Northland Resources Inc.

Northland Resources Inc.

October 16, 2006 11:25 ET

Northland Resources Closes Private Placement & Conducts Public Offering

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 16, 2006) - Buck Morrow, President of Northland Resources Inc. (TSX VENTURE:NAU)(FWB:NBS)(NOTC:NAUR) is pleased to advise that the Company has closed the private placement financing announced in its September 26, 2006 news release of 24,303,000 shares, and has received net proceeds, after commission, of NOK 166,505,929 (approximately CAD$28-million). Pareto Private Equity ASA and Pareto Securities ASA of Oslo, Norway acted as the agents in selling the offering.

The 24,303,000 shares will commence trading on the Norwegian OTC list on October 17, 2006 under the ticker NRIR and ISIN CA6665272051. The shares have a hold period in Canada of four months and one day following the commencement of trading of the Company's shares on the Oslo Stock Exchange, which is anticipated to be on October 23, 2006.

The Company has also allocated an additional 1,929,790 shares, sold through Pareto by way of a public offering in Norway, to primarily retail investors. The issue price will be NOK 7.25 per share, similar to the issue price in the private placement financing. These and all other issued shares of Northland will trade on the Oslo Stock Exchange (and no longer on the Norwegian OTC list) as of the proposed listing date of October 23, 2006. The public offering will provide additional net proceeds to the Company of approximately $2.2-million.

The proceeds from both offerings will be used to advance the exploration and development of Northland's projects in Sweden and Finland. Northland's current cash position is approximately $47-million including the $28-million.


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.


Buck Morrow


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

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