NSGOLD CORPORATION EXPANDS LAND HOLDINGS AT MOOSELAND GOLD PROJECT

VANCOUVER, Aug. 31 /CNW/ - NSGold Corporation (NSX : TSXV) is pleased to announce that its has expanded its land holdings at its wholly-owned Mooseland Gold project in Halifax County, Nova Scotia by staking 42 additional claims totalling 679.56 hectares. This brings the Company's total land holdings at the Mooseland Project site to 1,860.7 hectares encompassing 115 contiguous claims. Management has taken this action to strategically expand NSGold's holdings, to acquire lands that it views as potential exploration targets extending to the northeast and southeast of the old Mooseland Mines.

All Mooseland claims and exploration licenses are located approximately 70 km northeast of Halifax, Nova Scotia and can be found on map sheet 11D/15C.

This action was taken based in part on the results of a study commissioned by NSGold that reworked and replotted old Induced Polarization geophysical data resulting from surveys conducted in the 1986 - 1990 period using enhanced digitized analysis not available at the time the surveys were done. In addition, the Company will commission an expansion of the geophysical survey grid covered by the recompiled data to close any gaps in coverage of the areas of interest and potential gold-bearing zones.

Landdrill International Inc. of Moncton, New Brunswick has been engaged as a drilling contractor for the Mooseland project and is expected to have a drill on site during the first week of September, at which time drilling should commence.

About NSGold

NSGold Corporation is a mineral exploration company actively exploring for gold in Nova Scotia, Canada. NSGold's flagship property is the Mooseland Gold Project. NSGold's shares are listed on the TSX Venture Exchange under the symbol NSX.

The information provided in this press release has been reviewed and approved by Qualified Person, Perry MacKinnon, P. Geo.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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For further information: Glenn A. Holmes, Chief Financial Officer, NSGold Corporation, [phone], [email protected]