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

Northland Resources Inc.

March 17, 2008 08:02 ET

Northland Resources Comments on Infrastructure Discussions

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 17, 2008) - Buck Morrow, the President of Northland Resources Inc. (TSX VENTURE:NAU)(FRANKFURT:NBS)(OSLO:NAUR), is pleased to provide an update on recent discussions with the rail and port authorities in Sweden, Finland and Norway.

A number of newspaper articles published in Scandinavia and Finland have recently commented on the Company's proposed plans to eventually ship up to 13 million tonnes of iron ore per year from its projects to ports in Sweden, Norway or Finland and Management felt that it was appropriate to outline how the issue of infrastructure is being addressed in its engineering studies.

Management has commissioned detailed studies of available infrastructure using local and international consultancy firms and governmental agencies, and planning is well underway to help the Company determine the most cost effective transport options for possible future iron ore production from its magnetite projects in northern Sweden and Finland.

The Company's infrastructure studies are underway concurrent with the scoping and pre-feasibility studies announced previously (see news releases dated November 27, 2007 and February 1, 2008) and will provide key inputs to the economic models being developed for Northland's projects. Northland's projects benefit from mature infrastructure including established rail and road networks, sufficient electrical power and, to date, strong support from the regional governments on both sides of the Sweden-Finland border.

Rail Transport Options in Finland

There are 2 rail heads on the Finnish side of the border within a few kilometers of Northland's Hannukainen project. These connect to the "Kolari to Kemi" rail link which currently handles passenger rail and timber products but has handled iron ore in the past. Northland is co-sponsoring a rail study with the Finnish rail authorities to examine the movement of up to 13 million tonnes per year capacity over the Kolari-Kemi segment of the rail line. The Kolari-Kemi rail haul is approximately 252 kilometers with the vast majority of it in place and functioning. The study will detail the current carrying capacity of the line and the costs to upgrade the line to 6 million then 13 million tonnes per year.

The Finnish Rail Administration has already announced a plan to upgrade the Kolari line; a decision that was apparently taken in principle before anything was known about the potential requirements of Northland's projects. They recently commented that renewal of the surface structure of the line is scheduled to kick off this coming summer at an estimated cost of around 84 million Euros.

Northland's plans are focusing on fast-tracking the Tapuli deposit near Pajala in Sweden into production first and the Company is examining the feasibility of initially transporting the estimated 3 million tonnes of production per year from Tapuli by rail, slurry pipeline or overland conveyor to the existing Finnish rail line for shipment to port.

Rail Transport Options in Sweden

In Sweden, Northland has engaged Railize International, a Swedish rail transport consulting group to analyze the Swedish rail requirements for transport of up to 13 million tonnes of ore per year to port. Railize is taking an in-depth look at the feasibility of various rail link options including transport by existing rail links, including the Kolari to Kemi rail link, to Lulea or Kalix-Storon ports in Sweden.

Railize is also looking at the feasibility of establishing a new rail link between Kolari in Finland, via Svappavaara in Sweden, connecting to the Gallivare (Malmberget) - Kiruna line to the Port of Narvik in Norway. LKAB, the Swedish state-controlled iron ore miner, currently ships much of its iron ore production from Narvik. The Kaunisvaara to Narvik rail haul would be approximately 315 kilometers, with the majority already in place.

Port Options

Northland's senior management has also met with the port authorities at a number of Swedish and Finnish ports on the Gulf of Bothnia, and at Narvik in northern Norway.

The principal port options under consideration are Lulea in Sweden, Kemi in Finland and Narvik in Norway. Northland is co-sponsoring a dredging study with the Port of Lulea to provide draft for Panamax-sized ships. A new port facility at Kalix-Storon is being considered as a port to handle Panamax-sized vessels as well.

The Port of Narvik is under consideration because it has the advantage of being ice free and is able to handle ships of up to Cape size. Narvik currently handles the bulk of LKAB's iron ore exports. The port authorities there have identified 2 potential sites to establish additional iron ore export facilities and Northland will be continuing its discussions with the Narvik Port Authority.

About Northland (www.northlandresourcesinc.com)

Northland 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 does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Northland Resources Inc.
    Buck Morrow
    President
    Toll Free: 1-866-719-8962
    or
    Northland Resources Inc.
    Ralph Rushton
    Investor Relations - North America
    Toll Free: 1-866-719-8962
    or
    Northland Resources Inc.
    Jonas Lundstrom
    European Contact
    +46 (70) 549 3338
    Website: www.northlandresourcesinc.com