Mr. Greg Herndier reports

NEWNORTH ANNOUNCES RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2013

NewNorth Projects Ltd. has released its financial results for the three months ended March 31, 2013.

NewNorth had net income after tax for the first quarter of 2013 of $1,000.

After-tax income per share, basic and diluted, is nil.

Select information:

• NewNorth sold the land it owns near Cochrane, Alta., on March 1, 2013. The gross proceeds from the sale were $2-million.
• NewNorth received $500,000 in financing in July, 2012, from one of its independent directors. The interest rate on the loan was 10 per cent per year. As security for the loan, a mortgage was registered against the title to NewNorth's property near Cochrane, Alta. The loan was paid back to the director on March 1, 2013, with the proceeds received from the sale of the land near Cochrane, Alta. The amount that was paid back to the director was $547,856.
• NewNorth received a short-term loan of $500,000 from an unrelated party in June, 2012. The interest rate on the loan was 10 per cent per year, and the loan was secured by a promissory note. The loan was from the same party that has entered into an agreement with NewNorth to purchase its 50-per-cent interest in the Kinniburgh South Limited Partnership. The loan amount that was repaid was $546,712, which included accrued interest up to May 7, 2013.
• NewNorth's interest in Kinniburgh South was sold on May 7, 2013. The gross proceeds from the sale were $3.5-million.