Northland Resources Inc.
TSX VENTURE : NAU

Northland Resources Inc.

May 18, 2006 09:30 ET

Northland Delivers NI43-101 Iron Ore Resource for Stora Sahavaara Project, Sweden

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 18, 2006) - Buck Morrow, the President of Northland Resources Inc. ("Northland") (TSX VENTURE:NAU), is pleased to announce the completion of a NI43-101 compliant resource calculation for the Stora Sahavaara magnetite body in northern Sweden.

Using a 25% Fe cut off, the study has delineated:



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Category Tonnes Fe % Cu %
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Measured 77,063,210 43.32 0.080
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Indicated 44,634,770 43.28 0.076
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Inferred 223,346,37 41.76 0.051
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A NI43-101 compliant report detailing the methodology and results of the current resource calculation will be filed on www.sedar.com within 45 days. A full table showing resource tonnages and grades calculated at cut offs of 25% Fe, 30% Fe and 35% Fe is attached at the end of this release.

For comparison purposes, the existing LKAB-owned iron mine at Malmberget, located approximately 150km west of Stora Sahavaara, operates with a cut off grade of 20% Fe. Both the proven and probable reserves at Malmberget grade 43.6% Fe, allowing for some losses during extraction. Measured resources at Malmberget grade 42.4% Fe, the indicated resources grade 39.5% Fe, and the inferred resources grade 43.0% Fe (reserve and resource information for Malmberget was taken from the LKAB Annual report 2005).

The only other resource estimate available for Stora Sahavaara was published by the Swedish Geological Survey (SGU) in 1967 in a report on the deposit titled "Stora Sahavaara Iron Ore Occurrences, Report of the results from SGU investigations between 1960-1964" by Bo Lungberg. Lundberg describes a 100 million tonne magnetite (43.7% Fe) resource. (This resource estimate is historic in nature, does not use the resource categories as stipulated in Section 1.3 of National Instrument 43-101 and is not NI43-101 compliant. The reader is cautioned that the 1967 figure cannot be relied on).

Buck Morrow, President of Northland said, "We're delighted with the first 43-101 compliant resource numbers from Stora Sahavaara. It demonstrates that Northland now has a potentially significant magnetite resource in its project portfolio and allows us to move forward towards a detailed scoping study for Stora. We will now advance the metallurgical testwork to determine the best treatment route for the magnetite ore."

Geology of Stora Sahavaara

The Stora Sahavaara iron deposit occurs within metasedimentary rock units of Paleoproterozoic age (2.5-1.9Ga) located in the Central Lapland Greenstone Belt of Northern Sweden. The metasediments consist of quartzites, dolomites, phylites and schists overlying a greenstone unit. The lithologies strike N25 degrees E and dip 60 degrees W, and are interpreted to be in a normal stratigraphic position. The deposit is located within the Pajala Shear Zone; a regional structural fabric parallel to the local lithic contacts. The Pajala Shear Zone is part of the 50-100 km wide Baltic-Bothnian Mega-shear, a system of thrust/reverse faults active during the Svecofennian Orogeny (1.85 Ga).

The iron deposit occurs as a continuous magnetite body containing copper mineralization in the form of chalcopyrite. It has been delineated along 1,300m of surface strike length with an average true width of 52m. At 250m down dip, the deposit has been traced for 1,000m along strike with an average true width of 48 meters. At 550m down dip, the deposit has been traced for 600m along strike with an average width of 43m.

Methodology

The resource estimate for the Stora Sahavaara Iron Occurrence was constructed using geologic and assay information from 60 drill holes totaling 14,222m. These include historic drilling between 1960-1964 by the Swedish Geological Survey ("SGU") and a series of 14 holes drilled in 2005 by Northland.

Much of the drill core from the 1960-1964 study is still stored in the SGU core archives and was available for re-logging and re-assay. The original hardcopy drill logs were obtained from the Swedish Geologic Survey and a QA/QC analysis was conducted on the historic database. This included: re-assaying selected intervals, drill collar surveys and review of drill hole orientation data. In addition 3 of the historic drill holes were twinned to check for lithologic and assay consistency. The results of this work have shown that the historic data is very accurate.

Geologic cross sections and 5m assay composites were used to create a wire-frame shape of the magnetite body. Variograms were constructed for iron and copper along the three principle axes of the body, using composite data located within it. The variogram ranges were used as search distances for an inverse distance weighted model interpolation. Specific gravity relations were calculated from a linear regression of the historic data and applied to each individual model block based on iron grade. The current data base includes 3,483 total iron analyses; of these 98% have total copper analyses and 33% have specific gravity analyses.

Final resource categories were assigned based on variogram ranges used in the interpolation model. Each category was calculated using unique search parameters which were limited in down dip projections below unconfined drill holes. The measured and indicated resource is currently modeled down to a maximum depth of 550m below surface.

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 has reviewed the database and modeling procedures used by Northland to calculate the Stora Sahavaara magnetite resource. On the basis of this review 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 and that the results obtained are suitable for determining if further exploration work on the property is warranted. The result of the CAM review of the Central Zone will be filed on SEDAR as a NI 43-101 Technical Report within 45 days of this press release.

Vance V. Thornsberry, P.Geol., Vice-President of Exploration for Northland Resources, is the Qualified Person as defined in NI43-101, and has verified that the information presented in this release has been accurately summarized from the reports quoted herein.

Background

Northland Resources Inc. 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

Buck Morrow, President

NORTHLAND RESOURCES INC.

Table 1. Measured, Indicated and Inferred resources for the Stora Sahavaara magnetite deposit, Sweden at different cut off grades.



25% Fe Cutoff
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Category Tonnes Fe % Cu %
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Measured 77,063,210. 43.32 0.080
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Indicated 44,634,770. 43.28 0.076
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Inferred 223,346,37. 41.76 0.051
-------------------------------------

30% Fe Cut Off
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Category Tonnes Fe % Cu %
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Measured 76,402,070. 43.46 0.080
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Indicated 44,633,919. 43.28 0.076
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Inferred 23,341,237. 41.77 0.051
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35% Fe Cut Off
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Category Tonnes Fe % Cu %
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Measured 71,442,279. 44.22 0.081
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Indicated 42,766,428. 43.71 0.076
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Inferred 23,339,470. 41.77 0.051
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