Northland Moves Forward on the Kaunisvaara Project and the Hannukainen DFS

Luxembourg, December 14, 2010 Northland Resources S.A. (TSX: NAU, OSE: NAUR,
Frankfurt: NPK - "Northland" or "the Company") is pleased to announce that today
the Board of Directors gave approval to begin the implementation phase of the
Kaunisvaara project and to start the Definitive Feasibility Study ("DFS") for
the Hannukainen project.

"The Kaunisvaara project has received strong support from existing and new
investors, off-take parties, vendors such as Caterpillar, and cross-border,
local, regional and central authorities.  In addition, discussions with the
Mandated Lead Arranger banks for the Senior Loan continue with positive decision
by the credit committees received or decisions expected shortly., We feel very
proud to have achieved this important milestone and appreciate all the support
that we have received from all of our stakeholders. " said Anders Hvide,
Chairman of Northland.

With this approval, work will initially focus on these main areas:

Kaunisvaara Project

The next steps are:

1.  To start the necessary work on the mine site including the construction of a
dyke system around the Tapuli mine enabling the de-watering of the wet land
during this summer. The construction of the dykes needs to be completed during
the winter period when the ground is frozen.

2.  To finalise negotiations with the suppliers of the process equipment, to
secure the key contracts for the long-lead items and to finalize the major
contracts for the civil construction during the first months of 2011.

3.  To finalise the negotiations for the construction of the power line to the
site with Vattenfall, a leading Northern European energy company.

Hannukainen IOCG Project

To start the DFS for the Hannukainen project. The PEA which was presented in May
2010 confirmed that the brown field project was technically feasible and
financially positive.  The results included an NPV of USD471 million and an IRR
of 32.5% based on long-term prices of USD 1.10/dmtu Fe, USD 2.20/pound copper
and USD 850/ounce gold.  With production capacity of 2 million tonnes per annum,
scheduled to begin production in 2014/15, the project has a very competitive
OPEX of USD 26.36 per tonne in the first ten years.  The plan is to complete the
Hannukainen DFS by the end of 2011.

Northland is a development-stage mining company with a portfolio of iron
projects in northern Sweden and Finland. Northland's Kaunisvaara Project
contemplates the staged development of magnetite iron ore deposits that would
provide feed to a single, multi-line processing facility in Sweden, producing a
high-grade, high-quality magnetite iron concentrate. The results of the
Feasibility Study on the Kaunisvaara Project were released September 27, 2010.

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

For more information, please contact:

Northland
Karl-Axel Waplan, President and CEO:  46 705 104 239
Anders Hvide, Executive Chairman:  47 92 88 98 58
Eva Kaijser, Chief Financial Officer: 46 70 932 09 01
Marguerite Manshreck-Head, Investors Relations, Canada: 1 647 224 7882

Or visit our website: www.northland.eu



This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)







This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.

Source: Northland Resources S.A. via Thomson Reuters ONE

[HUG#1472218]


Unternehmen: Northland Resources S.A. - ISIN: LU0488722801