Clarification Press Release - NewNorth announces voluntary cancellation of unvested options by executive team

    CALGARY, April 15 /CNW/ - On January 29, 2009 NewNorth Projects Ltd. (NNP
- TSXV) announced the cancellation of 380,000 granted, but unvested options.
    The options were voluntarily cancelled by members of NewNorth Projects
Ltd.'s executive team, in response to current economic conditions. Since the
Company's announcement on January 29, 2009 it has been established that the
appropriate accounting treatment for the cancellation of the options will not
result in a reduction in expense of $360,000 over the remaining life of the
cancelled options, commencing the fiscal year ended December 31, 2008 as
previously announced. As a result, the cancelled options were expensed in
their entirety in the fiscal year ended December 31, 2008, rather than over
the remaining vesting period of the options.
    The cancellation of the options is a one time non-cash expense and does
not affect the value of NewNorth.
    No new options were granted, nor any other type of consideration paid or
agreed to be paid to any member of the executive team in consideration of the
    In May, 2006 the corporation's shareholders approved Share Option Plan,
and 1,050,000 options have been granted thereunder at an exercise price if
$1.20 per share. All of the outstanding options, including those cancelled,
vest annually in equal amounts over a five year period commencing July 25,
2006 and expiring July 25, 2016.
    The total cost of the options is established based on fair market value
at the date of grant. Total fair market value of the 380,000 cancelled options
was determined using the Black-Scholes option pricing model, at $361,249.

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

    The TSX Venture Exchange does not accept responsibility for the adequacy
    of accuracy of this release.

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

For further information:

For further information: Mr. Greg N. Herndier, Chief Executive Officer
or Ms. Katherine Ayotte, Chief Financial Officer at (403) 531-0280

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