Northern Abitibi Announces Non-Brokered Financing

CALGARY, ALBERTA--(Marketwire - March 24, 2011) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.

Northern Abitibi Mining Corp. ('Northern Abitibi') (TSX VENTURE:NAI) is pleased to announce a proposed non-brokered private placement of up to 2,083,333 units ("Common Units") at a price of $0.12 per Common Unit and up to 2,307,692 flow-through units ("FT Units") at a price of $0.13 per FT Unit for gross proceeds of up to $550,000.

Each Common Unit will consist of one common share and one common share purchase warrant. Each common share purchase warrant will entitle the holder to purchase one common share at a price of $0.20 per share for a period of two years following closing. 

Each FT Unit will consist of one common flow-through share and one-half of one common share purchase warrant. Each whole common share purchase warrant will entitle the holder to purchase one common share at a price of $0.20 per share for a period of two years following closing. 

The Common Units and FT Units will be offered on a non-brokered basis by way of private placement to accredited investors and any securities issued will be subject to a hold period of four months plus one day from the date of closing. A finder's fee of up to $38,500 (7% of gross proceeds) and up to 307,372 brokers' warrants (7% of the aggregate of total common shares and common flow-through shares issued pursuant to the offering) will be paid to eligible agents pursuant to the offering. Each brokers' warrant will be exercisable at an exercise price of $0.12 into one common share for a period of two years following closing.

This financing is subject to TSX Venture Exchange and regulatory approval.

Proceeds of the financing will fund 2011 exploration at the Viking gold property in Newfoundland and provide general working capital. 

Dr. Shane Ebert, P.Geo., is the Qualified Person responsible for the preparation of this news release.

Shane Ebert, President/Director

Except for the historical and present factual information contained herein, the matters set forth in this news release, including words such as "expects", "projects", "plans", "anticipates" and similar expressions, are forward-looking information that represents management of Northern Abitibi's internal projections, expectations or beliefs concerning, among other things, future operating results and various components thereof or the economic performance of Northern Abitibi. The projections, estimates and beliefs contained in such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Northern Abitibi's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, those described in Northern Abitibi's filings with the Canadian securities authorities. Accordingly, holders of Northern Abitibi shares and potential investors are cautioned that events or circumstances could cause results to differ materially from those predicted. Northern Abitibi disclaims any responsibility to update these forward-looking statements.