Noront Resources Ltd.
TSX VENTURE : NOT

Noront Resources Ltd.

November 22, 2006 13:35 ET

Noront Grants Option- Mid-Matra Project, Hungary

TORONTO, ONTARIO--(CCNMatthews - Nov. 22, 2006) - Noront Resources Ltd. (TSX VENTURE:NOT) ("Noront") is pleased to announce that it has entered into an Option Agreement with Znco Minerals Limited ("Znco") a private British Virgin Island company with offices in Hamilton, Bermuda, wherein Znco has been granted an option to earn a 100% interest in Noront's right to acquire 75% of certain mining exploration permits in the Mid-Matra Region 110 km northeast of Budapest near the Village of Paradsasvar, Hungary (see Noront's press release dated November 6 2006).

The option to earn a 100% interest in Noront's right to acquire a 75% interest in the Mid-Matra project calls for payments and exploration expenditures by Znco as follows:

a) make a cash payment of $25,000 payable as follows:

i) $15,000 within 10 days of execution of the option agreement or upon receipt of the approval of a filed work program by the Hungarian Mining Bureau whichever may be the latter and referred hereinafter as the "Approval Date"

ii) $10,000 within six months from the date of the agreement or "Approval Date".

b) Issue to Noront free and tradeable 500,000 common shares of Znco and/or its assigns as follows:

i) 150,000 shares upon the execution of the agreement or "Approval Date"

ii) 150,000 shares within 9 months from the date of the agreement or "Approval Date"

iii) 200,000 shares within 24 months from the date of the agreement or "Approval Date"

c) Provide exploration expenses on the project as follows:

i) $60,000 within 6 months from the date of the agreement or "Approval Date"

ii) $140,000 within 9 months from the date of the agreement or "Approval Date"

iii) $800,000 within 24 months from the date of the agreement or "Approval Date"

Payment of the $25,000 and the issuance of the first 150,000 common shares of Znco and/or its assignee and completing the $60,000 of exploration expenses is considered to be a firm commitment by Znco.

Upon Znco having made option payments to Noront totaling $25,000 cash, issued 500,000 common shares and completed exploration expenditures of $1 million within two years from the date of the option or the "Approval Date", the option shall be deemed to have been fully and property exercised and a 75% right, title and interest held by Noront in and to the project shall vest in Znco.

Noront shall after its interest have vested in Znco, retain a 0.75% Net Smelter Royalty (NSR), over the project. Noront has granted Znco a further option, exercisable within five (5) years, to purchase two-thirds (2/3) of the NSR for a purchase price of $500,000.

Znco may elect to make its total option payments and complete the exploration costs prior to the dates set out herein, in which case Znco's 75% interest will vest in and be owned by Znco immediately upon Znco making its total option payments and exploration expenses and completion of the listing of its shares or assignment of its rights to a company listed on a stock exchange recognized by the World Federation of Exchanges ("WFOE").

Znco has agreed to have its shares listed on a stock exchange recognized by the WFOE or alternately transfer its rights under the option agreement with Noront's consent to a publicly trading vehicle listed on a stock exchange recognized by the WFOE within 12 months from the date of the option agreement.

Finally, in addition to securing the right to explore and carry out a filed work program approved by the Hungarian Mining Bureau, the option agreement was also conditional on Znco completing an agreement with Noront's current partner to acquire their 25% interest on terms acceptable to Znco and Noront offering to its partner pursuant to a right of first refusal the right to purchase by Noront's partner, Noront's interests on the same terms and conditions as contained in the Znco option agreement.

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

ON BEHALF OF THE BOARD OF DIRECTORS

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.

Contact Information

  • Noront Resources Ltd.
    Richard Nemis
    President and Chief Executive Officer
    (416) 864-1456
    Website: www.norontresources.com