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Press release from Marketwire

Northland Signs Agreement with FineWeld for Process Water Systems

Wednesday, July 06, 2011

Northland Signs Agreement with FineWeld for Process Water Systems03:03 EDT Wednesday, July 06, 2011LUXEMBOURG, LUXEMBOURG--(Marketwire - July 6, 2011) - Northland Resources S.A. (TSX:NAU)(OSLO:NAUR)(FRANKFURT:NPK) – ("Northland" or "the Company") is pleased to announce an agreement with FineWeld Group ("FineWeld") for the supply of water systems from the Muonio River to the Kaunisvaara process plant and to associated project sites. The value of the contract totals USD 41.7 million and comprises engineering and design, all pump stations and related civil works as water/piping systems. The total length of pipeline is approximately 40 km. The installation will start immediately and the delivery is expected to be completed by the third quarter of 2012."We are pleased with the agreement with FineWeld," says Shane Williams, Vice President Projects of Northland Resources S.A. "FineWeld is one of the leading and largest manufacturers of piping for industry projects. Our decision to work with FineWeld was based upon their reputation for high quality product and service. This agreement aims to ensure that deliveries will be timely, and we look forward to building a reliable collaboration with them." 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 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 Oxide Copper Gold Project in Kolari, northern Finland.FineWeld is a privately owned company with its main office and workshop located in Kokkola, Finland. FineWeld offers complete process deliveries to industry investment projects and deliveries typically consist of piping system with related equipment and steel structures. FineWeld has been involved in all of the larger mining projects in Scandinavia in the recent years. Due to the high prefabrication degree and efficient installation FineWeld supplies piping globally to industrial projects. More information can be found on www.fineweld.fiKarl-Axel Waplan, President & CEO Northland Resources S.A. FOR FURTHER INFORMATION PLEASE CONTACT: Shane WilliamsNorthland Resources S.A.Vice President - Projects+46 767 61 61 81OREva KaijserNorthland Resources S.A.CFO+46 709 32 09 01ORAnders AntonssonNorthland Resources S.A.Vice President - Investor Relations+46 709 994 970ORMarguerite Manshreck-HeadNorthland Resources S.A.Investors RelationsCanada: +1 647 224 7882www.northland.eu