Northland Resources Inc. - Preliminary Economic Assessment

Development Projects Tapuli Stora Sahavaara Hannukainen

Exploration Projects Kuervitikko Pellivuoma Saarijarvi / Lannavaara Salimivaara Barsele

Preliminary Economic Assessment of Northland's Key Projects

From Buck Morrow, the President of Northland Resources Inc.

"On behalf of the Board and technical management of Northland, I'm pleased to present the results of the independent Preliminary Economic Assessment (PEA) of our three key iron ore projects: Tapuli, Hannukainen and Stora Sahavaara.

The three projects in total deliver a robust net present value of (Euros) €1.114 billion, EBIT of €5.085 billion and an Internal Rate of Return of 27% at a 10% discount rate. The discounted pay back period is 7 years from start of the development program.

With the basic engineering complete, we can now focus on maximizing the synergies between the projects and fast-tracking the Tapuli project to early production and cash flow."

We have posted Executive Summaries for each project below and the full report will be posted shortly on www.sedar.com.

	Tapuli Economic Assessment Summary of the Preliminary Economic Assessment of the Tapuli Iron Ore Deposit, Sweden
	Stora Sahavaara Economic Assessment Summary of the Preliminary Economic Assessment of the Stora Sahavaara Iron Ore Deposit, Sweden
	Hannukainen Economic Assessment Summary of the Preliminary Economic Assessment of the Hannukainen Iron Ore Deposit, Finland

Wardell Armstrong; Qualified Person Certificate

All reports were prepared by Wardell Armstrong International Limited on behalf of Northland Resources Inc, June 2008.:
http://www.wardell-armstrong.com/index.htm