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

Northland Resources Inc.

July 17, 2007 09:00 ET

Northland Provides Update on Metallurgical Testwork at Hannukainen Iron-Copper-Gold Project, Finland

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 17, 2007) - Buck Morrow, the President of Northland Resources Inc. (TSX VENTURE:NAU)(FRANKFURT:NBS)(OSLO:NAUR), is pleased to announce preliminary results from on-going metallurgical test work on drill core collected from the Company's 100% owned Hannukainen iron-copper-gold project in Northern Finland.

The Hannukainen project is made up of 5 iron-oxide-copper-gold style (IOCG) magnetite bodies: Laurinoja, Vuopio, Kuervaara, Lauku and Kivivuopio. Northland's current work at Hannukainen is focused on completion of a resource model and detailed metallurgical test work on composite samples of drill core from Laurinoja.

Initial metallurgical tests on a nominally representative sample of Hannukainen magnetite have been extremely encouraging and indicate that the project can generate a very high grade iron concentrate with low-acid gangue potentially suitable as a feed for high quality DR pellets. Additionally, first indications are that the project may yield concentrate with a relatively coarse grain size suitable for sinter feed. The first stage metallurgical tests produced a concentrate with approximately:

71% total iron + 0.61% SiO2 + 0.34% Al2O3 + 0.3% MgO + 0.02% S.

Mineralogical examination of the core from Laurinoja has identified no unexpected or unusual mineralogy and confirms that virtually all the Cu present occurs as chalcopyrite. Davis tube magnetic results show very high recoveries (up to 99%) of magnetite to the concentrates at a variety of grind sizes, demonstrating good liberation characteristics for the magnetite in the Hannukainen resource. Flotation test work to produce a copper-gold concentrate is underway and results will be reported as they become available.

In the second half of the year, Northland will examine the logistics of collecting a substantial bulk sample of magnetite from Laurinoja to confirm the positive preliminary metallurgical findings which are reported below.

Resource Modeling

Northland's resource model for the project is advanced but a number of areas have been identified where additional drill information is needed to fill in "holes" in the resource model, and to better define the resource as either measured or indicated category. Northland's independent consultants are nearing completion of their NI 43-101 report and they recently traveled to Rovaniemi to finalize the geologic model, and to ensure that all assay data is incorporated into the model. The consultants must also complete their field visit to verify certain physical data. Management anticipates that the resource calculation will be completed sometime during August of this year.

Qualified Person

Vance V. Thornsberry, P.Geol., Vice President of Exploration for Northland, is the Qualified Person as defined in NI 43-101, responsible for overseeing the design and execution of the Hannukainen drill program and has verified that the information contained in this release is an accurate summary of the data received by the Company.

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 Hannukainen. Mr Marsden has verified that the results presented here have been accurately summarized from the results reported to Northland.

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

NORTHLAND RESOURCES INC.

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

Contact Information

  • Northland Resources Inc.
    Buck Morrow
    President
    (303) 663-7829
    or
    Northland Resources Inc.
    Ralph Rushton
    Investor Relations
    (604) 408-7965 or Toll Free: 1-866-719-8962
    Website: www.northlandresourcesinc.com