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Gold/Mining/Energy : Northgate Exploration Limited - TSX: NGX; AMEX: NXG -- Ignore unavailable to you. Want to Upgrade?

To: Northern Marlin who wrote (2)	2/27/2004 12:38:15 PM
From: Northern Marlin	Respond to of 148

NXG CFO Jon Douglas replies: From: "Jon Douglas" <deleted> To: <deleted> Subject: Information You Requested Date: Friday, February 27, 2004 11:36 AM Hello Mr. Jones, Thank you for your interest in Northgate. In answer to your questions. 1. Feasibility study completion date can be accurately predicted as it is within our control. We expect it to be completed on or about March 31 and be released and filed on SEDAR shortly afterwards as a 43-101 technical report. By filing such a report with Canadian regulators we can upgrade our current indicated resource to a probable reserve. In the USA I don't believe the SEC would allow us to use the word reserve without permits in place for development and financing completed. In Canada, if we have strong expectation that we can obtain permits (which we do) and financing (looks good in current markets) and with a technical report demonstrating financial and technical feasibility we can use the word reserve. 2. As far as funding. If current prices remain in place we would expect to have sufficient cash on hand by the middle of 2005 to begin construction. I would suspect that we will at some point go to the equity markets or debt markets to obtain additional funds as you suggested but we will wait until feasibility study is complete and permitting is advanced. I hope these comments help. Regards, Jon Douglas CFO Northgate Exploration Limited.

To: Northern Marlin who wrote (2)	2/29/2004 8:21:22 PM
From: tyc:>	Read Replies (2) \| Respond to of 148

When you talk about funding requirements from cash flow, don't forget that there are some 40 million warrants exercisable at C$3.00 per share. Perhaps this dilution is already built into the stock price.... What is your opinion ? When the exercise price is equal to the current market price, do they really cause "dilution" ? My feeling is that the warrants are the cause of a lot of "hedge" shorting. This may depress the price, but not the value !