STORA SAHAVAARA (PAJALA)

Northland completed the bulk sample project at Stora Sahavaara with 30 holes totalling 3,726 meters. The Company plans to complete a new NI 43-101 compliant resource calculation in the spring of 2009.

Announced the revised results of the NI43-101 compliant Preliminary Economic Assessment. Over the last 5 days Northland and Wardell Armstrong International (WAI) have re-worked, and extensively re-checked the financial model, concluding that the net effect of the revision on the NPV, IRR and pay back of the combined projects is limited and the projects have retained their robust valuation. NPV10 of €567.2 million, EBIT of €2.646 Billion and an IRR of 27% with a payback period of 6 years. Estimated CAPEX of €258.2 million for mine and processing facilities and €279.0 million to build a 5 million tonne per annum (“Mtpa”) pelletizing facility includes €26.0 million in contingency and €24.2 million in EPCM.The combined projects (Tapuli and Stora Sahavaara in northern Sweden, and Hannukainen in northern Finland) deliver an amended Net Present Value at a 10% discount rate (“NPV10”) of €1.114 Billion and Earnings Before Interest and Tax (“EBIT”) of €5.085 Billion. The Internal Rate of Return (“IRR”) remains unchanged at 27% and the discounted pay back period is 7 years from start of the development program.

Northland Resources has retracted results of preliminary economic assessment on its iron ore projects, the company discovered an error in the financial model developed by its consulting engineers which may affect the revenue calculations in the PEA. The effects of the error on the conclusions of the study have not been fully determined. The consulting engineers are presently reviewing and revising the model and when that has been completed a revised report will be published. Investors should therefore not rely on the results of the PEA published in Northland’s press release dated June 17, 2008.