Vancouver, January 16, 2008: Northland Resources Inc. is pleased to provide an update on recent exploration work at the Company's 100%-owned Stora Sahavaara iron project in Sweden which has significantly expanded the known dimensions of the magnetite mineralization and will likely result in the definition of additional resources at the project.

 

A new grade-thickness compilation of all available drill data identified a possible thickening of the Stora Sahavaara deposit within the middle part of the magnetite body, angling to the north at depth.  Four new diamond core holes were drilled to test this potential between the 600 and 1000 profiles.  All 4 holes successfully cut good widths of typical Stora Sahavaara magnetite mineralization at depths ranging between 302m and 503m, outside the limits of the existing resource, indicating good potential to add significant new magnetite resources at the project.  The table below summarizes the salient results from the new holes, with approximate ranges for the true thickness of mineralization.  Updated drill collar plans and sections will be posted shortly on the Northland website.

 

Hole ID	Section	From  (m)	To (m)	Interval (m)	Iron Grade (%)	Est. True Width (m)
SAH07018	600N	302.8	330.3	27.5	34.9	23-27
		376.7	388.6	11.9	39.9	9-11
SAH07021*	1000N	459.9	521.2	61.3	39.2	56-60
SAH07022	800N	350.0	397.0	47.0	48.5	39-43
SAH07023	700N	413.8	466.9	53.1	41.4	33-37

*Hole SAH07021 encountered drilling problems at a depth of 502m.  A wedge was inserted at 463m and drilling continued from there.  The result shown is a composite of assays from SAH07021 up to 463m and assays from the deflection (SAH07021B) from 463m to the end of the hole at 532.7m.

 

The magnetite body appears to continue at depth below these 4 holes.

 

Another hole, SAH07005 was completed on the northernmost profile (1300N) where historic work had suggested that the Stora magnetite body would be approximately 30m in downhole thickness.  However, the hole cut a well-mineralized core length of nearly 63m grading 40.9% Fe from 240m downhole.  This suggests potential for a second wide lobe of magnetite mineralization, raking to the north in addition to the one described above.

 

Hole ID	Section	From (m)	To (m)	Interval (m)	Iron Grade (%)	Est. True Width (m)
SAH07005	1300N	221.0	283.7	62.7	40.9	58-62

 

Northland's geologists are recommending that additional holes be drilled on the northern sections from 1200N through 1400N, to test the potential rake of the deposit to the north.

 

Buck Morrow, the President of Northland, said: "We have always believed that there was excellent potential to increase the NI43-101 resource at Stora Sahavaara and our latest drilling appears to confirm this.  I've asked our exploration team to schedule more drilling to follow up these results in advance of a new resource calculation to be completed this year."

 

 

Management would also like to provide an update on the timing of the NI43-101 compliant resource calculation for the Tapuli project.  Management had been expecting the final sign off by Geovista and Micon by mid-January but was recently informed by Geovista that delivery of the final resource numbers would be delayed for up to 2 weeks.  Northland now anticipates releasing the resource figures before the end of January.  

 

 

The core was cut at Northland's core facility in Kolari, Finland.  A one half split core from Salmivaara was prepared at ALS Chemex Lab in Pitea, Sweden and then transported to ALS Chemex in Vancouver, British Columbia Canada for analysis.

 

Copper and Iron were analyzed by Sodium Peroxide Fusion multi element analysis, ICP-AES Method ME-ICP81.  Gold was analyzed by Lead Fire Assay Pre-concentration with ICP-AES Method Au-ICP21 finish.

 

In addition to the ALS Chemex 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 has delineated a NI43-101 compliant resource at Stora Sahavaara (see news release dated May 18, 2006).  Using a 25% Fe cut off, the magnetite body contains:

 

Category	Tonnes	Fe %	Cu %
Measured	77,063,210	43.32	0.080
Indicated	44,634,770	43.28	0.076
Inferred	23,346,373	41.76	0.051

 

 

Resource estimates were prepared by third party consultant (Bart Stryhas, PhD Structural Geology); the resource model and estimates were subsequently reviewed by Chlumsky Armbrust & Meyer L.L.C. ("CAM") an independent, mineral resource, consulting and engineering group based in Lakewood, Colorado, USA.  CAM believes that the Stora Sahavaara resource and resource model have been prepared according to accepted engineering practice for a project at this level of development.

 

The technical information in this release was prepared under the supervision of Mr. David Cass, who is a member of the Association of Professional Engineers and Geoscientists of British Columbia, and a "Qualified Person" in accordance with National Instrument 43-101.

 

ON BEHALF OF THE BOARD

 

NORTHLAND RESOURCES INC.

 

 

CONTACT INFORMATION

Northland Resources Inc.

Buck Morrow, President

Investor Relations:        North America, Ralph Rushton: Toll Free: 1-866-719-8962

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