NSGOLD CORPORATION PROCEEDS WITH OPTIONING MOOSEHEAD AND ECUM SECUM GOLD PROPERTIES

VANCOUVER, Feb. 1 /CNW/ - NSGold Corporation (NSX : TSXV) announced today that it has completed its due diligence and is making the initial option payment under the option agreement pertaining to two prospective gold properties located in Nova Scotia.  The properties, Moosehead and Ecum Secum, are located along an anticlinal structure that is known as a favourable host of gold prospects. The agreement covers a total of 74 claims encompassing 1,197 hectares.

The Moosehead and Ecum Secum properties are located approximately 25 kilometres east of Sheet Harbour, 5 kilometres apart, along the Tangier-Harrigan Cove anticlinal structure along which at least two other former producing gold mines occur. Historic workings from quartz veins at Ecum Secum have provided local prospectors numerous coarse gold samples. Several shafts on the Moosehead property, the deepest of which is 61 metres, identify historic mining efforts, the most recent of which was in 1915. Underground development at that time yielded a recorded 509 ounces of gold from 3,408 tons of ore. Bulk samples taken in the same era reported 0.28 ounces per ton gold from 10.13 tons and 0.2 ounces per ton gold from 12.28 tons of ore. This equates to gold grades of 9.6 grams per tonne and 6.8 grams per tonne respectively. No drilling or geophysics has been recorded as being carried out on either property. NSGold intends to carry out a trenching and drilling program on these properties in 2011.

NSGold can acquire a 100% interest in the two properties by making aggregate option payments of $120,000 payable in instalments based on project milestones over a period of 3 years or until one or both of the properties is advanced to production.  The properties are subject to a Net Smelter Royalty of 1.5% on commencement of production which is capped at $1,000,000.

Qualified Person

Perry MacKinnon, P.Geo., Chief Geologist for NSGold, a qualified person as defined by National Instrument 43-101, has reviewed and approved the information provided in this news release.

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.

SOURCE NSGOLD CORPORATION

For further information:

please contact:

Glenn A. Holmes
Chief Financial Officer, NSGold Corporation
(902) 483-2308
glenn.holmes@nsgoldcorp.com

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NSGOLD CORPORATION

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