Noront Resources announces Windfall Lake acquisition option agreement

    Symbol:               NOT:TSX-V
    Shares Outstanding:   154,578,457
    Fully Diluted:        164,098,457

    TORONTO, July 21 /CNW/ - Noront Resources Ltd. ("Noront" or the
"Company") (TSX Venture: NOT) is pleased to announce that it has entered into
a property option agreement (the "Agreement") with Eagle Hill Exploration
Corporation ("Eagle Hill") pursuant to which Eagle Hill may earn up to a 100%
interest, subject to a 2% net smelter royalty, in Noront's 100% owned Windfall
Lake Property, located in Quebec, Canada (the "Property").
    Wes Hanson, Noront's CEO stated, "Windfall Lake returned several
impressive diamond drill intercepts however results from our underground
development suggest that further financing and focused exploration work is
necessary to determine the resource potential at Windfall Lake. Noront's
management believes that at present, its funds and shareholders are better
served by remaining focused on the company's Eagle One Deposit."

    Terms and Conditions of Acquisition:

    Under the terms of the Agreement, Eagle Hill will, subject to a financing
condition and regulatory approval, be entitled to earn up to a 100% interest
in the Property, in the following transactions:

    1.  a 10% interest upon payment of a consideration payments of
        CDN$600,000 and incurring expenditures of CDN$500,000 on the
        Property;
    2.  a further 41% interest upon incurring CDN$2,000,000 in expenditures
        on the Property; and
    3.  a further 24% interest upon incurring CDN$2,500,000 in expenditures
        on the Property and consideration payment of $400,000.

    The Company will retain a 25% carried interest to the earlier of
completion of a bankable feasibility study (the "BFS") or a commitment to take
the property into commercial production after which the Company would be
responsible for its working interest of additional expenditures.
    If Eagle Hill does not complete a BFS or commit to take the project to
production, then the Company will have the option to purchase back the 75% of
the Property, within the applicable period from Eagle Hill.
    At the time of completed BFS or the project has commenced production, the
Company will have an option to either:

    a.  convert all of its interest for a 2% net smelter royalty ("NSR"); or
    b.  retain a 25% interest in the Windfall Lake Property and be
        responsible for its pro rata costs to go into production and will
        receive compensation for its costs to date from production after
        certain expenditures are repaid.