High North Resources Announces Proposed $10,000,400 Financing for Expanded Core Area Block A & H Drilling Program

CALGARY, ALBERTA--(Marketwired - July 28, 2014) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

High North Resources Ltd. (TSX VENTURE:HN) (the "Company" or "High North") is pleased to announce that it has entered into an agreement with GMP Securities L.P. ("GMP"), National Bank Financial Inc. ("NFB"), and Integral Capital Markets as co-lead agents and Beacon Securities Ltd. (collectively, the "Agents") and with GMP and NBF acting as co-bookrunners (collectively the "Bookrunners") for a private placement on a commercially reasonable efforts basis of: up to 11,112,000 common shares (the "Common Shares") in the capital of the Company, at a price of $0.45 per Common Share, for gross proceeds of up to $5,000,400, and up to 9,091,000 common shares in the capital of the Company, to be issued on a "flow-through" basis under the Income Tax Act (Canada) (the "Flow-Through Common Shares"), at a price of $0.55 per Flow-Through Common Share for additional gross proceeds of $5,000,050. The Offering is for aggregate gross proceeds of up to $10,000,400 (the "Offering").

The completion of the Offering is expected to occur on or about August 20, 2014 and the Common Shares and the Flow-Through Shares issued under the Offering will have a hold period of four months from the date of closing.

The Agents shall be paid a fee equal to 6.0% of the gross proceeds of the Offering.

The Company will initially use the proceeds from the Offering of Common Shares to fund a four well drilling program on the Company's core area found in Block A and Block H. In addition, a portion of the proceeds of the proposed financing will fund the Company's ongoing capital program, inclusive of surface facilities and for general and corporate purposes and, in the case of the Offering of Flow-Through Common Shares, to incur "Canadian Exploration Expenses" (as defined in the Income Tax Act (Canada)) on 08-09-76-21W5M and 05-17-76-215WM, which will be renounced to subscribers for the Flow-Through Shares during the 2014 taxation year.

The Common Shares and the Flow-Through Shares will be sold on a private placement basis pursuant to exemptions from the prospectus requirements to purchasers in Canada and may also be sold in the United States on a private placement basis pursuant to Rule 506 under Regulation D of the United States Securities Act of 1933, as amended, in a manner that does not require the Common Shares and the Flow-Through Shares to be registered in the United States. The Common Shares and the Flow-Through Shares may also be sold outside of Canada and the United States, provided that no prospectus filing or comparable obligation arises.