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Press release from Marketwire

Capital Markets Day 2012-Northland Announces Latest Milestones

Tuesday, September 25, 2012

Capital Markets Day 2012-Northland Announces Latest Milestones08:00 EDT Tuesday, September 25, 2012LUXEMBOURG, LUXEMBOURG--(Marketwire - Sept. 25, 2012) -Northland Resources S.A. (TSX:NAU)(FRANKFURT:NPK)(OSLO:NAUR) ("Northland" or the "Company") announces key development milestones at its Capital Markets Day in London today: The Kaunisvaara project remains on time, start-up of production is scheduled in November 2012, first revenues are expected in the first quarter of 2013 and positive operational cash flow is expected at the end of second quarter of 2013. The Capital Markets Day 2012 will be webcast at 1.00 pm GMT, 2.00 pm CET and 8.00 am EST. Please go to http://northland.eu/en-us/investor-relations to follow the event live. Key operational and financial milestones include: successful completion of the first blasting of 400,000 tonnes of waste rock at the Tapuli ore body ore processing through Kaunisvaara process plant is expected to start in November 2012 increased estimated production volumes for 2013 and 2014 sufficient funding secured to generate revenues in the first quarter of 2013 positive cash flow from operations expected at the end of second quarter of 2013 Northland's Capex to reach full production (4.0 million dmtpa) is expected to increase to USD 956 million (previously USD 875m). The new Capex is 9% above the February 2012 prediction, given higher costs, upgrades and rail car inclusion. The Company expects that it has sufficient resources with the February 2012 financing, the Cost Overrun Facility and the expected positive cash flow to cover the new Capex estimateExecutive Chairman, Anders Hvide, will introduce the Capital Markets Day with an overview of Northland's differentiated investment proposition. He will highlight why the Nordic region is one of the most attractive mining regions in the world to do business. The region has exceptional exploration potential and a very stable economic and mining friendly environment. The Company also has strong political support from the Swedish Government as well as from the local community.Karl-Axel Waplan, President and CEO, will present the latest developments at the Kaunisvaara mine site and an update to the logistical solution. Northland has been able to fast-track the development of the project in only two years largely because of its exceptional operational staff as well as strong partnerships with some of the leading infrastructure contractors in the mining sector. Northland is now poised for production in November 2012 and plans to produce a volume of 1.4 dry million tonnes per annum ("dmtpa") in 2013 (up from 1.3 dmtpa). Production rates will reach 4 dmtpa in the third quarter of 2014, one quarter earlier than previously anticipated.Acting CFO, Peder Zetterberg, will provide an update on the financial status of the project. Following the decision of the independent engineer, Royal HaskoningDHV (formerly named Turgis) and the Trustee, Norsk Tillitsmann, Northland was able to execute a second draw down of USD 90 million from the Bond Facility on September 21, 2012. The Company believes it has sufficient funds to start production at the Kaunisvaara project and thereby generate revenues during the first quarter of 2013. The Company has updated the Capex for the Kaunisvaara project to USD 956 million. The new Capex is 9% higher because of increased civil and engineering work and buildings costs (including upgrades), as well as tyres for mobile equipment and increased cost for the rail upgrading. The cost of rail cars is now also included in the new Capex, which they were not in February, 2012. Northland's intention is to sign a lease/rental agreement for the rail cars and storage, which could reduce Capex by approximately USD 30 million. The Company believes that it has sufficient capital resources with the February 2012 financing, the Cost Overrun Facility from Standard Bank and the expected positive operational cash flow to cover the new Capex estimate. In addition, the Company has signed a Letter of Intent with Stemcor for a USD 50 million facility. The Company expects to be cash flow positive at the end of second quarter of 2013.The strong interest in Northland's iron ore concentrate will be discussed by Hans Nilsson, VP - Marketing. The Company's iron concentrate of 69% Fe and high-quality specifications are expected to achieve a price premium compared to the 62% Fe benchmark. Northland has received a lot of interest for the concentrate and has signed off-take agreements for 100% of production over the next seven to ten years.Karl-Axel Waplan, President & CEO, Northland Resources S.A.Northland is a near-production stage mining company with a portfolio of iron ore projects in northern Sweden and Finland. The Company's Kaunisvaara Project will initially exploit two magnetite iron ore deposits in Sweden. The process will yield a high-grade, high-quality magnetite iron concentrate. The construction of the Kaunisvaara project in Sweden is well underway and mining is expected to start in the fourth quarter of 2012. Northland has entered into off-take contracts for the entire production from Kaunisvaara over the next seven to ten years. The Company is also preparing a Definitive Feasibility Study ("DFS") for its Hannukainen Iron Oxide Copper Gold ("IOCG") Project in Kolari, northern Finland and for its Pellivuoma deposit 15 km from the Kaunisvaara process plant.FOR FURTHER INFORMATION PLEASE CONTACT: Karl-Axel WaplanNorthland Resources S.A.President and CEO+46 705 104 239ORPeder ZetterbergNorthland Resources S.A.Acting CFO+46 708 652 120ORAnders AntonssonNorthland Resources S.A.Vice President - Investor Relations+46 709 994 970ORMarguerite Manshreck-HeadNorthland Resources S.A.Investors Relations, Canada+1 647 224 7882www.northland.eu