TriNorth Capital Announces $1.5 million Additional Investment in Russo-Forest Corporation

    TORONTO, Jan. 28 /CNW/ - TriNorth Capital Inc. (TSX: TRT.TO) today
announced it has acquired three million units of Russo-Forest Corporation at a
price of $0.50 per unit, as part of a $5.0 million private placement completed
by Russo Forest. Each unit is comprised of one common share and one share
purchase warrant, with each warrant entitling the holder to acquire one common
share at a price of $1.00 for a period of five years. Upon closing of this
round of financing, TriNorth will own approximately 26% of Russo-Forest. The
Lawrence Partners Fund also invested $1.5 million. Both TriNorth and the
Lawrence Partners Fund are managed by Lawrence Asset Management Inc.
    Russo-Forest plans to use the proceeds of the financing to further
develop its timber operations in the Arkhangelsk Region in northwest Russia
where, through its wholly owned subsidiary SeverLes LLC, it has long term
lease contracts with exclusive rights to harvest timber.

    About TriNorth

    TriNorth Capital Inc. is a TSX-listed company focused on making
investments that provide long-term capital growth through a diversified
portfolio of private and public companies. All investment activities of
TriNorth are managed by Lawrence Asset Management Inc, a leading Canadian
alternative investment asset manager.

    About Russo-Forest

    Russo's principal business activities focus on harvesting wood through
its wholly owned subsidiary SeverLes LLC, in order to satisfy growing demand
for wood products in Russia, Europe and Asia. Russo is focused on
consolidating timberlands in Russia's North West and Far East under long term
lease contracts with exclusive prolongation rights. This timber has good
proximity to end markets and is serviceable with existing infrastructure. As
well, an established local forestry industry provides experienced management
and there is local government support for investment in Russia's forestry

    Cautionary Notes

    With respect to all statements herein relating to Russo-Forest, its
business and its prospects, TriNorth has relied solely upon the management of
    Except for statements of historical fact contained herein, the
information in this press release constitutes "forward-looking information"
within the meaning of Canadian securities law. Such forward-looking
information may be identified by words such as "plans", "proposes",
"estimates", "intends", "expects", "believes", "may", "will" and include
without limitation, statements regarding the stated use of proceeds;
developments in Russia's forest industry; Russo-Forest's assets, plan of
operations and comparative advantages; and benefits of this investment. There
can be no assurance that such statements will prove to be accurate; actual
results and future events could differ materially from such statements.
Factors that could cause actual results to differ materially include, among
others, regulatory risks, risks inherent in foreign operations, commodity
prices, competition, risks inherent in the timber industry, and invests having
no history of operations. Most of these factors are outside the control of the
Company. Investors are cautioned not to put undue reliance on forward-looking
information. Except as otherwise required by applicable securities statutes or
regulation, the Company expressly disclaims any intent or obligation to update
publicly forward-looking information, whether as a result of new information,
future events or otherwise.

    %SEDAR: 00003606E

For further information:

For further information: (416) 362-8282, Marc Robinson, Lawrence Asset
Management Inc., Toronto, Canada

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TriNorth Capital Inc.

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