Overview

Noront Resources Ltd (TSXV:NOT) is a junior development company focused on its world class multi-metal discoveries in the Ring of Fire of northern Ontario, Canada. Noront is the largest landholder in the Ring of Fire and owns a 100% interest in two near-term development projects, Eagle’s Nest and Blackbird. The Eagle’s Nest project is a high-grade nickel, copper sulphide deposit and the Blackbird project hosts a high quality chromite resource. In 2011, the company attracted $17.4 million in investment from one of China’s largest steel producers, Baosteel Resources International Co. Ltd.

Investment Highlights

• Largest land position in Canada’s highly prospective Ring of Fire mineral camp with 100% interest in two development ready deposits
• Management team with extensive mine development and operations experience
• Baosteel’s investment provides a strong strategic partner and funding for 2012 expenditures
• Other major shareholders include Oppenheimer Funds and Sprott Asset Management
• August 2011 Pre-Feasibility Study concluded the defined Eagle’s Nest mineral resource is economic and can be classified as a mineral reserve

Chief Project

 Eagle’s Nest – Ring of Fire, Northern Ontario, Canada

click to zoom

The Eagle’s Nest deposit is a magmatic massive sulphide deposit discovered in August 2007 which hosts high-grade nickel, copper, platinum and palladium mineralization. The property lies in the Ring of Fire nearMcFauldsLake, James Bay Lowlands, Ontario.

An October 2008 NI 43-101 compliant preliminary economic analysis completed by P&E Mining Consultants suggested that the deposit could be profitably mined, prompting further exploration work on the property in 2009. The 2009 exploration program determined that the deposit is a sub-vertical, continuous magmatic massive sulphide body ranging between 100-200 metres on strike and 25-75 metres in thickness. The Eagle’s Nest deposit has been traced by drilling to a depth of 1,200 metres and mineralization remains open at depth.

Following a March 2010 NI 43-101 compliant resource estimate of 6.9 M tonnes averaging 2.04% Ni, 0.95% Cu,1.30 g/t Pt and 3.40 g/t Pd Indicated Resources and 4.3 M tonnes averaging 1.42% Ni, 0.87% Cu, 0.80 g/t Pt and 3.40 g/t Pd Inferred Resources. Noront initiated an in-fill and deep drilling program with the objectives of increasing the confidence in the resource estimate above 1,200 metres and determining the extension of the resource at depth. The company completed an additional 63 drill holes that year representing additional drilling in excess of 41,500 metres.

In 2010, Noront also initiated technical studies with a goal of proving the economic viability of the project. Based on the March 2010 resource estimate, Micon International completed a NI 43-101 Preliminary Economic Assessment (PEA) on Eagle’s Nest.

Highlights from the assessment include:

• After tax NPV at a 6.0% discount factor of approximately $500 million;
• Initial capital investment estimated to be between $600- $625 million;
• Operating costs estimated to be between  $120-$130 per tonne;
• Project life exceeding 11 years;
• Significant potential to increase economic returns based on current spot metal prices;
• Capital expenditure payback between 3 and 4 years based on a 100% equity project; and
• Operating cost estimate of between $3.00-$3.50 per pound equivalent nickel.

Following the PEA, Noront initiated further studies to advance the project including metallurgical testwork, geotechnical studies, hydrological studies, environmental studies and preliminary designs for mining, processing and infrastructure.

In March 2011, a NI 43-101 compliant resource estimate on the Eagle’s Nest deposit was released following completion by Micon International and included the results of the 2010 drill program. Based on a 0.5% Ni grade in the Main Zone, the revised resource estimate includes 5.4 M tonnes averaging 2.08% Ni, 1.07% Cu,1.04 g/t Pt and 3.55 g/t Pd of Measured Resources, 5.7 M tonnes averaging 1.50% Ni, 0.89% Cu,0.94 g/t Pt and 3.27 g/t Pd of Indicated Resources, and 9.0 M tonnes averaging 1.10% Ni, 1.14% Cu,1.16 g/t Pt and 3.49 g/t Pd of Inferred Resources.

Proof positive that Noront is actively working to develop the project, in August 2011 the company announced the results of a NI 43-101 compliant Pre-Feasibility Study (PFS) for a stand alone nickel, copper, platinum group element mine and mill complex. The independent study concluded that the Eagle’s Nest mineral resource is economic and can be classified as a mineral reserve. A Final Feasibility Study is planned for 2012.

Highlights from the PFS include:

• Proven and probable mineral reserves of 11.1 M tonnes averaging: 1.68% Ni, 0.87% Cu, 0.89 g/t Pt, 3.09 g/t Pd and 0.18 g/t Au;
• After tax NPV at a 6.0% discount factor of approximately $560 million;
• After tax IRR exceeding 20%;
• Estimated initial capital investment of $734 million split as follows:
  • Mine site infrastructure and development capital of $500 million
  • Shared infrastructure and slurry pipeline capital of $234 million
• Estimated life of mine sustaining capital estimated to be $143 million;
• Estimated operating costs of $75 – $80 per tonne or $2.75 per pound nickel equivalent;
• Estimated free cash flow of approximately $175 million per year;
• Estimated mine life of 11 years with a 3 year capital payback period

Mineral Reserves and Resources for Eagle’s Nest Deposit as of August 2011

Management

Wesley C. Hanson – President and Chief Executive Officer

Mr. Hanson was formerly Vice President Mine Development for Western Goldfields before the recent announcement of its business combination with New Gold Inc. and he previously held the position of Vice President, Technical Services for Kinross Gold Corporation.

Mr. Hanson has held several senior positions in the mining industry throughout his 28 year career, where he has been directly involved in the engineering construction and commissioning of numerous mining projects in Canada, the US, Brazil, Chile and Russia. Mr. Hanson has a Bachelor of Science, Geology fromMountAllisonUniversityinSackville,New Brunswick,Canada.

Gregory R. Rieveley – Chief Financial Officer

Mr. Rieveley is a finance executive with 12 years experience in the mining and retail industries. Previously he held the position of Vice President, Internal Audit and Business Development at Harry Winston Diamond Corporation (formerly Aber Diamond Corporation), and prior to that he was the Controller for Dundee Precious Metals a mid sized copper and gold producer. Mr. Rieveley is a Chartered Accountant and has a Bachelor of Commerce degree from theUniversityofBritish Columbia.

Paul G. Semple, P. Eng. – Chief Operating Officer

Mr. Semple’s 28 year career in the mining industry has focused on feasibility studies, project development and operations of precious and base metals deposits. Much of his time was spent with Kilborn (later SNC-Lavalin) where he was involved in all aspects of global project development from initial studies through to construction and operations.

During this time, Mr. Semple held various positions including Vice President and General Manager, SNC Lavalin Engineers and Constructors. Recently, Mr. Semple was Vice President of Projects for Western Goldfields Inc, and was responsible for the feasibility study and engineering/construction required to restart the Mesquite Mine. Mr. Semple holds a Bachelor of Applied Science from Queen’s University and is a professional engineer.

Glenn Nolan – Vice President, Aboriginal Affairs

Mr. Nolan has advised a number of exploration and mining companies on Aboriginal engagement strategies and has provided information to Aboriginal communities on partnership development and opportunities related to resource development. He is committed to continuing the creation of greater dialogue between communities and the mineral industry. Currently Mr. Nolan is the first Vice President of Prospectors and Developers Association of Canada where he sits on a number of committees. Nolan was elected as Chief of the Missanabie Cree First Nation in 2001 and served for three consecutive terms, ending in August 2010.

Ted Bassett – Director

Mr. Bassett is a Professional Engineer with over 40 years of experience in mine engineering and project management. Mr. Bassett has a successful track record in the supervision and construction of large capital projects including, but not limited to the BHP Olympic Dam Expansion Project inAustralia, the Goro Nickel Project, the Voisey’s Bay Nickel Project and the Diavik Diamond Project.

Mr. Bassett has held several senior project management positions over the course of his career. Most recently he was the Project Director, Jansen Potash Project (August 2010 to August 2011) and previously President of BPM Project Management Inc., a private company providing consulting services to the resource sector (October 2009 to August 2010) and Project Director Olympic Dam Expansion Project, BHP Billiton Inc., Australia (November 2006 to October 2009).

Darren Blasutti – Director

Mr. Blasutti is former Senior Vice President of Corporate Development for Barrick Gold Corporation. He reported to the Chief Executive Officer and played a lead role in the strategic development of Barrick for over 13 years and executed over 25 gold mining transactions including Homestake Mining, Placer Dome and the consolidation of the world class Cortez property from Rio Tinto.

The acquisition of Placer Dome is Barrick’s largest acquisition and one of the largest in the mining industry. Mr. Blasutti also led the creation of Barrick Energy, which was an innovative strategy to hedge Barrick’s exposure to energy prices and protect Barrick’s operating margins, and was integral to the IPO of African Barrick Gold. During his tenure at Barrick, he also led the Investor Relations function. Mr. Blassutti was previously at PricewaterhouseCoopers where he planned, supervised and managed audits for a variety of clients. He is a member of the Canadian Institute of Chartered Accountants.

Joseph Hamilton – Chairman of the Board

Mr. Hamilton is President of PICKAX International Corp., a consulting company. Mr. Hamilton has over 25 years of experience in mineral exploration and development in theAmericasandAfrica. Previously, he served as co-interim CEO of Noront Resources Ltd.. From 2005 to 2008 Mr. Hamilton was Chief Executive Officer of African Copper Plc, an international exploration and development company listed on the TSX and the AIM market of the London Stock Exchange.

Mr. Hamilton obtained a Master’s of Science (Applied) from Queen’s University in 1991 and a Bachelor of Science from the University of Torontoin 1985. Mr. Hamilton is a Chartered Financial Analyst and a Professional Geologist. He is currently a member of the Association of Professional Geoscientists of Ontario, Canada, a member of the CFA Institute and a member of theInstituteofCorporate Directors. He is currently a director of the following public companies: Malbex Resources Inc. and Unigold Inc.

Lin Li – Director

Mr. Li has held the position of Vice-President Finance, Baosteel Resources International Co. Ltd. (May 2009 to present). Previously, Mr. Li has held several senior positions within the Baosteel Group Corporation including Director of Strategic Development (August 2007 to May 2009). He was also Vice President of Baosteel Limited Trading Branch (June 2005 – February 2006).

Mr. Li holds a Senior Economist designation from the State Bureau of Metallurgical Industry in China, a Doctorate and Masters of Finance from Fudan University,Shanghai,Chinaand a Bachelor of Engineering from theBeijingAgriculturalEngineeringUniversity. 

Keith McKay – Director

Mr. McKay is currently Chief Financial Officer of Dalradian Resources Inc. and the Chief Financial Officer of Continental Gold Limited. Mr. McKay was previously Chief Financial Officer of Andina Minerals Inc.. Mr. McKay went to Andina from Aurelian Resources Inc., where he was Vice President and Chief Financial Officer. Previous to this, Mr. McKay was Senior Vice President, Financial Operations for international engineering and project management services firm.

Prior to that, he was Controller at Rio Algom Ltd., a Canadian-based mining company that produced copper, gold, uranium, molybdenum and coal in North andSouth America. Mr. McKay also served as Vice President, Finance for Potash Company of Canada and has worked with the Bank of Montreal. Mr. McKay obtained his Chartered Accountant designation with Coopers and Lybrand (now PricewaterhouseCoopers)

Paul Parisotto – Director

Mr. Parisotto is the President, Chief Executive Officer and Chief Financial Officer of Chantrell Ventures Corp. He was formerly the President and Chief Executive Officer of ArizonaStar Resource Corp. From November 2008 to June 2009 he was the Co-Interim CEO of Noront Resources Ltd and most recently was the President and Chief Executive Officer of Tamaka Holdings Inc., a private gold exploration and development company. Previously, Mr. Parisotto provided investment banking services to the mining industry.Mr. Parisotto has been President of Coniston Investment Corp. from October 1999 to the present.

Coniston is a private firm specializing in providing investment banking services including the raising of equity and debt and providing mergers and acquisitions advisory services to small market capitalization companies which are either private or public. Prior to these current responsibilities, Mr. Parisotto was Manager, Original Listings at The Toronto Stock Exchange from 1985 to 1994. During his tenure at the TSE he was involved in the listing process for over 250 companies.