Northland Signs a Letter of Intent with Logistics Specialists to Manage the Kaunisvaara Logistics Solution

LUXEMBOURG, LUXEMBOURG -- (Marketwire) -- 08/04/11 -- Northland Resources S.A. (TSX: NAU)(OSLO: NAUR)(FRANKFURT: NPK) ('Northland' or 'the Company') is pleased to announce that the Company has signed a letter of intent with three logistic specialist companies to manage and develop the logistics solution between the Kaunisvaara mines and the port of Narvik.

'We are pleased to welcome Grieg Logistics and Savage Services Corporation as partners in our ambition to build a strong and cost-efficient logistic chain', said Karl-Axel Waplan, Northland's President and CEO. 'Together with Peab, we now have a corporation with three well renowned companies with long-term expertise and commitment to build a strong partnership.'

The letter of intent signed today will replace the previously announced letter of intent with Peab. Northland will commission its partners to organise and manage the entire logistic chain from Kaunisvaara to the vessels in the port of Narvik.

The intention is that:

--  Savage shall assume the overall responsibility for the coordination,
    management and cooperation between the three parties and coordinate the
    work program. In addition, Savage will ensure an appropriate railway
    transport solution through the procurement of subcontractors and rail
    operators.

--  Peab will be responsible for the operation of road transport by truck as
    well as the construction of the infrastructure necessary at the
    Svappavaara terminal and Port of Narvik.

--  Grieg Logistics will be responsible for the operation of the terminal
    facility in the port of Narvik.

The agreement is expected to be finalised and signed before the end of third quarter of 2011.

The Kaunisvaara iron ore project is located in Northern Sweden, approximately 100 km north of the Arctic Circle, in the municipality of Pajala. After the completion, the annual capacity of the process plant will be 12 million tonnes of iron ore. Production is expected to be 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 two magnetite iron ore deposits in Sweden. The process will yield a very high-grade, high-quality magnetite iron concentrate. The construction of the Kaunisvaara project is well underway and production is planned to start in the 4th quarter of 2012. Northland has entered into industrial off-take contracts which will last for 7-8 years for the entire production from Kaunisvaara. The Company is also preparing a Definitive Feasibility Study for the Hannukainen Iron Oxide Copper Gold Project in Kolari, northern Finland. The study is expected late in the 4th quarter of 2011.

Savage is an Innovative Supply Chain Solutions company, dedicated to creating value for customers who depend on the Savage team to move and manage critical materials with worry-free consistency. The company is an international leader in providing project management, design, engineering, and logistics systems for mining, chemical, railroad, oil refining and electric power generation customers. Savage also owns and/or operates large bulk terminals and over 40 transload facilities, which specialize in handling a diverse range of industrial commodities. Savage has 150 operations in 36 US states and five Canadian provinces.

For more information on Savage, please visit www.savageservices.com.

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 create flexible solutions. Net sales 2010 were SEK 38 billion and the company employs approximately 14,000 people across the Nordic region. For more information, go to www.peab.com.

Grieg Logistics, established in 1969 as a separate business unit within the Grieg Group, is a leading provider of ship services and terminal operations to oil & gas, shipping, offshore, maritime and general industries. Grieg Logistics is the manager of the Exxon and Alcoa terminals in Norway. The Grieg Group is a privately owned line of companies which operates globally within a variety of business areas: shipping, logistics, ship broking, fish farming, insurance, investments and renewable energy. The Grieg Group operating revenues totalled NOK 5.1 billion in 2010 with approximately 1,700 employees. The structure as a family owned business, together with the strength of the company culture and the dedicated employees, enables the Grieg Group to always view business in a long-term perspective, and be responsive to changes in the business environment. For more information, go to www.grieg.no.

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
www.northland.eu