Northland Resources Inc.
TSX VENTURE : NAU

Northland Resources Inc.

April 04, 2006 13:16 ET

Northland Resources Arranges Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 4, 2006) - Buck Morrow, President of Northland Resources Inc. (TSX VENTURE:NAU) is pleased to announce that, further to Northland's news release of March 20, 2006, the financing terms of the Company's agreement with Pareto Private Equity ASA of Oslo, Norway ("Pareto") have been finalized. Pareto, as agent, will assist the Company in selling by way of a best efforts private placement up to 12,000,000 common shares at $1.35 per share, subject to regulatory approval.

Northland has also granted Pareto an over-allotment option exercisable at any time prior to closing for the placement of up to an additional 3,000,000 common shares. The Company will pay cash commissions and finder's fees totalling 10% of the gross proceeds of the offering.

The proceeds of the placement will be used to advance the exploration and development of Northland's projects in Sweden and Finland, in particular for 1) additional resource drilling and a scoping study on Northland's Barsele gold project and the Stora Sahavaara magnetite project, both located in Sweden; 2) advancing Northland's iron-oxide-copper-gold target at Hannukainen in Finland, and 3) for work on the regional exploration portfolio of iron-oxide-copper-gold targets.

Pareto Private Equity ASA, is a part of the Pareto Group, which was founded in 1986, and is a Norwegian independent investment bank focused primarily on oil and gas, oil services and shipping. Its institutional sales focus is Scandinavia and London. Pareto recently acted as the strategic and financial advisor to Crew Gold and has raised close to US$450-million for Crew between 2003 to 2005, overseeing its development into an intermediate gold producer.

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.

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