Dundee: Eagle’s Nest Infill Program Completed – New Chromite Discovery

Conclusion: We reiterate our BUY recommendation, Speculative Risk, with a 12-month target price of C$2.90.

Strategic Perspective: We are encouraged by the newly discovered Blackstone Deposit with results from an initial drill hole containing high quality chromite mineralization (>42% Cr2O3) between Blackbird and Eagle's Nest. This is a significant first success with the 2010 regional program now underway. We are further encouraged by the latest announcement that the infill drill program has concluded successfully. Management delivered on all four of the program's objectives, including confirmation of the predictive accuracy of its geological model. We are, however, disappointed that technical difficulties with the deep drilling at Eagle's Nest, aimed at testing the potential convergence of the Eagle's Nest nickel-copper-PGE deposit with the Blackbird chromite deposit, will delay results for this very intriguing program. The deep drilling continues and results may yet be available in 2010.

Blackstone Discovery: Noront announced the discovery of chromite mineralization at is newly discovered Blackstone Deposit. The deposit sits between Eagle's Nest nickel-copper sulphide resource and the Blackbird chromite resource (Figure 1). According to management, the discovery has exciting implications as it points to a major structure trending north between the Blackbird chromite deposits and Eagle's Nest (Figure 2). Given its close proximity to Eagle's Nest (within 1,000 meters), the chromite would be accessed from the underground infrastructure required to exploit the Eagle's Nest deposit.

Significant Results to Highlight:

Hole NOT-10-1G184A intersected 21.3 meters averaging 42.9% Cr(2)O(3) with a 2.15:1 chrome to iron ratio; also intersected 8.9 meters averaging 34.9% Cr(2)O(3) with a 1.93:1 chrome to iron ratio, and 5.4 meters averaging 43.7% Cr(2)O(3) with a 2.12:1 chrome to iron ratio.

Infill Drilling is a Success: The Company reports the infill drill program has been successfully completed as planned. Noront highlight four main objectives of the program:

To increase the grade of the inferred resource: All holes testing the previously defined inferred resource area have intersected higher grade nickel, copper, platinum and palladium than the average grades of the latest inferred resource estimate. Recently reported infill results have averaged 2.48% Ni, 1.32% Cu, 1.23 gpt Pt and 3.77 gpt Pd versus an inferred resource grading 1.42% Ni, 0.87% Cu, 0.8 gpt Pt and 3.4 gpt Pd.

To upgrade the inferred resource to indicated to support future economic analysis: A significant portion of the former inferred resource is expected to convert to indicated resource.

To test the adjacent wall rocks for additional mineralization using borehole geophysics: A number of favourable targets were identified for drill testing using new data originating from more powerful down hole surveys. These surveys have identified a number of off-hole geophysical anomalies that are being tested by drilling.

To test the predictive accuracy of the litho-structural model of the Eagle's Nest deposit: Infill results confirm the Company has a good understanding of the mineralization at Eagle's Nest. The model developed by the Company geologists has accurately predicted the location and extent of both the massive sulphide and the high-grade platinum and palladium mineralization. Noront believes they can project the structural trends outward from Eagle's Nest to locate new targets for the upcoming drill campaign scheduled to be active until the winter break.

Deep Drilling Update: Two drills are currently assigned to the deep drilling at Eagle's Nest. The Company's drill program has experienced some significant mechanical and technical delays including excessive hole deviation, engine and electrical malfunctions with the newly fabricated drills and lost holes resulting from rods being stuck in the hole compounded by poor ground conditions that prevented certain holes from reaching their target depth. Notwithstanding the technical setbacks, the Company is continuing with testing the continuation deposit at depth - two holes are currently underway with that objective.