Vancouver, January 16, 2007: Buck Morrow, the President of Northland Resources Inc. ("Northland", TSX-V: NAU), is pleased to announce further results from the Company's drill program at the 100% owned Hannukainen iron-oxide-copper-gold (IOCG) project in Northern Finland.  Northland has completed 42 holes testing the flat-lying Laurinoja magnetite body at Hannukainen, and results for fifteen broad spaced holes have been received in addition to the thirteen reported in September 2006.  Results received to date from the most recent drilling are tabled below.

 

Hole No.	From (m)	To     (m)	Interval (m)	Fe        %	Au       g/t	Cu        %
HAN06014	160.2	169.1	8.9	22.5	0.10	0.19
HAN06015	159.7	179.1	19.4	28.0	0.21	0.49
HAN06016	144.3	159.2	14.9	46.8	0.36	0.59
HAN06017	164.1	185.6	21.5	46.8	0.71	0.74
HAN06018	182.4	202.5	20.1	44.9	0.32	0.49
HAN06019	179.8	194.5	14.7	44.1	0.11	0.33
HAN06020	170.7	197.3	26.6	45.1	0.14	0.32
HAN06021	142.3	153.8	11.5	45.1	0.30	0.41
HAN06022	159.2	174.7	15.5	37.6	0.53	0.46
HAN06023	172.7	189.1	16.4	43.8	0.04	0.21
HAN06024	167.1	171.5	4.4	47.0	0.07	0.14
HAN06025	156.4	168.6	12.2	42.6	0.04	0.18
HAN06026	145.9	165.0	19.1	46.3	0.05	0.23
HAN06030	136.4	149.9	13.5	50.6	0.26	0.41
HAN06031	131.4	146.1	14.7	43.7	0.16	0.35
HAN06032	138.4	150.7	12.3	43.3	0.17	0.35
HAN06033	134.7	139.9	5.2	42.6	0.19	0.24
HAN06034	220.1	228.9	8.8	42.1	0.06	0.09
HAN06035	237.5	264.4	26.9	26.6	0.39	0.36

 

 

 

Mineralized samples from holes HAN06024 through 029, and HAN06035 through 042 are still being processed in the assay laboratory and the results are not expected for up to 4 to 6 weeks.

 

Two drill rigs are currently on site with a third due to be added later this winter once a drill scheduled program has been completed at Northland's Stora Sahavaara iron-copper project in Sweden.

 

In September 2006, Northland published results for the first thirteen holes at Hannukainen, which are reproduced below (See Northland news release dated September 13, 2006):

 

Hole No.	From (m)	To     (m)	Interval (m)	Fe        %	Au       g/t	Cu        %
HAN06001	123.4	156.5	33.1	37.7	0.33	0.77
HAN06002	129.8	153.0	23.2	41.8	0.09	0.32
HAN06003	127.0	152.3	25.3	33.6	0.15	0.20
HAN06004	113.9	128.5	14.6	42.1	0.00	0.20
HAN06005	148.0	177.0	29.1	39.7	0.75	0.81
HAN06006	144.4	172.0	27.6	34.1	0.00	0.29
HAN06007	132.3	153.8	21.6	43.8	0.00	0.20
HAN06008	101.2	110.8	9.6	46.9	0.99	1.11
HAN06009	142.0	178.5	36.5	40.1	0.18	0.41
HAN06010	147.1	175.8	28.8	41.2	0.40	0.52
HAN06011	155.4	185.5	30.1	39.1	0.00	0.25
HAN06012	140.0	169.0	29.0	37.9	0.91	0.43
HAN06013	105.3	126.0	20.7	38.8	0.73	0.74

 

Part of the Hannukainen deposit was mined from 1982 to 1988 from the Laurinoja open pit. Approximately 4.5 million tonnes of magnetite ore were mined from Laurinoja at a grade of 43% Fe, 0.88% Cu and 1g/t Au. Although no historic production records are available specifically for the Laurinoja open pit other than these basic tonnage and grade figures, historic production records have been obtained for the nearby Rautuvaara underground mine which processed a blend of material mined from the Laurinoja open pit and material from the underground Rautuvaara mine.  The blended ore was crushed and magnetic separation recovered 99.4% of the magnetite feed.  The iron grade of this concentrate was 66.9% indicating a high yield.  The tails of the magnetic separation were processed using flotation which recovered 94.7% of the copper and 75% of the gold in the tails with no apparent metallurgical complications.  Copper-in-concentrate grade was reported to be 23.7%, and the gold-in-concentrate grade was 11.7g/t Au.  The reader is cautioned that Northland has not yet performed the metallurgical testwork required to independently verify the Cu and Au recoveries quoted in the historic Rautuvaara production records.

 

Laurinoja is one of five known iron-copper-gold occurrences in the Hannukainen area.  The other prospects, Lauku, Kuervaara, Vuopio and Kivivuopio, all exhibit the potential to host similar mineralized bodies to Laurinoja. The Hannukainen area itself represents only one of a number of known iron-oxide-copper-gold type magnetite occurrences in the Kolari District, Finland that are currently being evaluated by Northland.  The Company controls the mineral rights to a 50 km strike of the Pajala Shear Zone, the major structural feature that appears to localize the emplacement of these magnetite bodies.  The belt straddles the border between Finland and Sweden.  On the Swedish side, at the Stora Sahavara prospect which is roughly 25km from the Laurinojo open pit, the Company has defined a significant NI43-101 compliant iron resource with Cu credits (see Northland's press release dated May 18, 2006 "Northland Delivers NI43-101 Iron Ore Resource For Stora Sahavaara Project, Sweden").  

 

 

Vance V. Thornsberry, P.Geol., Vice President of Exploration for Northland, is the Qualified Person as defined in NI 43-101, responsible for the design and execution of the Hannukainen drill program and re-assay program, and has verified that the drill intersections contained in this release are an accurate summary of the assay data received by the Company.  Mr. Thornsberry has also verified that the historic information presented in this release has been accurately summarized from the reports quoted.

 

The core was cut at Northland's core facility in Kolari, Finland. A one-half split of the core was sent for preparation and analysis to the Geological Survey of Finland's Analytical Laboratory in Rovaniemi which is accredited according to the SFS-EN ISO/IEC 17025 and in compliance with the requirements of the Standards Council of Canada (CAN-P-1579) "Guidelines for Accreditation of Mineral Analysis Testing Laboratories".  The entire sample, representing approximately 3 kilograms, was crushed and pulverized and a 150 gram split was submitted for analysis.  

 

Iron and Copper analyses were performed using Sodium Peroxide Fusion multielement analysis with ICP-AES Technique, Method 720P and gold analysis was performed by Lead Fire Assay Preconcentration with ICP-AES Technique, Method 704P.  In addition to the GTK internal sample preparation and assay QC protocol, Northland maintains a rigorous QA/QC program consisting of inserting blanks, duplicates and certified standards to the analytical process.

 

 

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