Hi Dennis, Sparky

The Baosteel news release had 2 parts.

Part1

May 16, 2011 Baosteel was offered 9.9% of the issued and outstanding shares of Noront for .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.

The amount is $17.4 million dollars just for the common shares. The deal was expected to close on or before June 2, 2011

IF either Noront or Baosteel decided to bow out of this deal the penalty was 5% of this 17.4 million. So, let's say someone like Rio Tinto said, "Hey I'll give you 1.00 per share for 9.9% of the shares....then Noront would have to pay Baosteel a 5% penalty.

This is a non issue now. The deal has closed..it's done and posted on Sedar. Noront has the money and Baosteel has 9.9% Noront shares. Baosteel is now listed on the Noront website as one of the major shareholders.

Part 2

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

Part 2 mentions Baosteel having the right to have 1 board member. THey have the right to increase ownership by another 10% BUT not before May 2, 2012. That date is not here yet.

What is very close is the expiration of the 90 days exclusivity period which expires Aug.13.

The choices are:

1) The date expires and nothing happens.

2) Noront extends the expiry date

3) We get a NR stating something similar to the KWG 1% royalty sale only in our case it is sale of our chromite deposit or portion of. Noront has been drilling the chromite deposit with 2 drill since early May. By now the results are in and both Baosteel and Noront know what they are. Will we get those results or will the chromite deposit get sold so it can finance the nickel-copper-pge deposit that we have. I don't know the answer.

What I do know is Noront needs money going forward. Imagine the dilution to raise needed funds at this share price? Selling all or some of the chromite property might be a better way.

4) I'm still pondering the big cross that Cannacord did yesterday. The cross that in the past seems to point to, " I know something you don't know...and the something is fruitful."