NewNorth announces results for the three months ended March 31, 2013

CALGARY, May 24, 2013 /CNW/ - NewNorth Projects Ltd. ("NewNorth") (TSXV: NNP) today announced its financial results for the three months ended March 31, 2013.

Mr. Greg Herndier, President and Chief Executive Officer of NewNorth, reports net income after tax for the first quarter of 2013 is $1,000.

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

Select information:

• NewNorth sold the land it owns near Cochrane, AB on March 1, 2013.  The gross proceeds from the sale were $2,000,000.
  
  
• NewNorth received $500,000 in financing in July 2012 from one of its independent directors.  The interest rate on the loan is 10% per annum.  As security for the loan, a mortgage was registered against the title to NewNorth's property near Cochrane, AB.    The loan was paid back to the director on March 1, 2013 with the proceeds received from the sale of the land near Cochrane, AB.  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 annum and the loan was secured by a promissory note.  The loan was from the same party who has entered into an agreement with NewNorth to purchase its 50% interest in 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 the Kinniburgh South Limited Partnership was sold on May 7, 2013.  The gross proceeds from the sale were $3,500,000.

NewNorth is an integrated land and building development corporation operating in Alberta.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: NewNorth Projects Ltd.