That brings Latvia's record at the championship at two losses and a single tie.
While Team Latvia was in the lead for most of the game, the Norwegians scored the tying goal a minute before the end call after substituting their goalie for an extra player.
At that, unlucky Toms Bitmanis had missed the chance to score on an empty net while the Norwegian goalie was on the bench.
Artis Raitums, who scored the final goal for Latvia, was visibly unhappy with the outcome.
"We have to think more about our own game. From a game we had supposedly already won, we became losers - we took the last place in the group," he said.
On Wednesday Latvia will play its first game at the knockout stage against Denmark.
It starts at 7.30 p.m. and will decide whether Latvia keeps its cozy place among the top eight floorball teams in the world.
In the past Latvia has had an edge against Denmark, winning five of the nine matches where they had been pitted against one another and tying in one, according to the floorball.lv website.