Tentative Agreement to Sell Northland's Non-Ferrous Assets in Sweden

Luxembourg, October 27, 2010: Northland Resources S.A. (TSX: NAU, OSE: NAUR, Frankfurt: NBS - "Northland" or "the Company") is pleased to announce that it has signed a Letter of Intent ("LOI") to sell the Company's non-ferrous projects in Sweden to Orex Minerals Inc. ("Orex"). The total consideration is valued at a minimum of USD 15.5 million, and includes a mix of upfront cash and shares, as well as deferred cash and share payments, guaranteed investments and a 2% Net Smelter Royalty ("NSR").

Mr. Karl-Axel Waplan, President and CEO of Northland, commented, "The signed LOI for the sale of the non-ferrous projects in Sweden, including the Barsele Gold Project, is in line with the Company's strategy to focus on iron ore and dispose of non-core assets.  The Board of Directors believes that the inherent value of the Swedish non-ferrous projects will be better developed by a team that can focus its resources and technical expertise on advancing these projects towards mining operations."

Northland will receive a total of USD 5 million in cash over two years, and USD 3.5 million worth of Orex shares to be issued over a period of four years from signing of the Final Agreement. Orex has also guaranteed that a minimum USD 3 million will be spent on the non-ferrous projects in the first two years.  Finally, Northland will retain a 2% NSR, which can be purchased at any time by Orex for USD 4 million in cash.  Northland will also have the right to appoint a Director to the Board of Orex.

Orex is a silver and gold exploration company with projects in Mexico. It is listed on the TSX Venture Exchange under the trading symbol REX.  The Orex management team has a proven track record in exploration and company development, most recently with the TSX Venture Exchange-listed company Orko Silver Corp.

Final details, conditions and approvals are expected to be completed over the next few months, with closing expected on or about January 26, 2011.  A further announcement will be made upon closing.  Pareto Securities AS has acted as financial advisor with respect to this transaction.

ON BEHALF OF THE BOARD

"Karl-Axel Waplan"

President and CEO
Northland Resources S.A.

For more information please 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

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