Northern Financial Corporation has received securities regulatory approvals to proceed with a rights offering to raise maximum proceeds of approximately $1.4 million.

The Company will use the net proceeds from this offering to retire debt, to invest capital in Northern Securities, and to augment working capital. Northern Securities Inc., the wholly owned subsidiary of the Company, has been appointed Soliciting Dealer for the rights offering.

Subject to the final approval of the Toronto Stock Exchange, Northern common shareholders of record on Oct. 4, 2002 will be entitled to receive one right for each common share held. Four rights plus $0.025 will entitle a holder to subscribe for one common share prior to 16:30 EST on October 25, 2002.

The TSX has conditionally approved the posting of the rights on the exchange. Subject to filing of required documentation, the rights will begin trading on the TSX on a “when issued” basis on October 2, 2002 and will cease trading at noon on October 25, 2002. If less than the maximum number of common shares offered is subscribed, each shareholder who exercises all of the rights to which they are entitled may subscribe for additional common shares.

Vic Alboini, Northern’s Chairman and Chief Executive Officer has entered into a Standby Agreement to purchase up to $700,000 in common shares not acquired by shareholders through the exercise of rights. As “standby purchaser” he able to terminate the Standby Agreement in certain circumstances.