Northland Resources S.A.: Northland's Kaunisvaara Project on Time and on Budget

Freitag, 23. Dezember 2011 10:30
 Luxembourg, December 23, 2011: Northland Resources S.A. (TSX: NAU, OSE: NAUR,
Frankfurt: NPK - "Northland" or "the Company") is pleased to provide a year-end
update on its magnetite iron ore Kaunisvaara Project in northern Sweden.
Pictures of the different areas mentioned below are available on the corporate
web site at, or on request.

Progress at the Kaunisvaara Project site was steady through the first winter
months. Civil works were completed in October. More than 600,000 m(3 )of the
Tapuli overburden has been removed so far, and ongoing development work is being
carried out at an average rate of 100,000m(3) of material per week.

Construction of Large Buildings
The crusher for the Tapuli ore is under construction. The concrete work has been
completed and the focus has now shifted to building of the ore sheds in front of
the mill. The steel structure will be raised in the first weeks of 2012, all
according to the original timetable. Two-thirds of the roof and wall panels at
the largest building on the site, the process plant, are mounted and the
concrete has been poured for the autogenous grinding mills for the Tapuli and
Sahavaara lines and for the foundations for the Vertimills. Detailed design of
the process plant is ongoing and all long lead items, including the crusher and
mills from Metso, are on track for delivery to the site at the end of second
quarter of 2012.

Also on plan, the process water pond has been completed and the important water
process systems are in their final stage, with only 500 meters of pipeline
remaining to be laid. This will be finalized in early January. In addition, all
major foundation works for the truck workshop have been completed.

Experienced Management on Site
The Kaunisvaara Office is now fully equipped. Staff moved in at the beginning of
December. Northland Resources AB and the Kaunisvaara operations are all
reporting to Mr. Manfred Lindvall, who has 35 years of experience which include
senior positions within several leading Nordic mining companies. The senior
management includes:
* Mr. Jan Rutqvist, in charge of strategic and operational planning. Mr.
Rutqvist has 30 years experience of senior positions with large, open-pit
operations. The most recent was as General Manager at the Bulgarian Asarel
operations, and before that at Boliden's Aitik mine;
* Mr. Glenn Nilsson, Manager of the Tapuli mine. Mr. Nilsson has over 30 years
of experience of managing production at Boliden's Aitik mine;
* Mr. Hans Andersson, Manager Sahavaara Mine and Manager Infrastructure. Mr.
Andersson has 27 years experience of senior production and project positions
within the Swedish mining industry. In his most recent position, he was
responsible for crushing and conveying of ore at Boliden's Aitik expansion
* Mr. Kjell Johansson is responsible for managing the maintenance at the
Kaunisvaara operations. Mr. Johansson has more than 30 years of experience
of planning and maintenance at large mining operations and in particular
Boliden's Aitik Operations; and
* Mr. Egil Östlund will join the team in February 2012. Mr. Östlund takes on
the position as mill manager and brings 30 years of experience of mineral
processing operations in senior positions; the most recent was at Boliden's
Aitik operations.

Dispensation for 90 Tonnes Trucks
The Swedish Transport Authority is committed to cooperate with Northland to find
the most efficient transportation solution as possible. They have confirmed this
by granting the dispensation for 90 tonnes gross weight trucks following
extensive studies by Northland. This is the maximum weight possible due to the
current condition of the bridge crossing the Tärendö River.

Northland will now proceed with the next phase of the plan which will include
tests using an actual 90 tonnes truck which will help to determine the most
efficient balance between gross weight and relative speed on the road to ensure
an optimum number of daily roundtrips.

Logistical Solution Together with Strong Partners
Northland and its logistical partners, Savage Services, Peab and Grieg Logistics
are in the final stages of completing the logistical solution for the transport
of magnetite concentrate from the mine in Kaunisvaara to the port in Narvik.
Pre-planning and detailed design of the rail terminal in Pitkärjärvi is ongoing,
where the magnetite concentrate will be transferred from truck to railcar.

Pre-development Commenced at Fagernes
As reported in August 2011, Northland signed an agreement with the Port of
Narvik, Norway for the lease of the area necessary for the operation of an iron
ore terminal at Fagernes, south of the city. The terminal, which is expected to
efficiently load vessels of up to 180,000 tonnes, will consist of a quay, a
heated unloading facility for the railcars, a storage building and a ship

On December 1, 2011, Northland received the construction permit and the
engineering company Peab has initiated the construction of the quay and
ancillary infrastructure. Currently the preparatory work is being carried out to
enable piling for the new quay.

Market is Ready for Northland's High-Quality Product
In addition to the ongoing work in northern Scandinavia, Northland has recently
met with off-take partners as well as end-use customers. As previously
announced, Northland secured off-take agreements for the full production volume
during 2010 with Tata Steel, Stemcor and Standard Bank, all of which are on a
long-term basis. The agreement with Standard Bank is the largest and also for
the longest period of time. It covers 60% of the volume for 10 years after first

"Standard Bank continues to work closely with Northland and has commenced the
joint marketing effort, making initial contact with its extensive client base
both in China and via its global network. While the market has shown recent
turmoil in terms of premiums and changes in the pricing structure, there appears
to be good interest in this high-grade product and we are confident in realizing
good results through the marketing campaign in partnership with Northland," said
Jim Coupland, Managing Director ‒ Global Head of Base Metals and Bulk
Commodities at Standard Bank.

"While our contracts with Tata and Stemcor will primarily target the European
market, our agreement with Standard Bank is opening up opportunities for
substantial volumes of high-grade iron ore to be marketed to the Middle East and
Asian iron ore markets," said Hans Nilsson, Vice President - Marketing at
Northland. "Standard Bank will buy the products from Northland and sell to the
end users but the marketing of the products and prioritization of end users will
be collaborative effort between Standard Bank and Northland. Our recent joint
contact with customers, traders and import agents gave us increased confidence
that our high-grade, high-quality magnetite concentrate will receive a premium
in the market. Northland's product is particularly interesting for those
companies who operate their own pelletizing plants. However, the product has
also proven to have a positive impact on sinter plant productivity when
replacing hematite concentrates."

Iron ore analysts are expecting iron ore prices to remain at high levels until
at least 2015 due to continued strong demand in China and slower than expected
ramp-up of large projects in Brazil and Africa.

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

For more information, please contact:
Karl-Axel Waplan, President and CEO: +46 705 104 239
Anders Antonsson, Vice President Investor Relations: +46 709 994 970
Marguerite Manshreck-Head, Investors Relations, Canada: +1 647 224 7882

Or visit our website:

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 is expected to
yield a high-grade, high-quality magnetite iron concentrate. The construction of
the Kaunisvaara project is underway and production is planned to start in the
fourth quarter of 2012. Northland has entered into industrial off-take contracts
for the entire production from Kaunisvaara. The Company is also preparing a
Definitive Feasibility Study for its Hannukainen Iron Oxide Copper Gold Project
in Kolari, northern Finland. The results of the study are expected to be
released in the first quarter of 2012.

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

Northland Kaunisvaara Project on Time and on Budget:

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Source: Northland Resources S.A. via Thomson Reuters ONE

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