Northern Continental Resources Inc.
TSX VENTURE : NCR

Northern Continental Resources Inc.

November 26, 2007 13:21 ET

Northern Continental Resources Inc.: Flow-Through and Non-Flow-Through Private Placements

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 26, 2007) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO THE UNITED STATES OR FOR DISSEMINATION ON US NEWS WIRE SERVICES.

Northern Continental Resources Inc. (TSX VENTURE:NCR) announces the non-brokered private placements of flow-through shares and non-flow-through shares. Terms of the placements are:

- A flow-through private placement of 6,250,000 units priced at $0.40 per unit, each unit consisting of one flow-through common share and one-half non-flow-through warrant, each warrant exercisable at a price of $0.60 for one year following the closing date of the placement, for gross proceeds of up to $2.5 million.

- A non-flow-through private placement of 1,500,000 units priced at $0.35 per unit, each unit consisting of one common share and one full warrant, each warrant exercisable at a price of $0.50 in the first year following the closing date of the placement and at a price of $0.75 in the second year following the closing date, for gross proceeds of up to $525,000.

About NCR's Russell Lake Property

NCR acquired the Russell Lake uranium property in 1999. The property is flanked on all sides by proximate uranium mines and deposits. It is located equidistant (approximately 15 kilometres) from the McArthur River mine and Key Lake mill facilities of Cameco and Areva Resources Canada Inc. Access to the Russell Lake property is provided by an all-weather road used to transport uranium ore from the McArthur River mine to the formerly producing Key Lake mine for processing. A winter diamond drilling program at Russell Lake is set to begin in early January. The program is a joint venture in which NCR holds a 60% controlling interest. Permitting for 21 diamond drill holes is under way, with a planned average target depth of 500 metres, totaling 10,500 metres. Drilling targets have been selected after a three-year, $3-million geophysical program which identified numerous zones with the potential to host uranium mineralization.

Use of Proceeds

The flow-through proceeds will be used for exploration of NCR's Russell Lake uranium property located in Saskatchewan's Athabasca Basin. Flow-through subscriptions will constitute Canadian Exploration Expenses as defined in the Income Tax Act and will be renounced for the 2007 taxation year. Proceeds from the non-flow-through placement will be used for general working capital. Finder's fees in cash and/or units will be paid in connection with the private placements. NCR reserves the right to increase the amount of the non-flow-through private placement if there is over-subscription. The placements are subject to the approval of the Toronto Venture Stock Exchange.

NORTHERN CONTINENTAL RESOURCES INC.

Alan Crawford, President

The TSX Venture Exchange has not reviewed, and does not accept responsibility for the adequacy or accuracy of the contents of this news release.

Contact Information

  • Northern Continental Resources Inc.
    Alan Crawford
    President
    (604) 685-9255 or Toll Free: 1-800-449-4435
    Website: www.northerncontinental.ca