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Sault Ste. Marie one of two locations left in running for ferrochrome smelter

Sault Ste. Marie’s and Timmins submissions chosen by Noront for next stage of process
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NEWS RELEASES
CITY OF SAULT STE. MARIE
TERRY SHEEHAN, SAULT STE. MARIE MP
NORONT RESOURCES LTD.
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City of Sault Ste. Marie’s submission is one of two selected by Noront Resources Inc. to move on to the next stage of the process to select a site for a Ferrochrome Production Facility.

The Sault Ferrochrome Production Facility Project team is looking forward to continue working with Noront.

The City’s submission was based on comprehensive research and analysis by the project team, in consultation with sector experts. It included detailed responses to the information requested by the company, and focused on competitive advantages such as: location, logistics, industrial workforce and the community.

“I want to thank Noront Resources for their professionalism throughout this process, and I appreciate the working relationship we have developed with its management team,” said Mayor Christian Provenzano. “I was pleased to present our submission in person this past winter. It was a strong submission that resulted from the hard work of our project team members. On that note, I want to thank the members of the project team and I also want to thank our local MP Terry Sheehan and our local MPP Ross Romano for their efforts and support. Today’s announcement means our work on this file is not finished. Moving forward, community and First Nation consultation is an integral aspect of the site selection process. It is important to the leadership of the community, and the community itself, that a broad and substantial effort is made to educate the public about the current technological process involved in a modern Ferrochrome Production Facility. Noront shares this belief and has assured me of its commitment to work with me in this regard.”

During the next stage of this process, Noront will continue discussions with Algoma regarding the location of a potential Ferrochrome Production Facility on the Algoma property.

“A lot of hard work went into producing a high quality, comprehensive submission, and it is great to see it has been well received by Noront.” said Dan Hollingsworth, Project Lead. “Noront has been a tremendous organization to deal with, and I am looking forward to continue working with them. Throughout this process, the company has reiterated its commitment to community engagement along with best-in-class technologies and environmental practices.”

Background Noront Resources, a Canadian-based mining firm, is planning to build a FPF in Northern Ontario that would produce ferrochrome, a key ingredient in stainless steel. Sault Ste. Marie was shortlisted as one of four potential locations, and has been selected as one of the two communities moving forward to the next stage of this process.

Once a community is selected as a feasible site a comprehensive, multi-year environmental assessment process will commence.

Only if the project passes stringent environmental regulations will any construction begin.

The Ferrochrome Production Facility is expected to employ between 300 and 500 people directly, along with more than 1,000 indirectly through suppliers and other businesses.

Construction of the Ferrochrome Production Facility is estimated to cost between $600 and $800 million. Production is expected to begin within five to 10 years.

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MP Sheehan pleased to see Sault short-listed for the NORONT Resources Processing Plant

MP Sheehan first met with Alan Coutts more than two years ago in Ottawa and has met many more times with him and other representatives of NORONT.

"I am pleased that NORONT has decided to continue to work with the Sault's Team on this very important economic project," Sheehan said. "I will continue to work with the Mayor, MPP, Economic Development Corporation, City Staff, members of the community, and other private/public stakeholders to make sure we can demonstrate why the Sault is the best location for this facility."

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TORONTO, ONT. - Noront Resources Ltd. today announced that it has reduced the choice of prospective locations for its proposed ferrochrome production facility (FPF) to two Northern Ontario cities: Timmins or Sault Ste. Marie. Both Thunder Bay and Sudbury have been removed from further consideration.

Four communities participated in the bidding process which began in February 2018.

The submissions were evaluated based on a comprehensive set of criteria determined by Noront and the engineering firm Hatch which was engaged to assist in the adjudication process. Critical factors included environmental and site suitability, capital costs, operating costs and an assessment of community acceptance of hosting the facility.

"The quality of the submissions was outstanding and demonstrated a significant effort by each of the communities involved," said Noront President and CEO Alan Coutts. "They each provided a compelling case that illustrated the merits of their location as a host for the ferrochrome production facility."

While the Sudbury proposal had the lowest operating cost, it included significant capital costs such as site preparation earthworks and reestablishment of critical infrastructure. It also faced strong opposition from the local community.

Thunder Bay, on the other hand had strong community support, including that of Fort William First Nation; however, the presence of a water body transecting the property reduced the environmental acceptability of the site and costly power infrastructure needs created a further issue.

The next and final phase of the site selection process is now underway. It includes substantial negotiation of commercial use terms with the owners of the two favoured sites. Noront expects this stage of definition to be concluded in the fourth quarter of 2018.  

RCF Interest Payment

The Company also announces that payment of interest in the amount of $393,990 for the second quarter of 2018 pursuant to the Convertible Debenture has been satisfied by delivery of 1,071,207 common shares of the Company (the "Interest Shares") at an effective price of $0.3678 per Interest Share. The Interest Shares are subject to a four month hold period, expiring on November 13, 2018.

The calculation of the number of Interest Shares issued was based on the volume weighted average trading price of the common shares of the Company during the 20 trading days prior to June 30, 2018. After giving effect to the private placement, the issuance of shares to Marten Falls First Nation and the Interest Shares, there are 361,913,753 common shares of the Company issued and outstanding.

About Noront Resources

Noront Resources Ltd. is focused on the development of its high-grade Eagle's Nest nickel, copper, platinum and palladium deposit and the world class chromite deposits including Blackbird, Black Thor, and Big Daddy, all of which are located in the James Bay Lowlands of Ontario in an emerging metals camp known as the Ring of Fire. For more information please visit www.norontresources.com.

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

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