Vancouver, Canada, May 9, 2007:  Mr. Buck Morrow, the President of Northland Resources Inc., is pleased to announce that Northland has been granted an exploration permit covering the Salmivaara iron-copper deposit, approximately 33km northeast of the city of Gällivare in Nortbotten county, Sweden.  The body is within 1km of a sealed road and approximately 33km from a rail line that carries iron ore trains from Europe's second largest iron ore mine, Malmberget, which is in Gällivare and is operated by the Swedish state-owned mining company, LKAB.

 

Mineralization at Salmivaara consists of magnetite with pyrite, pyrrhotite and chalcopyrite.  It was discovered in 1897, first drilled in 1904, and was mined for copper during World War II.  The Swedish Geological Survey (SGU) worked on the deposit between 1967 and 1971, publishing a report titled "Salmivaara Iron Occurrence" and describing the deposit in the Swedish Iron Ore Inventory.  A total of 12 holes were drilled, for 1,818m of core drilling to a maximum depth of 120m below surface, and the SGU completed magnetic and gravimetric studies which indicate that the magnetite body may continue to a depth of at least 700m below surface.

 

Based on drilling, the SGU published an estimated resource of 16 million tonnes grading approximately 34% iron and 0.10% Cu, locally with copper ranging up to 0.8% Cu.  Sulphur content averages 3.6% with 0.03% Phosphorous.  There appears to be two magnetite zones present within a synform type structure with the richest zone of magnetite appearing to be in the nose of the fold structure.

 

Buck Morrow, the President of Northland, said: "The acquisition of the Salmivaara deposit is part of our aggressive, on-going strategy to acquire an extensive portfolio of northern European iron assets close to major infrastructure.  We will be drill testing the project as soon as possible to verify the historical work and to test for copper and gold potential."

 

 

The resource estimates quoted in this news release were prepared prior to the implementation of National Instrument 43-101.  The historical resource estimate quoted herein does not use the resource categories stipulated in Section 1.3 of National Instrument 43-101, which are "inferred mineral resource", "indicated mineral resource" and "measured mineral resource".  Rather, the historical resource estimate for the Salmivaara deposit reported by the SGU refers to "16 million tonnes", which is not a category stipulated in NI 43-101.  The Company believes that term "resources" is used differently from the use of that term in NI 43-101. The Company does not have - and is not aware of - any more recent resource estimates which conform to the standards laid out in NI 43-101, and has not done the work necessary to verify the classification of the mineral resource estimate.  The Company is not treating the historical resource estimate as a NI 43-101 defined resource or reserve, and the historical resource estimate should not be relied upon.

 

 

Vance V. Thornsberry, P.Geol., Vice President of Exploration for Northland, is the Qualified Person as defined in NI 43-101, and has verified that the historic information presented in this release has been accurately summarized from the reports quoted.

 

 

Northland also announces that it has granted director stock options to purchase up to 100,000 common shares of the Company exercisable for five years at a price of $3.11 per share.

 

 

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

 

NORTHLAND RESOURCES INC.

 

 

 

CONTACT INFORMATION

Northland Resources Inc.

Buck Morrow, President

Ralph Rushton, Investor Relations

Toll Free: 1-866-719-8962

www.northlandresourcesinc.com