NEWNORTH ANNOUNCES RESULTS FOR THE YEAR ENDED DECEMBER 31, 2010

CALGARY, May 2 /CNW/ -- 
CALGARY, May 2 /CNW/ - NewNorth Projects Ltd. (NNP - TSXV) today
 announced its financial results for the year ended December 31, 2010.


Mr. Greg Herndier, President and Chief Executive Officer of NewNorth,
 reports a net loss after tax of $2,636,000 which includes debenture
 interest of $546,000.  The results include a negative revaluation
 adjustment to the Vista Village project of $1,312,000, a loss on an
 investment in subsidiary of $253,000 and a negative revaluation
 adjustment of vacant land held in Inuvik, NT of $173,000.


After tax loss per share, basic and diluted is $0.22.


Select information for the year:


    --  At December 31, 2010, the Company's current ratio (current
        assets to current liabilities) is 15.88:1 and the adjusted debt
        to equity ratio is 0.48:1 which exceeds NewNorth's operating
        loan covenants requirements of a current ratio not to be less
        than 1.25:1 and an adjusted debt to equity ratio not to exceed
        2:1.
    --  A Normal Course Issuer Bid ("NCIB") was entered into in
        January, 2010.  58,000 shares have been purchased in 2010 at an
        average price of 0.44.  Management believes that the value of
        NewNorth significantly exceeds the current stock prices.



Two of management's goals in 2011 are to lower the cost of operating by
 paying out a portion of its debenture payable and to recapitalize the
 Company.  In order to achieve these goals, it is management's intention
 to sell properties that have achieved their maximum value and to sell
 Vista Village, a condominium project in Red Deer, Alberta.  These
 measures will allow management to refocus its efforts on key
 development opportunities.


NNP continues to add value to land holdings by obtaining the necessary
 approvals.  Having those approvals will allow NNP to begin to execute
 development plans.  NewNorth will begin selling the Sheep River Cove
 project, Phase 4, in 2011. 


NewNorth is an integrated land and building development Corporation
 operating in Alberta, the Northwest Territories and Nunavut.


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


The contents of this release have not been approved or disapproved by
 any securities authority or stock exchanges.


To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/May2011/02/c8497.html



p iplease contact Mr. Greg N. Herndier, Chief Executive Officer or Mrs.  Shannon Cook, Controller at [phone]./i /p 

Copyright