Extract from Management, Discussion and Analysis released by Noront...

The drilling during the quarter ending January 31, 2008, confirmed that the Eagle One Ni-Cu-PGE occurrence was a massive sulphide magmatic nickel mineralized body, surrounded in part by net textured sulphides in peridotite within a much larger variably mineralized steeply dipping peridotite that has an 80 degree dip to the west, with a steep plunge along a southerly strike.

Also during this period the Company advised that it had a very rigorous QA/QC program underway, and the first three batches of samples fell within the limits as determined by acceptable industry practice.

The Company further announced that it was increasing its land position and staking continues around the “Ring of Fire” and that they had initiated a large airborne survey contract awarded to Aeroquest International Limited, overseen by Scott Hogg and Associates, followed up by a very intense ground geophysical program. The near vertical dipping mineralized Nickel – Copper – PGM Eagle One occurrence averaging 40 to 45 meters in horizontal width remained open along strike, lies conformably near the western edge of a larger peridotite intrusive that has widened to 85 meters in horizontal width at its presently drilled south extent.

Twenty samples from holes NOT-07-01, NOT-07-02 and NOT-07-05 were selected for Precious Group Elements (PGE’s) as part of the ongoing evaluation of Eagle One. The samples were selected on the basis of initial platinum and palladium content, nickel and copper content as well as lithology. The samples initially underwent analysis for rhodium at ALS Chemex Laboratory in Vancouver B.C., then labsplits of the same sample set were sent to ALS’s affiliate lab in Australia, and additional splits were sent to Activation Laboratory in Ancaster, Ontario. The test work recently received confirms that other PGE’s are present in Eagle One and now need to be analyzed for on a regular basis. Variance between the two laboratories was within acceptable limits. The test-work included three consecutive samples selected from Hole NOT-07-05 between 111.5 meters and 115.6 meters down-hole. This 4.1 meter section averaged 3.2% copper, 3.62% nickel, 30.2 g/t platinum, 15.95 g/t palladium, 3.3 g/t gold, 8.1 g/t silver, 0.84 g/t rhodium, 0.15 g/t osmium, 0.21 g/t iridium and 0.42 g/t ruthenium. Noront will now be assaying previous samples from Eagle One for rhodium and completing additional assaying for the other PGE’s on a regular basis, to determine ratios of the other elements with respect to rhodium assays.

The on-going Aero-Tem-2 airborne geophysics was near completion over the Company’s vast land holdings in the Double Eagle project area. Several other anomalies were identified within 5 kilometers of Eagle One exhibiting similar geophysical expressions as Eagle One. These are all high priority targets and plans were being made for drill testing in the next quarter. The Company’s claims cover numerous airborne magnetic anomalies around the Ring of Fire. Ground follow-up program of line cutting and magnetometer and horizontal loop surveys was initiated covering some of the nearby (to Eagle One) airborne anomalies, these were well underway, designed to prioritize the anomalies for immediate diamond drill hole in early 2008. Two new drills were contracted and arrived on site in late January 2008.