Northland Announces Implementation of Final Steps of Restructuring of Second Lien Bonds

LUXEMBOURG, LUXEMBOURG--(Marketwired - Aug 5, 2013) - Northland Resources S.A. (OSLO:NAUR)(FRANKFURT:NPK)(OMX:NAURo) (together with its subsidiaries "Northland", "NRSA" or the "Company") and Northland Resources AB announces implementation of the final steps of restructuring of the bond loans previously issued by Northland Resources AB.

As previously announced, Northland's Extraordinary General Meeting on July 31, 2013 approved all resolutions. The Board therefore resolved to go through with the contemplated restructuring of the bond loans previously issued by Northland Resources AB with ISIN NO0010636137 and ISIN NO0010636194 (the "Second Lien Bonds"). The Second Lien Bonds are amended into the Second Lien Convertible Bonds on the terms set out in the Second Amendment and Restatement Bond Agreement dated 7 June 2013, between, amongst others, NRSA as issuer of the Second Lien Convertible Bonds and Norsk Tillitsmann ASA as bond trustee on behalf of the holders of the Second Lien Convertible Bonds (the "Second Lien Convertible Bond Agreement"). A copy of the Second Lien Convertible Bond Agreement is available on Stamdata (http://www.stamdata.no).

Having obtained the requisite approvals, Northland is taking all steps necessary to implement the final stages of the restructuring, including making the necessary registrations in the Norwegian Central Securities Depository (Verdipapirsentralen).

Holders of Second Lien Convertible Bonds are reminded that, as per the terms and conditions of the Second Lien Convertible Bonds, those bonds can only be converted on an Interest Payment Date (as defined in the Second Lien Convertible Bond Agreement), the next Interest Payment Date being 15 January 2014; no action may be taken by any Second Lien Convertible Bondholder to convert their bonds before that time.

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.

Forward-Looking Information

This announcement may include "forward-looking" information within the meaning of applicable securities laws. This forward-looking information can 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. This forward-looking information includes all matters that are expectations concerning, among other things, Northland's ability to meet its continuous disclosure and MCTO obligations, the likelihood of Northland rectify its default under Canadian Securities laws, Northland's results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which it operates. By their nature, forward-looking information involves risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Readers are cautioned that forward-looking information is not a guarantee 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 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 information contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods.