[Marinir] {Disarmed} Halted! (TSX-V: NFE) Northern Iron to Sell 2 Non-Core Iron Ore Properties for $5-Million

Tue Nov 13 17:06:15 CET 2012

 Click here
http://www.actonsoftware.com/acton/ct/1523/s-0180-1211/Bct/l-0002/l-0002:15bcd/ct0_1/1
 to view this message in a browser window

http://www.northernironcorp.com/

Northern Iron agrees to sell two non-core iron ore properties for 
$5,000,000

Ontario Iron Mining Inc. executes an asset purchase agreement for El Sol 
and Whitemud Properties.

Northern Iron and Ontario Iron Mining Inc. agree to work closely to 
create synergies and share infrastructure costs to develop the region's 
iron ore resources.

Northern Iron Corp. (TSX-V: NFE

http://www.stockwatch.com/Quote/Detail.aspx?action=go&symbol=NFE&region=C&lookup=symbol&snapshot=default

) (OTCQX: NHRIF

http://www.stockwatch.com/Quote/Detail.aspx?action=go&symbol=NHRIF&region=U&lookup=symbol&snapshot=default

) (FRANKFURT: N8I) today announced the signing of an asset purchase 
agreement under which Ontario Iron Mining Inc. (OIMI) will acquire 100% 
of the El Sol and Whitemud Properties from Northern for $5,000,000. The 
full sale price will be paid on successful completion of OIMI's 
exclusive four month due diligence and transfer of property titles.

This agreement represents the first step in OIMI and Northern's 
collaboration in developing the district and acquiring the strategic 
funding required for building the mining infrastructure in the area.

Basil Botha, Northern's President & CEO stated, "Our primary assets and 
focus are the Griffith Mine; a past producer, and Karas property, to 
produce hot briquetted iron (HBI). The El Sol and Whitemud properties 
have not been a part of the Company's business plan to produce HBI, and 
is why the board has considered the transaction. The sale of El Sol and 
Whitemud properties not only provides us with an extra $5,000,000 in 
cash, it is also the beginning of an important strategic partnership 
with OIMI. "

Jonas Struthers, a spokesperson for OIMI said, "We will expect to work 
closely with Northern Iron to create synergies where we can share 
certain infrastructure costs that will benefit both companies and the 
region. We look forward to an expanding relationship with the Northern 
Iron team over the coming years."

As part of OIMI's due diligence period, OIMI plans to spend 
approximately $2.5 million on diamond drilling, logging core and mapping 
the two properties.

The El Sol and Whitemud properties have not been part of Northern's 
business plan as all current exploration expenditures have been focussed 
on the Griffith and Karas properties. Under the terms of the agreement, 
should OIMI not conclude the sale, all exploration data will become the 
sole property of Northern.

The transaction is subject to TSX Venture Exchange approval.

A feasibility study has not been completed and there is no certainty the 
proposed operation will be economically viable and successful in 
fulfilling the orders.

About OIMI

OIMI is a privately owned company, registered in Ontario, Canada. Its 
shareholders are the controlling shareholders of a leading Chinese 
commodity handler, trading house and asset manager, with core competency 
in the iron ore market and a focus on developing brownfield iron ore 
assets for domestic and international sales.

About Northern Iron Corp.

The Company is a 100% owner of five iron ore properties in the Red Lake 
district containing over 500 million tonnes of historical resources. 
Sufficient work has not been completed by a qualified person to classify 
the historical estimate as mineral resources as defined by the National 
Instrument 43-101.

The Red Lake district is situated in an established mining area in 
Ontario, where the company has two near term development projects, the 
past producing Griffith mine and the Karas property.

The Company is currently working towards the production of HBI, a 
transportable form of direct reduced iron. HBI is complementary and a 
viable metallic alternative to scrap steel. Quality scrap is a critical 
raw material in the steel making process. With the diminishing supply of 
quality scrap steel and ever increasing market demand, steel producers 
around the world will be looking to secure alternative supplies of 
metallic products.

As part of the business plan, the Company acquired the past producing 
Griffith mine, which produced pellets and sponge iron (Direct Reduced 
Iron/DRI) from 1968 to 1986. The mine was owned and operated by STELCO 
and supplied pellets and sponge iron to the Hamilton and Nanticoke steel 
mills in Ontario. The metallurgy of the deposit has been proven over 
eighteen years of production.

Almost the entire transportation infrastructure is currently in place to 
both produce HBI and to ship produced HBI into the North American market 
via rail and lake barges and into Asian markets via rail through the 
port of Prince Rupert. Existing infrastructure includes all weather 
roads, 115kV power line, natural gas line, rail bed and port facilities.

The Company is focusing on de-risking the project by seeking out 
potential joint venture partners, off-take agreements or a combination 
thereof.

Cautionary Statement

The foregoing information may contain forward-looking statements 
relating to the future performance of the Company. Forward-looking 
statements, specifically those concerning future performance, are 
subject to certain risks and uncertainties, and actual results may 
differ materially from the Company's plans and expectations. These 
plans, expectations, risks and uncertainties are detailed herein and 
from time to time in the filings made by the Company with the TSX 
Venture Exchange and securities regulators. The Company does not assume 
any obligation to update or revise its forward-looking statements, 
whether as a result of new information, future events or otherwise.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as 
that term is defined in the policies of the TSX Venture Exchange) 
accepts responsibility for the adequacy or accuracy of this release. No 
stock exchange, securities commission or other regulatory authority has 
approved or disapproved the information contained herein.

SOURCE: Northern Iron Corp.

For further information:

Basil Botha

President & CEO

Northern Iron Corp.

Tel: 604-566-8570

Fax: 604-602-9868

Email: bbotha at northernironcorp.com

Website: www.northernironcorp.com

http://www.northernironcorp.com

Follow us on: LinkedIn, Twitter, Facebook and YouTube

http://www.linkedin.com/profile/edit?locale=en_US&goback=%2Enmp_*1_*1_*1_*1_*1_*1&trk=spm_pic

http://www.linkedin.com/profile/edit?locale=en_US&goback=%2Enmp_*1_*1_*1_*1_*1_*1&trk=spm_pic

http://twitter.com/#!/NorthernIC

http://twitter.com/NorthernIC

http://www.facebook.com/pages/Northern-Iron-Corp/435045436545872

http://www.facebook.com/pages/Northern-Iron-Corp/435045436545872

http://www.youtube.com/user/NorthernIronCorp?feature=guide

http://www.youtube.com/user/NorthernIronCorp?feature=guide

--------------------------------------------------------------------------------
*********************************************************************
Disclaimer: KCrew Communications was paid to distribute this Infostock bulletin.
KCrew Communications may or may not own securities in this particular company.
THIS IS NOT A RECOMMENDATION TO BUY OR SELL ANY SECURITY!
You are on this mailing list because you registered for Infostock.
You may opt out at any time using the unsubscribe feature at the bottom of this email.
For more information about this service, please see http://www.infostockbiz.com
http://www.infostockbiz.com

KCrew Communications Inc. at 1.866.465.3616
Suite 1250 - 789 West Pender St., Vancouver, BC Canada V6C1H2.
This email complies with the US Federal CAN-SPAM Act of 2003
*********************************************************************

If you do not wish to receive futher emails Click Here
http://www.actonsoftware.com/acton/rif/1523/s-0180-1211/-/l-0002:15bcd/l-0002/zout
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://www.polarhome.com/pipermail/munindo/attachments/20121113/601e86fb/attachment.html>