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Press release from Marketwire

Northland Obtains Final Approval to Operate an Iron Ore Terminal in Narvik

Thursday, August 25, 2011

Northland Obtains Final Approval to Operate an Iron Ore Terminal in Narvik09:30 EDT Thursday, August 25, 2011LUXEMBOURG, LUXEMBOURG--(Marketwire - Aug. 25, 2011) -Northland Resources S.A. (TSX:NAU)(FRANKFURT:NPK)(OSLO:NAUR) ("Northland" or "the Company") is pleased to announce that the agreement between the Port of Narvik and Northland today was confirmed by the Board of Narvik Havn KF. The agreement grants Northland the permit to lease the Narvik Terminal, Fagernes, south of the city centre. A temporary shipping facility will be constructed on the site and will consist of a quay, a depot, a conveyor belt, a de-icing facility, and an unloading facility for the railcars and railway lines.The agreement is for a minimum of 10 years and Northland will work actively together with Narvik Havn towards establishing a permanent shipping facility in or around the Narvik area to be ready after that period."Narvik has been a significant port for shipment of iron ore for more than one hundred years. Its experience in handling bulk products and its geographic advantages were the key reasons why Northland selected Narvik a year ago", said Karl-Axel Waplan, President & Chief Executive Officer of Northland Resources S.A. "We are very pleased that the Narvik Authorities have provided the final approval which will allow us to start construction of the new terminal and ancillary infrastructure so that it will be ready for the first shipment of high-grade, high quality iron concentrate from our mines in Kaunisvaara at the beginning of 2013.""The Port of Narvik, as the major ore port in Scandinavia, is satisfied to have come to an understanding with Northland in establishing port possibilities for shipping iron ore", said the Chairman of the Board of Narvik Havn KF, Mr. Hans Larsen.As previously announced, Northland has signed a letter of intent with three specialist logistic companies to manage and develop the transportation solution between the Kaunisvaara mines and the port of Narvik. The three partners are Savage Service Corporation, Peab and Grieg Logistics. Savage will carry 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.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.Port of Narvik is since 1902 the key shipping point for the products from LKAB's mines in Kiruna. Narvik is ice free throughout the year, and accommodates the largest ships expected to carry Northland's products to customers in Europe, Middle-East and Asia as of the beginning of 2013.Karl-Axel Waplan, President & CEONorthland Resources S.A.Note: To view the photo associated with this release, please click the following link: http://media3.marketwire.com/docs/nau0825.pdf.FOR FURTHER INFORMATION PLEASE CONTACT: Karl-Axel WaplanNorthland Resources S.A.President and CEO+46 705 104 239www.northland.euORAnders AntonssonNorthland Resources S.A.Vice President Investor Relations+46 709 994 970ORMarguerite Manshreck-HeadNorthland Resources S.A.Investors Relations, Canada+1 647 224 7882ORRune Johan ArnoyPort of NarvikPort Director+47 9155 0372ORHans LarsenPort of NarvikChairman of the Board+47 9015 9818