Financing approved

Trading Symbol: NRS

VANCOUVER, Aug. 28 /PRNewswire-FirstCall/ - Norwood Resources Ltd. (the "Company) has closed a non-brokered private placement for CDN $6,121,783.05 as previously announced on July 15, 2009.

The funds were raised by way of 'Secured Convertible Promissory Notes'. The Notes have a 2 year term and are secured by way of a general security interest on all of the assets of the Company. A coupon of 10% per annum will be paid semi-annually. The Company has the right to repay the Notes and accrued interest during the term by providing thirty (30) days advance notice to the Note holders. If the Company elects for an early repayment, a 5% penalty/bonus will be paid. The Note holders can elect to convert under the terms of the Notes during the same period. The Notes are convertible into shares of the Company at a price of Cdn$0.07 per share. Subscribers also received a "stand-alone" share purchase warrant for each share into which the notes are convertible. The warrants are exercisable without converting the Notes, at a price of $0.10 per share for two years. The Company will have the right to accelerate conversion of the share purchase warrants if the common shares of the Company trade above Cdn$0.50 for ten consecutive trading days.

Finder's fees in the amount of $125,705.00 will be paid in respect of certain of the subscriptions in accordance with applicable stock exchange policies. Proceeds of the financing will be used to provide working capital and for field exploration activities on the Indoklanicsa concession located in Nicaragua.

    ON BEHALF OF THE BOARD OF DIRECTORS OF
    NORWOOD RESOURCES LTD.

    "Raymond Cahill"

    Raymond Cahill
    President & CEO

                             WE SEEK SAFE HARBOUR

    This press release contains certain forward-looking statements. While
these forward-looking statements represent our best current judgment, they are
subject to a variety of risks and uncertainties that are beyond the Company's
ability to control or predict and which could cause actual events or results
to differ materially from those anticipated in such forward-looking
statements. Accordingly, readers should not place undue reliance on
forward-looking statements.

           THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY
                 FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE

SOURCE Norwood Resources Ltd.