Rosseau Asset Management Ltd.

October 09, 2008 10:58 ET

Rosseau Asset Management Ltd. to Propose New Slate of Directors for Noront Resources Ltd.

TORONTO, ONTARIO--(Marketwire - Oct. 9, 2008) - Rosseau Asset Management Ltd. ("Rosseau") announced today that it will be proposing a new slate of directors for Noront Resources Ltd. ("Noront") for election at the upcoming annual and special meeting of the shareholders of Noront to be held on October 28, 2008 (the "Meeting"). Rosseau and its officers and employees collectively own or control an aggregate of 11,912,901 common shares of Noront, representing approximately 9.2% of the common shares of Noront entitled to be voted at the Meeting.

The following seven individuals (the "Rosseau Nominees") will be proposed by Rosseau for election as directors of Noront at the Meeting:

- Patrick F.N. Anderson (President and Chief Executive Officer, Aurelian Resources Inc.);

- Bruce Durham (Independent Mining Executive; Executive Chairman, Temex Resources Corp.);

- Joseph A. Hamilton (President, Pickax International Corporation);

- Warren B. Irwin (President and Chief Investment Officer, Rosseau Asset Management Ltd.);

- Keith McKay (Chief Financial Officer, Aurelian Resources Inc.);

- Thomas Obradovich (Independent Mining Executive; Chairman, Independent Nickel Corp.); and

- Michael D. Woollcombe (Partner, Voorheis & Co. LLP).

Rosseau is soliciting proxies from holders of Noront common shares to vote FOR the Rosseau Nominees and not in favour of the nominees being proposed by Noront's management.

The reasons for supporting the Rosseau Nominees, including details of their background and experience, are set forth in a proxy circular of Rosseau and others dated October 8, 2008 (the "Rosseau Circular"). The Rosseau Circular and accompanying YELLOW form of proxy have been filed with Canadian securities regulators and are accessible on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com. These materials will also be mailed shortly to holders of Noront common shares.

Mr. Warren B. Irwin, the President and Chief Investment Officer of Rosseau, stated: "Noront is a mining company with great potential based on its discovery in the McFaulds Lake area in the James Bay Lowlands, but it is suffering from a lack of focus and inadequate direction, oversight and leadership from Noront's existing board of directors and President and Chief Executive Officer. The time has come to provide Noront with the direction and leadership it requires through a new board of directors. The Rosseau Nominees have the right experience in prospecting, geology, exploration, mining, public companies, corporate development, corporate governance, capital markets and other matters to allow Noront to begin realizing on its full potential. They also all share one vision and commitment, which is to enhance value for the benefit of all shareholders of Noront."

The Rosseau Circular outlines a number of matters that demonstrate the shortcomings of Noront's existing board of directors and President and Chief Executive Officer and highlight the lack of focus and inadequate direction, oversight and leadership under which Noront is currently suffering:

- Noront recently wasted what it said would be approximately $15 million further developing its Windfall Lake gold property in Urban Township, Quebec as well as over $1 million on other non-core properties, taking scarce cash, human resources and focus away from the core McFaulds Lake discovery;

- Noront has severely diluted its McFaulds Lake claims position by entering into at least 11 different option agreements, which also drained and distracted Noront's administrative and operating resources;

- Noront is squandering its leadership position in the McFaulds Lake area by optioning out its ground, rather than consolidating other players in the region to form a company with critical mass which is capable of bringing a project into development;

- Noront has been unwilling or unable to deliver on several important initiatives to enhance shareholder value including finding a replacement for the President and Chief Executive Officer, obtaining a listing on the Toronto Stock Exchange and spinning off non-core assets to shareholders; and

- Noront's senior management is prone to exaggeration and promotion that contributed to prematurely inflating Noront's share price to unsustainable levels, leaving it to later crash after Noront failed to meet unrealistic expectations.

Mr. Irwin concluded: "Notwithstanding our concerns about Noront's current board of directors and President and Chief Executive Officer, we have never lost faith in the McFaulds Lake discovery and believe that, with proper leadership, oversight and vision, Noront's long-term prospects are bright. We are confident that the Rosseau Nominees will move firmly and decisively to focus Noront's business and operations on the core McFaulds Lake discovery and to develop and then implement a multi-year plan to maximize the value of that discovery over the long-term for the benefit of Noront's shareholders."

Holders of Noront common shares are encouraged to contact Kingsdale Shareholder Services Inc. (tel. no: 416-867-2272 (collect calls accepted) or 1-800-749-9052 (toll-free)), which is assisting Rosseau, with any questions or if they require assistance in voting the YELLOW form of proxy that accompanies the Rosseau Circular. To ensure that their votes count, holders of Noront common shares who wish to vote in favour of the Rosseau Nominees are asked to send their completed, dated and signed YELLOW proxies to Kingsdale Shareholder Services Inc. by NO LATER THAN 5:00 P.M. (TORONTO TIME) ON THURSDAY, OCTOBER 23, 2008, either by facsimile (to fax no. 1-866-545-5580) or by delivery to Kingsdale at The Exchange Tower, 130 King Street West, Suite 2950, P.O. Box 361, Toronto, Ontario, M5X 1C7.

Contact Information

  • Rosseau Asset Management Ltd.
    Warren B. Irwin, MBA, CFA
    President and Chief Investment Officer
    (416) 777-0711
    (416) 777-0718 (FAX)