Noront Resources Ltd.

Eagle's Nest

The Eagle's Nest deposit is a magmatic massive sulphide deposit discovered in August 2007, triggering a staking rush in the district. In July 2008, P&E Mining Consultants completed an initial resource estimate on Eagle’s Nest. This study estimated 1.8 million tonnes in a measured resource and and additional 1.1 million tonnes of inferred resources. The total resource grades exceeded 2.0% nickel and 1.0 % copper. These estimates were compiled in a NI 43-101 report   dated August 14, 2008

In October 2008, P&E Mining Consultants completed a NI 43-101 compliant preliminary economic analysis for Eagle's Nest that suggested that Eagle's Nest could be profitably mined. The P&E resource estimate used in this report interpreted the Eagle’s Nest deposit to be truncated at a depth of 200 metres from surface.

In June 2009, hole NOT-09-049, a vertical hole drilled at Eagle Nest, intersected two intervals of mixed massive to disseminated sulphides. The first lens was intersected between 270 and 510 metres and the second lens was intersected from 750 to 950 metres depth. The initial interpretation was that two additional lenses of mineralization, similar to the upper zone, had been intersected.

Follow up drilling determined that rather than three distinct lenses, the Eagle's Nest deposit was a sub-vertical, continuous magmatic massive sulphide body ranging between 100-200 metres on strike and 25-75 metres in thickness. The deposit has been traced by drilling to depth 1,200 metres and mineralization remains open at depth.

Based on this follow up drilling, Golder Associates updated the Eagle's Nest NI 43-101 resource estimate in March 2010. The resource estimate summarized in the March 2010 report as

Indicated Resource- 6.9 M tonnes averaging 2.04% Ni, 0.95% Cu,1.30 g/t Pt and 3.40 g/t Pd

Inferred Resource- 4.3 M tonnes averaging 1.42% Ni, 0.87% Cu, 0.80 g/t Pt and 3.40 g/t Pd.

In the summer of 2010, Noront initiated an in-fill and deep drilling drill program with the objectives of increasing the confidence in the resource estimate above 1,200m and determining the extension of the resource at depth. In 2010, an additional 63 drill holes were completed that represented additional drilling in excess of 41,500 meters.

In the summer of 2010, Noront also began technical studies aimed at proving the economic viability of the Eagle’s Nest Project. In October 2010, based on the March 2010 resource estimate, Micon International completed a NI 43-101 Preliminary Economic Assessment on Eagle’s Nest. The main a conclusions of this assessment were:

• after tax NPV at a 6.0% discount factor of approximately $500 million;
   
• after tax IRR exceeding 20%;
   
• 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 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.

Based on the positive Preliminary Economic Assessment, Noront began further studies to advance the Eagle’s Nest Project. These additional studies included:

• metallurgical testwork,
   
• geotechnical studies,
   
• hydrological studies,
   
• mining, processing and infrastructure preliminary designs, and
   
• and additional environmental studies.

The objective of these studies are to support a traditional mine development process. The current plan is to complete a pre-feasibility study during 2011 and a final feasibility study in 2012.

In March 2011, Noront announced a Ni 43-101 compliant resource estimate completed by Micon International on the Eagle’s Nest Deposit. This revised estimate included the results of the drill program completed during 2010. The revised resource estimate, based on a 0.5% Ni grade in the Main Zone is summarized as: