ASX ANNOUNCEMENT ASX: NMI

25 July 2014

QUARTERLY ACTIVITIES REPORT

FOR THE PERIOD ENDED 30 JUNE 2014

INTRODUCTION

Northern Mining Limited (the "Company") operates as a mineral explorer in Western Australia. Our East Kalgoorlie Project, located approximately 23 kilometres east and northeast of Kalgoorlie Boulder (Figure 1), Western Australia consists of the following prospects:

Blair North Prospect - Northern Zone and George's Reward

Blair Prospect

Snake Hill Prospect

Kanowna Lights Prospect

JUNE 2014 QUARTER EXPLORATION WORKS

RC drillings and assays have been completed for Blair North Northern Zone (E25/268) and Blair
(E26/112) (ASX announcement 7 May 2014).
The hole at E25/268 was planned to establish continuity of mineralisation and fill a significant gap north of previous holes BNR066 and BNRC085.
The hole was initially sampled by spear sampling of the bulk RC chips (from PVC bags) taking composites over nominal 4 metre intervals. This sampling reported two significant thick intervals of mineralisation (28m @ 0.84 g/t from 92m and 48m @ 1.65 g/t from 144m) with higher grade intervals included within.
The drill hole extended the mineralised envelope 50m+ north of holes BNRC066 and BNRC085. Further systematic exploration and targeted drilling campaigns have the potential to further expand the area of gold mineralisation outside of the known mineralised area.
The drill hole at E26/112 was drilled to test for nickel sulphides in bedrock. The hole reached bedrock at approximately 74 metres after getting through running sands that contained elevated gold up to 550 ppb. No significant mineralisation was encountered. The bedrock was a mafic lithology, most likely basalt with some elevated nickel values suggesting the presence of ultramafics in the volcanic package.
1
The Company has received approval from the Department of Mines and Petroleum for exemption from expenditure condition in relation to Exploration Licences E26/112, E25/424 and E26/144 and Mining Lease M27/236. In addition, Exploration Licence E26/112 has been granted extension of term for a further period of one year expiring 8 March 2015.
The Company has relinquished its tenements in Poland (Szklary Nickel and Radzimowice Gold Project) due to limited prospectivity for base metals and is focusing on gold and nickel explorations at the East Kalgoorlie Project.
The Company is planning a program of RC/diamond drilling at Kanowna Lights Prospect in coming months, to be partly funded by the grant under the WA Government Exploration Incentive Co- funded Exploration Drilling Program. The Kanowna Lights Prospect is ideally located in a high gold endowment region just 3 km north of the world class 5 million ounce Kanowna Belle Gold Deposit. It is 2.5 km northwest of the 1 million ounce Red Hill Deposit and two historical production areas, the 250,000 ounce Kanowna Deep Leads and the 450,000 ounce White Feather reef system.

CORPORATE DEVELOPMENT

On 29 May 2014, the Company announced that its wholly-owned subsidiary, NMI Limited has entered into a Non-binding Heads of Agreement ("HOA") under which it has reached an agreement in principle to investigate the acquisition of a 90% interest in the business of PT Bintang Cipta Persada ("BCP"), a company incorporated in Indonesia. BCP owns mining concessions in minerals such as gold, coal and nickel around Indonesia and also operate a Liquefied Petroleum Gas filling station in East Java. The Company will complete its due diligence investigations prior into entering a Conditional Sales and Purchase Agreement and obtaining the required governmental regulatory approval from the Indonesian government.

COMPETENT PERSONS STATEMENT

The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Target Potential is based on information compiled by Mr Adrian Black, who is a Member of the Australian Institute of Geoscientists, is a Principal Consulting Geologist of Newexco Services Pty Ltd. Mr Black has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (JORC Code). Mr Black consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

Figure 1: East K algooriie Projeet Tenem ent Location Plan

360000mE 370000mE 380000mE

KANOWNA L/GHTS

WESTERN AUSTRAUA

N

Boulder

® Mine/Deposit

-Sea!ed Road

-- Road

• Townsite

,--,Northem Mining

l-.1 Tenements

to -

Kalgoorlie

6600000mN

Butong

BLAIRNORTH

Georges

Reward

to

Adelaide

2 4 6 8

!OI!ml

6580000m

GrldMGA 94

Tenements Held at 30 June 2014

Project

Tenement

East Kalgoorlie, WA

Blair North

E25/0268

East Kalgoorlie, WA

Blair North

P25/2051

East Kalgoorlie, WA

Blair North

Blair

E26/0112

Blair

E26/0117

Blair

P26/3488

Blair

P25/2207

Blair

Kanowna Lights

M27/0177

Kanowna Lights

M27/0236

Kanowna Lights

Golden Ridge

Snake Hill

P26/3736

Golden Ridge

Snake Hill

E26/0144

Golden Ridge

Snake Hill

E25/0424

Golden Ridge

Snake Hill

P25/2100

Golden Ridge

Snake Hill

P25/2101

Golden Ridge

Snake Hill

P26/3918

Golden Ridge

Snake Hill

P26/3919

Golden Ridge

Snake Hill

P26/3705

Golden Ridge

Snake Hill

P26/3706

Golden Ridge

Snake Hill

P26/3707

Golden Ridge

Snake Hill

P26/3708

Golden Ridge

Snake Hill

P26/3709

Golden Ridge

Snake Hill

P26/3710

Golden Ridge

Snake Hill

P25/2071

Golden Ridge

Snake Hill

P25/2113

Golden Ridge

Snake Hill

Mt Monger

E26/0152

Mt Monger

Bulong

P25/2179

Bulong

P25/2180

Bulong

Hampton Hill

E25/0447

Hampton Hill

E26/0151

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Appendix 5B

Rule 5.5

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/2013

Name of entity

NORTHERN MINING LIMITED

ABN Quarter ended ("current quarter")


30 113 654 229 30 JUNE 2014

Consolidated statement of cash flows

Cash flows related to operating activities

1.1 Receipts from product sales and related debtors

1.2 Payments for (a) exploration & evaluation

(b) development

(c) production

(d) administration

1.3 Dividends received

1.4 Interest and other items of a similar nature received

1.5 Interest and other costs of finance paid

1.6 Income taxes paid

1.7 Other (GST)

Net Operating Cash Flows

+ See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 1

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

1.13 Total operating and investing cash flows

(brought forward)

(92)

(484)

Cash flows related to financing activities

1.14 Proceeds from issues of shares, options, etc.

1.15 Proceeds from sale of forfeited shares

1.16 Proceeds from borrowings

1.17 Repayment of borrowings

1.18 Dividends paid

1.19 Other (provide details if material)

Net financing cash flows

-

-

-

-

-

-

6,426

-

-

-

-

-

Cash flows related to financing activities

1.14 Proceeds from issues of shares, options, etc.

1.15 Proceeds from sale of forfeited shares

1.16 Proceeds from borrowings

1.17 Repayment of borrowings

1.18 Dividends paid

1.19 Other (provide details if material)

Net financing cash flows

-

6,426

Net increase (decrease) in cash held

1.20 Cash at beginning of quarter/year to date

1.21 Exchange rate adjustments to item 1.20

1.22 Cash at end of quarter

(92)

6,225

-

5,942

191

-

Net increase (decrease) in cash held

1.20 Cash at beginning of quarter/year to date

1.21 Exchange rate adjustments to item 1.20

1.22 Cash at end of quarter

6,133

6,133

Payments to directors of the entity, associates of the directors, related entities of the entity and associates of the related entities

Current quarter

$A'000

1.23 Aggregate amount of payments to the parties included in item 1.2 14

1.24 Aggregate amount of loans to the parties included in item 1.10

1.25 Explanation necessary for an understanding of the transactions

1.23 - Directors fees and superannuation

1.10 - Last quarter was shown outflow to subsidiary NMI Limited for $4.5M. Now being consolidated as the Group's Cash Flows.

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest


+ See chapter 19 for defined terms.

Appendix 5B Page 2 01/05/2013

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities

3.2 Credit standby arrangements

Estimated cash outflows for next quarter

4.1 Exploration and evaluation

4.2 Development

4.3 Production

4.4 Administration

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as

shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.

+ See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 3

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Changes in interests in mining tenements and petroleum tenements

6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed

6.2 Interests in mining tenements and petroleum tenements acquired or increased

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

7.5 +Convertible debt securities (description)

+ See chapter 19 for defined terms.

Appendix 5B Page 4 01/05/2013

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

7.6 Changes during quarter

(a) Increases through issues (b) Decreases through securities matured, converted

7.12 Unsecured notes (totals only)

Compliance statement

1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).

2 This statement does give a true and fair view of the matters disclosed.

Sign here: ............................................................ Date: 25 July 2014 (Company secretary)

Print name: Patrick Tan

Notes

1 The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements and petroleum tenements acquired, exercised or lapsed during the

+ See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement or petroleum tenement, it should disclose the change of percentage interest and

conditions precedent in the list required for items 6.1 and 6.2.

3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.

4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of

Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

+ See chapter 19 for defined terms.

Appendix 5B Page 6 01/05/2013

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