NSGOLD CORPORATION PROVIDES EXPLORATION UPDATE FOR MOOSELAND GOLD PROJECT

VANCOUVER, Sept. 28 /CNW/ - NSGold Corporation (NSX : TSXV) is pleased to announce that it has completed 5 of 14 planned diamond drill holes in an exploration program on the West Zone of its Mooseland gold project in Halifax County, Nova Scotia, Canada. This program is intended to verify past work and to identify and target untested areas within the Mooseland deposit. Drilling began on September 7th.

A 3D model of the West Zone and comprehensive cross and longitudinal sections were developed and prepared for the Company by MineTech International Inc. of Halifax, Nova Scotia. This work is based on historic diamond drilling and assay data and provides a better understanding of the structure of the deposit and gold occurrence. These were interpreted and used to plot the location, azimuth and angle of each hole in the current program.

A similar 3D model and sections will be prepared as a tool to plan a drilling program for the East Zone at Mooseland.

Drilling on the project is being done by Landdrill International Inc. of Moncton, New Brunswick and the first shipment of core samples has been sent to Laboratiore Expert Inc. in Rouyn-Noranda, Quebec for analysis. As well, geologic sampling has commenced on a number of other potential targets identified by the Company's earlier reinterpretation of historic geophysical data and geologic reports.

NSGold's wholly-owned Mooseland gold project consists of 115 contiguous claims covering a land position of 1,860.7 HA in a historic mining district located approximately 90 km north east of the city of Halifax, Nova Scotia. Mooseland is a Meguma type deposit which may contain significant amounts of gold hosted in quartz veins. A number of promising exploration targets have been outlined by previous work on the project conducted by the Hecla Mining Company/Acadia Mineral Ventures Ltd. Joint Venture (1988 to 1990) and Azure Resources (2002 - 2003). This work found anomalous to high grade gold in a two distinct zones. Plans for underground development and exploration were initiated in both the 1989 and 2003 work programs, but were abandoned due to weak gold prices. A number of potential targets were identified but to date they have not been fully tested or evaluated.

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

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.

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]