SASKATOON, July 29, 2011 /CNW/ - 49 North Resources Inc. ("FNR") (TSX Venture: FNR) announces that in connection with the closing of a debt for equity conversion transaction with Lakota Resources Inc. ("Lakota") on July 28, 2011, it acquired ownership of 65,000,000 common shares of Lakota (representing 16.45% of Lakota's outstanding common shares). Prior to the closing of the debt for equity conversion transaction, FNR owned 4,918,441 common shares of Lakota. Mr. Tom MacNeill, the President, Chief Executive Officer and a director of FNR also owns 1,431,000 common shares of Lakota directly and indirectly.

Upon completion of the transaction, FNR will own 69,918,441 common shares (representing 17.69% of Lakota's outstanding common shares), and when combined with Mr. MacNeill's holdings, Tom MacNeill will control 71,349,441 common shares (representing 18.06% of Lakota's outstanding common shares).

In connection with the debt for equity conversion transaction, FNR and Lakota entered into a debt cancellation agreement providing for the issuance of the 65,000,000 common shares by Lakota to FNR at a price of $0.01 per share for an aggregate purchase price of $650,000.

FNR acquired the common shares in the debt for equity conversion transaction for investment purposes. FNR may in the future take such actions in respect of its holdings as it may deem appropriate in light of the circumstances then existing, including acquiring ownership or control over additional common shares or other securities of Lakota or the disposition of all or a portion of its holdings in open market or in privately negotiated transactions.

The issuance of the common shares was carried out in accordance with and in reliance on the "accredited investor" exemption in section 2.3 of National Instrument 45-106 - Prospectus and Registration Exemptions which has been adopted by the securities regulatory authorities in all Provinces of Canada and which exempts the transfer and issue of such securities from the registration and prospectus requirements of applicable securities law.

FNR and Tom MacNeill may be considered to be joint actors under applicable securities legislation. However, the issuance of this press release is not an admission that any entity named in this press release owns or controls any of the securities described in this press release or is a joint actor with any other entity named in this press release.

A copy of the early warning report in respect of this transaction