we are progressing on time and on budget with our two key greenfield projects, Bissa and Gross. We remain highly cash generative, which will enable us to fully finance our ongoing capex requirements, our exploration and development projects as well as making dividend payments to shareholders.

"Looking ahead to our first year as a public company, we expect record production of 800-850 koz in 2012 and we anticipate declaring a maiden dividend at the time of the interim results. We are very confident that 2012 will see further significant achievements across the business."

Telephone conference and a Q&A session

Nordgold will host a webcast and conference call for analysts and investors on 24th February at 10.00am London time. CEO Nikolai Zelenski will present Company's financial results and will provide details of Nordgold's growth plans.

To participate in the telephone conference please register in advance.

Conference Title: Nordgold IFRS 2011 Results Presentation

Conference ID: 4516617

Russia

810-8002-198-4011 (Toll free)

Great Britain

44-20-7190-1590 (Local access)

0800-358-5256 (Toll free)

USA

1-480-629-9822 (Local access)

1-877-941-1469 (Toll free)

Webcast

The press and analyst conference will also be broadcast live over the Internet, and will be available as a recording after the conference. The live service also allows for written questions to be submitted.

To register and participate in the webcast please follow the link: http://www.cyber-presentation.de/cgi-bin/visitors.ssp?fn=visitor&id=1660 

Materials

The Company's financial results for 2011 and the presentation materials will be available from 07:00 AM London time on February 24th on the company's official website: www.nordgold.com.

Further information:

For further information on Nordgold please visit the company's website - http://www.nordgold.com

Notes to Editors

About Nordgold

Nordgold was established in 2007 as the gold producing division of OAO Severstal and has since developed into a leading, internationally diversified gold producer, with a strategic focus on emerging markets. On 19 January 2012 Nordgold was spun-off from Severstal and commenced trading as an independent public company via a listing of GDRs on the London Stock Exchange.

Nordgold has achieved rapid growth both organically and through acquisitions, increasing production from approximately 21 koz in 2007 to 754 koz in 2011, a CAGR of 145%. In 2011, the Company produced half of its output outside Russia, highlighting the Company's increasingly global footprint.

Nordgold now boasts a diverse portfolio of high quality producing assets. The company's portfolio consists of eight producing mines, two development projects, five advanced exploration projects and a broad portfolio of early exploration projects and licences. The Company's operations are located in the Russian Federation, Kazakhstan, Guinea and Burkina Faso.

The Company expects to maintain its strong growth profile, with a production target of over 1 moz from its operating mines and development projects by 2013.

Review of Operating and Financial Results

Nordgold's three pillar strategy is to: (i) focus on operational optimisation at all its production sites; (ii) achieve organic expansion and development; and (iii) seek value accretive acquisitions.

The Company once again demonstrated its ability to execute and deliver on this strategy in 2011, creating significant value for shareholders with consistent growth across all key performance indicators.

2011 revenue of US$1,182m was up 57% from 2010 (US$754m) driven by a higher realised gold prices, up 25% year-on-year, and increased production of 754 koz, up 28% year-on-year. Q4 production of 204 koz was up 5% quarter-on-quarter.

Refined gold production by mines (1)

(1) Gold equivalent (based on 1:45Ag/Au rate for FY 2011. Silver production amounts 7 koz in gold equivalent for the full year 2011).

(2) Including refined gold from Zherek

Production growth was driven primarily by increased volumes at the Berezitovy and Suzdal mines of 81% and 88% respectively, a testament to our outstanding operating capability and ability to optimise the performance of our existing assets.

Our continued success in driving mine efficiency and operational improvement resulted in an EBITDA increase of 55% in 2011 to US$ 574m driven by significant progress in removing production bottlenecks at our open-pit mines Berezitovy and Neryungri.

The business continues to generate significant cashflows reflecting healthy and efficient underlying operations. In 2011 cash flow from operating activity increased by 60% to a record US$ 398m. Strong cashflow is central to our longer term strategy enabling us to fund new mine expansions and value accretive acquisitions efficiently, whilst also maintaining the capacity to return surplus cash to shareholders.

This combination of strong cashflow from existing production, well invested operating assets with low maintenance capex going forward and a strong balance sheet with a net debt of less than US$ 200m (0.3x LTM EBITDA) puts the Company in a very strong position to capitalise on further growth opportunities in 2012.

Capital Expenditure Programme

Nordgold has a focused capex strategy which aims to deliver growth from both existing and new assets. In 2011, capex was US$ 319m, with spend focused on Nordgold's key development projects of LEFA, Gross and Bissa. We forecast 2012 capex to be in the region of US$ 470m with a continued focus on the LEFA mine turnaround and launching the new generation of deposits into production. Exploration will continue to remain a significant part of Nordgold's capex programme going forward. The Company's existing operations will require mainly maintenance capex going forward.

Exploration & Development

The Company currently has JORC compliant resources of 22.6 million ounces of gold and prospective reserves of 8.2 million ounces of gold.

Nordgold has an extensive and attractive exploration pipeline positioning the company for long term growth. In 2011, the Company spent over US$115m on exploration in both existing development projects (Bissa and Gross), as well as advanced exploration projects across all its key markets. This is double the US$65m exploration budget of 2010 and up from US$33m in 2009.

Key exploration projects include the LEFA and Banora corridors in Guinea, Bouly, Zinigma, Gougre and Labola in Burkina Faso, Nerchinsk, Uryakh and Vitimkan in Russia.

Nordgold's financial strength enables it to capitalise on these exploration opportunities. As the Wardell Armstrong report noted:

"Historically, the majority of Nordgold's assets were underexplored as a result of insufficient capital expenditure programs and liquidity issues suffered by the owners. As a result, the current reserve and resource base does not reflect the true potential of these assets. Nordgold has implemented a significant ongoing exploration and drilling program which WAI expect to continue yielding positive results in areas around current producing mines, thereby significantly increasing the reserve and resource base and extending mine life across the asset base"

The results of 2011 exploration will be incorporated in a new reserve report update expected in April 2012.

Looking ahead, Nordgold expects to make significant capital investments in the continued exploration of existing assets. Many of our existing mining and exploration permits remain underexplored due to historical financial constraints and we see this as a significant opportunity for the future.

Corporate Development

On 19 January 2012 Nordgold GDRs commenced trading on the London Stock Exchange following the spin-off of the Company from OAO Severstal into an independent public company. The rationale for this is very clear: it enables both Nordgold and Severstal to focus on their respective core areas of activity and in particular, positions Nordgold as a new high-growth independent pure-play gold producer with a compelling strategy.

Strategically, as an independent business, Nordgold will be able to better capitalise on growth opportunities and be able to react faster and with more flexibility to changing market developments. It will provide Nordgold with direct access to financing and growth opportunities that may not have been available to it before. A renewed management focus will ensure Nordgold can capitalise on growth opportunities, including future value accretive acquisitions in emerging markets where Nordgold has a proven track record.

For shareholders, the transaction enabled qualified Severstal shareholders and GDR holders to continue participating in the ownership of both Nordgold and Severstal without requiring additional investment, whilst providing future investors the opportunity to invest in each company individually according to their preference as a 'pure play'.

Looking ahead, it remains the Board's intention to seek to increase the freefloat significantly in the near to medium term.

Safety

The health and safety of our employees, contractors and host communities, responsible environmental management and early stakeholder and community engagement are core values central to the way we do business. Our stated goal is not just to meet national compliance regulations, but wherever possible go beyond them to achieve best in class international practice across our entire portfolio.

We are committed to creating the safest working environment we can for our employees. Our safety policy is built around the concept of "Safe Production" which has evolved into a full-scale safety programme covering all of the Company's operations.

It is with deep regret to report that in 2011, Nordgold experienced four fatalities at its operations. We continue to work extremely hard to ensure all our employees go home safely.

More positively lost-time injury frequency rate (LTIFR - the number of incidents per million hours worked) continued to show improvement. In 2011, LTIFR was 1.9, compared with 2.9 in 2010, a 34% decrease year-over-year. We also achieved a 32% decrease in lost time incidents (LTIs), from 53 LTIs in 2010 to 36 LTIs in 2011.

Corporate Governance

The Board has made considerable effort in 2011 to align Nordgold's corporate governance standards with best practice guidelines. While our management structure is continuing to evolve, four of our eight Board members are independent with considerable sector expertise, including our Chairman Philip Baum, who has over 30 years of experience at Anglo American including as CEO of the iron ore division. Our other independent Non Executives are Peter Lester, the former Head of Strategy at Newcrest, David Morgan, former executive director of corporate development at Johnson Matthey plc and Michael Nossal, member of the executive committee of Minmetals Resources Limited.

We are committed to achieving best practice transparency and disclosure standards and have formed four separate Board committees: HSE, Audit, Remuneration and Nomination. Our senior management team has extensive international experience and their interests are closely aligned with the interests of our shareholders. We will continue to focus on achieving best practice corporate governance standards as we build our business and create sustainable long term shareholder value.

The Board was in place for the full 2011 reporting period. During that time, it introduced a range of measures to bring the company in line with best practice corporate governance guidelines.

Outlook

Nordgold expects to produce 800 - 850 thousand gold equivalent ounces in 2012.

Nordgold has an extremely robust pipeline of growth and is on target to achieve production run rate of over 1 moz per annum in 2013. This growth will be achieved by the construction and launch of Gross in Russia and Bissa in West Africa, in conjunction with de-bottlenecking of LEFA for it to reach 300 koz production per annum.

In addition, Nordgold will seek to capitalise on its current exploration potential and an extensive exploration pipeline to grow beyond 1moz per annum over time.

Nordgold is in a strong position to continue to grow the business organically but will seek to capitalise on its financial strength through any potential acquisitions which meet the Company's strict criteria.

We remain fundamentally positive about the long term outlook for gold based on a series of factors which support the commodity's value. Clearly the macro environmental climate remains challenging. This economic uncertainty continues to drive investors towards the relative safe haven of gold investment vehicles.

Despite the uncertain macroeconomic environment and the increased tendency for major developed countries looking to diversify government resources away from currency assets, there remains relative under ownership of gold with holdings representing just 1% of total global funds under management against 4% for other alternative investments. We are also likely to continue to see supply remain tight, not least due to a limited new project pipeline across key markets.

As a gold producer with significant unexplored assets, Nordgold is well placed to benefit from this steady flight to exploration and safety, and investors increasingly see the long term value in holding gold. Combined with our significant development pipeline, our commitment to achieving excellence in all our operating assets and our ability to derive value from our existing assets, we believe Nordgold is well placed for the future.

Detailed Review of Operations

Guinea

LEFA (open-pit) (3)

(3) Ore processed multiplied by head grade and multiplied by recovery may not be equal gold produced due to differences in work in progress figures and volumes of silver production.

(4) Actual LEFA mine production for FY 2010. LEFA mine numbers have been consolidated in Nordgold accounts starting August 2010.

(5) LEFA mine production for August - December 2010

Overview

Q4 production at LEFA has been over 30% higher than in Q3 when the impact of wet season is the most severe. LEFA's overall gold production totalled 196 koz in 2011, just a slight increase over 2010 mine production, and lower than management anticipated. This has been mainly caused by three factors: severe wet season that disrupted mine production and logistics in H2 2011; lower grade; and lower than expected mill and mining fleet availability

Nordgold has undertaken a series of measures in order to minimize the impact of these factors in 2012 and result in higher gold production.

In preparation to wet season we have increased pumping capacity, upgraded the fleet of graders and bulldozers, protected from the influence of rain certain key parts of the conveyor system, and will expand inventory of spare parts and materials ahead of the peak of the wet season

A new geological model has been created for the largest pit at LEFA - Fayalala. Similar models will be created for all the remaining pits of the mine during the course of 2012. These models have a much better predictive capability that an original geological model, and therefore will help to develop a more optimal mine plan with lower dilution of mined ore. This should result in a higher overall head grade for 2012-

A capex program implemented in 2011 and envisioned for 2012 is aimed at increasing availability and productivity of the mining and processing equipment. Some of the metallurgical plant upgrades have been implemented during 2011. Due to long lead times much of the equipment paid for in 2011 is arriving in 2012 and should positively impact production profile during the year. In particular, management expects to launch several new drill rigs, excavators and dump trucks in H1 2012. A pebble crusher will be installed at the plant, and its CIP circuit will be converted into CIL.

In Q4 2011 Nordgold management with assistance of Boston Consulting Group has implemented a project aimed at improving key production, maintenance and logistics processes at LEFA. We believe that this will also contribute to improved availability and productivity of equipment.

Finally, in 2011 several changes have been made to key management staff. The new LEFA general manager will start in March 2012. We believe that the new management team is best positioned to execute on the LEFA transformation program.

Overall, LEFA remains a key focus for Nordgold management, and the main source of future production growth and cost reduction among producing assets of the company.

Burkina Faso

Somita (open-pit) (6)

(6) Ore processed multiplied by head grade and multiplied by recovery may not be equal gold produced due to differences in work in progress figures and volumes of silver production

Overview

2011 has been another record year for Somita mine, which currently operates at close to maximum capacity. In 2011 we focused on fine tuning operations, controlling recovery rates and reducing costs, and raising mining fleet efficiency levels. Our current plant productivity is 70% above design capacity.

Over the year, increased ore processing was a result of an increase in capacity in the ball mill following pump and cyclone upgrades at the end of 2010. The increased ore processing has put pressure on the gold recovery levels at the plant reducing those by 6% for the year. To return recovery to levels close to 90% two additional CIL tanks and a regrind mill will be installed in the summer of 2012. Also, a mobile crusher will be installed to reduce an impact of the wet season.

The decrease in processing in Q4 is related to the shutdown of the ball mill in December 2011 for minor repairs.

Kazakhstan

Suzdal (underground mine) (7)

(7) Ore processed multiplied by head grade and multiplied by recovery may not be equal gold produced due to differences in work in progress figures and volumes of silver production

(8) Including gold from Zherek.

Overview

In 2011 Suzdal has completed a three-year capital project that resulting in a near doubling of its mining and processing capacity and establishing long-term access to medium-grade ores. The key challenge for the management is to adapt processing plant to mineralogy of medium grade ore body, which is significantly different from the mined out high grade ore body. The goal is to return plant to close to 70% gold recovery levels.

The main reason of stronger Q4 production of finished product has been shift into Q4 of refining of Dore gold produced by the mine in Q3, as well as peaked ore processing volumes.

Russia

Buryatzoloto (two underground mines) (9)

(9) Ore processed multiplied by head grade and multiplied by recovery may not be equal gold produced due to differences in work in progress figures and volumes of silver production

Overview

Both plants operate at close to their design capacity for a total capacity of 700 Ktpy. Management believes that Buryatzoloto could achieve similar grades over the life of the mine, as the reserve base at similar grades is being replenished as a result of an ongoing drilling programme.

Increase in processing in 2011 is connected with reaching full capacity of Zun-Holba plant after commissioning of the 4-th processing line in the beginning of 2010. The company has also upgraded gravity circuits at both Buryatzoloto mines which lead to a slight increase in overall gold recovery.

In 2012 the mine management will be focused on continued reserve base upgrade, improvements in safety and in labour productivity.

Berezitovy (open-pit) (10)

(10) Ore processed multiplied by head grade and multiplied by recovery may not be equal gold produced due to differences in work in progress figures and volumes of silver production

Overview

2011 was an outstanding year for Berezitovy, which demonstrated a successful turnaround of all aspects of its operations. An asset transformation program is nearly complete with installation of a second ball mill, secondary crusher and filter plan upgrade in 2011.

The remaining steps of the program - installation of the second secondary crusher and a CIL tank will be completed in H1 2012. Upon completion, the processing capacity of the plant will reach 1,8 mtpa. Head grade in 2011 was above reserve average due to mine plan variation. In 2012 grade is expected to return to 2010 levels. In addition, mine management targets to launch a heap leach with low grade ore. This heap leach may add up to 10 koz of gold annually.

Processing volumes in Q4 have been lower than in the previous quarter due to SAG mill maintenance conducted in December. However gold production due processing of higher grade material was higher in Q4.

Neryungri-Metallic (open-pit) (11)

(11) Ore processed multiplied by head grade and multiplied by recovery may not be equal gold produced due to differences in work in progress figures and volumes of silver production

(12) Technical recovery rate. Actual recovery may differ due to seasonal effects.

Overview

2011 has been another very strong year for Neryungri mine with record gold production of 73 koz. The increase in production has been primarily driven by enhanced mining and processing of ore, which was achieved via improving mining fleet and crushing productivity. A continued effort of mine management at operational efficiency, as well as purchase of new dump trucks and a mobile crusher should make 2012 yet another record year for Nerungri mine. Head grade and recovery are expected to remain at 2011 levels

Q4 ore processing and gold production were below Q3 levels due to seasonality of heap leach production in the cold climate, when ore loading on the pads stops in the middle of November and resumes in April.

Aprelkovo mine (open-pit) (13)

(13) Ore processed multiplied by head grade and multiplied by recovery may not be equal gold produced due to differences in work in progress figures and volumes of silver production

(14) Technical recovery rate. Actual recovery may differ due to seasonal effects.

Overview

In 2011 we completed an upgrade of the mining fleet, doubled metallurgical plant capacity and installed crushers to reduce ore sizes from -15 to -5 mm. This has been done to counter reduced leaching properties of ores located at deeper horizons. Management targets 50% gold recovery from these ores with an upgraded crushing circuit in 2012. At the same time, management intends to continue process lower grade oxide ores (0,5 g/t grade) which deliver higher recovery rates.

Management is also investigating the merits of converting Aprelkovo plant into a conventional CIL operation. Feasibility study of the conversion is ongoing

Q4 ore processing and gold production were below Q3 levels due to seasonality of heap leach production in a cold climate, when ore loading on the pads stops in the middle of November and resumes in April.

Key Development Projects

Nordgold's key current development projects are Bissa and Gross.

Bissa:

Located in Burkina Faso, Bissa is an actionable late-stage development project which is expected to contribute 93 koz and 161 koz of production in 2013 and 2014, respectively. Bissa's JORC compliant resources amount to approximately 2.9 moz of gold as of 1 November 2011. Significant progress has already been made developing the project. Feasibility was completed in June 2010. Engineering and design phase was completed on time and construction begun in September 2011. Earth and cements works are already in progress and mining equipment is now on site. We expect mills to be delivered in summer 2012, meaning Nordgold is on track to start production in 2013. Overall capex for the project is expected to be around US$ 250m.

Gross

Located four kilometres from the Neryungri mine in the Republic of Yakutia in the Russian Federation, Gross is a development project expected to contribute 61 koz and 110 koz of production in 2013 and 2014 respectively. Gross's JORC compliant resources amount to approximately 5.7 moz of gold as of 1 November 2011. Test work has been successfully completed on ore samples and pre-feasibility is expected to be completed in May/June 2012.

Nord Gold N.V.

Non statutory consolidated financial statements

for the year ended December 31, 2011

Nord Gold N.V.

Consolidated income statements

for the year ended December 31, 2011

(Amounts expressed in thousands of US dollars, except as otherwise stated)

* The comparative information for the year ended December 31, 2010 has been restated in connection with the completion of the purchase price allocation of Crew Gold Corporation (Note 26).

Nord Gold N.V.

Consolidated statements of comprehensive income

for the year ended December 31, 2011

(Amounts expressed in thousands of US dollars, except as otherwise stated)

* The comparative information for the year ended December 31, 2010 has been restated in connection with the completion of the purchase price allocation of Crew Gold Corporation.

Nord Gold N.V.

Consolidated statements of financial position

as at December 31, 2011

(Amounts expressed in thousands of US dollars, except as otherwise stated)

* The comparative information at December 31, 2010 has been restated in connection with the completion of the purchase price allocation of Crew Gold Corporation (Note 26).

Nord Gold N.V.

Consolidated statements of cash flows

for the year ended December 31, 2011

(Amounts expressed in thousands of US dollars, except as otherwise stated)

* The comparative information for the year ended December 31, 2010 has been restated in connection with the completion of the purchase price allocation of Crew Gold Corporation.