Northland Signs Term Sheet with Caterpillar Financial for Mobile Equipment Lease Facility

Luxembourg, October 8, 2010: Northland Resources S.A. (TSX: NAU, OSE: NAUR - "Northland" or "the Company") is pleased to announce that Caterpillar Financial has been appointed to arrange financing for up to USD 50 million for leased mobile equipment that is expected to be utilised in the development and operation of the Kaunisvaara Project.

"This is an important component of the total financing package for the Kaunisvaara Project. In addition to the Caterpillar Lease Facility, financing is also expected to include a combination of project financing with a syndicate of banks, financing by off-take parties and equity," said Eva Kaijser, Northland's CFO.

Northland is a development-stage mining company with a portfolio of iron projects in northern Sweden and Finland.  Northland's Kaunisvaara Project contemplates the staged development of 3 magnetite iron ore deposits that would provide feed to a single, multi-line processing facility in Sweden, producing a high-grade, high-quality magnetite iron concentrate.  The results of the Feasibility Study on the Kaunisvaara Project were released September 27, 2010.

"Karl-Axel Waplan"                                                                  
President & CEO                                                                    
Northland Resources S.A.                                                       

For More Information, Contact:
Karl-Axel Waplan, President & CEO: +46 705 104 239
Anders Hvide, Executive Chairman: +47 92 88 98 58
Eva Kaijser, CFO: +46 709 32 09 01
Marguerite Manshreck-Head, Investor Relations, Canada: +1 647 224 7882

Or visit our website at: www.northland.eu