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Northern Empire Expands Potential of Permitted Sterling Gold Mine, Reports Positive Metallurgical Results and Step-out Drilling

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  • The Sterling Mine continues to exceed expectations.
  • Metallurgical test work returned gold recoveries ranging between 86%-93%, confirming historically reported fast leach kinetics and excellent recoveries.
  • Drilling in ‘Connector Zone’ encounters new gold mineralization in all 16 holes.

Vancouver, British Columbia–(Newsfile Corp. – June 21, 2018) – Northern Empire Resources Corp. (TSXV: NM) (OTC Pink: PSPGF) (the “Company” or “Northern Empire”) today reported positive results from metallurgical tests and step-out drilling at its fully-permitted Sterling Mine in Nye County, Nevada.

Michael G. Allen, President and CEO, stated, “We acquired the Sterling Mine last year as we believed it was a ‘best-in-class’ asset in terms of jurisdiction, relative grade, permitted status and metallurgical recoveries. Our expectations of Sterling have been exceeded, and with the work completed to date, we feel we have not only confirmed exceptional grades and recoveries, but also discovered several previously unrecognized zones of gold mineralization. These new zones are near the existing permitted pit, as well as within a close range of the permitted facilities. With the recent acquisition of the Goldspar Mine located only 600 meters away, we see significant potential for the Sterling Mine to increase fundamental value in the Company.”

Metallurgical Test Results

The Company submitted composites from five core holes to Kappes Cassiday and Associates in Reno for 96-hour bottle roll tests. Results received indicate that, as expected, mineralization from the Sterling Mine showed an excellent response to cyanide, with recoveries ranging between 86% and 93%. Also consistent with what is known of the Sterling mineralization is that most of the gold is recovered quickly. In the case of the bottle rolls, most of the gold was recovered in the first two hours of the test.

Previous operators of the Sterling Mine recovered approximately 195,000 oz of gold from 856,000 tonnes stacked with an average grade of 7.44 g/t Au, indicating a very high recovery from what was a run-of-mine (no crushing) heap-leach operation.

Connector Zone Drilling

The Company completed 16 drill holes into a gap in the modelled Sterling Mine resource, where widely spaced drilling had previously intercepted anomalous gold. The drill holes were all collared in waste rock discards from the previous underground operations. Fill material encountered in all 16 holes returned gold grades that are potentially economic. Historically, the Sterling Mine operated with a 3.5 g/t Au cut-off to the leach pad and lower grade material was stockpiled in various waste piles, with this being one of them.

Figure 1. Sterling Exploration Map, area of Connector Zone drilling

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Hole ID From (m) To (m) Length (m) g/t Au*
G18-01 0.00 9.14 9.14 0.85
G18-02 0.00 10.67 10.67 0.44
G18-03 0.00 13.72 13.72 0.51
G18-04 0.00 13.72 13.72 0.49
G18-05 0.00 7.62 7.62 0.40
G18-06 0.00 7.62 7.62 0.53
G18-07 0.00 9.14 9.14 0.66
G18-08 0.00 12.19 12.19 1.37
G18-09 0.00 10.67 10.67 0.70
G18-10 0.00 9.14 9.14 0.11
G18-11 0.00 9.14 9.14 0.21
G18-12 0.00 6.10 6.10 1.12
G18-13 0.00 7.62 7.62 0.70
G18-14 0.00 6.10 6.10 0.52
G18-15 0.00 3.05 3.05 0.46
G18-16 0.00 1.52 1.52 0.73

*Fire assays reported.
All holes drilled at -450 giving true width of approximately 50% of length. Where data available, cyanide soluble grades averaged greater than 90% of fire assay results.

Reported drilling from the Connector zone returned an average cyanide soluble grade of 0.6 g/t Au. In addition to the waste material results reported above, encouraging hard rock intervals were encountered in several holes.

Hole ID From (m) To (m) Length (m) g/t Au*
G18-01 9.14 16.76 7.62 0.45
G18-02 10.67 12.19 1.52 0.20
G18-03 13.72 18.29 4.57 0.65
G18-04 13.72 19.81 6.10 0.23
G18-14 6.10 16.76 10.67 1.11
G18-16 1.52 3.05 1.52 0.21

*Cyanide soluble assays reported.
True width estimated to be 85% of length.

Sterling Exploration Drilling

The Company drilled a total of 11 additional reverse circulation holes around the Sterling Resource to test for possible extensions. Nine holes were drilled to the west of the mineralization, and all hit the target structure. A significant intercept was encountered in STR18-002 as reported below. In addition, 2 holes were drilled to test for extensions of a possible “root structure,” extending through the Connector Zone and beyond the known mineralization toward the recently acquired Goldspar Mine. A significant intercept was encountered in STR18-011.

Hole ID From (m) To (m) Length (m) g/t Au*
STR18-002 44.20 51.82 7.62 1.11
STR18-011 44.20 47.24 3.05 1.93

*Cyanide Soluble Results reported.
True width estimated to be 70% of length.

Today’s results highlight three new opportunities for resource expansion at the Sterling mine, which include: Connector Zone, including the waste rock piles; near-pit resource expansion; and new exploration target upside. The Company intends to explore all these options as we continue to evaluate and optimize the Sterling Mine.

About the Sterling Mine

The Sterling Gold Mine was in continuous production from 1980 up to 2015 and is fully permitted for re-start. It hosts an NI 43-101 pit-constrained, inferred resource of 231,000 ounces of gold at 3.67 g/t using a 1.0 g/t cut-off, with an additional non-pit-constrained resource of 38,000 ounces of gold at 3.38 g/t using a 1.7 g/t cut-off. The gold recovery facilities on site, constructed in 2010, are currently in operation where the Company recently completed a program to increase recoveries from the existing, active leach pad. The mine is located approximately 10 kilometers south of the Company’s Crown series of deposits.

About Northern Empire

Northern Empire Resources Corp. (TSXV: NM) (OTC Pink: PSPGF) is expanding and discovering heap leach gold deposits in Nevada. The Company presently has initial resource statements on four potentially heap-leachable deposits, three of which are past producing, at the 100%-owned Sterling Gold Project. This includes the high-grade, fully permitted Sterling Mine (231,000oz at 3.67g/t Au) which was in continuous production between 1980 and 2015 as a heap leach operation. The global, pit-constrained resource for the entire project is 924,000oz at 1.28 g/t gold (cut-off varies by deposit).

The Company is well-financed and is aggressively drilling all four deposits in 2018 to increase resources and explore for new discoveries on the district-scale land package. Founders and management have a track record of increasing shareholder value through discovery, project development and M&A with successes that include Newmarket Gold, Kaminak Gold, Underworld Resources and International Royalty Corp. For further information on the Sterling Project, please refer to the technical report on the Sterling Project dated July 12, 2017, found on the Company’s website (www.northernemp.com) and SEDAR.

Sampling and QAQC Procedures

Samples were submitted to ALS Global in Reno, Nevada. Gold grade was determined by Fire Assay with Atomic Absorption, and Gravimetric Finish, as well as Cyanide Soluble methods. Most ALS geochemical laboratories are registered or are pending registration to ISO 9001:2008, and several analytical facilities have received ISO 17025 accreditations for specific laboratory procedures. Northern Empire inserts a series of standards, blanks and field duplicates into the sample stream as part of its quality assurance and quality control procedures which are continually monitored by the Company.

Qualified Persons

Michael G. Allen, P. Geo., President & CEO of Northern Empire, and a Qualified Person as defined by NI 43-101, has reviewed and verified the drilling information contained in this news release. He is a non-independent qualified person for this news release and has verified the drilling data.

Paul M. Sterling, P.Eng., is an independent consulting metallurgist, who has worked at the Sterling Mine and is a Qualified Person as defined by NI 43-101, has reviewed the metallurgical information in this news release. He is an independent qualified person for this news release and has verified the metallurgical data.

ON BEHALF OF THE BOARD OF NORTHERN EMPIRE RESOURCES CORP.
“Michael G. Allen”

President, CEO and Director

NEITHER THE 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 NEWS RELEASE.

Certain information set forth in this news release contains “forward-looking statement”, and “forward-looking information” under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements, which include the Company’s expectations about the future performance based on current results and expected cash costs and are based on the Company’s current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as “will”, “expects”, “anticipates”, “believes”, “projects”, “plans”, and similar expressions. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which, may cause the Company’s actual performance and financial results in future periods to differ materially from any projects of future performance or results expressed or implied by such forward-looking statement. These risks and uncertainties include but are not limited to: liabilities inherent in mine development and production; geological risks, the financial markets generally, the results of the due diligence investigations to be conducted by the Company. There can be no assurance that forward-looking statement will prove to be accurate, and actual results and future events could differ materially from those anticipate in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

For further information contact:
Michael G. Allen
President, CEO and Director
Tel: +1 (604) 646-4522

Dylan Berg
Manager, Investor Relations
Tel: +1 (604) 646-4520