Operations Update - March 2010 - Replacement

THE FOLLOWING ANNOUNCEMENT REPLACES RNS 3504I RELEASED AT 8AM TODAY. "OK DECLINE RESERVE TABLES AND STATEMENTS" NOW INCLUDED.

ALL OTHER DETAILS REMAIN UNCHANGED.

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

Operations Update March 2010

Norseman Gold, the AIM-listed and ASX-listed Australian gold production company, provides an update to its operations at the Norseman Gold Project.

Summary

·; The focus on production operations has continued with improvements at the Harlequin Decline. The Bullen Decline has continued to disappoint and will not recover its production profile in the current financial year. The OK Decline continues to be on schedule but cannot be accelerated to make up for the Bullen production shortfall. As a consequence the Company has revised its production guidance down to 65,000 ounces for the current 2009/10 financial year. The production forecast for the financial year commencing 1st July 2010 remains unchanged at between 105,000 and 110,000 ounces.

·; At the OK Decline, the first analysis of the Star of Erin orebody has been completed. The initial Star of Erin reserve is 17,000 ounces which increases the OK Decline reserve by over 30%. Drilling into the Star of Erin orebody continues with more than 10,000 metres of drilling yet to be completed, giving confidence that further resources will be delineated in this orebody.

·; At North Royal, the Company's potential fourth mine, dewatering has continued with the pit now over one third dewatered. First round drilling on the southern end of the pit has returned promising results particularly around a footwall structure. Follow-up extensional and infill drilling will commence this month. Work will also commence on regulatory approvals in anticipation of commencing mining by the last quarter of the 2010 calendar year.

·; Surface drilling has commenced on Crown Reef, potentially the Company's fifth mine, with a structure intersected in the expected position in the initial drill holes. Assay results are pending.

·; The Company will continue to invest funds on capital and ore development and exploration programmes to drill and delineate further resources as part of its 'fill-the-mill' strategy.

Production

The Company currently has three operating mines, Bullen, Harlequin and the developing OK Decline. It is also exploring and developing for potential fourth and fifth mines to fulfil its strategy of filling its treatment plant to capacity.

The focus on capital and ore development at the Harlequin Decline has had a positive impact on the production profile of the mine. Capital development has been completed to the next level and ore development has now exposed both the Redfin and the Perch Reef with the development faces showing good quartz reef structure. Further development of the Perch Reef above this level has also continued to show good structure which was anticipated from drilling results. Development has continued to delineate stoping panels for airleg and mechanised mining. Diamond drilling is ongoing and has continued to delineate further resources for mining.

Development of the OK Decline has progressed on schedule. Refurbishment of the decline workings has now reached 260 metres below surface, and full-face firing has commenced at 237 metres below surface. Ore development has continued at the 105m level on the Star of Erin orebody. This drive is developing towards the high grade blocks delineated in Star of Erin below 105 metres and is currently 15 metres away from the anticipated commencement of the first block. Refurbishment and capital development will open up other ore development faces as it progresses deeper from the 260 metre level. Diamond drilling is ongoing and has continued to delineate further resources for mining.

The Bullen Decline has been disappointing with diamond drilling delineating less resources than expected, and development and stoping accessing smaller areas of high grade ore than anticipated. Capital development has recommenced with the two-boom jumbo returning from Harlequin Decline. The jumbo is currently developing the decline to the next level of the Bullen Reef and concurrently developing the incline to the next level of the St Patrick's Reef. The diamond drill has continued to work through the multiple targets available to generate additional resources for mining. The Company has purchased its fourth underground drill rig to enable the drilling of resource targets to be accelerated.

The Company has been re-allocating its resources of personnel and equipment to maximise production by relocating resources from Bullen to Harlequin and OK.

The Company is revising its forecast production guidance for the full year to June 2010 to 65,000 ounces compared to the previous forecast of between 75,000 to 80,000 ounces. The main reason for this revision is that the Bullen Decline is unlikely to return to its expected production profile prior to June 2010 and the Harlequin and OK Declines have limited capacity for increasing their production profiles to make up for the expected Bullen shortfall.

The Company always acknowledged that while there were two mines in operation, utilising only 60% capacity of the treatment plant there would be the potential for fluctuations in gold produced on a quarterly basis, as is common with high grade nuggetty gold orebodies. The focus of the Company therefore remains on filling the treatment plant by development of the third and subsequent mines thereby maximising production and providing operational flexibility. The Company remains committed to this strategy as demonstrated by the successful on time and on budget commencement of the OK Decline, the continued dewatering and drilling of the North Royal open pit and the commencement of the initial drilling at Crown Reef. There has been extensive capital investment in these prospects and the Company remains confident that there will be a significant return on this investment well into the future.

Consequently, guidance for the financial year commencing 1st July 2010 remains unchanged at 105,000 to 110,000 ounces as the Company expects the OK Decline to ramp up to full production while the Bullen Decline production recovers.

Mine Exploration

Diamond drilling at Harlequin Decline has been focused on the Redfin and Perch Reef. Significant results have been received as follows:

·; 1.9m @ 22.3 g/t gold from 26.5m including

o 0.3m @ 45.6 g/t gold in drill-hole HD1780

·; 1.7m @ 9.7 g/t gold from 160.1m including

o 0.5m @ 19.2 g/t gold in drill-hole HD1788

·; 1.6m @ 37.3 g/t gold from 35.4m including

o 0.5m @ 105.5 g/t gold and

·; 1.3m @ 4.1 g/t gold from 40.3m in drill-hole HD1792

The diamond drill will continue to drill the depth extensions of the Redfin Reef and the Perch Reef in all directions for the foreseeable future.

Diamond drilling at Bullen Decline has been focused on delineating resources immediately surrounding the current production centres. Significant results have been received to the north of the Mt Barker Fault as follows:

·; 2.4m @ 10.3 g/t gold from 42.2m including

o 0.8m @ 29.4 g/t gold from 43.8m in drill-hole BN709

Diamond drilling will continue to target areas adjacent to the currently mined reef, namely Norseman, St Patricks, Mt Barker, Bullen and Mararoa.

Diamond drilling at OK Decline has continued to focus on the Star of Erin orebody with the following significant results:

·; 0.9m @ 42.6 g/t gold from 48.9m in drill-hole OKD247

·; 0.4m @ 22.9 g/t gold from 52.0m in drill-hole OKD250

·; 1.7m @ 7.8 g/t gold from 45.0m including

o 0.2m @ 40.3g/t gold from 45.3m in drill-hole OKD251

·; 1.0m @ 30.2 g/t gold from 41.0m in drill-hole OKD323

There remains over 10,000 metres of drilling to be conducted at the Star of Erin giving the Company confidence that further resources will be delineated on this orebody.

Resource and reserve analysis work has been completed on the current Star of Erin data and has resulted in an initial reserve of 110,000 tonnes at 4.8 g/t gold for 17,000 ounces of gold. This has resulted in the reserve at OK Decline being increased by over 30% to 75,000 ounces. Further improvements are expected as the ongoing drilling programmes are completed.

The OK Decline reserve tables and statements are outlined below;

Notes: 1. As is required the 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 and reserves are quoted to two significant figures so inconsistencies may exist within the tables.

The compilation of information in this report, and calculation, or review, of reserves in this has been undertaken by Mr. Russell McBeathB.Eng (Mining), who is a member of the Australasian Institute of Mining and Metallurgy, and the Principal Mining Engineer of the company. Mr McBeath has over 19 years of mining and evaluation experience in a variety of mineral deposit styles and has sufficient experience which is 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 2004 edition of the "Australasian Code for reporting of exploration results, Mineral Resources and Ore Reserves". Mr McBeath is accepting overall responsibility for this estimate and is satisfied that the work of other contributors is acceptable. Mr McBeath consents to the information in this report being used and quoted by the company for reporting and other purposes in the context in which it appears.

Regional Exploration and Mine Development

North Royal

Dewatering of the North Royal open pit has continued to progress. The programme has now completed about one third of the dewatering of the open pit. Drilling has been completed at the southern end of the pit with significant results as follows:

·; 0.6m @ 30.1 g/t gold from 141.7m in drill-hole NRD020

·; 1.0m @ 17.9 g/t gold from 144.0m and

·; 1.0m @ 6.5 g/t gold from 147.0m and

·; 1.7m @ 3.7 g/t gold from 157.0m including

o 0.7m @ 7.4 g/t gold from 158.0m in drill-hole NRD021

·; 0.6m @ 17.4 g/t gold from 103.4m in drill-hole NRD024

·; 1.0m @ 14.1 g/t gold from 106.0m and

·; 0.6m @ 249.0 g/t gold from 111.7m in drill-hole NRD027

·; 1.0m @ 363.0 g/t gold from 127.0m in drill-hole NRD029

·; 2.0m @ 2.9 g/t gold from 12.0m in drill-hole NRD036

·; 0.8m @ 8.3 g/t gold from 142.2m in drill-hole NRD037

The drilling has delineated a potential footwall reef to the south of the North Royal open pit. This reef appears to have some extent along strike and to come close to the surface. Follow up extensional (to the south) and infill drilling (closer to the surface) will be completed on this reef once the initial programme at the Crown Reef is completed.

Crown Reef

Initial drilling has commenced on Crown Reef, which is the Company's third resource development target following OK Decline and North Royal open pit. The programme currently underway is designed to test the higher section of Crown Reef close to the surface. The initial holes in this programme have intersected reef structure in the vicinity of the interpreted target area but assay results are still pending. Further work on Crown Reef will be based around the degree of success of this initial programme.

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, CEO of Norseman Gold Plc, 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.

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 Company's control. Please refer to the Company's Admission Document available from the Company's web site for a list of risk factors. The Company's 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:

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 with development now commenced at the third mine, OK Decline. Currently, it has a total resource inventory of 3.7 million oz of gold at an average grade of 5.5 g/t.

The tenements cover a 1,614 sq km area centred on the Norseman Township. The landholding comprises 179 contiguous tenements consisting of 13 Exploration Licences, 106 Mining Licences, 45 Prospecting Licences, 15 Miscellaneous Licences and 29 Mining Lease Applications.

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 mine. 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.