December 2, 2008:  Mr. Buck Morrow, President of Northland Resources Inc., is pleased to announce, as per Northland's press release of November 20th, that the Chief Mine Inspector of Sweden has granted an exploitation (mining) concession for the Tapuli iron ore project in northern Sweden.  Tapuli has the potential to produce up to 3 million tonnes per annum of high grade, high quality, iron concentrate.

 

According to the Swedish Minerals Act (1991:45), Chapter 4, "Exploitation Concessions", an exploitation concession  is granted by the Chief Mine Inspector of Sweden, if a mineral deposit has been discovered that can most likely be mined economically, and the deposit is located in an area that is suitable for mining activities.  An exploitation concession is valid for 25 years, with extensions available if mining is on-going.  The land available to be used for mining is clearly defined in the exploitation concession, as are the areas inside and outside of the concession area that may be used in support of mining activities.  The application for the exploitation concession contains a preliminary environmental impact assessment. 

 

Mr. Buck Morrow commented, "The granting of the exploitation concession allows Northland to better define the development timeline, and adds significant value to our Tapuli project.  The next critical step is to secure an environmental permit for the project - a process that we estimate will take 12-14 months."

 

Northland's environmental permit application is substantially complete and will be submitted shortly to the Environmental Court.  An environmental permit must be granted before construction of the mine can begin.  In the interim, the Company will finalize project optimization studies, which contemplate a single processing plant for the Tapuli, Stora Sahavaara and Pellivuoma deposits, work with the governments of both Sweden and Finland on finalization of rail and port solutions, and procure key pieces of plant and equipment.

 

The Tapuli iron ore project is located in northern Sweden, north of the town of Pajala.  The area is well serviced by roads and power lines and is within trucking distance of a railhead at Kolari, Finland.  As announced previously, the Company intends to transport the Tapuli production to market using the Kolari-Kemi rail line and the Kemi port, both located in Finland.

 

 

Northland is a well-structured, debt free mining company with a portfolio of high quality iron, gold, and base metal development projects in Sweden and Finland.

 

ON BEHALF OF THE BOARD

NORTHLAND RESOURCES INC.

 

 

 

CONTACT INFORMATION

Northland Resources Inc.

Buck Morrow, President

 

Investor Relations:   

Europe, Deb Craig: Tel. + 46 70 638 4300, Jonas Lundstrom: Tel. +46 70 54 93 322

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