Northland Signs the First Two Agreements for the Construction of Kaunisvaara

Luxembourg, December 20, 2010 Northland Resources S.A. (TSX: NAU, OSE: NAUR - "Northland" or "the Company") is pleased to announce that it has signed the first two agreements with suppliers who will begin the construction of the Kaunisvaara project.

On December 14, 2010 the Board of Directors of Northland gave approval to move forward on the Kaunisvaara project.

The signing took place at the Ground Breaking Celebration in Kaunisvaara and in the presence of the Governor of Norrbotten and the Mayor of Pajala as well as members of Parliament. Agreements were signed with Peab AB ("Peab"), one of the Nordic countries' leading companies in the field of construction and civil engineering and with Vattenfall Distribution AB ("Vattenfall"), a leading Northern European energy company. Both the Chief Executive Officer of Peab, Mats Paulsson and the Head of Nordic Distribution for Vattenfall, Annika Viklund were present for the Celebration and the signing.

The Agreement with Peab consists of pre-development work such as the construction of roads, trenches and dykes within the mine area.

The Agreement with Vattenfall is to build two new over-head power lines, one of 130kV and one of 40kV which will supply the mine with sufficient electrical power.
Karl-Axel Waplan, President and Chief Executive Officer of Northland said "It's great to be moving into the construction phase after all the hard work of the past two years."

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 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, please contact:

Northland
Karl-Axel Waplan, President and CEO: +46 705 104 239
Anders Hvide, Executive Chairman: +47 92 88 98 58
Eva Kaijser, Chief Financial Officer: +46 70 932 09 01
Marguerite Manshreck-Head, Investors Relations, Canada: + 1 647 224 7882

Or visit our website: www.northland.eu

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)