NioGold Increases Offering to $7.5 Million

December 16, 2010

Vancouver, BC – NioGold Mining Corporation (TSX-V: NOX). Further to its news release of November 15, 2010, NioGold is pleased to announce that it has increased the brokered portion of its private placement by $1 million through the offering of an additional 3,125,000 Units. Northern Securities Inc. is acting as lead agent on the brokered portion of the private placement, with a bought deal commitment from Northern Financial Corporation.

The terms of the brokered portion of the offering otherwise remain the same, and will now consist of $5,000,000 in Units and $2,000,000 in Flow-Through shares, at a price of $0.32 per Unit and $0.38 per Flow-Through Share. Each Unit will consist of one Common Share and one-half of a Warrant, with each whole Warrant entitling the holder to acquire one Common Share at an exercise price of $0.48 for a period of two years. The Company will also raise, on a non-brokered basis, up to an additional $500,000 through the issuance of Flow-Through Shares at a price of $0.38 per Flow-Through Share.

The offering remains subject to the approval of the TSX Venture Exchange, Northern's completion of due diligence and other customary closing conditions. All securities issued pursuant to the private placement will be subject to a four-month hold period. The funds raised from the offering will be used to finance exploration and for general working capital purposes.

NioGold Mining 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, Quebec. The Cadillac - Malartic - Val-d’Or area has produced over 45M ounces of gold since the 1930’s and presently encompasses eight producing gold mines and a major mine development project (Canadian Malartic, Osisko Mining). NioGold’s land holdings within the Abitibi presently cover 115 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.

This news release was prepared by Rock Lefrançois, P.Geo. (OGQ), the Company’s President & COO and Qualified Person as defined by National Instrument 43-101. For information on NioGold Mining Corporation contact:

Michael A. Iverson, Chairman & CEO
[email protected]
Tel: (604) 856-9887
Toll-free: (877) 642-6200

Dale Paruk, Vice-President
[email protected]
Tel: (604) 662-4505