TORONTO, Dec. 13 /CNW/ - Northern Financial Corporation (TSX: NFC) ("Northern" or the "Company") responded today to a request from the Investment Industry Regulatory Organization of Canada ("IIROC") to comment on the recent appreciation in the Northern share price from the $0.08 closing price on December 6 to a $0.25 level in trading today.

Northern previously announced on November 16 an agreement in principle with the holders of $3,163,000 of its debentures to repay the total principal amount by a combination of cash and by conversion into common shares.  Upon repayment of the debentures, Northern will have no debt other than approximately $300,000. Northern also announced on November 22 the filing of a preliminary short form prospectus with certain securities regulatory authorities relating to a financing of up to $5,000,000 in order to fund the retirement of the debentures and for general corporate and working capital purposes.  

As announced by the TMX Group Inc. on November 3, 2010, the Toronto Stock Exchange (the "TSX") is reviewing the common shares of Northern with respect to meeting the continued listing requirements.  Northern was granted 120 days to regain compliance with the requirements. Northern's non-compliance related to its publicly held market capitalization (which does not include the market capitalization relating to the insiders of Northern) being less than the minimum publicly held market capitalization required by the TSX.   If the debenture restructuring is completed, Northern will request the TSX to confirm compliance with the continued listing requirements.   Northern's failure to maintain full compliance with the listing requirements may have contributed in part to a decline in its share price of $0.185 from November 2 to $0.08 on December 6.  

Other than as stated in this press release and previous press releases, Northern is not aware of any corporate developments to account for the recent price increase from $0.08 on December 6 to the $0.25 level in today's trading.   It should be noted that the 200 day moving average for Northern's share price is $0.25.  Management believes that Northern shares are substantially undervalued at 0.6 times Enterprise Value to Revenue compared to its peer group of small cap investment banks valued at an average of 2.2 times Enterprise Value to Revenue.  

Northern has 13,518,717 shares issued and outstanding as at December 13, 2010.  

About Northern Financial Corporation

Northern Financial Corporation wholly owns Northern Securities Inc., a full service investment dealer that provides financial advisory services to retail and institutional clients and investment banking services to small capitalization companies.

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this news release. This press release may contain forward-looking statements with respect to the Company, its operations, strategy, financial performance and condition. These statements generally can be identified by use of forward looking words such as "may", "will", "expect", "estimate", "anticipate", intends", "believe" or "continue" or the negative thereof or similar variations. The actual results and performance of the Company discussed herein could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, changes in government regulations and the factors described under "Risk Factors" in the Management's Discussion and Analysis and Filing Statement of the Company which are available at The cautionary statements qualify all forward-looking statements attributable to the Company and persons acting on their behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and the Company has no obligation to update such statements.

SOURCE Northern Financial Corporation

For further information: For further information:

Vic Alboini  
Chairman and CEO
(416) 644-8110 
        Doug Chornoboy
Senior Vice President and CFO
(416) 644-8150  

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Northern Financial Corporation

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