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

Northland Resources Inc.

August 21, 2007 09:00 ET

Northland's Liquidity and Solvency Unharmed by Market Turmoil

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 21, 2007) - Northland Resources Inc. (TSX VENTURE:NAU)(FRANKFURT:NBS)(OSLO:NAUR): In light of the recent turmoil in the financial markets, Northland wishes to inform market observers and investors of the following:

- The Company's cash position as at July 31, 2007 was approximately C$145 million.

- The cash is held on term deposits with major bank institutions and highly liquid government backed securities with AAA rating.

- Funds are denominated in currencies that maintain "purchasing power parity" for future Northland construction projects in the Nordic Countries.

- Under Northland's investment management procedures, safety is a priority, where investments are not exposed to the risk of unacceptable losses in capital value.

- Northland does not currently hold directly or indirectly any type of derivative contracts.

Additional information on the Company's financial position may be found in our financial statements for the three months ended April 30, 2007, filed on SEDAR June 14, 2007. These have also been posted on the Company's website at www.northlandresources.com.

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 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
    Toll Free: 1-866-719-8962
    Website: www.northlandresourcesinc.com