NioGold Expands Drilling Activities to Explore Siscoe East in Val-d'Or

VAL-D'OR, Quebec, May 12, 2011 /PRNewswire/ -- NioGold Mining Corporation (TSX-V:NOX) ("NioGold" or the "Company") is pleased to announce that it has mobilised a drill rig on the Siscoe East property located in the Val-d'Or gold camp, Abitibi region of Quebec.  NioGold is acquiring a 50% interest in 59 mining claims, forming part of the Siscoe East property, from Alexandria Minerals Corp. ("Alexandria").  NioGold is highly active with five (5) drill rigs in operation on three separate properties in the Malartic – Val-d'Or area.

The Siscoe East property covers the western lobe of the Bourlamaque Batholith in between and around the former Sullivan and Siscoe gold mines. The Bourlamaque Batholith, a large syn-volcanic quartz-diorite intrusive mass, hosts several quartz-gold vein systems that have yielded some of the better grade ores mined in the region.  Former and current gold producers within the batholith include, from east to west, the Beaufor-Perron, Ferderber, Dumont, Lac Herbin and Sullivan mines.  The Sullivan mine (1934-68) produced 4.6 million tonnes of ore at an average grade of 7.65 g/t Au (1.13 million ounces of gold) largely from four (4) main quartz-gold shear veins localised at the west contact of the batholith (source: MNR report MM 91-03).

Ten (10) drill holes, for a total of 2,500 metres, are planned to be completed during the months of May and June.  The drilling will investigate several electro-magnetic and induced polarisation geophysical anomalies delineated along the north contact of the Bourlamaque Batholith and potentially associated to shear-vein systems.  The target area is located 1.5 to 2.5 kilometres to the northeast of the former Sullivan mine.

Siscoe East Option

The Siscoe East property is comprised of 110 mining claims covering 2,717 hectares located on the northwest side of the town Val-d'Or.  Alexandria previously earned a 70% interest in 37 of the claims from NioGold.  NioGold can earn a 50% interest in 59 claims owned by Alexandria by issuing to Alexandria 650,000 shares (issued) and completing an aggregate of $750,000 in exploration expenditures ($245,000 remaining) on the property by June 25, 2011.  Once the earn-in terms have been completed, NioGold and Alexandria will be deemed to have formed a Joint Venture to explore and develop the Siscoe East property.  The remaining 14 claims were jointly acquired by NioGold and Alexandria.

This news release was prepared by Rock Lefrancois, P.Geo. (OGQ), the Company's President and a Qualified Person as defined by National Instrument 43-101.  

NioGoldMining Corporation – « On Canada's Golden Highway »

NioGold Mining Corporation is a mineral exploration company focused on GOLD.  The Company's flagship projects are located in the Cadillac - Malartic - Val-d'Or stretch of the prolific Abitibi gold mining district, Province of Quebec, Canada.  The Cadillac, Malartic and Val-d'Or mining camps have produced over 45 million ounces of gold since the 1930's and presently encompasses seven producing gold mines and a major mine development project (Canadian Malartic, Osisko Mining).  NioGold's land holdings within the Abitibi presently cover 125 km2 and encompass three former gold producers, namely the Norlartic, Kierens (First Canadian), and Marban mines that collectively produced 600,000 ounces of gold.  NioGold has outlined Indicated resources of 598,000 ounces gold and Inferred resources of 361,000 ounces gold in and around these deposits.  

NioGold's experienced and qualified technical team will ensure the successful advancement of the Company's projects towards the highest quality mineral resources.  NioGold invites you to visit the company website at www.niogold.com.  For information on NioGold Mining Corporation contact:

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

FORWARD-LOOKING STATEMENTS

This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties.

CAUTIONARY NOTE TO U.S. INVESTORS

The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this news release, such as 'measured resources', 'indicated resources'  and  'inferred resources', which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 20-F. The news release contains information about adjacent properties on which we have no right to explore or mine. U.S. investors are cautioned that mineral deposits on adjacent properties may not be indicative of mineral deposits on our properties.

SOURCE NioGold Mining Corporation