Mr. Kaihui Yang reports

ANNOUNCES PRIVATE PLACEMENT OF CONVERTIBLE PROMISSORY NOTES

Canadian North Resources Inc. has authorized and approved the issuance of a series of promissory notes designated as Series 1 convertible promissory notes for up to an aggregate principal amount of $2-million to be repaid by the corporation, together with interest at the rate of 10 per cent per annum by July 31, 2027. The principal amount of each note is convertible by the holders into common shares of the corporation at a conversion price of 25 cents per common share, for an aggregate of up to eight million common shares of the corporation.

In that a director of the corporation will be participating in the private placement, the private placement is a related party transaction within the meaning of TSX Venture Exchange Policy 5.9 which has adopted Multilateral Instrument 61-101, which in turn requires the corporation to obtain minority approval of the corporation's shareholders of the related party transaction unless there is an exemption from such requirement. The corporation is relying on the exemption in Section 5.7(1)(a) of MI-61-101 on the basis that the fair market value of the securities to be distributed to the related party will be less than 25 per cent of the market capitalization of the corporation.

The proceeds of the financing will be applied to working capital of the corporation.