NORTHERN SECURITIES REPORTS SECOND QUARTER OF FISCAL 2011 PROFIT OF $90,000

(TSX: NFC)

TORONTO, Nov. 3 /CNW/ - Northern Financial Corporation (TSX: NFC) ("Northern" or the "Company") today announced a profit of $90,690 in its wholly owned subsidiary, Northern Securities Inc. ("Northern Securities") for the second quarter ended September 30 of its fiscal year ending March 31, 2011.  The second quarter profit is an improvement from the loss of $212,917 in the same period in the prior fiscal year.  Northern Securities has now generated positive net income for four consecutive quarters ended September 30 and expects to report positive net income in the month of October 2010.  Revenue in the second quarter for Northern Securities was $2,461,757.

Northern Securities is focused on maintaining and enhancing profitability. Northern Securities supports small cap and mid cap companies in raising capital, providing merger and acquisition advisory services, providing research coverage, marketing companies to institutional investors, and providing market liquidity in the shares of such companies.  

Northern reported a loss of $441,773 for its second quarter ended September 30, 2010, in its 2011 fiscal year, compared to a loss of $126,972 in the prior year.  Included in net income was a loss of $33,464 representing the Company's share of the loss of its associated company, Jaguar Financial Corporation ("Jaguar"), compared to a gain of $100,781 in the prior year.

Total revenue for the Company remained relatively consistent, at $2,554,481 in the quarter ended September 30, 2010, compared to $2,499,424 in the prior year.  Total expenses for the quarter ended September 30, 2010, were $2,927,824 compared with expenses of $2,727,177 in the prior year. 

For the six months ended September 30, 2010, the Company's net loss was $936,984 compared to a loss of $741,552 in the prior year.  Revenue decreased to $4,457,794 from $5,519,959 while expenses decreased to $5,542,176 from $6,329,417.   The Company's share of the earnings of Jaguar was $182,364, compared to $67,906 in the prior year.

Northern Securities reported net income of $498,066 for the six months ended September 30, 2010, compared to a loss of $338,691in the prior year.

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 www.sedar.com. 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.

For further information:

Vic Alboini                            or              Doug Chornoboy

Chairman and CEO                                Senior Vice President and CFO

[phone]                                      [phone]