Swedish Government to Co-finance Rail to Northland Project Area

April 1, 2010:  Northland Resources S.A. (Northland) is pleased to advise that the Swedish Government has announced the decision of the Cabinet to co-finance an 18 km rail line from Northland's proposed industrial area in Kaunisvaara, Sweden to the existing rail link at Äkesjokisuu, Finland.  A rail connection from Kaunisvaara to Äkesjokisuu would provide for more efficient and cost effective iron concentrate transportation, compared to the pipeline solution proposed in the Kaunisvaara PEA, released September 2009.

"This announcement confirms the Swedish Government's interest in the development of the Kaunisvaara Project," stated Karl-Axel Waplan, President and CEO of Northland.

"We would like to acknowledge the good support our project has received from the Swedish Transport Administration, together with the Finnish Transport Administration. These are excellent conditions for our ongoing negotiations," Mr. Waplan continued.

"The intention to co-finance the construction of rail in direct proximity to the proposed mining operations in Pajala is clearly stated in the National Plan," stated the Minister of Infrastructure, Åsa Torstensson, during the press conference held in Luleå on March 31^th.

The formal decision was included in the Government's Transportation Plan for 2010-2021, that was presented at press conferences in Stockholm and Luleå on March 31^th.

The Swedish Transport Administration ("Trafikverket", formerly the Swedish Rail Administration) was instructed by the Cabinet to continue the negotiations with Northland and to proceed with the formal Railroad Investigation ("Järnvägsutredning") that needs to be finalized before the railroad can be formally approved by the Cabinet.

The process will now continue with negotiations on a Financing Agreement and an Implementation Plan between Northland and the Swedish Transport Authority in accordance with the Memorandum of Understanding that was signed by Northland and the Swedish Rail Administration and announced February 1, 2010.