Northland Resources Operational Update-May 2013

LUXEMBOURG, LUXEMBOURG -- (Marketwired) -- 05/31/13 -- Northland Resources S.A. (OSLO: NAUR)(FRANKFURT: NPK)(OMX: NAURo) ("Northland" or the "Company") announces its eight bi-monthly operational and construction update on the Kaunisvaara project. During this period, March 23 - May 30, 2013, Northland has among other things delivered three shipments of iron ore concentrate.

--  The second shipment with approximately 54,000 tonnes iron ore
    concentrate left the Port of Narvik on April 29 for Arcelor Mittal in
    Ghent, Belgium
--  The third ship departed Narvik on May 4, loaded with approximately
    56,000 tonnes iron ore concentrate destined for Sahaviriya Steel
    Industries in the United Kingdom
--  On May 29 the fourth ship left Narvik, with approximately 57,000 tonnes
    of iron ore concentrate destined for Tata Steel in IJmuiden
--  The storage building in Narvik was operational mid-March, allowing a
    more cost-efficient loading of ships
--  The Company plans to produce 1.2 million tonnes in 2013 and to reach the
    production capacity of approximately 4.0 million tonnes per annum at the
    end of third quarter of 2014
--  Due to the current financial situation and the ongoing reorganization of
    Northland's three Swedish subsidiaries, the Company has reduced its
    capital expenditure program to a level adapted to the situation
--  On May 24, Northland halted its operations after a decision by the bond
    trustee to accelerate and enforce the bank account pledge. The
    operations are expected to resume following the bondholders' meeting to
    be held on Tuesday June 4, 2013. More details are available in the press
    release dated May 29
--  The Company announced on May 29 that it has received a significant new
    commitment of USD 108 million for a subscription in a bond on
    commercially the same terms as those announced in the press release
    dated May 20, 2013. The commitment comes from a consortium consisting of
    Folksam, Metso Corporation, Norrskenet AB and Peab AB. In addition, the
    three existing bondholders who previously intended to subscribe for a
    quarter of the cancelled bond issue, reconfirms and increases their
    intended subscription in the Offering to at least USD 120 million.
    Together with the commitment from the consortium, the Company believes
    it will be in a position to complete the bond offering totaling USD 335
    million. The subscription period for the offering will end today at
    10:00 p.m. CET.

THE MINE AND PROCESSPLANT

--  The first Kaunisvaara process line is in production

PRODUCTION

--  Due to the decision by the bond trustee on May 24, Northland has
    currently halted its operations. During the latter part of the ramp-up
    period the Company were producing approximately 3,000 tonnes or iron ore
    concentrate per day
--  The quality of the product is well in line with planned specifications
--  In the beginning of May, the Company started to operate a Cat hydraulic
    shovel, model 6060. This big shovel will, in combination with the four
    793 trucks, allow a more cost efficient production

THE LOGISTICS CHAIN

--  The logistics chain is operating as planned. In total, approximately
    265,000 tonnes of iron ore concentrate have been transported to Narvik
--  The rented box cars will be used until the arrival of the specially
    designed railcars from Kiruna Wagon in July 2013
--  To date 40 railcars have been manufactured according to Northland
    specification. Kiruna Wagon is currently manufacturing two rail cars per
    week. The first train with Northland's rail cars will have 28 railcars
    and is expected to start operating in the third quarter
--  Approximately 220,000 tonnes of iron ore concentrate has been shipped
    out of the Port of Narvik

Pitkajarvi trans-loading terminal

--  The Pitkajarvi trans-loading terminal is now fully operational

The Port

--  Permits necessary for a temporary solution for the Fagernes Terminal in
    the Port of Narvik are in place
--  The terminal is operated by Grieg Logistics AS
--  Construction of the permanent Fagernes Terminal remains on schedule and
    is expected to be completed in August, 2013
    --  Construction of the storage building is completed
    --  Quay construction is completed
    --  One out of two boom stackers has been delivered
    --  Unloading facilities expected to be operational in July 2013
    --  The ship-loader is expected to be operational in the third quarter
        2013

Health & Safety

Lost Time Injury Frequency Rate ("LTIFR"), according to the Swedish standard from the end of April 2012 until end of April 2013 was 5.06 (4.32) for the previous rolling twelve month period. The corresponding number according the international standard for the same period was 0.76 per 200,000 worked hours (previous period: 0.74)

There were three lost time injuries reported, both according to International and Swedish standards, during four months of 2013 (January-April 2012: 1 incident). A total of 108 near hits were reported for the period January-April 2013 (January-April: 69 near hits).

About the Operational Update

As Northland is currently finalizing its long term funding, which includes a new first-lien bond, this edition of the Operational Update is the final issue in this format.

Karl-Axel Waplan, President & CEO, Northland Resources S.A.

Northland is a producer of iron ore concentrate, with a portfolio of production, development and exploration mines and projects in northern Sweden and Finland. The first construction phase of the Kaunisvaara project is complete and production ramp-up started in November 2012. The Company expects to produce high-grade, high-quality magnetite iron concentrate in Kaunisvaara, Sweden, where the Company expects to exploit two magnetite iron ore deposits, Tapuli and Sahavaara. Northland has entered into off-take contracts with three partners for the entire production from the Kaunisvaara project over the next seven to ten years. The Company is also preparing a Definitive Feasibility Study ("DFS") for its Hannukainen Iron Oxide Copper Gold ("IOCG") project in Kolari, northern Finland and for the Pellivuoma deposit, which is located 15 km from the Kaunisvaara processing plant.

Cautionary Statement

This press release may include "forward-looking" statements and "forward-looking information" within the meaning of applicable securities laws. These forward-looking statements and forward-looking information may be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative, or other variations or comparable terminology. Forward-looking statements and forward-looking information include all matters that are expectations concerning, among other things, Northland's results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which it operates, projected capital and operating expenditures, production and price forecasts, assumed exchange rates and the company's anticipated funding requirements and sources thereof. By their nature, forward-looking statements and forward-looking information involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Such factors include, among others, those factors discussed in the section entitled "Risk Factors" in the Company's annual information form dated March 28, 2013, and the Company's management discussion and analysis of results of operations and financial condition ("MD&A") for the year ended December 31, 2012 and as updated in this press release. Readers are cautioned that forward-looking statements and forward-looking information are not guarantees of future performance and that Northland's actual results of operations, financial condition and liquidity, and the development of the industry in which it operates may differ materially from those made in or suggested by the forward-looking statements and forward-looking information contained in this press release. In addition, even if Northland's results of operations, financial condition and liquidity, and the development of the industry in which Northland operates are consistent with the forward-looking statements and forward-looking information contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods.

The distribution of this press release may be restricted by law in certain jurisdictions. The Company assumes no responsibility in the event there is a violation by any person of such restrictions. Persons into whose possession this announcement should come are required to inform themselves about and to observe any such restrictions. The Offering will only be available in the United Kingdom to persons who are both (a) qualified investors within the meaning of Article 2(1)(e) of the Prospectus Directive (Directive 2003/71/EC) and (b) persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the Order). The Offering is only available to relevant persons or will be engaged in only with relevant persons.

This press release is not for distribution, directly or indirectly in or into any jurisdiction in which it is unlawful to make any such distribution or where prior registration or approval is required for that purpose. No steps have been taken or will be taken in any jurisdiction outside of Norway or Canada in which such steps would be required. The publication of this announcement shall not under any circumstances imply that there has been no change in the affairs of the Company or that the information contained herein is correct as of any date subsequent to the earlier of the date hereof and any earlier specified date with respect to such information.

This press release is not an offer to sell, or the solicitation of an offer to buy or subscribe for securities in the United States. Securities may not be offered or sold in the United States absent registration under the U.S. Securities Act or an exemption from, or in a transaction not subject to registration. The offer and sale of any securities referred to herein has not been and will not be registered under the U.S. Securities Act or under the applicable securities laws of the United States.

This press release does not constitute an offering circular or prospectus in connection with any offering of securities of the Company. Investors must neither accept any offer for, nor acquire, any securities to which this announcement refers, unless they do so on the basis of separate documentation prepared for the purpose of such offerings. This press release does not constitute an offer to sell, or the solicitation of an offer to buy or subscribe for, any securities and cannot be relied on for any investment contract or decision.

This information is subject of the disclosure requirements according to sections 5-12 of the Norwegian Securities Trading Act (Norwegian: verdipapirhandelloven), as well as the requirements of the Luxembourgish Transparency Law.

Contacts:

Northland Resources S.A.

Karl-Axel Waplan

President and CEO

+46 705 104 239


Northland Resources S.A.

Eva Kaijser

CFO

+46 709 320 901


Northland Resources S.A.

Petter Brunnberg

Investor Relations

+46 727 244 109
www.northland.eu