Northland Buys Properties in Preparation for the Hannukainen Mine in Finland

Northland Resources S.A. (TSX: NAU, OSE: NAUR, Frankfurt: NPK - "Northland" or "the Company") is pleased to announce that the Company and the Finnish state enterprise Metsähallitus have entered into a preliminary agreement, whereby Metsähallitus agrees to sell to Northland real estate located in the Äkäsjoki region of the Kolari municipality, in northern Finland.

The agreement includes 69 separate lots in the Äkäsjoki region with a total of 9,710 floor square metres of permitted building space and three lots located in the Hannukainen region belonging to Metsähallitus. The total purchase price amounts to approximately EUR 4 million. The agreement is expected to be finalised in August 2011.

"Northland will use the acquired land as part of its planned compensation package for the land and real-estate acquisition within the Hannukainen area, where the planned iron ore mine and process facility will be located", says Jukka Jokela, Vice President of Northland's Finnish Operations.

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.

Metsähallitus is a state-owned enterprise that runs business activities while also fulfilling many public administration duties. The organisation administers more than 12 million hectares of state-owned land and water areas. More information on www.metsa.fi

Northland Press-Office