Northern Iron Corp.

Northern Iron Corp.

June 09, 2010 14:57 ET

Northern Iron Corp. Announces Completion of Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 9, 2010) - Northern Iron Corp. ("NIC", the "Company") today announced the closing of the previously announced non-brokered private placement. (Refer to news release of May 11, 2010). Gross proceeds from the financing total $766,500. NIC plans on using the proceeds for the exploration and development of its iron ore projects in the Red Lake district of northern Ontario, and working capital purposes.

About Northern Iron Corp.

Northern Iron Corp. is a privately held Canadian-based company focused on the exploration and development of iron ore properties.

NIC holds 100% of a number of properties in the Red Lake district of northern Ontario. This includes the past producing Griffith Mine, which was owned and operated from 1968 to 1984 by Stelco (Steel Company of Canada, now U.S. Steel Canada). During this period, Griffith's iron ore production totaled 74.42 million tons at 30% Fe. The iron ore was beneficiated to produce 22.85 million tonnes of iron ore pellets at an average grade of 66.7% Fe, as well as direct reduced iron utilizing the SL/RN system. The Griffith Mine is located in close proximity to the towns of Red Lake and Ear Falls and has excellent infrastructure, including paved road access, electricity, water and a natural gas pipeline direct to the site. The reported remaining historical resource is approximately 120 million tons at 29% Fe (non compliant with NI 43-101).

Other properties held by NIC include El Sol, which has a reported historical resource of approximately 312 million tons at 31.1% Fe to a depth of 300 metres (non compliant with NI 43-101). The orebody is reported to be open at depth and at both ends. The NI 43-101 report on El Sol was completed in 2009. The report provided detail on the 2008 drill program which totaled 2,301 metres and historical drilling which totaled 10,423 metres.

NIC will conduct an exploration program in 2010, which will focus on the Griffith Mine. The Company's objective is to fast-track development of the Griffith Mine to produce saleable iron products for the iron and steel market in the Great Lakes district of southern Ontario and northeastern USA.

Resource Estimate

The reference to "resource" estimates in this press release are historical in nature and do not represent any current economic viability. The estimates were made prior to implementation of NI 43-101. There is incomplete and limited data from the historical work that is available and a qualified person, as that term is defined under NI 43-101, has not done sufficient work to classify the historical "reserve" or "resource" estimates as current mineral resources. The Company is not treating the historical estimates as current mineral resources and the historical estimates should not be relied upon. The Company therefore refers to a historical "resource" as a historical non-NI 43-101 compliant mineral resource which cannot be relied upon. The Company refers to the estimate as it believes the historical results provide an important indication of the potential of the El Sol & Griffith mine projects and are relevant to ongoing exploration through planned verification drilling programs.

Raul Sanabria, M.Sc., P.Geo., and Vice President, Exploration of Northern Iron Corp. is the Qualified Person as defined in NI 43-101, and has reviewed and verified the technical disclosure contained in this press release.

Forward-Looking Statement

This document may contain or refer to forward-looking information based on current expectations, including, but not limited to timing of mineral resource estimates, future exploration or project development programs and the impact on the Company of these events. Forward-looking information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Forward-looking information is provided as of the date hereof and Northern Iron Corp. assumes no responsibility to update or revise them to reflect new events or circumstances.

Contact Information