Metso to Supply Mineral Processing Equipment and Services to Northland's Kaunisvaara Project in Sweden

Luxembourg, April 18, 2011: Northland Resources S.A. (TSX: NAU, OSE: NAUR, Frankfurt: NPK - "Northland" or "the Company") is pleased to announce that Metso Corporation ("Metso") will supply the mineral processing equipment and services for the two processing lines at Northland's Kaunisvaara iron ore project in northern Sweden.  The order is valued at USD 293 million.

The Agreement covers the complete equipment package for the processing plant, including two primary gyratory crushers, two autogenous grinding mills, seven vertical grinding mills ("VTM 3000"), magnetic separators and seven VPA press filters. The Agreement also includes engineering, electrical and automation and the construction of the process plant. Given the long lead times for the first primary gyratory crusher, an autogenous grinding mill and three vertical grinding mills, they have already been ordered (refer to our press release dated February 16, 2011). The Agreement does not include the buildings and related civil works.

The deliveries for the Tapuli and Sahavaara process lines are scheduled for mid-2012 and for first and second quarters of 2014, respectively. In a move to reduce the impact of inflation on the project, the price levels on the equipment have been fixed. 

"We are very pleased to have partnered with Metso for the mineral processing equipment and services.  Access to the long lead items, and Metso's track record as a reliable supplier of equipment and services to mining companies operating in northern Sweden were critical factors in our decision-making. This Agreement supports our goal of keeping the project on time and on budget," said Karl-Axel Waplan, President and CEO of Northland Resources S.A.

The Kaunisvaara iron ore project is located in Northern Sweden, approximately 100 km north of the Arctic Circle, in the municipality of Pajala. After the completion, the annual capacity of the process plant will be 12 million tonnes of dry iron ore and 5 million tonnes of iron ore concentrate.

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 magnetite iron ore deposits, feeding a single, multi-line processing facility in Sweden. The process yields a very high-grade, high-quality magnetite iron concentrate. The Company is also preparing a Definitive Feasibility Study for the Hannukainen Iron Ore Copper Gold Project in northern Finland.

Metso is a global supplier of sustainable technology and services for mining, construction, power generation, automation, recycling and the pulp and paper industries. Metso has about 28,500 employees in more than 50 countries.

On behalf of the Board

"Karl-Axel Waplan"

President & CEO
Northland Resources S.A.

For more information, please contact:
Karl-Axel Waplan, President and CEO:  +46 705 104 239
Anders Hvide, Executive Chairman:  +47 92 88 98 58
Eva Kaijser, Chief Financial Officer: +46 70 932 09 01
Marguerite Manshreck-Head, Investors Relations, Canada: + 1 647 224 7882

Or visit our website:  

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)