Northland Signs Agreement With Peab for the Civil Works at the Kaunisvaara Iron Ore Project

LUXEMBOURG, LUXEMBOURG -- (Marketwire) -- 05/31/11 -- Northland Resources S.A. (TSX: NAU)(OSLO: NAUR)(FRANKFURT: NPK) ('Northland' or 'the Company') is pleased to announce that Peab AB ('Peab') has been engaged to construct all the civil works for the industrial area of the Kaunisvaara Project. The order is valued at approximately SEK 800 million (USD 125 million).

The Agreement covers all the civil works for the Kaunisvaara Project including detailed engineering, earthworks, foundations, buildings and related works. The scope includes crusher stations, conveyor tunnels, stockpile buildings, mill foundations and the construction of the process plant building. Also included are the truck workshop and a number of smaller buildings. Construction of the civil works is expected to be completed in the third quarter of 2012.

'We continue to build our relationship with Peab, a company we have a found to be an excellent partner during the development of the Kaunisvaara Project. Peab is highly experienced with civil works for mining companies in our region,' said Karl-Axel Waplan, President & Chief Executive Officer of Northland Resources S.A. 'Our focus continues to be on bringing the project in on time and on budget.'

The Kaunisvaara Iron Ore Project is located in northern Sweden, approximately 100 km north of the Arctic Circle, in the municipality of Pajala. After completion, the annual capacity of the process plant will be 12 million tonnes of dry iron ore and 5 million tonnes of iron ore concentrate.

Northland is a development-stage mining company with a portfolio of iron ore projects in northern Sweden and Finland. The Company's Kaunisvaara Project will exploit magnetite iron ore deposits, feeding a single, multi-line processing facility in Sweden. The process yields a very high-grade, high-quality magnetite iron concentrate. The Company is also preparing a Definitive Feasibility Study for the Hannukainen Iron Ore Copper Gold Project in northern Finland.

Peab is an innovative construction and civil engineering company which combines the strengths of a large group with those of a local company's ability to crate flexible solutions. Net sales in 2010 were SEK 38 billion and the company employs approximately 14,000 people across the Nordic region. More info on www.peab.com

On behalf of the Board

Karl-Axel Waplan, President & CEO

Northland Resources S.A.

Contacts:

Northland Resources S.A.

Karl-Axel Waplan

President and CEO

46 705 104 239


Northland Resources S.A.

Anders Antonsson

Vice President Investor Relations

46 709 994 970


Northland Resources S.A.

Marguerite Manshreck-Head

Investors Relations, Canada

1 647 224 7882


Northland Resources S.A.

Patrick Foster

Director Finance

44 7710 123 603
www.northland.eu