  Mrk 1239 is a highly polarized NLS1 in the optical band, whose $0.3-3$ keV
spectrum has remained remarkably consistent over more than two decades of
observation. Previous analysis of this object suggested that the soft X-ray
band was dominated by emission lines (collisionally and/or photoionized) from
the distant host galaxy as the X-ray emission from the central engine was
highly obscured. New XMM-Newton data of Mrk 1239 are presented here to
investigate the soft X-ray band of this galaxy with high resolution. The first
RGS spectra of this source reveal a plethora of ionized emission lines
originating from two distinct plasmas, one collisionally ionized and the other
photoionized at approximately equal brightness. The best fit model uses {\sc
apec} and {\sc xstar} grids to account for the collisionally ionized and
photoionized components, respectively. The fit improves significantly if the
photoionized material is allowed to outflow at $\approx 500$ km s$^{-1}$,
matching the outflow velocity of the forbidden O{\sc vii} emission line. From
constraints on the ionization and density of the photoionized material we can
estimate the location of it to be no further than a few pc from the central
source, around the outer radius of the torus, which is consistent with the
O{\sc vii}$(f)$ emission line. Properties of the collisionally ionized plasma
are consistent with star formation rate (SFR) of $\approx 3 M_{\odot}
\textrm{yr}^{-1}$, which is comparable with several previous measurements of
the SFR in this galaxy.
