Northgate Minerals Corporation
Report to Shareholders
Three and Six Months Ended June 30, 2010
Management’s Discussion and Analysis
Management’s Discussion and Analysis (“MD&A”) provides a review of the performance of Northgate Minerals
Corporation (“Northgate” or the “Corporation”) and should be read in conjunction with the accompanying
unaudited consolidated financial statements and related notes, which are presented in accordance with Canadian
generally accepted accounting principles (“Canadian GAAP”). These statements, together with the following
discussion and analysis, are intended to provide shareholders with a reasonable basis for assessing the
operational and financial performance of Northgate. A cautionary note regarding forward-looking statements
follows this MD&A. All of the financial information presented herein is expressed in US dollars, unless otherwise
stated. The information presented in this MD&A is as of August 9, 2010, unless otherwise stated.
Second Quarter 2010 Highlights
l Reported net earnings of $4.3 million or $ 0.01 per diluted share.
l Generated cash flow from operations of $10.9 million or $ 0.04 per diluted share.
l Produced 68,275 ounces of gold and 9.6 million pounds of copper at an average net cash cost of $693
per ounce of gold.
l Fosterville achieved record quarterly production at its mine of 28,476 ounces of gold.
l Kemess South exceeded its production forecast, producing 24,967 ounces of gold.
l Received the key permit from the Ontario Ministry of Northern Development, Mines and Forestry
allowing construction of the Young -Davidson mine to commence and broke ground on the property
August 3, 2010.
l Discovered a new gold zone west of current reserves at Young-Davidson. The “YD West zone” is
postulated to be the faulted offset extension of the current orebody.
l Hole YD10-198, one of the highest grade-thickness intervals intersected to date on the property,
returned 3.46 grams per tonne (g/t) gold over 79.5 metres (m).
l The YD We