FAQ

 
  Q  What is Northland Resources S.A.?
  A  Northland Resources S.A. ("Northland") is an exploration and development company trading as NAU on the Toronto Stock Exchange, and NAUR on the Oslo Børs. The Company has a balanced portfolio of advanced and early stage iron projects in Sweden and Finland. Northland has no mining operations and no production, although its projects are at a fairly advanced stage and its Kaunisvaara Iron Concentrate Project is currently the subject of a Feasibility Study.

If you are planning to invest in Northland, you should be clear that you are comfortable with the investment risks associated with exploration and development companies. While buying shares in junior companies such as NAU is one of the riskiest types of investment it can potentially be one of the most rewarding. If you have any doubts about the suitability of NAU shares in your portfolio, you should contact your investment advisor for further information.
 
 
  Q  What is Northland's corporate objective?
  A  Northland aims to become a producing European iron ore mining company by 2012. If we're successful in executing our business plan, we will become Europe's second largest iron ore producer after the Swedish state company, LKAB.
 
 
  Q  What is the Company's strategy?
  A  Northland plans to focus on the development of its Kaunisvaara Iron Concentrate Project in northern Sweden, which envisions a centralized mill, being supplied with feed from 3 different mines -- Tapuli, Sahavaara and Pellivuoma. In Finland we are advancing our Hannukainen/Kuervitikko IOCG Project, with the goal of releasing a Preliminary Economic Assessment by Q2 2010. Our management will also assess new opportunities within the region as they arise.
 
 
  Q  How long has Northland been involved in Sweden and Finland?
  A  We first entered Sweden in late 2003 under an option agreement covering the Barsele project. In December 2004 we acquired a package of prospective mineral concessions via an agreement with Anglo American. We also staked additional mineral concessions under the Northland name in both in Finland and Sweden.
 
 
  Q  Why are you exploring in Sweden and Finland?
  A  Sweden and Finland both have excellent infrastructure, with well developed road, rail and power networks. Both countries also have very skilled workforces and, importantly, a long history of mining. The governments of both countries are actively supporting the exploration and mining industry and have made huge amounts of high quality exploration data available to the industry at essentially no cost.

From an infrastructure stand point, the location of our projects could hardly be better. They represent strategic supplies of key metals within the European market. Our iron and iron-copper-gold resources are within 10-20km of a maintained railway in Finland, which leads to the port of Kemi in Finland.

From a geological stand point, the region hosts a number of giant mineral deposits, including the Kiruna iron deposit in Sweden, one of the world's great ore bodies. So we're exploring in the right geological address.
 
 
  Q  What minerals are you looking for?
  A  Northland is exploring mainly for iron, copper and gold associated with a kind of mineral deposit known as an iron-oxide-copper-gold system (usually referred to by the abbreviation IOCG.) IOCG systems are an economically significant deposit style that has become an important target type in the portfolio of many companies. Deposits with IOCG affinities occur in a variety of geological settings around the world. Examples of world-class IOCG deposits include the Olympic Dam mine in Australia which hosts a resource of 2.7 billion tonnes grading 1.2% Cu, 0.5 g/t Au, and 0.4kg /t U3O8. Other examples include the huge Kiruna magnetite body in Sweden which has been mined for iron ore for close to 100 years. It originally hosted over 2 billion tonnes of magnetite ore but much of this is now mined out.
 
 
  Q  Does management have the expertise to take these projects to production?
  A  Karl-Axel Waplan, who is CEO/President, is a Mining Engineer and the former President of Lundin Mining. Bill Wagener, who is managing our Finnish assets, is the former President of Arco Coal Australia, which produced 20 Mtpa. We believe that the combination of experience and talent within the team is second to none in the junior sector. The other team members' biographies are available for review on our Management page.
 
 
  Q  How will Northland overcome the ice conditions during the winter?
  A  Our exploration projects operate all year round. In fact, much of our exploration -- particularly drilling operations - can only be carried out in many areas when there is sufficient ice on the lakes and bogs to support the weight of a drill rig.

There are a number of mines in Finland and Sweden that operate 12 months a year, including Kiruna and Malmberget in Sweden and Pahtavaara, and Kemi in Finland. In addition, Sweden and Finland cooperate in maintaining year round shipping lanes in the Gulf of Bothnia.
 
 
  Q  How restrictive are the environmental regulations in Sweden and Finland?
  A  The environmental regulations are comparable to any sophisticated industrialized country. The advantage in Finland and Sweden is that the regulations and permitting processes are mature, clearly defined and managed through a professional, efficient and timely permitting procedure. Northland has a team of environmental scientists and engineers dedicated to ensuring that our permit applications are submitted on time, and backed up with all of the necessary data to ensure that the project impacts are described as fully as possible.
 
 
  Q  Are there producing mines in the region?
  A  Yes, Finland has 4 major active metallic mines and 9 major active non-metallic mines. The Swedish government owns two iron mines (Kiruna and Malmberget) in the region where we are working, which produce some 25 million tonnes annually of concentrates and pellets. There are 10 active non-ferrous mines in Sweden.

As well, there are 2 past producing mines on our mineral concessions in Finland; the Rautuvaara mine and the Hannukainen mine.
 
 
  Q  What was produced from the Finnish deposits/mines that Northland controls?
  A  Our research into the production histories of Hannukainen and Rautuvaara indicates that Hannukainen produced roughly 4.6 million tonnes of ore at a grade of 1g/t gold, 0.9% copper and 43% iron, and the Rautuvaara mine 11.6 million tonnes of ore at a grade of 46% iron and 0.36% copper. Both projects have historic resources remaining on the projects and Northland has done sufficient work to confirm the resources and expand them.
 
 
  Q  What type of product does Northland want to produce?
  A  Our goal is to produce a high-grade, high-quality magnetite iron concentrate from our Kaunisvaara Iron Concentrate Project. In Finland, we have begun preliminary discussions with Kobe Steel and Midrex Technologies regarding the integration of Kobe's ITmk3(r) iron making technology into the development of Northland's Hannukainen/Kuervitikko Project. The ITmk3(r) process produces Iron Nuggets from iron concentrates.
 
 
  Q  How will Northland deliver the Kaunisvaara iron concentrate to its customers?
  A  The Kaunisvaara Project is only a few kilometers to a rail head on the Finnish side of the border that links to the port of Kemi on the Gulf of Bothnia, which is kept ice free by ice breakers. Once at the coast, it will be loaded onto ships and shipped to the customer.
 
 
  Q  Is it cheaper to deliver Swedish iron ore to Europe vs. ore from Brazil or Australia?
  A  There is a substantial difference in the shipping cost per tonne between European iron ore shipments and southern hemisphere shipments to, say, Germany. It is generally cheaper to bring iron ore from Sweden because of the shorter shipping route. The difference in transport cost per tonnes varies depending in part on the availability of shipping and the cost of fuel oil. In recent years, it has ranged from $5-6/tonne to as much as $25-30/tonne of ore.
 
 
  Q  Are you able to separate the copper and gold from the iron in the deposits?
  A  The iron is first separated from the host rock which also contains the copper and gold by-products. This initial separation is typically accomplished through a process referred to as Magnetic Separation -- essentially the rock is crushed and the magnetic iron ore is extracted using a large industrial magnet. Once the iron has been stripped from the feed material, the copper and gold are recovered from the remaining material through a standard flotation process.
 
 
  Q  Do you plan to raise any money in the near future?
  A  Not in the near term. Financing activities in 2006 & 2007 raised over C$150 million. This funding should be sufficient to complete the PEA on Hannukainen/Kuervitikko and the Feasibility Study on Kaunisvaara and to being the process of ordering long-lead time capital items.
 
 
  Q  Who should I contact if I have more questions?
  A  The best way to reach us with questions is to email us at