Luxembourg, September 9, 2011: Northland Resources S.A. (TSX: NAU, OSE: NAUR, Frankfurt: NPK - "Northland" or "the Company") welcomes the recent announcement by the Swedish Government to invest more than USD 570 million in the Swedish railway network.

 

A spokesperson for the Ministry of Enterprise, Energy and Communications (Näringsdepartementet) confirmed that the allocated funds will ensure increased capacity of the Malmbanan, the main railway that transports iron ore products in northern Sweden. The Swedish Transport Administration (Trafikverket) has previously confirmed that it will aim to prioritize the Malmbanan to meet the increased demand from current and future iron ore producers. As a result, in total of four new passing sidings that will be finalized before 2015, two of these are on the leg between Kiruna and Riksgränsen. This will allow for more trains to use the rail line.

 

"It is very good to be able to give a clear message, especially to Northland Resources and LKAB, that we now have allocated the money," said Mrs. Maud Olofsson, Minister for Enterprise and Energy, to the Swedish media.

 

"We are very pleased with the strong commitment to this important railway, which has played a vital role to develop the entire region of Norrbotten," said Karl-Axel Waplan, President & Chief Executive Officer of Northland Resources S.A. "Although the current capacity of Malmbanan will allow us to transport our high-grade, high-quality magnetite iron concentrate at the time we start production in 2013, the new investment will ensure capacity for the expected increase of iron ore volumes from Northland, as well as from additional players, at the end of this decade."

 

Northland is a development-stage mining company with a portfolio of iron ore projects in northern Sweden and Finland. The Company's Kaunisvaara Project will exploit two magnetite iron ore deposits in Sweden. The process will yield a very high-grade, high-quality magnetite iron concentrate. The construction of the Kaunisvaara project is well underway and production is planned to start in the fourth quarter of 2012. Northland has entered into industrial off-take contracts which will last for 7-8 years for the entire production from Kaunisvaara. The Company is also preparing a Definitive Feasibility Study for the Hannukainen Iron Oxide Copper Gold Project in Kolari, northern Finland. The study is expected late in the fourth quarter of 2011.

 

Trafikverket (the Swedish Transport Administration) is the agency responsible for all modes of traffic, including the roads, the railways, sea and air. The agency plans for all modes of traffic for a long time to come. Trafikverket builds, maintains, and operates all national roads and railways. More information on www.trafikverket.se

 

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

For more information, please contact:
Karl-Axel Waplan, President and CEO: +46 705 104 239
Jonas Lundström, Vice President Human Resources and Corporate Communications, +46 705 493 338
Anders Antonsson, Vice President Investor Relations: +46 709 994 970
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 pursuant to section 5-12 of the Norwegian Securities Trading Act.