Mr. Paul Starnino reports

HIGH NORTH RESOURCES LTD. ANNOUNCES SHARES-FOR-DEBT AGREEMENT

High North Resources Ltd. has entered into a shares-for-debt agreement with three arm's-length parties and a non-arm's-length party to settle an aggregate of $825,000 in outstanding debt owed to the creditors under certain farm-out agreements, as amended. In accordance with the terms of the agreement, the company has agreed to issue an aggregate of 1.5 million warrants to the arm's-length creditors to settle the debt. No warrants will be issued to the non-arm's-length creditor.

Each warrant shall give the holder the right, for a period of two years from the grant date, to purchase one common share of High North at an exercise price of 39 cents per share. The shares will be subject to a hold period which will expire four months from the date of issuance.

In the event that the price of High North's shares trade at or above 55 cents for 20 consecutive business days, the arm's-length creditors shall exercise all of their warrants within 14 business days of the triggering event. If the arm's-length creditors do not exercise all of their warrants within 14 business days of the triggering event, the unexercised warrants shall expire with no value given thereto.

Issuance of the shares will not result in a change of control of the company.

Completion of the transaction is subject to approval of the TSX Venture Exchange.

We seek Safe Harbor.