North Atlantic Resources Ltd.

North Atlantic Resources Ltd.

August 10, 2006 18:32 ET

North Atlantic Resources Ltd. Q2 2006 Presidents Report and Financial Statements

TORONTO, ONTARIO--(CCNMatthews - Aug. 10, 2006) - North Atlantic Resources Ltd. (TSX:NAC) -

Report to Shareholders

For the Quarter Ended June 30, 2006

We are pleased to present the interim report and financial statements for the quarter ended June 30, 2006. The Company currently has seven gold exploration projects in the Republic of Mali with a total combined area of 1,491 square kilometers (368,400 acres). During this quarter the Company announced the results from drill holes at the FT gold project (Foulalaba and Tiekoumala properties) in southern Mali including 46 meters grading 1.64 grams per tonne gold at the Tiekoumala segment and 35 meters grading 3.11 grams per tonne gold at the Foulalaba segment. Subsequent to the end of the quarter, the Company announced additional drilling results from the FT project and that the initial gold resource estimate was expected by the middle of September 2006. Subsequent to the end of the quarter, the Company also announced the results from initial reconnaissance drilling at the Massala and Sitakili gold projects.

FT Gold Project

Approximately 40,000 meters of combined air core, reverse circulation, and diamond drilling have been completed at the FT project. The holes have been drilled over a strike length of 2.1 kilometers. The focus of the drilling has been to complete a pattern of holes at 50 m spacing to a vertical depth of 150 meters in order to be able to model the geometry and grade distribution of the gold zone in order to complete an initial estimate of the contained gold resource. SRK Consulting is completing a preliminary resource estimate which is expected in mid September 2006. The budget at FT for exploration, which is mainly for drilling, is approximately $ 1.4 million in the third quarter of 2006 with a further $2 million planned for the fourth quarter.

Massala Gold Project

Subsequent to the end of the quarter, the Company announced that it had made a new gold discovery at the Massala project, 50 kilometers northeast of the FT project and 50 kilometers south of the Morila Mine operated by AngloGold-Randgold. A reconnaissance reverse circulation drill hole intersected 12 meters grading 3.26 grams per tonne gold while completing a routine test of a geochemical anomaly. The Massala project is in the same stratigraphy as the FT project and Morila Mine and is a promising new development for the Company.

Sitakili Gold Project

Subsequent to the end of the quarter, the Company announced that it had acquired the Sitakili project in western Mali. Soil samples containing up to 34 grams per tonne gold were collected and reconnaissance air core drilling intersected 10 meters grading 1.23 grams per tonne gold.

Abelajouad Uranium Project

The 2,000 square kilometre Abelajouad project in northern Niger was acquired in March 2006. An office has been opened in Niamey, the capital of the Republic of Niger. Planning is underway for an airborne survey and follow up ground work in the 3rd and 4th quarters of 2006.


The priorities for the Company in the next quarter are to complete the initial gold resource estimate at the FT gold project, to continue to explore the Massala and Sitakili gold projects, and to initiate uranium exploration in Niger.

On behalf of the Board of Directors,

Jon North, President and CEO
Toronto, Canada
August 9, 2006

Please note: The full financial report is available on CCNMatthews' website at the following link:

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