Northcore provides funding activity update

    Restructures Series G convertible notes; Issues new note series


    TORONTO, June 12 /CNW/ - Northcore Technologies Inc. (TSX: NTI;
OTCBB:NTLNF), a global provider of core asset solutions, announced today that
it is restructuring the terms of its Series G convertible notes with existing
holders. The notes, which raised proceeds of $1.71 million in June 2004,
mature on June 15, 2007.
    Under the amended terms, Northcore will issue holders of Series G notes
up to 3.52 million common shares towards an interest debt repayment of
$528,000. Shares issued to holders of Series G notes will be priced at $0.15
each. The transaction, which is expected to close on or about June 15, 2007,
has received approval from the company's board of directors and appropriate
market regulators.
    Subsequent to the interest debt repayment, the company will issue a new
series of secured convertible debentures to existing holders of Series G
notes. The new notes, identified going forward as Series K, will have an
issued value of up to approximately $1.63 million. Northcore will disclose the
terms and conditions of the Series K notes upon closing, which is expected on
or about June 15, 2007.
    "The restructuring of our Series G notes allows us to improve our
cashflow position and sustain our operations," said Jeff Lymburner, CEO of
Northcore Technologies Inc. "In addition, the restructuring will enable us to
execute our business plan, which since our name change, has resulted in
quarter-over-quarter improvements in corporate performance."

    This news release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of securities in
any jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of such

    About Northcore Technologies Inc.
    Northcore Technologies provides core asset solutions that help
organizations source, manage and sell their capital equipment. Northcore works
with a growing number of customers and partners in a variety of sectors
including oil and gas, government, and financial services. Current customers
include GE Commercial Finance, Paramount Resources and Trilogy Energy Trust.
    Northcore owns a 50 percent interest in GE Asset Manager, a joint
business venture with GE.

    This news release may include comments that do not refer strictly to
historical results or actions and may be deemed to be forward-looking within
the meaning of the Safe Harbor provisions of the U.S. federal securities laws.
These include, among others, statements about expectations of future revenues,
cash flows, and cash requirements. Forward-looking statements are subject to
risks and uncertainties that may cause Northcore's ("the Company") results to
differ materially from expectations. These risks include the Company's ability
to raise additional funding, develop its business-to-business sales and
operations, develop appropriate strategic alliances and successful development
and implementation of technology, acceptance of the Company's products and
services, competitive factors, new products and technological changes, and
other such risks as the Company may identify and discuss from time to time,
including those risks disclosed in the Company's Form 20-F filed with the
Securities and Exchange Commission. Accordingly, there is no certainty that
the Company's plans will be achieved.

    %SEDAR: 00019461E

For further information:

For further information: At Northcore Technologies Inc.: Joe Racanelli,
Tel: (416) 640-0400 ext. 273, Fax: (416) 640-0412, E-mail:

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