NewNorth Announces Results for the Quarter Ending June 30, 2012

    




 CALGARY, Aug. 28, 2012 /CNW/ - NewNorth Projects Ltd. ("NewNorth")   today announced its financial results for the quarter  ending June 30, 2012. 

 Mr. Greg Herndier, President and Chief Executive Officer of NewNorth,  reports a net loss after tax for the six months ending June 30, 2012 of  $671,000 which includes debenture interest of $23,000. 

 After tax loss per share, basic and diluted is $0.06. 

 Select information: 




        --  NewNorth sold its 50% interest in a development project in
            Yellowknife, NWT on June 1, 2011.  The gross proceeds of the
            sale were $978,000. 

        --  NewNorth received a loan of $500,000 from an unrelated party. 
            The full amount of the loan is due on November 12, 2012. The
            interest rate on the loan is 10% per annum and the loan is
            unsecured.

        --  NewNorth received $500,000 in financing in July 2012 from one
            of the independent directors on NewNorth's Board of Directors. 
            Full payment of the loan is required on January 03, 2013 with
            an option, at NewNorth's discretion, to extend the loan for six
            months longer.  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 in Cochrane, AB.

        --  NewNorth discontinued its Employee Share Purchase Plan in July
            2012.

        --  At June 30, 2012, the Company's current ratio (current assets
            to current liabilities) is 8.02:1 and the adjusted debt to
            equity ratio is 0.33:1 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.




 Management believes that the value of the net assets of NewNorth  significantly exceeds the current share value. 

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

 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. 



NewNorth Projects Ltd.


CONTACT:  For additional information, please contact Mr. Greg N. Herndier,ChiefExecutive Officer or Mrs. Shannon Cook, Controller at [phone]. 


    

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