Northland Resources Inc.
TSX VENTURE : NAU
FRANKFURT : NBS
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Northland Resources Inc.

January 16, 2008 09:15 ET

Northland Drills Extension of Stora Sahavaara Magnetite Body

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 16, 2008) - Northland Resources Inc. (TSX VENTURE:NAU)(FRANKFURT:NBS)(OSLO:NAUR) is pleased to provide an update on recent exploration work at the Company's 100%-owned Stora Sahavaara iron project in Sweden which has significantly expanded the known dimensions of the magnetite mineralization and will likely result in the definition of additional resources at the project.

A new grade-thickness compilation of all available drill data identified a possible thickening of the Stora Sahavaara deposit within the middle part of the magnetite body, angling to the north at depth. Four new diamond core holes were drilled to test this potential between the 600 and 1000 profiles. All 4 holes successfully cut good widths of typical Stora Sahavaara magnetite mineralization at depths ranging between 302m and 503m, outside the limits of the existing resource, indicating good potential to add significant new magnetite resources at the project. The table below summarizes the salient results from the new holes, with approximate ranges for the true thickness of mineralization. Updated drill collar plans and sections will be posted shortly on the Northland website.



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Iron Est. True
From To Interval Grade Width
Hole ID Section (m) (m) (m) (%) (m)
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SAH07018 600N 302.8 330.3 27.5 34.9 23-27
376.7 388.6 11.9 39.9 9-11
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SAH07021(i) 1000N 459.9 521.2 61.3 39.2 56-60
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SAH07022 800N 350.0 397.0 47.0 48.5 39-43
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SAH07023 700N 413.8 466.9 53.1 41.4 33-37
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(i) Hole SAH07021 encountered drilling problems at a depth of 502m. A wedge
was inserted at 463m and drilling continued from there. The result
shown is a composite of assays from SAH07021 up to 463m and assays from
the deflection (SAH07021B) from 463m to the end of the hole at 532.7m.


The magnetite body appears to continue at depth below these 4 holes.

Another hole, SAH07005 was completed on the northernmost profile (1300N) where historic work had suggested that the Stora magnetite body would be approximately 30m in downhole thickness. However, the hole cut a well-mineralized core length of nearly 63m grading 40.9% Fe from 240m downhole. This suggests potential for a second wide lobe of magnetite mineralization, raking to the north in addition to the one described above.



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Iron Est. True
From To Interval Grade Width
Hole ID Section (m) (m) (m) (%) (m)
-----------------------------------------------------------------------
SAH07005 1300N 221.0 283.7 62.7 40.9 58-62
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Northland's geologists are recommending that additional holes be drilled on the northern sections from 1200N through 1400N, to test the potential rake of the deposit to the north.

Buck Morrow, the President of Northland, said: "We have always believed that there was excellent potential to increase the NI43-101 resource at Stora Sahavaara and our latest drilling appears to confirm this. I've asked our exploration team to schedule more drilling to follow up these results in advance of a new resource calculation to be completed this year."

Tapuli Resource Calculation

Management would also like to provide an update on the timing of the NI43-101 compliant resource calculation for the Tapuli project. Management had been expecting the final sign off by Geovista and Micon by mid-January but was recently informed by Geovista that delivery of the final resource numbers would be delayed for up to 2 weeks. Northland now anticipates releasing the resource figures before the end of January.

Assay Protocol

The core was cut at Northland's core facility in Kolari, Finland. A one half split core from Salmivaara was prepared at ALS Chemex Lab in Pitea, Sweden and then transported to ALS Chemex in Vancouver, British Columbia Canada for analysis.

Copper and Iron were analyzed by Sodium Peroxide Fusion multi element analysis, ICP-AES Method ME-ICP81. Gold was analyzed by Lead Fire Assay Pre-concentration with ICP-AES Method Au-ICP21 finish.

In addition to the ALS Chemex internal sample preparation and assay QC protocol, Northland maintains a rigorous QA/QC program consisting of inserting blanks, duplicates and certified standards to the analytical process.

Background

Northland has delineated a NI43-101 compliant resource at Stora Sahavaara (see news release dated May 18, 2006). Using a 25% Fe cut off, the magnetite body contains:



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Category Tonnes Fe % Cu %
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Measured 77,063,210 43.32 0.080

Indicated 44,634,770 43.28 0.076

Inferred 23,346,373 41.76 0.051
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Qualified Person

Resource estimates were prepared by third party consultant (Bart Stryhas, PhD Structural Geology); the resource model and estimates were subsequently reviewed by Chlumsky Armbrust & Meyer L.L.C. ("CAM") an independent, mineral resource, consulting and engineering group based in Lakewood, Colorado, USA. CAM believes that the Stora Sahavaara resource and resource model have been prepared according to accepted engineering practice for a project at this level of development.

The technical information in this release was prepared under the supervision of Mr. David Cass, who is a member of the Association of Professional Engineers and Geoscientists of British Columbia, and a "Qualified Person" in accordance with National Instrument 43-101.

ON BEHALF OF THE BOARD

Buck Morrow

NORTHLAND RESOURCES INC.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Northland Resources Inc.
    Buck Morrow
    President
    Toll Free: 1-866-719-8962
    or
    Northland Resources Inc.
    Ralph Rushton
    Investor Relations - North America
    Toll Free: 1-866-719-8962
    or
    Northland Resources Inc.
    Gabriella Roos
    Investor Relations - Europe
    +44 791 286 9936
    Website: www.northlandresourcesinc.com