June 23, 2009: Within three months, Northland Resources Inc. (Northland) expects to receive its first external evaluation of its most promising mine projects, the Kaunisvaara Project, in Northern Sweden. The study, a Preliminary Economic Assessment (PEA), is being made by Norwegian Aker Solutions, and assesses key design parameters and costs for the projects.

 

Management at Northland had hoped that the PEA could have been published during the summer, but due to the existing economic climate, vendors and engineering companies have been asked to provide more detailed quotations for services and equipment that reflect the current world financial environment.  Management believes that the time required to receive updated quotes warrants the slight delay in publication of the PEA.

 

The Kaunisvaara Project consists of three iron ore projects: Tapuli, Stora Sahavaara and Pellivuoma. In light of the economic climate and promising drilling, metallurgical and engineering  results, management decided to fast-track the Kaunisvaara Project, mainly because of its expected low capital and operating costs, and because its production capacity fits the existing infrastructure.

 

The PEA is one step in the engineering design process that outlines the key design parameters and costs for the projects. A full Bankable Feasibility Study (BFS), which provides a detailed engineering plan for construction of the mines, is a likely next step and a complex undertaking. The PEA findings will provide important input to the BFS.

 

 

Anders Hvide, Executive Chairman, Oslo:  Tel. +47 92 88 98 58

Deborah Craig, Vice President, Northland Resources AB, Stockholm: Tel. +46 70 638 4300

 

 

Northland is preparing to supply iron, copper and gold to Europe's metal-hungry markets. In Sweden and Finland, Northland controls one of the continent's last major undeveloped iron ore provinces.  Iron ore is essential to steel fabrication, a key element of European heavy industry.