Capital Raising

Norseman Gold plc / Epic: NGL / Index: AIM & ASX / Sector: Mining & Exploration

5 October 2010

Norseman Gold Plc

('Norseman Gold' or 'the Company')

Capital Raising Completed

Norseman Gold, the AIM-listed and ASX-listed Australian gold production company announces that Ocean Equities Limited and Seymour Pierce Limited have successfully completed a private placement of 25,000,000 new ordinary shares ('Placing Shares') at a price of 45 pence per Placing Share to raise £11,250,000 (approximately A$18,300,000) before expenses.

It is the intention of the Directors to apply the funds raised to bring the North Royal Open Pit into production.

Application will be made to have the Placing Shares admitted to trading on AIM and trading is expected to commence on 7 October 2010.

Following the issue of the Placing Shares, Norseman Gold's issued share capital will consist of 197,610,000 ordinary 1.25p shares with voting rights. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, Norseman Gold under the FSA's Disclosure and Transparency Rules.

**ENDS**

For further information visit www.norsemangoldplc.com or contact:

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, Australia's 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 Company's 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.