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CNRI.V ·

Canadian North Resources Inc. Closes 2ND Tranche of Its Offering of Flow-Through Shares

Financings

NEWS RELEASE

CANADIAN NORTH RESOURCES INC. CLOSES 2ND TRANCHE OF ITS OFFERING

OF FLOW-THROUGH SHARES

Toronto, Ontario, December 22 , 2022: Canadian North Resources Inc. (the “Corporation”)

(TSX-V: CNRI) (FSE: EO0), which is “E-O-zero”) announces that the closing of the second

tranche of its offering of common shares (“Flow-Through Shares”) on a flow-through basis

pursuant to the Income Tax Act (Canada), of which 218,520 Flow-Through Shares were issued at

a price of $2.70 per share for gross proceeds of $1,159,704 (the “Flow-Through Offering).

The gross proceeds of the Flow- Through Offering will be used to fund the Corporation’s

exploration activities targeting critical minerals on the Corporation’s Ferguson Lake project

located in Nunavut, and will also be eligible for the recently announced federal 30% Critical Metals

Exploration Tax Credit.

Finder’s fees will be pa id in cash in an amount equal to 6% of the gross proceeds of the Flow-

Through Offering.

The Flow-Through Shares are subject to a statutory four month hold period, which expires April

22, 2023.

Some insiders of the Corporation participated in part of the second tranche of the Flow-Through

Offering, and that part of the Private Placement is a “related party transaction” within the meaning

of Multilateral Instrument 61- 101 (“MI 61-101”), which requires the Corporation to obtain

“minority approval” of the Corporation’s shareholders of the related party transaction unless there

is an exemption from such requirement. The Corporation is relying on the exemption in Section

5.7(a) of MI 61-101 on the basis that the fair market value of the securities distributed to the related

party is less than 25% of the Corporation’s market capitalization.

About Canadian North Resources Inc.

Canadian North Resources Inc. is an exploration and development company focusing on the metals

for clean-energy, electric vehicles, battery and high-tech industries. The Corporation is advancing

its 100% owned Ferguson Lake nickel, copper, cobalt, palladium, and platinum project in Nunavut,

Canada.

Forward-Looking Statements

The information and statements in this news release contain certain forward-looking information.

This forward-looking information relates to future events or the Corporation’s future performance.

In particular, this document contains forward-looking information and statements regarding the

use of proceeds of the Flow-Through Offering. All statements other than statements of historical

fact may be forward-looking information. This forward-looking information is subject to certain

risks and uncertainties and may be based on assumptions that could cause actual results to differ

materially from those anticipated or implied in the forward-looking information. These

assumptions include that, in respect of the use of proceeds, historical costs and expenses will be

representative of future costs and expenses. The Corporation’s actual results, performance or

achievement could differ materially from those expressed in, or implied by, such forward-looking

information, and accordingly, no assurances can be given that any of the events anticipated by the

forward-looking information will transpire or occur or, if any of them do, what benefits that the

Corporation will derive from them. The Corporation’s forward -looking information is expressly

qualified in its entirety by this cautionary statement. Except as required by law, the Corporation

undertakes no obligation to publicly update or revise any forward-looking information.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION

SERVICES PROVIDER (as that term is defined in the policies of the TSX Venture

Exchange) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR

ACCURACY OF THIS RELEASE.

For further information contact:

Dr. Kaihui Yang, President and CEO

Phone: 905-696-8288 (Canada) 1-888-688-8809 (Toll-Free)

Email: [email protected]