HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

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Message: Genuity remarks..

Genuity remarks..

posted on Feb 02, 2010 04:09PM

Hi

Thanks
QQ_Girl

Here is an easier to read format of the Genuity comments , hopefully. Nice Buy target of $3.50

Jacki

Noront Resources Ltd.
NOT-V: $1.58
February 2, 2010
TARGET: $3.50
RECOMMENDATION: BUY
RISK RATING: SPECULATIVE
Michael Gray – 604.694.6961
Michael.Gray@genuitycm.com
Samuel Jang (Associate) – 604.694.6964
Samuel.Jang@genuitycm.com
Final 2009 Eagle’s Nest assays reported
(all figures in C$, unless noted)
Price (2/2/2010)$1.58Total return to target122%Shares O/S (m)165.4Shares F/D (m)176.8Market cap F/D ($m)$279.3Market float value ($m)$235.210-day Ave Daily Vol (m)0.6Debt ($m)0Working Capital ($m)$40.9FD cash ($m)$47.212-mo Burn-rate ($m)$25.2Shareholders10% Mgmt~9% Sprott Asset Mgmt~9% Rosseau Asset Mgmtless than 5% Pinetree CapCEOWes HansonDirectorPaul ParisottoDirectorJoseph HamiltonDirectorAlex DavidsonDirectorPatrick AndersonDirectorDarren BlasuttiDirectorKeith McKay

This morning, before market open, Noront reported assay results from the final five drill holes from 2009 that tested its 100%-owned Eagle's Nest Ni-Cu-Pt-Pd deposit, McFauld's Lake project, James Bay lowlands, northern Ontario, Canada. The drilling was part of a delineation program to sketch in the massive and net-textured Ni-Cu-Pt-Pd mineralization at the Eagle's Nest deposit between vertical depths of 300-1,100 metres.

Significant massive sulphide intersections included:

8.7 metres of 5.82% Ni, 1.62% Cu, 0.05 g/t Pt, 6.62 g/t Pd at a vertical depth of 1,050 metres (hole 64W1)

10.5 metres of 6.51% Ni, 1.68% Cu, 2.00 g/t Pt, 8.18 g/t Pd at a vertical depth of 540 metres (hole 75)

6.7 metres of 7.41% Ni, 1.26% Cu, 0.93 g/t Pt, 6.64 g/t Pd at a vertical depth of 500 metres (hole 74)

The massive sulphide intersection in hole 75 with 2.00 g/t Pt appears to be within 5-20 metres from the previously reported high-grade 37.87 g/t Pt over 5.7 metres intersected in hole 70W1. Therefore, we believe the high-grade Pt distribution may be more spatially confined, pending follow-up drilling. Hole 73 intersected a 59.8-metre mineralized interval, but the massive sulphide interval was not broken out. Wedge hole 71 was stopped due to technical drilling problems.

Noront also reported that its Eagle’s Nest resource estimation will be accelerated to Q1/10 from Q4/10, as the drills are currently shut down in connection with a First Nations blockade of ice airstrips for fixed wing aircraft into the region.

The results are incrementally positive, but do not impact our valuation. These infill drill holes at Eagle’s Nest continue to document high-grade massive sulphide zones that appear to have good vertical continuity. We value Noront on a DCF8% conceptual direct-shipping model for 2.4mt of high-grade massive sulphides to derive our target price of $3.50. We continue to recommend NOT as a BUY.
Genuity Capital Markets www.genuitycm.com
416.603.6000 2
Member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund,
Participating Organization of the Toronto Stock Exchange

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