Lapse and Cancellation of Options

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

7 September 2010

Norseman Gold Plc ('Norseman Gold' or 'the Company')

Lapse and Cancellation of Options

Norseman Gold, the AIM-listed and ASX-listed Australian gold production company announces that it has cancelled 950,000 share options exercisable at 50.0p issued under the Company's Unapproved Employee Share and Share Option Plan in August 2007, due to the fact that the final date for exercising the options has lapsed.

Following cancellation of the 950,000 options, the Company will have 210,000 options exercisable at 50p remaining on issue, which were issued pursuant to the Company's Unapproved Employee Share and Share Option Plan.

**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 two high-grade narrow-vein underground mines - the Bullen and the Harlequin. Currently, it has a total 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 third 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.