TORONTO, May 16 /CNW/ - Noront Resources Ltd. ("Noront" or the "Company") (TSX Venture: NOT) is pleased to announce that the Board of Directors of Baosteel Resources
International Co., Ltd. ("Baosteel"), part of The Baosteel Group, one
of China's largest steel producers, has approved the strategic
investment in Noront by way of a non-brokered private placement of
Units (the "Offering"). Noront and Baosteel have signed a binding term
sheet in respect of the strategic investment which includes a
termination fee of 5% of the total value of the Offering payable by
either Noront or Baosteel, in certain circumstances, if the Offering is
terminated. Noront anticipates the closing of the Offering to occur on
or about June 2, 2011.


Noront's President and CEO, Wes Hanson, notes, "Baosteel's investment in Noront provides the necessary funds to advance
the feasibility study on both the Eagle's Nest nickel, copper, PGE
deposit and the Blackbird chromite deposits as well as allow Noront to
maintain its project schedule with planned production from Eagle's Nest
commencing in 2015/2016. This initial investment lays the groundwork
for a long-term partnership that would provide key financial and
technical support to Noront. This includes access to China's rapidly
expanding stainless steel markets, knowledge in sales of concentrates
and technical assistance with the processing of chromite for the
production of ferrochrome."


Under the terms of the Offering, Noront will issue such number of shares
as is equal to 9.9% of the total issued and outstanding common shares
of Noront at the time of closing at a price of C$0.86 per Unit. Each
Unit consists of one common share and one half of one common share
purchase warrant (each whole warrant a "Warrant"). Each Warrant shall
be exercisable to acquire one common share of Noront at an exercise
price equal to C$1.16 for a period of 24 months following the closing
date. Net proceeds of the common share portion are anticipated to be
approximately C$17.4 million. Exercise of the Warrants would increase
Baosteel's equity ownership interest in Noront to 14.15%, with
additional aggregate proceeds to Noront of approximately C$11.7
million.


The Offering provides Baosteel with the right to nominate one individual
to the Noront Board of Directors, a right to increase their ownership
in Noront to 19.9% for a one year period commencing on May 2, 2012 and
a standstill provision which expires on May 2, 2013. Baosteel has also
been granted a 90 day exclusivity period to negotiate a direct property
interest and/or off-take agreement with respect to any of Noront's
properties with such exclusivity period to commence any time prior to
production at Noront's discretion.


Proceeds from the Offering will be used to:



Fund the Eagle's Nest feasibility study;


Fund the feasibility study on the Blackbird chromite deposit including
exploration drilling to increase the current resource; and


Fund further exploration work on Noront's Ring of Fire properties and
corporate expenses.



The Offering is subject to customary conditions, including the
completion of definitive agreements and final approval by securities
and regulatory authorities in Canada and China, including the TSX
Venture Exchange.


About Baosteel Resources International Co. Ltd.:


Baosteel Resources International Co. Ltd., headquartered in Hong Kong,
is the overseas headquarters of Baosteel Resources Co. Ltd., a
subsidiary of Baosteel Group Corporation, one of the largest and most
profitable steel enterprises in the world with an annual production
capacity of 50 million tons per year. Baosteel Group Corporation ranked
276 in the Global Fortune 500 companies in 2010 with 2009 revenues of
US$28.6 billion.


Baosteel Resources International Co. Ltd's core business is investment,
trading and logistic services in relation to iron ore, coal,
non-ferrous metals, stainless steel, raw materials and scrap.


About Noront Resources Ltd.:


Noront holds mineral title to the largest area in the Ring of Fire, an
emerging multi-metals district in the James Bay Lowlands of northern
Ontario. With established NI-43-101 compliant mineral resources that
include the Eagle's Nest Ni-Cu-Pt and Pd deposit and the Blackbird
chromite deposit, Noront is committed to responsible exploration and
development in the Ring of Fire.


Wesley (Wes) Hanson

President & Chief Executive Officer


FORWARD LOOKING STATEMENTS

This release contains "forward-looking statements" within the meaning of
applicable Canadian securities legislation, including predictions,
projections and forecasts. Forward-looking statements include, but are
not limited to, statements that address activities, events or
developments that the Company expects or anticipates will or may occur
in the future, including such things as future business strategy,
competitive strengths, goals, expansion, growth of the Company's
businesses, operations, plans and with respect to exploration results,
the timing and success of exploration activities generally, permitting
time lines, government regulation of exploration and mining operations,
environmental risks, title disputes or claims, limitations on insurance
coverage, timing and possible outcome of any pending litigation and
timing and results of future resource estimates or future economic
studies.


Often, but not always, forward-looking statements can be identified by
the use of words such as "plans", "planning", "planned", "expects" or
"looking forward", "does not expect", "continues", "scheduled",
"estimates", "forecasts", "intends", "potential", "anticipates", "does
not anticipate", or "belief", or describes a "goal", or variation of
such words and phrases or state that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved.


Forward-looking statements are based on a number of material factors and
assumptions, including, the result of drilling and exploration
activities, that contracted parties provide goods and/or services on
the agreed timeframes, that equipment necessary for exploration is
available as scheduled and does not incur unforeseen break downs, that
no labour shortages or delays are incurred, that plant and equipment
function as specified, that no unusual geological or technical problems
occur, and that laboratory and other related services are available and
perform as contracted. Forward-looking statements involve known and
unknown risks, future events, conditions, uncertainties and other
factors which may cause the actual results, performance or achievements
to be materially different from any future results, prediction,
projection, forecast, performance or achievements expressed or implied
by the forward-looking statements. Such factors include, among others,
the interpretation and actual results of current exploration
activities; changes in project parameters as plans continue to be
refined; future prices of gold; possible variations in grade or
recovery rates; failure of equipment or processes to operate as
anticipated; the failure of contracted parties to perform; labour
disputes and other risks of the mining industry; delays in obtaining
governmental approvals or financing or in the completion of
exploration, as well as those factors disclosed in the Company's
publicly filed documents. Although Noront has attempted to identify
important factors that could cause actual actions, events or results to
differ materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results not to
be as anticipated, estimated or intended. There can be no assurance
that forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements.


Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.