Northern Financial closes first tranche of public offering and retires debt

On March 30, 2011, Northern Financial Corporation (TSX: NFC) announced that it had closed the first tranche of its short form prospectus offering. 6,666,667 common shares were issued for total gross proceeds of $2,000,000 and an aggregate of 4,718,331 common shares were issued to settle $1,415,500 of outstanding debt. In addition, $1,773,208 of the proceeds of the offering were used to repay the remainder of the Northern Financial's outstanding debentures. Following repayment Northern has retired an aggregate of approximately $3.2 million in debt and has no debentures remaining outstanding.

The common shares were issued pursuant to the Northern Financial's short form prospectus dated February 25, 2011. The offering was sold on an agency basis by a syndicate comprised of Northern Securities Inc. and Byron Capital Markets Ltd. (the "agents").

The agents were advised in this transaction by Fasken Martineau with a team that included Sean Stevens, Amira Abouali and Andrew Teehan.