Noront Resources Ltd.

Noront Resources Ltd.

December 07, 2006 09:25 ET

Noront Engages IBK Capital Corp. for the Private Placement of Units and Flow Through Common Shares

TORONTO, ONTARIO--(CCNMatthews - Dec. 7, 2006) - Noront Resources Ltd. ("Noront")(TSX VENTURE:NOT) is pleased to announce the engagement of IBK Capital Corp. ("IBK Capital") as agent to complete a financing of up to $15,000,000, consisting of up to $5,000,000 of flow-through units ("Flow-Through Units") and up to $10,000,000 of hard dollar units ("Hard Dollar Units"). Each Flow-Through Unit will be priced at $0.50 and will consist of one flow-through common share and one-half of one common share purchase warrant (each whole warrant a "Tranche A Warrant"). Each Hard Dollar Unit will be priced at $0.50 and will consist of one common share and one common share purchase warrant (a "Tranche B Warrant"). Each Tranche A Warrant and Tranche B Warrant (collectively, the "Warrants") will entitle the holder to purchase one additional common share of Noront, which shall not be a flow-through share, at a price of $0.75 for a period of two years from the date of closing.

Noront will pay IBK Capital: (i) a cash commission equal to 8% of the gross proceeds raised in connection with the offering of the Flow-Through Units; and (ii) a cash commission equal to 9% of the gross proceeds raised in connection with the offering of the Hard Dollar Units. In addition, Noront will issue to IBK Capital: (i) broker warrants equal to 8% of the number of Flow-Through Units sold in the financing; and (ii) broker warrants equal to 10% of the number of Hard Dollar Units sold in the financing. Each broker warrant will be exercisable at $0.50 to acquire one Hard Dollar Unit at any time until the second anniversary of the date of closing.

All of the securities issued in the financing will have a hold period expiring four months and one day after the date of closing.

The Company early in the New Year will re-start the diamond drilling program at Windfall Lake. The successful program recently completed (see press release dated December 1, 2006) will continue to detail previously encountered high-grade gold mineralization to permit reserve calculations under National Instrument 43-101 guidelines.

In addition engineering studies and environmental permitting will commence to facilitate the commencement of an underground exploration ramp to outline, sample and bulk sample the gold zones known to the company at the present time. Tracy Armstrong (a qualified geologist in the Province of Quebec) of P&E Mining Consultants are continuing to be engaged in interpreting the drilling results to date and recommending further exploration work on the Windfall Lake property.

Noront is a tier 2 junior resource company on the TSX Venture Exchange, trading symbol NOT, with 54,567,692 shares issued to date.


"R. Nemis", President and Chief Executive Officer

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

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