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Blue Note and Northern announce acquisition of additional ownership interest in Ursa Major Minerals Incorporated TORONTO, Sep. 21, 2005 (Canada NewsWire via COMTEX) -- Blue Note Metals Inc. ("Blue Note"), a wholly-owned subsidiary of Forest Gate Resources Inc. (TSXV:FGT) ("Forest Gate"), and Northern Financial Corporation (TSX: NFC) ("Northern") on behalf of an investor group, today announced their acquisition of an additional 663,601 common shares of Ursa Major Minerals Incorporated ("Ursa") representing approximately 3.1% of the total issued common shares of Ursa. The Ursa shares were acquired on the TSX Venture Exchange for investment purposes. Blue Note and Northern announced the acquisition of 2,124,200 common shares of Ursa on September 8, 2005 representing approximately 10.01% of the issued common shares. With the acquisition of the additional 663,601 common shares of Ursa, Blue Note and Northern collectively own 2,787,801 representing approximately 13.1% of the total issued common share of Ursa. Blue Note and Northern may acquire additional shares of Ursa or may sell their Ursa shares depending on market conditions. On September 9, 2005 Blue Note presented representatives of Ursa with an indicative term sheet of a possible business combination between Ursa and Blue Note conditional on the proposed transaction with North American Palladium Ltd. ("NAP") not being approved by the Ursa shareholders. The business combination, if implemented, would involve a merger between the two companies with a share exchange ratio based on a price of $0.85 for Ursa shares and the volume weighted average price of the Blue Note shares for the period from the date of its proposed listing on the TSX Venture Exchange to the second business day prior to the mailing of a Joint Management Proxy Circular to obtain the necessary shareholder approvals. Blue Note would also commit to a $1,500,000 financing in Ursa to pay for the costs of the feasibility study on the Shakespeare project, to replace the $1,500,000 payment from NAP. The price offered for the Ursa shares represented a premium of 29% to the closing price of the Ursa shares on the TSX Venture on September 8, 2005. Blue Note and Ursa have not agreed in principle on the terms of the indicative term sheet. Blue Note continues to be interested in a possible business combination with Ursa or in a possible offer to acquire some or all of the Ursa shares, or in the acquisition of control of Ursa by other means such as a replacement of the directors of Ursa by a requisitioned shareholders meeting. Blue Note has not made any decision on these alternatives. Blue Note is a wholly owned subsidiary of Forest Gate. Forest Gate proposes to distribute the issued shares of Blue Note to its shareholders. It is proposed that Blue Note will have precious and base metal properties in New Brunswick provided by Forest Gate and $3.0 million in cash resources, including $2.0 million from a financing raised through Northern Securities Inc. Blue Note has also entered into a letter of intent to acquire the Caribou and Restigouche mines from Breakwater Resources Ltd. Northern Financial Corporation wholly owns Northern Securities Inc., a full service brokerage firm that provides financial advisory services to retail and institutional clients and investment banking services to small capitalization companies. SOURCE: Blue Note Metals Inc. SOURCE: Northern Financial Corporation Michael Judson, Chairman and Chief Executive Officer, Blue Note Metals Inc., [phone] ext. 1; Vic Alboini, Chairman, President and Chief Executive Officer, Northern Financial Corporation, [phone] Copyright (C) 2005 CNW Group. All rights reserved.