Northland Resources Inc.
TSX VENTURE : NAU
FRANKFURT : NBS
OSLO STOCK EXCHANGE : NAUR

Northland Resources Inc.

October 02, 2007 09:15 ET

Successful Pelletizing Test for Northland's Stora Sahavaara Iron Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 2, 2007) - Mr. Simon Ridgway, Chairman of Northland Resources (TSX VENTURE:NAU)(FRANKFURT:NBS)(OSLO:NAUR), is pleased to report the results of initial pelletizing trials, which began in June 2007, conducted by Corus Group R&D Centre in Ijmiuden in the Netherlands on 2.5 tonnes of iron ore concentrate generated by Northland's Stora Sahavaara bulk sample programme.

The results demonstrate that the pellets made from the Stora Sahavaara concentrate already fulfil or exceed all of the necessary chemical and physical characteristics of commercial-grade iron ore pellets.

The aim of the tests was to confirm that concentrate from Stora Sahavaara could make a commercial quality pellet with acceptable chemical composition suitable for withstanding handling and transportation without the use of additional additives such as lime, dolomite or bentonite. After pelletization, the pellets returned the following chemical analysis:



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Fe total Al2O3 SiO2 MgO TiO2 CaO MnO
ELEMENT % % % % % % %
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Sample 1 65.6 0.38 1.19 4.23 0.094 0.07 0.17
Sample 2 65.6 0.39 1.19 4.27 0.094 0.07 0.18
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Sulphur analysis of pellets made from the same concentrate has been completed by COREM in Canada and found to be low at 0.008% S.

Demonstrating that iron ore pellets have acceptable physical properties is just as important to potential customers as an acceptable chemical composition. The results of the physical tests will show how the pellets will stand up to repeated handling during and after pelletization (for example, loading and unloading into ships and trains) and how they will behave in the blast furnace. Northland's test work on the pellets' physical properties returned the following very positive results:

- Green(1) ball strength - exceed average of 4 drops, with good samples being around 6

- Green ball compressive strength (VPG) average around 800g

- Good green ball porosity at around 37.5%

- Cold Compression Strength(2) of the fired pellets exceeds 250kg (as specified by the German steel industry)

- Free swelling tests on the two selected pellet tests: -PPI2853 PPI2854

- /\V 30 min: 5.5% & 5.9% (extremely low and welcomed by steelmakers)

- /\V 90 min: -6.8% & -7.2% (negative and welcomed by steelmakers)

- Porosity: 25.1% & 24.5% (good)

(1) "green" refers to the pellets before they are fired in the pelletizing process.

(2) "cold compression strength" reflects the weight, or crushing pressure, required to break a pellet.

Buck Morrow, the President of Northland, said: "These results, which are from 6 pelletizing pot-grate tests, are more than encouraging. They satisfy all of the main physical characteristics for commercial pellets and are expected to give a good Fe grade pellet. Indeed, the free-swelling characteristics displayed by pellets made from Stora Sahavaara concentrate would be high on the wish list of many steelmakers, as the use of these pellets in the blast furnace would aid stability, help maintain air-flow and reduce slips. The data generated by Corus has given a great springboard for COREM to use in their further development of the detailed pelletizing process, work which is already well underway."

Test Program Details

The metallurgical tests completed by Corus are their own test procedures which do not conform to ISO Standard Test Procedures. The tests used by Corus are based on ISO procedures but adapted for more practical and useful use by the steelmaker. The test results will be verified by conducting similar tests on the same pellets using ISO Standards later this month. The test work programme consisted of:

- Drying

- Raw materials characterization

- Balling

- Bentonite %

- Moisture %

- Indurations

- Maximize cold crushing strength

- minimise abrasion index

- Goal to obtain two samples of pellets for metallurgical testwork

- Metallurgical test work

- Free swelling, HOSIM, IJSST

Corus have yet to complete the HOSIM and IJSST tests.

Qualified Person

The metallurgical work was performed under the supervision of Paul Marsden, VP Metallurgical Development and Operations for Northland. Mr. Marsden is a member of the IMMM, a Chartered Engineer and a Chartered Scientist and is the Qualified Person as defined in NI 43-101 responsible for overseeing the design and execution of the metallurgical test work program at Stora Sahavaara. Mr. Marsden has verified that the results presented here have been accurately summarized from the results reported to Northland.

About Northland (www.northlandresourcesinc.com)

Northland is a well-structured, debt free junior exploration company with a portfolio of high quality iron, gold, and base metal exploration projects in Sweden and Finland.

ON BEHALF OF THE BOARD

Simon Ridgway

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