Dr. Kaihui Yang reports

CANADIAN NORTH RESOURCES INC. REPORTS EXCEPTIONAL OPERATIONAL AND FINANCIAL RESULTS FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2023

Canadian North Resources Inc. has released the operational and financial results for the third quarter ended Sept. 30, 2023.

"In Q3 2023, the company has completed the planned 20,000-metre 2023 drilling program with 21,126 metres in 78 holes," Said Dr. Kaihui Yang, the president and chief executive officer of the company. "The assay results confirmed significant mineralized intersections in 67 of the 78 holes. The results in combination with previously released results for 2021 to 2023, totalling 39,270 metres in 145 holes, have expanded laterally over 3,000 metres of the main mineralized horizon at our 100-per-cent-owned Ferguson Lake nickel, copper, cobalt, palladium and platinum project.

"We are adding the results of 145 new holes drilled in 2021 to 2023 to the project database to update the current mineral resource model (refer to "Independent Technical Report, Updated Mineral Resource Estimate, Ferguson Lake Project, Nunavut, Canada, Prepared by Ronacher McKenzie Geoscience Inc. and Francis Minerals Ltd." filed by the company to SEDAR+ on July 13, 2022), and we expect the new resource model would increase substantial potential resources at the Ferguson Lake project.

"We highly appreciate the strong supports from the shareholders and investors. During Q3, 2023, the company raised $8,057,298 from the flow-through financings to support its aggressive drilling and other exploration programs at the Ferguson Lake project. The company also received $75,000 from the early exercise of warrants by our shareholders.

"Subsequent to the end of the quarter, the company has received $1,700,001 from the early exercise of warrants by the shareholder of the company.

"In addition, the company has also received $61,920 from the early exercise of options by our staff and consultants to date."

The company engaged in the following activities in Q3:

• On July 5, 2023, the company announced that KRE Development Co. Ltd., the biggest shareholder of the company, had elected to exercise its warrants ahead of the scheduled expiration of Dec. 31, 2023. KRE exercised 1,437,198 share purchase warrants to purchase one share at $1.50 for aggregate proceeds of $2,155,797 on June 30, 2023. Warrants were issued in connection with the company's offering of units completed prior to listing.
• On July 18, 2023, the company reported the assay results for the 6,151 metres in 21 holes of diamond drilling completed during the spring. The assay results confirmed the near-surface mineralization along the east extension (strike length 1.2 kilometres) of West zone and the west extension (strike length 1.5 km) of East zone across Ferguson Lake.
• On July 27, 2023, the company announced the closing of non-brokered private placement of common shares on a flow-through basis pursuant to the Income Tax Act (Canada), of which 1,031,425 flow-through shares were issued at a price of $2.70 per share for gross proceeds of $2,784,847.50.
• On Aug. 2, 2023, the company announced, further to its news release issued on July 27, 2023, the closing of the first tranche of its non-brokered private placement of 1,082,621 common shares (charity flow-through shares) on a flow-through basis pursuant to the Income Tax Act (Canada) at a price of $2.877 per share for gross proceeds of $3,114,700.62.
• On Aug. 9, 2023, 30,000 share options that were issued on April 5, 2022, were exercised. The company issued 30,000 common shares.
• On Aug. 17, 2023, the Ccmpany announced that it had received an additional grant of $125,000 from the government of Nunavut's Discover, Invest, Grow (DIG) program. This grant comes on the heels of the $250,000 received in May and June, 2023, reaffirming the company's commitment to advancing mineral exploration in the emerging mining region of Nunavut. The company also announced that it had granted to certain officers options to purchase a total of 110,000 common shares of the company at an exercise price of $2.35 per share. The options will expire on Aug. 18, 2028.
• On Aug. 24, 2023, 50,000 Series 1 warrants were exercised at a price of $1.50. The company received the proceeds of $75,000 and issued 50,000 common shares.
• On Sept. 13, 2023, the company completed the issuance of flow-through shares of 2,864,046 shares for proceeds of $8,057,298 at the weighted average price of $2.81 per share. The cost of the issuance of $483,438 was offset by the proceeds of flow-through shares. A flow-through share premium was recognized as a liability on the statement of financial position for $624,747.
• On Sept. 15, 2023, the company announced that it has commenced a market awareness program, aimed at enhancing its market visibility and engagement.
• On Sept. 18, 2023, the company announced it has completed 21,126.50-metre drilling at its 100-per-cent-owned Ferguson Lake base metal (nickel, copper, cobalt) and platinum group metal (PGM, mainly palladium and platinum) project in Nunavut, Canada.
• On Sept. 26, 2023, the company reported the initial partial assay results for 21 holes drilled during the summer, which was a portion of the 21,126-metre 2023 diamond drilling program. The results combined with the results of the drill holes released earlier confirmed that the expansion of the main mineralized zones (West zone and East zone) for over 3,000 metres along the strike.

For the quarter ended Sept. 30, 2023, the company reported a net loss of $1,725,246 or two cents per share.

Subsequent to Q3, the company achieved the following:

• On Oct. 3, 2023, the company announced its participation in the prestigious Mines and Money event, held in conjunction with the International Mining and Resources Conference (IMARC) in Sydney, Australia, Oct. 31 to Nov. 2, 2023.
• On Oct. 11, 2023, the company announced the launch of its newly redesigned website aimed at providing an enhanced on-line experience for its stakeholders, investors and broader public. A total of 333,334 Series 1 warrants were exercised at a price of $1.50. The company received the proceeds of $500,001 and issued 333,334 common shares.
• On Oct. 17, 2023, the company announced that it had commissioned a new mineral resource estimation in accordance with National Instrument 43-101 -- Standards of Disclosure for Mineral Projects for its Ferguson Lake project. The results of 39,270 metres in 145 drill holes completed in 2021 to 2023 would be added to the project database for the new mineral resources estimation. SRK Consulting and EMR were engaged for the independent NI43-101 technical report for the mineral resources estimates.
• On Oct. 23, 2023, 400,000 Series 1 warrants were exercised at a price of $1.50. The company received the proceeds of $600,000 and issued 400,000 common shares.
• On Nov. 2, 2023, 400,000 Series 1 warrants were exercised at a price of $1.50. The company received the proceeds of $600,000 and issued 400,000 common shares.
• On Nov. 7, 2023, the company received the refund of harmonized sales tax from Canada Revenue Agency in full amount plus interest, which amounts to $2,736,046.
• On Nov. 28, 2023, the company reported the assay results for the remaining 26 holes drilled during the summer. The results indicated significant (three to 15 metres) massive or semi-massive sulphide intersections and wide (up to 112.5 metres) disseminated sulphide intersections, confirmed the significant extensions (200 to 450 metres) of three mineralized zones and two new mineralized zones.

For the quarter-end financial statements and management's discussion and analysis, please see the company website or SEDAR+.

Qualified person

The technical contents of this news release have been reviewed by Dr. Trevor Boyd, PGeo, a qualified person as defined by Canadian National Instrument 43-101 standards.

About Canadian North Resources Inc.

Canadian North Resources is an exploration and development company focusing on the critical metals for the clean-energy, electric vehicles, battery and high-tech industries. The company is advancing its 100-per-cent-owned Ferguson Lake nickel, copper, cobalt, palladium and platinum project that covers an area of 253.8 square kilometres of mining leases (96.9 square km) and surrounding exploration claims (156.9 square km) in the Kivalliq region of Nunavut, Canada.

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