NewNorth announces voluntary cancellation of unvested options by executive team

    CALGARY, Jan. 29 /CNW/ - NewNorth Projects Ltd. (NNP - TSXV) today
announced the cancellation of 380,000 granted, but unvested options.
    In response to the current economic conditions, the NewNorth Projects
Ltd. executive team voluntarily cancelled the unvested portion of their
granted options - resulting in reduced expense to the corporation in the
amount of approximately $360,000. 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 cancellation.
    In May, 2006 the corporation's shareholders approved Share Option Plan,
and 1,050,000 options have been granted thereunder at $1.20 per share. All of
the outstanding options (including those to be cancelled) vest annually in
equal amounts over a five year period commencing July 25, 2006 and expiring
July 25, 2016.
    Total cost of the options were established based on fair market value at
the date of grant. Total fair market value of the 380,000 options to be
cancelled was determined using the Black-Scholes option pricing model, at
$931,083, which would be amortized over the vesting life of the Options.

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

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