Dundee: Deep Drilling Confirms Extension of Eagle's Nest at Depth

Conclusion: We upgrade to a BUY recommendation, Speculative Risk*, with a 12-month target price of C$1.40.

Strategic Perspective: Noront Resources Ltd announced initial assay results which confirm that mineralization at Eagle's Nest remains open at depth. Noront continues to target the convergence zone of the Eagle's Nest nickel-copper-PGE and Blackbird chromite deposits. Drill results are anticipated to support a future resource increase which is not taken into account in the recent Preliminary Economic Assessment ("PEA"), released by the Company on September 9, 2010. We view these results as positive and await any news on the possible discovery of the convergence zone.

The change in our recommendation is driven largely by valuation. The stock has been under pressure since the release of its PEA; however, at current prices, in conjunction with the latest positive drill results, we see strong upside potential for shares of the Company.

The Company advises that past drilling difficulties experienced at depth have largely been resolved and that further drilling is warranted by the recent results and geophysical surveys of the deep holes.

Highlight of Drilling Results:

NOT-10-085-W1: Intersected 104.7 meters averaging 1.66% Ni, 0.81% Cu; including 2.4 meters averaging 7.45% Ni, 0.23% Cu.

NOT-10-085-W2: Intersected 203.3 meters averaging 1.69% Ni, 1.01% Cu, representing the deepest and longest mineralized interval drilled to date at Eagle's Nest.