Vancouver, Canada, August 1, 2007.  Mr. Buck Morrow, the President of Northland Resources Inc., is pleased to announce that the Company has mobilized a core drill to the Salmivaara iron-copper project site, approximately 33 km northeast of the city of Gallivare in Norbotten County, Sweden and about 60km west of Stora Sahavaara. The drilling will follow-up and confirm the results from a re-assay program of three archived boreholes drilled by the Swedish Geologic Survey ("SGU") into the Salmivaara iron-copper deposit.

 

The SGU carried out several phases of exploration at Salmivaara, the last during the period 1970 - 1973.  Two out of the three holes re-assayed returned very encouraging iron and copper grades (see table below). Hole BH6 returned 42.4% Fe and 0.14% Cu and hole 71801 returned multiple intervals of iron-copper mineralization. There is currently insufficient information to estimate the true thickness of mineralization at Salmiavaara. Salmivaara 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.

Hole No.	From (m)	To (m)	Int (m)	Fe %	Cu %
71801	210	240	30	37.0	0.14
and [a]	281	300	19	42.5	0.16
and [b]	320	355	35	37.9	0.20
BH6 [c]	106	155	49	42.4	0.13

 

Northland has mobilized a drill rig to Salmivaara and drilling started August 1st, with the initial objective being to complete roughly 2,000m of core drilling to i) confirm results of historical drilling, and ii) test the historic resource and geophysical model for Salmivaara.

 

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. The reader is cautioned that this is an historic resource and Northland has not yet completed sufficient work to verify the tonnage and grade figures. As such, the resource cannot be relied upon.

 

Mineralization at Salmivaara consists of magnetite with pyrite, pyrrhotite and chalcopyrite. 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. It was discovered in 1897, first drilled in 1904, and was mined for copper during World War II.  The 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 and could contain up to 120-million tonnes of magnetite. The reader is cautioned that this is an historic resource and Northland has not yet completed sufficient work to verify the tonnage and grade figures. As such, the resource cannot 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.

 

The split core from Salmivaara was prepared at ALS Chemex Lab in Pitea, Sweden and analyzed at ALS Chemex Vancouver. Copper and Iron were analyzed by Sodium Peroxide Fusion multi element analysis, ICP-AES Method ME-ICP81. Gold was analyzed by Lead Fire Assay Preconcentration with ICP-AES Method Au-ICP21 finish.

 

 

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