Norseman Gold plc / Epic: NGL / Index: AIM / Sector: Mining & Exploration 27 October 2010 NORSEMAN GOLD PLC (Norseman Gold or the Company) Three Month Report On Activities For The Period Ended 30 September 2010 Norseman Gold, the AIM-listed and ASX-listed Australian gold production and exploration company, is pleased to announce a three month progress report on its activities for the period to 30 September 2010. Overview
3 Months to 30/09/10 3 Months to 30/06/10 Production oz 12,229 14,469 Average Realised Gold Price A$/oz 1,356 1,343 Operating Cash Cost A$/oz 1,041 943 Project EBIT A$(m) (1.1) 0.8 Capital Investment A$(m) 6.8 8.6 Cash at Quarter End (incl.

bullion) A$(m) 10.9 16.7
Gold production from the Norseman Gold Project during the three months to 30 September 2010 totalled 12,229 ounces at a cash operating cost of A$1,041 per ounce gold, generating a Project EBIT of (A$1.1M).
The Company achieved record total underground development of 2,315 metres during the quarter as the Company continues its focus on opening up more working areas to improve its production performance. OK Decline is expected to generate production ore from stoping this month. Dewatering at North Royal Open Pit has continued and 63% of the water volume has been pumped.

The Company is to submit the final documents required for regulatory approval and is confident of receiving final approvals for the development.
The Companys capital investment programme continued during the quarter with the development of the OK Decline resulting in expenditure of A$6.8M on exploration, capitalised mine development and equipment. Capital raising successfully undertaken, raising �11.25 million for the development of the North Royal Open Pit, with the issue of 25 million shares at 45 pence. Operating Review Gold production from the Norseman Gold Project during the three month period to 30 September 2010 totalled 12,229 ounces, which is well below target but in line with the Companys expectations.

The Company continued to develop the underground declines at an acceptable rate but unfortunately overall production was affected by a serious accident during the quarter.

For the quarter, the Bullen Decline contributed 2,485 ounces, and the Harlequin Decline contributed 8,872 ounces with 425 ounces from development ore at the OK Decline.

The remaining 447 ounces came from the treatment of low grade stockpiles. The gold price received during the quarter ranged from A$1,295 to A$1,418 per ounce, with an average price achieved of A$1,354 per ounce.

As a result of the lower production profile, the net direct cash operating costs per ounce for the quarter were A$1,041 per ounce of gold recovered.

The operations remain un-hedged with a gold price of approximately A$1,366 per ounce at present. Production
3 months to 31/12/09
3 months to 31/03/10
3 months to 30/06/10
3 months to 30/09/10
Capital Development Metres 767 744 415 628 Ore Development Metres 1,152 1,272 1,682 1,687
Development Tonnes 41,210 41,329 46,622 51,793 Grade gAu/t 2.98 2.28 2.69 3.62
Mechanised Stoping Tonnes 15,967 12,193 11,770 4,261 Grade gAu/t 2.61 2.50 1.80 3.14
Airleg Stoping Tonnes 38,082 35,367 30,145 21,767 Grade gAu/t 8.75 9.15 10.55 8.60
U/G Production tonnes 95,259 88,889 88,537 77,821
Treated Tonnes Tonnes 96,043 89,047 89,015 92,345 Grade gAu/t 5.21 5.05 5.23 4.20 Recovery % 97.7% 97.7% 96.7% 98.1%
Recovered Ounces Ozs 15,721 14,114 14,469 12,229
The Company continued to pursue its development programme with the operations achieving 2,315 metres of capital and ore development during the September 2010 quarter, which is the best quarterly advance since the Company took control of the Norseman Gold Project in 2007.

The continued development progress at the Norseman Gold Project should lead to an improved production performance from the three underground declines, as new production areas are made available for stoping in the future.
Capital development at Bullen continued in the Norseman Incline where it accessed the upper portion of the high grade St Patricks reef in the middle of the quarter.

Capital development also commenced in the Bullen Decline to access the high grade OBriens Reef.

Ore development continued on the Bullen 2100 level and in the newly exposed upper St Patricks reef where development grades were as expected.
The Harlequin Decline continued to perform to expectations during the quarter.

Ore development concentrated on the Redfin-Perch reef to open up blocks for airleg and mechanised stoping.
Capital development at OK Decline returned to new decline development following the completion of the refurbishment of the old decline.

The development rates continue to improve and this month there were three ore headings opened up for development.
Stope preparation has commenced and the first of the stoping ore from OK Decline is expected in October 2010.

Once stoping commences it is expected that the production profile will steadily increase up to the planned profile.
Overall, production for the quarter delivered 12,229 ounces of gold recovered.

This is well below target but in line with Company expectations during what has been a difficult quarter following a serious accident at the OK Decline in August 2010, when a worker was fatally injured.
Production Outlook
The Company has continued its efforts to improve its production profile and expects to see an improved performance in the December 2010 quarter.

The production forecast for the 2010/11 financial year remains at 105,000 to 110,000 ounces recovered at cash costs of between A$670 to A$730 per ounce of gold.

This forecast is based on increasing the production profile at the mining operation as part of the "fill the mill" strategy.

The Company is committed to this strategy and has made significant progress in the development of the OK Decline and on the North Royal Open Pit, which it is anticipated will commence in the December Quarter 2010. Operating Costs
As a result of the lower production profile, the net direct cash operating costs per ounce for the quarter were A$1,041 per ounce of gold recovered and the Norseman Gold Project generated Earnings Before Interest and Tax (EBIT) of (A$1.1) million for the quarter.

The Norseman Gold Project EBIT does not include the corporate costs of Norseman Gold Plc. Cash Balances Cash balances at the end of the period totalled A$10.9 million (A$8.7 million excluding bullion).

Approximately A$5.5 million of this cash balance is committed to cash-backed environmental bonds.

The cash balance is as at the end of the September 2010 quarter and does not include the proceeds of the capital raising that was completed in October 2010. Capital Expenditure
Capital expenditure continued to be focussed around the development of the OK Decline.

Expenditure was also committed to drilling and pre-development work at the North Royal Open Pit. A total of A$6.8 million in capital was invested during the September 2010 quarter.

Significant capital expenditures made during the quarter were on mobile equipment (A$0.5 million), exploration (A$1.7 million) and capitalised mine development (A$4.0 million). Mine Exploration
Diamond drilling at Bullen has continued to make good progress with the focus on increasing resources around the currently active workings.

Drilling continued to test St Patricks reef, Mararoa reef and Esperanto reef with significant results as outlined below. St Patricks reef drilling: � 1.3m @ 6.0 g/t from 109.6m in drill-hole BN691 � 0.4m @ 146.5 g/t gold from 17.9m and � 0.7m @ 7.9 g/t gold from 21.0m in drill-hole BN838 � 2.5m @ 3.4 g/t gold from 34.5m including o 0.5m @ 15.2 g/t gold from 36.5m in drill-hole BN839 Mararoa reef drilling: � 0.5m @ 25.0 g/t gold from 0.6m in drill-hole BN815
Esperanto reef drilling: � 1.5m @ 7.1 g/t gold from 365.1m in drill-hole BN826
Harlequin drilling continued to focus on targets that might provide another work area away from the current concentration around the Redfin-Perch reef.

Drilling was conducted on potential extensions to the HV1 North and drilling into the HV10.

Drilling continues into these targets as at the end of the September 2010 quarter. The OK Decline diamond drill rig returned from the Bullen Decline in September 2010 and commenced drilling from Stockpile #2 off the OK Decline.

The initial drilling programme is to target the Star of Erin reef along strike from the current proposed working areas.

The Star of Erin reef was intersected as expected with significant results received as follows: � 1.6m @ 7.7 g/t gold from 23.0m in drill-hole OKD275 � 1.3m @ 54.6 g/t gold from 285.5m in drill-hole OKD276 � 3.3m @ 2.4 g/t gold from 278.3m in drill-hole OKD277 � 0.7m @ 17.3 g/t gold from 122.7m in drill-hole OKD362 Drilling continues from this location and the results will be analysed once the programme is finished.
Regional Exploration and Mine Development
The main focus for the exploration and developments efforts of the Company during the September 2010 quarter was to continue to ensure that the development of the North Royal open pit proceeded in a timely manner.

In addition work continued on the previously reported drill programme at Butterfly Deeps. North Royal Open Pit The Company has continued to advance the North Royal Open Pit during the quarter. Dewatering continued and the pit was 57% dewatered at the end of the quarter.

As expected the rate of dewatering has increased with the improvement of the weather from winter to spring and with the pumps approaching their optimum pumping characteristics as the pit depth increases.

By the middle of October the pit was 63% dewatered. Regulatory approval documents for the recommencement of mining at North Royal are to be submitted to the various government departments with final amendments.

The environmental bond for the mining operation is due to be submitted shortly and the process remains on schedule. The tendering for the mining of the open pit has progressed well during the quarter with a short list generated and contractor review meetings being conducted.

The process is on target for the successful tender to be approved at the end of October 2010. The first round in-fill drilling results have been received and the results are as expected.

Follow up drilling will commence shortly to test the Tiara reef, nearer to the surface and further to the east of the current pit design.

Further in-fill drilling will be conducted as the pit continues to be dewatered.

North Royal open pit drilling results are as follows; � 2.0m @ 13.4 g/t gold from 36.0m including o 1.0m @ 22.6 g/t gold from 36.0m and � 2.0m @ 6.1 g/t from 40.0m including o 1.0m @ 10.9 g/t gold from 40.0m in drill-hole NRRCSP002 � 2.0m @ 6.1 g/t from 40.0m including o 1.0m @ 20.0 g/t gold from 11.0m in drill-hole NRRCSP005 � 2.0m @ 9.3 g/t from 80.0m including o 1.0m @ 16.9 g/t gold from 80.0m in drill-hole NRRCSP009 � 3.0m @ 3.5 g/t from 65.0m including o 1.0m @ 5.4 g/t gold from 66.0m and � 6.0m @ 2.0 g/t gold from 132.0m in drill-hole NRRCSP014 � 2.0m @ 3.8 g/t gold from 122.0m in drill-hole NRRCSP015 Sterilisation drilling of the area outlined for the waste dump for the initial pit operations was completed during the quarter.

Intersections were received from laterite mineralisation that had been previously defined in the south eastern corner of the area.

North Royal sterilisation drilling significant results are as follows; � 1.0m @ 15.7 g/t gold from 48.0m in drill-hole NRRC130 � 2.0m @ 10.9 g/t gold from 36.0m including o 1.0m @ 5.1 g/t gold from 36.0m and o 1.0m @ 16.7 g/t gold from 37.0m in drill-hole NRRC152 Final documents and presentations are currently being prepared for the North Royal Open Pit, with final Board approval expected by the end of October 2010. Butterfly Deeps Exploration has continued drilling the underground target, Butterfly Deeps, at the Bullen Decline.

This target is an interpreted high grade shoot down plunge of historic stoping areas in the old Butterfly workings.

To date the drilling has proceeded towards the high grade plunge and although the structure is mineralised no significant results have been received.

It is expected that grades will potentially improve as the drilling advances towards the interpreted plunge. Corporate Review During the quarter the Company undertook a capital raising to fund the development of the North Royal Open Pit.

The raising resulted in the issue 25 million shares at 45 pence per share to raise �11.25 million pounds.

The fund raising was well received, with good support from current and new shareholders, and was finalised on 4 October 2010. The Company expects improvements to the production profile in the coming quarter with the commencement of stoping at OK Decline and then in subsequent quarters as the OK Decline production continues to increase and the North Royal Open Pit commences and the first ore tonnes from this mine are treated.

It is expected that with the ore from these two developments the Companys strategy to "fill the mill" will be realised by the end of the financial year. Competent Persons - Consent for Release The information in this report that relates to Exploration Results, Mineral Resources and Ore Reserves is based on data generated by employees of Central Norseman Gold Corporation Limited who have the relevant experience and qualifications to qualify as competent persons. The parts of this report that relate to Exploration Results, Mineral Resources and Ore Reserves were compiled by Barry Cahill using that data.

He is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves".

He has consented to the inclusion in the report of the matters based on this information in the form and context in which it appears. Significant results for drill-hole intercepts contained in this report are considered significant because the grade by width total is equal to or greater than 5.0 gram metres per tonne.

That is if the intercept is 1.0 g/t gold over 5.0 m, 5.0 g/t gold over 1.0 m, 50 g/t gold over 0.1 m etc it is considered significant. Quoted resources and reserves are as per the Companys market release of 25 August 2010 and as tabulated below.
TABLE 1: March 2010 Open Pit & Underground Resource and Reserve Summary
Summary for Norseman
Open Pit - 31 Mar 2010
Underground - 31 Mar 2010
Total
Tonnes
Grade g/t gold
Ounces gold
Tonnes
Grade g/t gold
Ounces gold
Tonnes
Grade g/t gold
Ounces gold
Reserve - Proved
0
0.0
0
230,000
12.0
89,000
230,000
12.0
89,000
Reserve - Probable
440,000
3.2
45,000
1,100,000
7.9
280,000
1,500,000
6.8
330,000
Total Reserve
440,000
3.2
45,000
1,300,000
8.9
370,000
1,700,000
7.7
420,000
Resource - Measured
5,000,000
0.7
110,000
410,000
14.4
190,000
5,400,000
1.7
300,000
Resource - Indicated
3,600,000
2.6
300,000
2,200,000
10.9
770,000
5,800,000
5.9
1,100,000
Resource - Inferred
4,100,000
5.8
760,000
6,200,000
8.0
1,600,000
10,000,000
7.5
2,400,000
Total Resource
13,000,000
2.9
1,200,000
8,800,000
8.9
2,600,000
21,000,000
5.3
3,800,000
Notes: 1.

As is required the Resources and Reserves are calculated and reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, The JORC Code, 2004 Edition. 2.

Resources are inclusive of reserves. 3.

Resources and reserves are quoted to two significant figures so inconsistencies may exist within the table. Forward-Looking Statements This regulatory news release contains certain forward looking statements, which include assumptions with respect to future plans, results and capital expenditures.

The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect.

All such forward looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Companys control.

Please refer to the Companys Admission Document available from the Companys web site for a list of risk factors.

The Companys actual results could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive there from.

All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements.

Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release. * * ENDS * * For further information visit www.norsemangoldplc.com or contact: Barry Cahill Norseman Gold Plc Tel: +61 (0) 8 9473 2200 Guy Wilkes Ocean Equities Ltd Tel: 020 7786 4370 Nandita Sahgal Seymour Pierce Ltd Tel: 020 7107 8000 Jeremy Stephenson Seymour Pierce Ltd Tel: 020 7107 8000 Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7236 1177 E-mail
Note to editors: Norseman Gold plc is an AIM listed and ASX listed Australian gold production company, which acquired the Norseman Gold Project in May 2007, Australias longest continually running gold operation.

The Norseman Gold Project is located in the Eastern Goldfields of Western Australia in the highly prospective Norseman-Wiluna greenstone belt, 725km east of Perth and 186km from Kalgoorlie. Gold was first found on the Norseman field in 1894 and over the last 65 years it has produced over 5.5 million oz of gold.

The mine is currently producing from three high-grade narrow-vein underground mines - the Bullen, the Harlequin and the OK Declines.

Currently, it has a total resource inventory of 3.8 million oz of gold at an average grade of 5.3 g/t. The tenements cover a 2,180 sq km area centred on the Norseman Township.

The landholding comprises 221 tenements consisting of 16 Exploration Licences, 107 Mining Licences, 64 Prospecting Licences, 15 Miscellaneous Licences, 5 Exploration Licence Applications, 13 Prospecting Licence Applications and 1 Mining Lease Application. The Companys strategy is focused on extending the mine life through the conversion of resources into reserves and identifying additional resources and obtaining additional ore for the operating mill through the development of a fourth and subsequent mines.

The Company has fifteen advanced resource projects under review of which three have pre-development work being undertaken on them.

It is anticipated that at least one if not all the pre-development projects will develop into mining propositions. Susie Geliher St Brides Media & Finance Ltd Chaucer House 38 Bow Lane London EC4M 9AY T: +44 (0) 207 236 1177 | M: +44 (0) 7976 749 561 | F: +44 (0) 207 236 1188 | www.sbmf.co.uk