High North Resources Ltd. (TSXV:HN.P) entered into a letter agreement to acquire Christmas East Graphite Property from Preston Mineral Resources Ltd. for CAD 0.85 million in cash and stock on October 17, 2012. High North Resources Ltd. (TSXV:HN.P) entered into a definitive agreement to acquire Christmas East Graphite Property from Preston Mineral Resources Ltd. on November 15, 2012. Under the terms of the acquisition, High North will pay to Preston a CAD 0.03 million non-refundable deposit upon signing of the letter agreement, CAD 0.1 million in cash on closing of the acquisition and issue to Preston 6 million of its common shares. Additionally, High North will grant to Preston a royalty of 3% of net smelter returns from graphite produced from the property and from any additional property acquired by High North within five kilometers of the boundary of the property. High North shall have the option to buy back the royalty where High North may buy back 1% for CAD 1 million and an additional 1% for an additional CAD 1 million.

High North will conduct a non-brokered private placement pursuant to which it will issue up to 6 million units at a price of CAD 0.12 per unit for gross proceeds of up to CAD 720,000. The financing will close in two tranches, the first of which will be completed prior to the completion of the transaction for gross proceeds of up to CAD 0.1 million. Proceeds from the first tranche will be used to fund the costs of the acquisition.

The acquisition is subject to completion of private placement, completion of customary due diligence reviews, completion of approved expenditures on the property, approvals from the exchange, approvals from minority shareholders and receipt by High North by November 15, 2012 of a NI 43-101 technical report.

High North Resources Ltd. (TSXV:HN.P) cancelled the acquisition of Christmas East Graphite Property from Preston Mineral Resources Ltd. on December 20, 2012.