On Friday, NioGold Mining and Aurizon Mines Ltd. (TSX:ARZ) announced an updated mineral resource estimate for the joint venture Marban deposit.

1. NIOGOLD MINING CORPORATION
E quity Research | Metals & Mining Ticker Recommendation 12-month Target
Please se e important disclosures at the end of this document TSXV:NOX SPEC. BUY $0.95
$0.435 (unchanged) (was $0.85)
Updated Resource Estimate for Marban Deposit September 10, 2012
Market Data Event
52-week High-Low $0.50-$0.295
Shares Outstanding O n Friday, Nio G old Mining and Aurizon Mines Ltd. (TSX:ARZ)
– Basic 100.9 million announced an updated mineral resource estimate for the joint
– Fully Diluted 116.6 million venture Marban deposit.
Market Capitalization $43.6 million
Enterprise Value $38.5 million
Cash & ST Investments $4.3 million Highlights
Marketable Securities $0.8 million
The report estimated in-pit mineral M&I resources at 20.7Mt @ 1.58
90-Day Avg. Daily Volume 123,000
Fiscal Year End August 31 g/t for 1.053Moz Au and inferred of 3.78Mt @ 1.60 g/t Au for
Major shareholders: Wexford Capital LLC: 13.9% 0.194Moz Au using a 0.35 g/t cut-off. In addition, outside the pit an
Pinetree Capital Ltd: 7.9% estimated M&I resource of 0.98Mt @ 2.82 g/t for 89koz Au and
Management: 1.5% inferred of 0.8Mt @ 2.68 g/t Au for 0.194Moz Au at a 2.0 g/t cut-off.
Results are highlighted below:
Trading History (TSXV:NOX)
4,000 $0.55 Updated NioGold Resource Summary (Sept 2012)
Uncapped
Volume (thousands)
3,500 $0.50 Cut off Grade Cap Grade
3,000 $0.45 Deposit Category (g/t Au) Tonnes (g/t Au) oz Au Loss (g/t Au) oz Au
Share Price
2,500
$0.40 Marban Indicated 0.35 o/p 20,700,000 1.58 1,053,000 18.8% 1.95 1,296,798
2,000 Inferred 0.35 o/p 3,780,000 1.60 194,000 65.9% 4.69 568,915
$0.35
1,500
1,000 $0.30 Indicated 2.0 u/g 980,000 2.82 89,000 16.0% 3.36 105,952
$0.25 Inferred 2.0 u/g 800,000 2.68 69,000 17.9% 3.26 84,044
500
0 $0.20 Norlartic-Kierens Indicated 0.5 / 2.5 6,854,000 1.90 417,000
Inferred 0.5 / 2.5 4,978,000 1.54 247,000
May-12
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
Mar-12
Feb-12
Apr-12
Jun-12
Jul-12
Aug-12
Sep-12
North Zone Historic 136,078 6.85 30,000
Gold Hawk Veins Historic 254,016 8.57 70,000
North-North Zone Historic 385,554 3.63 45,050
Source: Bloomberg Total NI43-101 compliant resources 2,069,000 2,719,709
Total historic resources 145,050 145,050
Company Description Sourc e: C ompany reports, NSI
NioGold Mining Corporation is a gold exploration
company with land holdings in northern Q uebec’s most The new report replaces the 2009 NI43-101 resource estimate:
prominent gold mining region, the Malartic, C adillac and
Val-d’Or gold camps. Its principal properties include the Prior NioGold Resource Summary (December 2009)
Marban Block, Malartic Hygrade, Malartic H, C amflo West,
Cut off Grade
and Siscoe E ast located in a the Abitibi Greenstone belt.
Deposit Category (g/t Au) Tonnes (g/t Au) oz Au
The C ompany controls a 20 km segment of this
prospective fault zone with gold resources defined over a Marban Indicated 2.5 1,238,000 4.55 181,000
Inferred 2.5 868,000 4.08 114,000
3 km segment in and around three former mines –
Marban, Norlartic and Kierens, which collectively Norlartic-Kierens Indicated 0.5 / 2.5 6,854,000 1.90 417,000
produced 600,000 ounces gold. Inferred 0.5 / 2.5 4,978,000 1.54 247,000
North Zone Historic 136,078 6.85 30,000
Key Project Gold Hawk Veins Historic 254,016 8.57 70,000
North-North Zone Historic 385,554 3.63 45,050
Marban Block – JV with Aurizon Mines Ltd.
Total NI43-101 compliant resources 959,000
Indicated 1,559,000 oz Au 28.5Mt @ 1.7 g/t
Total historic resources 145,050
Inferred 510,000 oz Au 9.6Mt @ 1.9 g/t
Historic* 145,050 oz Au 0.8Mt @ 5.8 g/t Sourc e: C ompany reports, NSI
*non NI 43-101 compliant
The new resource estimate, prepared by S G S C anada, is based on
Matthew Zylstra Phase 1 results only (41,270 metres in 146 holes) and builds on the
(416) 644-8109 earlier estimate prepared by Mine Development Associates in
mzylstra @ northernsi.com December 2009.
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2. NioGold Mining Corporation September 10, 2012
The estimate takes into account two distinct mining scenarios: open-pit and underground, with open pit resources reported
within an initial Whittle pit shell.
A block model was defined with 5 5 5 metre blocks covering a strike of 1,400 metres and to a maximum of 700 metres
below surface. Average density used in the calculation of tonnage was 2.77 tonnes/cubic metre.
The recently completed Phase 2 drill program, totaling 34,658 metres in 90 holes, was not included (which included 27,590
metres on Marban and of which ~ 50% were infill). Phase 2 drilling targeted the Marban deposit along strike, in particular the
Western High Grade zone and the E astern Down Dip zone.
Cut-off of 0.35 and 2.0 g/t Au were used for open pit and underground scenarios, respectively, and a 25 g/t top-cut was
applied to the estimate, which has the effect of reducing ounces and grade at Marban by ~ 30% (roughly 650k ounces). This
compares to the old estimate where MDA used a higher, 2.5 g/t resource cut-off grade since just an underground mine
scenario was considered for Marban. MDA also used three top-cuts (15 g/t, 17 g/t and 110 g/t depending on the domain).
Based on positive results, Aurizon will continue with Phase 3 of the project for roughly $9 million in expenditures.
Comments and Investment Conclusion
We are pleased with the results, which exceeded our upside target of 1.7Moz in all categories for the entire Marban
property. The best case scenario of increasing the amount of near surface ounces at Marban in order to define an
open pit resource was achieved and, in our opinion, the Marban Block has clearly jumped in importance over
Aurizon’s other exploration/development projects, including the Joanna property (which was set back by a poor
feasibility study in June 2012). The Marban deposit has several things going for it including what was described as a
“funnel shape” in the upper part of the deposit, which should make it easier to mine as an open pit, as well as high
expected recoveries (94.5%-97.6%) in conventional processes and medium to soft hardness (10.1-1.9 kWh/t), which
we expect should make ore fairly straight forward to process.
We expected at least some of the Phase 2 drill program would be incorporated into the estimate; however, this suggests an
even greater resource, in particular at two zones, the Western High Grade zone and the E astern Down Dip zone, which was
much of the focus of the 2011/2012 Phase 2 program. Assuming resources are added at roughly the same rate in Phase 1
and accounting for the fact that roughly 50% of Phase 2 at Marban was infill drilling, we have estimated total resources in all
categories with Phase 2 at ~ 2.5Moz. In addition, while the Marban deposit is the core of the Marban property, the property
also hosts the Norlartic and Kierens deposits with defined NI43-101 resources as well as the North Zone, the G old Hawk and
the North North Zones, which represent additional resource expansion potential with historical (non-NI43-101 complaint
resources) that were not affected by this update.
We are also pleased to see that respected mine consultants, S G S G eostat, were authors of the report and have examined
the parameters used in the modeling, which appear reasonable. We would note that the 25 g/t grade seems conservative, in
our opinion, and may understate the grade and ounces that are ultimately mined. C apping of assays is required when a few
high grade outliers may have a disproportionate influence on average gold grade. Some companies in close proximity to
Marban (around Val d’Or), including Aurizon’s Joanna project, use grade capping. C onsultants may determine a cap is not
necessary if the distribution of grades is relatively normal. In the case for Joanna the same consultant, S G S G eostat,
authored the resource estimate and used a 15 g/t Au top cut but it only reduced the resource by 5%-6%. Osisko (TSX:O SK)
used various caps at its C anadian Malartic deposit but it only reduced its resource by an estimated 2.35%, while Agnico
E agle’s (TSX:AEM) G oldex did not have a top cut and nor did Alexdandria Minerals’ (TSXV:AZX) Akasaba deposit.
In light of the results of the new resource, we have updated our valuation to reflect lower valuations for the junior exploration
space (for in-situ valuations). We assume in our valuation that Aurizon Mines completes a resource estimate and payment
based on Phase 2 results and based on the original terms for 50% of Marban ($40/oz M + I plus $30/oz inferred for 50% of
defined resources). We have estimated an additional 393koz from the Phase 2 drilling at 50% M + I.
Northern Securities Inc. Page 2

3. NioGold Mining Corporation September 10, 2012
NioGold Valuation
NAV Value
($million) ($/share)
Properties
Marban
Marban Block Properties (50% ownership) 46.6 $0.40 $45/oz for 50% attributable share
Additional 19% exploration upside from Phase 2 8.8 $0.08 +393koz (50% M+I) at Marban
Aurizon Option
Marban Block Option Payment (current resource) 38.8 $0.33 $40/oz M+I, $30/oz Inferred
Additonal 19% upside from Phase 2 drilling 6.9 $0.06 +393koz (50% M+I) at Marban
Balance Sheet
Cash 4.3 $0.04 As of 5-31-2012
Marketable Securities 0.8 $0.01 Based on current GMA share price
Cash from Options & Warrants 6.7 $0.06 Assuming all are exercised
Total NAV ($m) 112.9
Shares Outstanding (basic) 100.9
Options Outstanding 7.8
Warrants Outstanding 8.6
Shares Outstanding (fd) 116.6
Multiple to NAV 1.0x
Target price $ 0.97
Sourc e: NSI
In addition, we would highlight the implied value of the implied value of the Marban option of $65.7 million based on what
Aurizon Mines will spend in order to complete the earn-in to get 50% of the Marban property. This includes $20 million in
expenditures over 3 years plus a resource payment described above.
Implied minimum value of Aurizon option
with gold over US$1560:
Drilling expenditures $20.0 m
Payment for M+I Resources $31.2 m
(50% x 1,559,000 x $40)
Payment for Inferred Resources $7.7 m
(50% x 510,000 x $30)
Payment for estimated 362,650oz (19%) Phase 2 $6.9 m
exploration upside assuming 50% M+I and 50% inferred
(50% x 392,650 x $35)
Total $65.7 m
Sourc e: NSI
We have increased our target price to $0.95/sh and continue with a SPECULATIVE BUY recommendation.
Catalysts
Startup of the $9 million Phase 3 exploration at Marban – September 2012
Updated mineral resource (including Phase 2) – 2013
Baseline environmental study – Q4-2012
Northern Securities Inc. Page 3

4. IMPORTANT DISCLOSURES
September 10, 2012
Applicable disclosures:
Nio G old Mining C orporation 8,9
1. Within the past 12 months, Northern Securities Inc. managed or co-managed a public offering or private placement of securities for the subject company.
2. Within the past 12 months, Northern Securities Inc. received compensation for investment banking services from the subject company.
3. Northern Securities Inc. is currently providing the subject company with investment banking services.
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5. Northern Securities Inc. is currently providing the subject company with non-securities services.
6. Northern Securities Inc. and its affiliates collectively beneficially own 1% or more of the equity securities of the subject company.
7 The research analyst/associate or a member of the research analyst/associate’s household has a long or short position in the shares of the subject company.
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The particulars contained herein were obtained from sources that we believe to be reliable but are not guaranteed by us and may be incomplete. The opinions expressed
are based upon our analysis and interpretation of these particulars and are not to be construed as a solicitation of offer to buy or sell the securities mentioned herein.
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sales of these securities from time to time in the open market or otherwise. Northern Securities Inc. is a wholly owned subsidiary of Northern Financial C orporation.
Investment Opinion Definition STRONG BUY: NSI expects the share price to appreciate 30% or more over the next 12 months.
BUY: NSI expects the share price to appreciate 10% to 30% over the next 12 months.
HOLD: NSI expects the share price to appreciate 10% or less over the next 12 months.
SELL: NSI expects the share price to have a negative rate of return over the next 12 months.
SPECULATIVE BUY: NSI expects the share price to appreciate substantially over the next 12 months, but with a high level of
inherent risk.
Note: Perc entages are approximate and ratings are at the analyst’s discretion. Distribution of research ratings is available at
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