Vancouver, December 12, 2007: Northland Resources Inc. is pleased to announce that it has reached an agreement with Anglo American plc to buy Anglo's 2.5% royalty interest and back-in rights on two permits in northern Sweden which host the Stora Sahavaara and Tapuli projects, and a number of other iron oxide, copper, gold (IOCG) targets.

 

Northland will pay Anglo US $3.65-million for Anglo's royalty and back-in rights in the two exploration permits, together known as the Pajala properties - which cover approximately 18,000 hectares of ground.

 

Northland signed an option agreement on the permits with Anglo in December 2004 and completed and exercised its option to acquire 100% ownership of the permits in January of 2007. Northland is currently advancing the Stora Sahavaara and Tapuli magnetite projects towards feasibility study.

 

Buck Morrow, the President of Northland, said: "The buyout of Anglo's royalty and back-in rights is something we've been thinking about for a while and we're very happy to have completed successful negotiations with Anglo. Tapuli and Stora Sahavaara are important projects for Northland which we now own 100% free of any royalties or back-in rights. Anglo has been a good partner to Northland and I'd like to thank its exploration management for their important contribution to our work in northern Sweden."

 

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

 

NORTHLAND RESOURCES INC.

CONTACT INFORMATION

Northland Resources Inc.

Buck Morrow, President

 

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