Noront figures 20% IRR at Eagle's Nest mine
Ticker Symbol: C:NOT

Noront figures 20% IRR at Eagle's Nest mine

Noront Resources Ltd (C:NOT)
Shares Issued 175,975,308
Last Close 9/8/2010 $1.32
Thursday September 09 2010 - News Release

Mr. Wes Hanson reports

NORONT ANNOUNCES POSITIVE RESULTS OF PRELIMINARY ASSESSMENT OF EAGLE'S NEST DEPOSITCanada NewsWireTORONTO, Sept. 9

Noront Resources Ltd. has released the results of an updated NI 43-101 preliminary assessment (PA) for a stand-alone nickel copper, platinum group metal (Ni-Cu-PGM) mine and mill complex exploiting the company's 100-per-cent owned Eagle's Nest deposit, McFaulds Lake, James Bay Lowlands, Ontario.

Economic highlights

The stand-alone economics of the Eagle's Nest Ni-Cu-PGM deposit, based on the assumed metal prices are:

- after-tax NPV at a 6.0-per-cent discount factor of approximately $540-million;

- after-tax IRR exceeding 20 per cent;

- at current spot metal prices, the after tax MPV increases by approximately 250 million and the IRR increases by an additional 5 per cent

- initial capital investment estimated to be between $600- $625 million;

- sustaining capital estimated to be between $270-$300 million;

- operating costs estimated to be between $120-$130 per tonne;

- project life of 11 years;

- capital expenditure payback between 3 and 4 years; and

- average operating cost estimate of approximately $3.00 per pound equivalent nickel based on the Assumed Metal Prices(1)

The objectives of the PA were:

- to demonstrate the economic potential of Eagle's Nest as a stand- alone project;

- to estimate operating costs to determine cut-off grades to guide for exploration; and

- to address the technical and environmental challenges of developing a mine in the McFaulds Lake region.

Wes Hanson, CEO of Noront states; "The PA demonstrates a robust return on investment and mitigates the perceived risks of a stand alone nickel, copper sulphide mine and mill complex in the Ring of Fire by reducing the environmental footprint of the proposed development and utilizing proven technology to address the challenging environment. The Project offers a number of business opportunities for the First Nation communities of Marten Falls and Webequie, the two communities closest to the Project. Opportunities to further improve the economics of the PA, include resource growth at Eagle's Nest and grade increases resulting from recent infill drilling. The company is also encouraged that the PA demonstrates that the Eagle's Nest Ni-Cu-PGM discovery can bear the full costs of infrastructure development if necessary."

EXPLORATION SIGNIFICANCE

The PA estimates a break even nickel cut-off grade of between 0.3 per cent and 0.5 per cent. To date, the company's exploration has focused on the discovery of nickel-copper sulphide deposits with grades greater than 1 per cent nickel, similar to that of Eagle's Nest. The company continues to have a number of targets proximal to the Eagle's Nest deposit that are currently slated for follow up drilling. The lower cut-off grade estimated by the PA increases the exploration potential as large tonnage, low grade mineralization now becomes a viable exploration target. The company has already intersected long, low grade intervals of nickel-copper sulphide mineralization at AT-12 but has not focused on these areas as they were considered to be of limited economic value. In light of the results from the PA, the company will be reviewing these lower grade zones with a view to increasing the resource base.

<< PROJECT DESCRIPTION: -------------------- >>

The remote location of the Project, and the challenging soil conditions in the James Bay Lowlands demanded that the company's Consultants(2) evaluate unique solutions. The company also challenged the consultants to find technically feasible solutions that: <<

- applied proven technology;

- addressed the poor soil conditions typical to the James Bay Lowlands;

- minimized the environmental footprint; and

- minimized disruption to the wetland environment. >>

After numerous trade-off studies and evaluations, the Project, as defined in the PA, is summarized as follows: <<

- 1.0 million tonne per year throughput rate;

- underground mining of the Eagle's Nest Ni-Cu-PGM deposit;

- all major facilities (including the mill) would be located underground;

- tailings would be stored underground as cemented fill;

- minimal surface disturbance;

- construction aggregate would be sourced from underground waste rock;

- the existing winter road from Pickle Lake to Webequie would be upgraded to an all-season road;

- a diesel power plant would be located near Webequie and a transmission line would provide power to the mine site;

- a slurry pipeline would be used to transport concentrate from site to a filter plant located near Webequie;

- initial mine production would be from an internal ramp; and

- a winze (internal shaft) will be developed by year three to access the lower levels of the deposit;

The planned infrastructure includes an all-season road, power line, and winter roads during construction. This infrastructure will benefit other companies and local communities. Although the Project could carry 100 per cent of these costs, the PA assigned 25 per cent of the all season road, 50 per cent of the power line and 50 per cent of the winter road costs against the Project.The submerged slurry pipeline and power transmission line will greatly reduce traffic between Webequie and the Project site, eliminating the need for all season road access. This, in turn, significantly reduces the Project's environmental impact on the wetlands. The company believes that all construction materials can be transported to site utilizing a winter road network and critical spares can continue to be transported by air.The costs developed include operating costs to operate the mine, process plant, market a bulk concentrate product, provide environmental monitoring and management of the proposed operation. Closure costs are included in the cashflow analysis. Of the estimated operating cost of $120-$130 per tonne, approximately 60 per cent was attributed to underground mining, approximately 25 per cent attributed to on-site processing and 15 per cent related to G&A costs.Mine production was estimated based on recovery of 95 per cent of the resource defined in the Golder resource April 23, 2010 resource estimate and includes a 10 per cent external mining dilution at zero grade.Metallurgical recoveries were based on preliminary test work and resulted in estimates of overall nickel recovery of 89.1 per cent and copper recovery of 90.8 per cent.The technical evaluations were based on review of similar projects, preliminary metallurgical test work and review of site conditions. The adjustment from previous projects, allowing for this specific data, allowed Micon International Limited ("Micon") to develop scoping level cost estimates for the Eagle's Nest Project utilized in the PA.The updated PA will be available on SEDAR and on the company's website within 45 days from the date hereof.

The PA is based on metal prices derived from the Three Year Trailing Averages as follows:

Nickel          $9.08 per pound
Copper          $2.92 per pound
Platinum        $1,427 per ounce
Palladium       $345 per ounce
Gold            $944 per ounce

Mr. R. Gowans, P.Eng., Micon's Project Manager and a Qualified Person under Canadian Securities Administrators guidelines has reviewed this press release.

� 2010 Canjex Publishing Ltd.