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NAI

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Delayed by 15 minutes
Share Name Share Symbol Market Type
TSXV:NAI TSX Venture Common Stock
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0 -

Northern Abitibi Consolidates the Viking District Through a Sale of Viking to Spruce Ridge Resources

14/08/2012 3:18pm

Marketwired Canada


Northern Abitibi Mining Corp. (TSX VENTURE:NAI) ("Northern Abitibi") is pleased
to announce that it has entered into an option agreement with Spruce Ridge
Resources ("Spruce Ridge") whereby Northern Abitibi will sell its 100% percent
interest in the Viking Project to Spruce Ridge Resources in exchange for up to
10,000,000 shares in Spruce Ridge plus cash payments.


Highlights



--  The agreement will consolidate a large land package in the district and
    allow known mineralized trends to be explored along their entire strike
    lengths. The deal will give Northern Abitibi shareholders exposure to a
    much larger land package in the district through the large position they
    will hold in Spruce Ridge.

--  Spruce Ridge is well financed and has a favorable share structure and
    has good potential for share appreciation through continued exploration
    success in the Viking district. 



Terms of the Deal

To earn a 100% interest in the Viking project Spruce Ridge must pay $200,000 in
staged cash payments over 12 months and issue up to 10 million Spruce Ridge
shares. Upon regulatory and shareholder approval Spruce Ridge will pay Northern
Abitibi $50,000 cash and issue 5 million Spruce Ridge shares. Within 6 months
Spruce Ridge must make an additional $50,000 payment, and within 12 months
Spruce Ridge must pay another $100,000 (Spruce Ridge can elect to issue up to
50% of the final cash payment by issuing equivalent shares of Spruce Ridge) and
issue up to 5 million additional shares. If the share price of Spruce Ridge is
between $0.25 and $0.50 cents the 12 month share payment is reduced to 3 million
shares and if the share price of Spruce Ridge is above $0.50 cents the 12 month
share price payment will be 2 million shares.


The agreement will be subject to regulatory and shareholder approval. Northern
Abitibi has a 100% property interest in the Viking project subject to a 2% to 4%
sliding scale net smelter royalty held by Altius Resources. 


Northern Abitibi is currently evaluating exploration opportunities within North
America.


Dr. Shane Ebert, P. Geo. is the Qualified Person responsible for the preparation
of this news release.


Shane Ebert, President/Director

Except for the historical and present factual information contained herein, the
matters set forth in this news release, including words such as "expects",
"projects", "plans", "anticipates" and similar expressions, are forward-looking
information that represents management of Northern Abitibi's internal
projections, expectations or beliefs concerning, among other things, future
operating results and various components thereof or the economic performance of
Northern Abitibi. The projections, estimates and beliefs contained in such
forward-looking statements necessarily involve known and unknown risks and
uncertainties, which may cause Northern Abitibi's actual performance and
financial results in future periods to differ materially from any projections of
future performance or results expressed or implied by such forward-looking
statements. These risks and uncertainties include, among other things, those
described in Northern Abitibi's filings with the Canadian securities
authorities. Accordingly, holders of Northern Abitibi shares and potential
investors are cautioned that events or circumstances could cause results to
differ materially from those predicted. Northern Abitibi disclaims any
responsibility to update these forward-looking statements.


1 Year Northern Abitibi Mining Corp. Chart

1 Year Northern Abitibi Mining Corp. Chart

1 Month Northern Abitibi Mining Corp. Chart

1 Month Northern Abitibi Mining Corp. Chart