Agenda

• Overview of Northgate
  • Kemess South
  • Northgate Development Projects
  • Strategy for Growth
• Acquisition of Aurizon
  • Transaction Details
  • Snapshot of New Northgate
  • Northgate/Aurizon Advantage
• Questions

TSX

AMEX

(C$)

(US$)

Share Price⁽¹⁾

$4.24

$3.82

Basic Shares Outstanding⁽²⁾ (mm)

214.8

-

Market Capitalization (mm)

$910.8

$820.5

Warrants Outstanding (mm)

38

-

Daily Share Volume⁽³⁾ (mm)

1.84

4.08

Hole ID

Core length

Gold

Feet

Metres

g/tonne

oz/ton

YD06-01

146.0

44.5

2.55

0.074

YD06-01A

25.0

7.6

8.38

0.244

104.0

31.7

5.65

0.165

including

40.0

12.2

10.35

0.302

YD06-01B

218.5

66.6

8.92

0.260

including

32.5

9.9

33.49

0.977

and

20.0

6.1

16.45

0.480

YD06-09

102.7

31.3

4.49

0.131

including

52.0

15.8

8.28

0.242

Our next speaker is Ken Stowe from Northgate Minerals. Ken's the CEO of the company and if you don't want to take your seats, at least please be quiet. Thank you. Ken?

This is a very interesting slide, if you put it up, it's quite dramatic. In the first quarter of this year we were the highest cash-flow generator of the Canadian mid-tier, and all the big names are on there. This is excluding the Barricks and companies like that--but below that. So we are the ones generating the money. And that's through a combination in of our excellent production and also, obviously the metal prices; both gold and copper. We acquired our foundation asset, cornerstone asset, Kemess South in 2000 at the bottom of the market and in the dark days of the industry. We got it from receivership at $0.35 on the dollar and we have made this thing work. We've, in all measurements both in mining and metallurgical, have created a lot of value here, as we said in our vision statement.

Right away, we got drilling and applying some of our financial capability now. What this project lacked was somebody with the money that could actually start putting deeper drill holes in and we've had initial success and we just announced a couple weeks ago, or a week ago, our hole 1B, which is a wedge off the first hole, which had 200 feet of almost 9 grams per ton and we've started to see some very high-grade (much higher than historical average) which is what we were looking for when we acquired the property.

This is what we see for the mine if the grade doesn't change from the foreground, which is in the resource and the historical mining grade. At 4,000 tons a day, this would be 170,000 ounce producer per year at a cash cost somewhat below $300.00 an ounce. If that grade goes up, which we hope to be seeing, this could be a much larger production at a lower cash cost. What we also show here, and most people won't show you, we expect to spend about $40 million dollars to make that decision. So that will be our sunk costs before we actually go to build it for $120 million. It's unusual in this industry; they don't tell you how much money to spend until they get to spend the big amount of bucks. So we would expect to have a mine here for $160 million dollars.

There's a lot of good points, I think, about our offer for Aurizon shareholders. One, we're giving them a very significant cash premium -- a premium of 30-½ percent. We're a very liquid company, which is also very important. They're not that liquid, so we're giving them liquidity to come in and out of the stock. We obviously have a strong balance sheet. We had at the end of the first quarter, 63 million US on the balance sheet and a lot more coming for the rest of this year. We expect at $2.60 copper this year and $600 gold; we'll have $160 million of cash flow. And we also have some warrants if you look at our structure. We have 38 million warrants going to be exercised, probably at the end of this year, to bring in another hundred million dollars. As opposed to some of the other companies enforcing early conversion of the warrants we hadn't felt the need to do it because we're making lots of cash anyways. So we don't feel panicked that we need to get the cash now because we won't necessarily get it in December. What we also bring is our operating expertise. And I think that's recognized around the industry about what we've done at Kemess and I think we can bring to other mines also. We also bring now the advantage of scale and that's going to be, having more than one operating asset -- is valuable to investors and also the company. If you're having some hiccups in one, the other can carry the load. I think also importantly we're definitely poised for future acquisitions. So we see this as a growth vehicle where we can tack on something else, and we have been doing our homework so we have a short list of things that we're also considering down the way. So we don't necessarily plan to stop if we are successful with this one. What we also bring along aside from Kemess South, which is generating all of the cash flow; we also have a couple of very exciting exploration projects that are referred to Kemess North and Young-Davidson. So we are bringing some new assets which right now Aurizon only has that one asset at Casa Berardi. We would fully expect if we do, if we are able to complete this deal, that we would get a re-rating of our stock. We basically trade below the multiple of the rest of the industry, and significantly below. So becoming more of a pure gold company and with the size we should get a bump in our share price for all the shareholders.

Just to summarize before I open it for a couple of questions. The real advantage to this deal, it's a Canadian based company with Canadian based assets. In today's instability around the world is a very important feature. We're very liquid, with a significant market cap. It will be very well capitalized as a mid-tier gold producer. Second leading cash flow generator. I think we got a true pipeline on the projects coming in so we would change from what people are looking at us as a 'one trick pony'. We wouldn't be a one trick pony in the future. Importantly for investors and shareholders, we've been generating enough cash flow to build the projects so we're not going to have to be continually going to the market to raise more money. We have an outstanding track record of success. If I was betting on management I think we're one of the people that people should be betting on. I think we're well positioned now with the cash that's coming because of the gold and copper prices to start acquiring things and solvate the industry. In meeting many investors, they think this is badly needed in the industry. So we've positioned ourselves to start doing that. With that I've got time for a question or two. Over there on the right?

Definitely not 100 percent. You can put whatever percentage. I wouldn't be pursuing it if I didn't think; I think it's justified environmentally what we're proposing to do. We have an outstanding track record. There is no reason we can't do it but I would never predict regulators and as we are finding out from many projects they take longer. We've had our two-year delay and we've told them that we can't take any more delay. So if they're going to tell us no, tell us sooner rather than later.

It's been the federal government and their inability to conduct a process we think in a timely fashion so far and we're trying to bring their attention to the fact that it's important in Canada in particular that you do things in a timely fashion. So we're still waiting to have the public hearings, which are an integral part of it and to say just get on with it. We're prepared to have the public hearings. There's been no new issues. The project from the beginning has been the same issues. Yes?

Well there has never been a deal done where the shareholders rights plan hasn't went away either because the Board of Directors removed it or the courts or the Securities Commission removed it. There has never been a case because it is a very effective poison pill and you can't do a deal as long as it exists. In all cases it disappears. It's a question of what time it disappears. And all it is there for is to give you time to do the deals. It's a question of when it disappears. Yes?

I'm not really going to do that. Obviously we've got our own; This is unsolicited bid so there is other people out there and they're going to be doing their numbers just like we have. If we didn't think it was going to be accretive to our shareholders; obviously in the short term it can't be accretive to our cash flow because we have the best cash flow generating mine in the industry. So in the short term it is but we're buying it for strategic reasons for the medium to long-term and we think that's where the value comes in. We think it is going to be accretive at the end of the day to our net asset value. But in short term it can't be accretive to earnings or cash flow. Yes?

Not all, but it would be in stable jurisdictions and would be mainly set in the Americas. North and South America. We've been very consistent also and there are a lot of the America's that wouldn't qualify as stable.