Dundee: 2010 Exploration Program Promises Exciting Newsflow

We maintain our Buy recommendation, speculative risk, and 12-month target price of C$2.90.

Management has provided additional guidance for its 2010 budget, extending to its fiscal year end March 31, 2010. Program spending is estimated at $35 to $40 million, covering exploration, engineering and First Nations engagement. The budget is fully funded. On completion of this program, Noront will have invested approximately $100 million on the McFauld’s Lake Project, substantially more than any other company working in the “Ring of Fire”.

Exploration: New Discoveries (33% of budget): Ten new nickel, copper, platinum group targets, based on interpretation of geophysical results, have been identified for evaluation and drilling. One drill is currently operating at the AT-12 target. Re-logging and re-assaying of gold assays from the Triple J deposit has assisted in identifying additional gold targets that could potentially double the strike length of the deposit from its current 1.1 kilometers.

Exploration: Eagle’s Nest Resources (22% of budget): One quarter of this drilling budget (above 1,100 meters in depth) will focus on upgrading inferred resources to an indicated category. Three drills are currently drilling this program.

The remaining three quarters of this drilling budget (below the 1,100 meter level) will target adding inferred resources. The deepest drilling will extend at least 2,000 meters in depth and test the potential feeder zone area. The potential convergence of the Blackbird and Eagle’s Nest deposits at depth will also be evaluated. Two drills are currently drilling this program.

The stated goal is to approximately double the total mineral inventory at Eagle’s Nest. Further drilling of the Blackbird chromite resource is not planned as part of this program.

Engineering (30% of budget): Micon has been selected as the lead consultant to manage the feasibility study process. A team of expert consultants and engineers, including SNC Lavalin, Hatch, AECOM, Cementation and Golder Associates is working towards completion of the study in early 2011.

First Nations Communities: The Company is committed to working with its First Nations and will continue funding training and initiatives designed to identify future employment and business opportunities that benefit their communities.

Targeting High Grade Platinum Group Elements: In 2009, Hole NOT-09-070-W1 intersected 22.8 meters averaging 28.1 g/t Pt and 8.0 g/t Pd. A full PGE analysis of this hole has recently been completed, indicating anomalous rhodium, iridium, osmium, ruthenium and rhenium values associated with an extensive and steeply dipping structure that intersects the Eagle’s Nest deposit. Future infill drilling will specifically target this structure.