Northland Resources Inc.
TSX VENTURE : NAU

Northland Resources Inc.

August 23, 2005 12:00 ET

North American Gold Builds its Land Position in Finland & Acquires More Iron-Copper-Gold targets

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 23, 2005) - Mr. Buck Morrow, the President of North American Gold Inc. (TSX VENTURE:NAU), which recently received shareholder approval to change its name to Northland Resources Inc- is pleased to announce that NAU been granted 14 Exploration Licenses comprising 1126.4 ha. within the Kolari Magnetite Belt (KMB) in Finland, close to and covering part of the Sivakkalehto magnetite deposit. The new licenses were acquired for their potential for new iron-oxide-copper-gold (IOCG) targets.

The KMB is part of the Pajala Shear Zone, a major geologic structure which crosses the northern border of Sweden and Finland that is regarded as one of the most prospective places in Europe to discover IOCG systems. These new licenses further consolidate NAU's land position in this important belt. The licenses are within the Reservation area previously claimed by NAU but cover areas that were not acquired at the time of NAU's original application.

North American recently commissioned the Geological Survey of Finland (GTK) to compile and reinterpret low altitude aeromagnetic and other geophysical data for the Kolari belt. The GTK's work highlighted a number of high priority potential IOCG targets which are being assessed by NAU's technical team. The Company expects that further exploration licenses will be applied for as this work progresses.

NAU's data compilation for the Kolari Belt has identified at least 18 previously identified major magnetite / IOCG targets, including 2 deposits with previous mining operations. The KMB hosts the Sivakkalehto magnetite deposit which lies about 3 km south of NAU's Rautuvaara Mine Reservation area.

The Geological Survey of Finland (GTK) Bulletin 318 notes that the Sivakkalehto deposit area contains multiple lens of magnetite with copper values ranging from 0.3% to 0.78% copper. No gold values are reported. Additionally, the GTK estimates from geophysical data that Sivakkalehto may contain over 200 million tonnes of magnetite. The GTK's interpretation of the magnetic data suggest that the deposit has a strike length of over 2 km in length and is 300m-500m broad. It is on trend with NAU's Juvakaisenmaa and Sainkangas magnetite deposits located to the SW of Sivakkalehto.

Mineralization and geochemistry indicate the existence of an IOCG target within the area. NAU will be reviewing and re-assaying drill core from 35 diamond drill holes which were previously drilled in the area to determine the extent of the system and copper and gold values. Future plans include re-logging and re-assay of existing core, ground reconnaissance, till sampling, and ground geophysics. With positive results a drill program will be carried out beginning in January of 2006.

NI43-101 Disclaimer

The resource estimate quoted in this news release was prepared prior to the implementation of National Instrument 43-101. North American Gold is relying on estimates prepared by the Geological Survey of Finland (GTK) reported in The Geological Survey of Finland (GTK) Bulletin 318 "ESPOO 1982 pp. 114-117" which describes the Sivakkalehto deposit area.

None of the historical resource estimates in the GTK report use the resource categories stipulated in Section 1.3 of National Instrument 43-101, which are "inferred mineral resource", "indicated mineral resource" and "measured mineral resource." Rather, the resource estimate for the Sivakkalehto deposit reported by the GTK refers to "200 million tonnes", which is not a category stipulated in National Instrument 43-101. The Company does not have, and is not aware of, any more recent resource estimates which conform to the standards laid out in National Instrument 43-101.

The Company advises that it has not done the work necessary to verify the classification of either of the mineral resource estimates and such estimates have not been verified by a qualified person. The Company is not treating the historical resource estimate as a National Instrument 43-101-defined resource or reserve, and the historical resource estimate should not be relied upon. Work is currently underway to bring these estimates up to NI43-101 standard.

Vance V. Thornsberry, PGeo, Vice-President of Exploration for North American Gold, is the qualified person as defined in National Instrument 43-101 and has verified that the information presented in this release has been accurately summarized from the reports quoted herein.

Background

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

ON BEHALF OF THE BOARD

Buck Morrow, President

NORTH AMERICAN GOLD INC.


The TSX Venture Exchange has not reviewed and does not take responsibility for the accuracy of this release.

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