Noront reported working capital as at October 31, 2007 of $29,061,466 (April 30, 2007 – $16,043,182) and

cash & cash equivalents of $26,009,077 (April 30, 2007 – $15,323,039). The comparative improvement in

the Company’s working capital position is driven by strong cash proceeds received on exercise of its issued

and outstanding stock options and warrants.

The Company has financed a portion of its exploration activities through the issue of flow-through shares,

which transfer the tax deductibility of exploration expenditures to the investor. Proceeds received from the

issue of such shares have been credited to capital stock and the related exploration costs have been

charged to mining and resource properties. Proceeds raised are being used for continued exploration of

Noront’s properties. Resource expenditure deductions for income tax purposes related to exploration and

development activities funded by flow-through share arrangements are renounced to investors in

accordance with income tax legislation. When these expenditures are made, temporary taxable differences

created by the renunciation will reduce share capital.

Noront has no credit facilities with financial institutions, so its financial instruments consist of cash,

marketable securities, accounts receivable and accounts payable and accrued liabilities. Unless otherwise

noted, the Company does not expect to be exposed to significant interest, currency or credit risks arising

from these financial instruments. Noront estimates that the fair value of cash and cash equivalents, accounts

receivable, accounts payable and taxes payable approximate the carrying values.

Although the Company has sufficient capital resources to meet its current obligations, the Company may

seek to raise additional funding to finance future exploration programs. The timing and ability to do so will

depend on the liquidity of the financial markets as well as the acceptance of investors to finance resource

based junior companies, in addition to the results of the Company’s exploration programs and the acquisition

of additional projects. At this time, the Company is not anticipating an ongoing profit from operations,

therefore it will rely on its ability to obtain equity or debt financing for growth. Noront may need additional

capital, and may raise additional funds should its Board deem it advisable.

The Company has not yet determined whether its resource assets contain reserves that are economically

recoverable but is in the process of doing so. The recoverability of the carrying values of exploration

properties is dependent upon the discovery of economically recoverable reserves, the ability of the Company

to obtain necessary financing to complete the development and future profitable production there from or

alternatively upon the Company's ability to dispose of its interests on an advantageous basis. Changes in

future conditions could require material write downs of the carrying values.

Management is confident that it will be able to raise sufficient capital to further explore and develop its

properties and projects in the coming year. The ability of the Company to develop its existing assets into

commercial and profitable operations, however, will require participation by outside parties for capital or will

require additional financing from other outside sources. There can be no guarantee that the Company will be

able to secure any required financing.

Noront does not have any off-balance sheet arrangements that have, or are reasonably likely to have, an

effect on the results of operations or financial condition of the Company.