Dundee: Exploration Program Resumes – Final 2010 Assay Results Are In

Conclusion: We reiterate our BUY recommendation, Speculative Risk*, with a 12-month target price of C$1.40.

Event: Noront has announced all remaining assay results from the 2010 exploration program. Further, the Company has announced that exploration has resumed for the winter season.

Metallurgical Geotechnical Holes at Eagle's Nest:

Highlights:

NOT-10-GT04 - Intersected 206 meters (not true widths) grading 4.6% Ni, 2.1% Cu, 1.87 gpt Pt and 7.76 gpt Pd;

NOT-10-GT01 - Intersected 48.3 meters (not true widths) grading 1.9% Ni, 1.0% Cu, 1.03 gpt Pt and 3.59 gpt Pd.

Details:

Noront completed a five-hole drill program to collect geotechnical data and to collect representative samples to conduct initial metallurgical testing of the Eagle's Nest deposit. Hole NOT-10-GT04 targeted a broad interval of massive sulphide mineralization and returned the best intervals to date. The hole intersected greater than 200 meters of massive sulphide mineralization which helps to confirm the predictive accuracy of the Company's geological model.

The metallurgical test work is currently being conducted by SGS Lakefield labs in Peterborough, Ontario. Results are anticipated in the first quarter of 2011.

Highlights of Regional Drilling:

Highlights:

NOT-10-1G186 - Intersected 1.2 meters (not true widths) of 0.6% Ni, 0.2% Cu, 0.08 gpt Pt and 0.76 gpt Pd;

NOT-10-1G195 - Intersected 7.8 meters (not true widths) of 0.4% Ni, 0.1% Cu, 0.08 gpt Pt and 0.41 gpt Pd

Details:

Regional drilling performed in the fall of 2010 has increased the lateral extent of the ultramafic host rocks to the north and west of Eagle's Nest. The expanded footprint has produced additional targets for nickel and copper sulphides.

2011 Winter Exploration Program:

The 2011 winter exploration program is focused on the discovery of additional nickel, copper sulphide mineralization similar in size to the Eagle's Nest discovery. The winter program is fully funded and will involve ground base geophysical surveys and diamond drilling.

Details:

- 10,000 meter drill program is planned.

- Two drill rigs for the duration of the program.

- One drill is currently testing geophysical targets within the Western Complex (3-4 kilometers southwest of Eagle's Nest). After which, the drill will be positioned in the Eagle's Next Complex to evaluate borehole and surface electromagnetic target identified in 2010;

- Second drill is currently testing geophysical targets at the Thunderbird Complex. Drilling completed thus far has returned elevated Fe-Ti-V mineralization over substantial thickness over a 1.0 kilometer strike length. Three to five drill holes are planned to better understand the mineralization at Thunderbird.

- AT-12: The Company has commenced deep penetrating surface geophysical surveys intended to identify highly confuctive mineralization to depths of 600 meters. The aim is to identify potentially buried nickel, copper sulphide mineralization at AT-12 (Refer to Figure 2). Prior drilling at AT-12 has uncovered significant nickel, copper sulphide mineralization.