NORD.L Regulatory News (NORD)

Operating Results

Q2 and H1 2013

Nord Gold N.V. reports operating results for the second quarter and six months ended June 30, 2013

Amsterdam, Netherlands, July 12, 2013

Nord Gold N.V. ("Nordgold" or the "Company", LSE: NORD), the internationally diversified, pure-play gold producer strategically focused on emerging markets, announces its operating results for the second quarter and six months ended June 30, 2013.

Highlights

·; Lost time injury frequency rates (LTIFR) for Q2 2013 rose by 82% compared with Q2 2012 (1.03) and by 63% compared with Q1 2013 results (1.15).

·; Gold production for Q2 2013 was 232.6 thousand gold equivalent ounces ("koz"), a 41% increase on Q2 2012 (165.3 koz) and a 27% increase on Q1 2013 (183.6 koz).

·; Bissa operated ahead of expectations with production of 112.5 koz in H1 2013, exceeding the initial full year production guidance for 2013 of up to 100 koz.

·; Revenues for Q2 2013 increased by 21% from Q2 2012 to US$319.5 million. This represents an 8% increase from Q1 2013 ($296.8m).

·; Average realised gold price in Q2 2013 was US$ 1,376 per oz compared to US$ 1,602 per oz in Q2 2012, down 14%.

·; Gold and silver mining license for the Gross project was awarded in Q2 2013.

·; 2013 сapex budget was reduced by approximately US$40-50 million from US$300 million due to lower spending on exploration and at the Gross project, which remains Nordgold's principal development asset.

·; Net debt at June 30, 2013 was approximately US$800 million, an increase from US$740.9 million at Q1 2013 reflecting the dividend of US$44.6 million paid at the end of June.

·; Nordgold reiterates 2013 full year production forecast of 770 - 850 koz. 

Development Highlights

Gross

·; Nordgold was awarded a gold and silver mining license for the Gross project in Q2 2013 - this is the newest development asset of the Company.

·; Project remains on track and on budget with trial treatment of ore expected at the end of 2013.

·; Nordgold is currently conducting a full feasibility study of the project parameters with the aim of maximising future returns on investment. The updated parameters will be reviewed by the Board by the end of 2013.

·; 2013 capital expenditure at Gross is estimated to be in the range of US$ 40-50 million compared to our previous estimate of US$ 70 million. The management team has successfully rescheduled infrastructure works spending in a way that will have minimal effect on the overall project. The remaining capex for the project is expected be around US$ 300 million.

·; Gross is an all-season open-pit heap leach operation. Full production run rate is expected to be reached in 2016. At full production, Gross will be mining approximately 12 million tonnes of ore and producing over 170 koz per year, subject to the feasibility study.

Production Overview

·; Nordgold achieved double digit growth in gold production in Q2 2013 over Q1 2013 at Bissa, Buryatzoloto, Berezitovy, Suzdal, Neryungri and Aprelkovo, as well as a 6% increase at Lefa. Production at Taparko fell for the same period.

·; Operations at Bissa commenced on 17 January of 2013. Bissa has beaten expectations, with production of 112.5 koz in H1 2013, exceeding the initial full year production guidance for 2013 of up to 100 koz.

·; After an extended period of cutback stripping, in June Lefa has reached higher grade ore blocks at several pits. As a result, the average head grade in June has reached 1.15 gr/tn, which is well above head grade seen in the first 5 months of the year and close to our target level. We expect an above 1 g/t head grade will be sustained in the second half of the year and further on.

·; Production at Taparko fell 12% quarter-on-quarter mainly due to 10 days of planned maintenance shutdown. The mine has undergone considerable effort to improve mining, milling and recovery, and is now showing steady progress across all our main operating KPIs on a daily and monthly basis. Recoveries at Taparko have exceeded 80% in Q2 which is, however, still below our target, and mine management continues to optimise blending and metallurgical parameters which should lead to recovery improvement in H2 2013.

·; Buryatzoloto has seen grade improvement for the second quarter in a row, with 10% growth in production quarter-on-quarter. We continue to invest in tunneling and developing of new blocks which should lead to further grade improvement at both Irokinda and Zun-Holba mines

·; Suzdal mine in Q2 2013 maintained a high recovery level of 69%. After the severe winter conditions in Kazakhstan which affected January production volumes, Suzdal has now returned to its design milling capacities, leading to a 32% increase in gold production quarter-on-quarter.

Refined gold production by mines (1)

(1) Including 1.815 and 2.716 thousand gold equivalent ounces of silver production for Q1 2013 and H1 2013 respectively

(2) Including refined gold from Zherek

Operating Results Summary

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

(3) Presented only for open pit mines.

(4) Calculated for total ore mined and waste mined only for open pits

Safety

Safety remains the absolute priority for the Board and management with the objective of Zero Harm for our employees and contractors.

We were disappointed that lost time injury frequency rates (LTIFR) for Q2 2013 rose by 82% compared with Q2 2012 (1.03) and by 63% compared with Q1 2013 results (1.15). However, we are pleased to report six out of nine of our operations worked according to the highest industry standards, with no LTI incidents recorded at Bissa, Lefa, Taparko, Berezitovy, Aprelkovo and Suzdal during Q2 2013. We recognise we operate in a hazardous environment, but our focus on ensuring our employees return home safely at the end of each shift is absolute.

We deeply regret the fatality at our Neryungri mine, which was reported previously. A full investigation has taken placed to avoid a recurrence of a similar tragedy. Our thoughts are with the bereaved. The incident highlights the need to ensure we continue to focus on safety at all our mine sites and to improve the attitudes of all our employees towards safety requirements.

Outlook

Nordgold continues to expect 2013 full year production to be in the range of 770 to 850 koz.

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.

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.

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.

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

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.

(5) Including gold from heap leach

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.

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

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.

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

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) Represents figures for Suzdal

(9) Represents figures for Celtic Group, includes gold from Zherek.

Enquiries

For further information on Nordgold please visit the Company's website - www.nordgold.com

http://www.rns-pdf.londonstockexchange.com/rns/1874J_-2013-7-12.pdf

Notes to Editors

About Nordgold

Nordgold (LSE: NORD) is a pure-play emerging-markets gold producer established in 2007. The Company has expanded rapidly through acquisitions and organic investment, achieving a rate of growth unmatched in the industry during that period. In 2012 Nordgold's gold production was 717 Koz.

The Company's proved and probable gold reserves as of January 1, 2013 totalled 12.642 Moz, while measured, indicated and inferred resources were estimated at 34.664 Moz.

The company operates 9 active mines and has one development project, 5 advanced exploration projects and a diverse portfolio of early exploration projects and licenses in Russia, Kazakhstan, Burkina Faso and Guinea. Nordgold employs about 10,000 workers in CIS and West Africa.

Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this press release, including any information as to Nordgolds estimates, strategy, projects, plans, prospects, future outlook, anticipated events or results or future financial or operating performance and production, may constitute "forward-looking information" within the meaning of Canadian securities laws. All statements, other than statements of historical fact, constitute forward-looking information. Forward-looking information can often, but not always, be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "predicts", "potential", "continue" or "believes", or variations (including negative variations) of such words, or statements that certain actions, events or results "may", "could", "would", "should", "might", "potential to", or "will" be taken, occur or be achieved or other similar expressions concerning matters that are not historical facts. The purpose of forward-looking information is to provide the reader with information about management's expectations and plans. Readers are cautioned that forward-looking statements are not guarantees of future performance. All forward-looking statements made or incorporated in this press release are qualified by these cautionary statements.

Forward-looking information involves significant risks, assumptions, uncertainties and other factors that may cause actual future realities or anticipated events to differ materially from those expressed or implied in any forward-looking information and, accordingly, should not be read as guarantees of future performance or realities. Material factors or assumptions that were applied in formulating the forward-looking information contained herein include the assumption that the business and economic conditions affecting Nordgold's operations will continue substantially in their current state, including, without limitation, with respect to industry conditions, general levels of economic activity, market prices for gold, competition for and scarcity of gold mine assets, achievement of anticipated mineral reserve and mineral resource tonnages or grades, ability to develop additional mineral reserves, acquisition of funding for capital expenditures, adequacy and availability of production, processing and product delivery infrastructure, electricity costs, continuity and availability of personnel and third party service providers, local and international laws and regulations, foreign currency exchange rates and interest rates, inflation, taxes, and that there will be no unplanned material changes to Nordgold's facilities, equipment, customer and employee relations and credit arrangements. Nordgold cautions that the foregoing list of material factors and assumptions is not exhaustive. Many of these assumptions are based on factors and events that are not within the control of Nordgold and there is no assurance that they will prove correct. The risks and other factors that may cause actual future realities or anticipated events to differ materially from those expressed or implied in any forward-looking information include, but are not limited to the satisfaction or waiver of the conditions to completing the Offer; Nordgold's ability to execute its development and exploration programs; the financial and operational performance of Nordgold; civil disturbance, armed conflict or security issues at the mineral projects of Nordgold; political factors; the capital requirements associated with operations; dependence on key personnel; compliance with environmental regulations; estimated production; and competition.

Actual performance or achievement could differ materially from that expressed in, or implied by, any forward-looking information in this press release and, accordingly, investors should not place undue reliance on any such forward-looking information. Further, any forward-looking information speaks only as of the date on which such statement is made, and Nordgold does not undertake any obligation to update any forward-looking information to reflect information, events, results, circumstances or realities after the date on which such statement is made or to reflect the occurrence of unanticipated events, except as required by applicable Canadian securities laws. All forward-looking information contained in this press release is qualified by such cautionary statements. New risk factors emerge from time to time, and it is not possible for management to predict all of such risk factors and to assess in advance the impact of each such factor on Nordgold's business or the extent to which any factor, or combination of factors, may cause actual realities to differ materially from those contained in any forward-looking information.