Northland Resources S.A.: Swedish Transport Authority minded to grant Northland maximum dispensation after further truck testing

 Luxembourg, December 23, 2011: Northland Resources S.A. (TSX: NAU, OSE: NAUR, Frankfurt: NPK - "Northland" or "the Company") is pleased to announce that the Swedish Transport Authority has declared its commitment to grant the maximum dispensation for the truck Northland intends to use  to transport its high-quality magnetite concentrate.

Together with the Swedish Transport Authority ("STA"), Northland has conducted an extensive study of the roads and bridges between the Kaunisvaara mine and the Pitkäjärvi rail terminal. The tests verified that the standard of the current roads was adequate for handling the expected truckloads, however some upgrade is needed by the STA.

Northland will now proceed with the next phase of the process which will include tests using an actual 90 tonnes truck which will help to determine the most efficient balance between gross weight and relative speed on the road to ensure an optimum number of daily roundtrips.

The studies carried out by STA and Northland identified the bridge over the Tärendö River as settling the maximum level possible for dispensation, 90 tonnes gross weight. With measures taken to reinforce the bridge, the capacity for dispensation can be negotiated higher.

"Swedish Transport Authority concurs with our previous statements on the level of trust, confidence and cooperation between Northland and the STA," said Karl-Axel Waplan, President & CEO of Northland Resources S.A. "We expect the financial impact of a 90 tonnes trucks to be in line with the costs for the 104 tonnes as assumed in the DFS, as smaller trucks will all be able to make a faster roundtrip. The only accurate way to find the most efficient combination between a truck gross weight and the average speed for that specific vehicle is to conduct truck testing at the actual location. The decision from STA makes it possible for Northland to prepare for the best possible solution for road transportation within our timetable. It also confirms that the STA is determined to make the best possible decisions in order to promote efficient and environment-friendly transportation solutions."

The STA continues the investigation (Swedish: Åtgärdsval) to find solutions for the transportation needs for the mid-term and long-time that they started in the beginning of 2011. The investigation may include proposals for new road solutions or an extension of the existing railroad, Malmbanan, to the Kaunisvaara mine.

"Karl-Axel Waplan"                                                             
President & CEO, Northland Resources S.A.                                                   
           
For more information, please contact:
Karl-Axel Waplan, President and CEO: +46 705 104 239
Jonas Lundström, VP - HR and Corporate Communications: +46 705 493 338
Anders Antonsson, VP - Investor Relations: +46 709 994 970
Marguerite Manshreck-Head, Investors Relations, Canada: +1 647 224 7882

Or visit our website: www.northland.eu

Northland is a development-stage mining company with a portfolio of iron ore projects in northern Sweden and Finland. The Company's Kaunisvaara Project will exploit two magnetite iron ore deposits in Sweden. The process is expected to yield a high-grade, high-quality magnetite iron concentrate. The construction of the Kaunisvaara project is underway and production is planned to start in the fourth quarter of 2012. Northland has entered into industrial off-take contracts for the entire production from Kaunisvaara. The Company is also preparing a Definitive Feasibility Study for its Hannukainen Iron Oxide Copper Gold Project in Kolari, northern Finland. The results of the study are expected to be released in the first quarter of 2012.