Northland Resources Releases new Barsele Gold Assays

Business Wire,  Oct 3, 2005  

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VANCOUVER, British Columbia -- Mr. Buck Morrow, the President of Northland Resources Inc. (TSX VENTURE:NAU), is pleased to announce the results of recent drilling at the Norra-Barsele project in Sweden. The program has successfully demonstrated the existence of significant gold mineralization beyond the limits of the known resource at the Central Zone, and indicates potential to increase the average gold grade of the resource once a new NI43-101 compliant resource calculation is completed in mid-January 2006.

E[acute accent]Results of the 6 hole large diameter RC drilling program of the Central Zone at the Barsele Project include the following highlights:

E[acute accent]- 22m @ 2.1 g/t Au in hole 002

E[acute accent]- 17m @ 2.1 g/t Au in hole 003

E[acute accent]- 19m @ 2.0 g/t Au in hole 006

E[acute accent]The objective of the recent drilling was to expand the existing gold resource reported in March of this year (see below). Northland's geologists suspected that the use of a small diameter core in the 1986 and 1987 drilling may have under estimated the average gold grade. In fact, the recent drilling has apparently confirmed this, returning a number of intersections substantially greater than the average grade of the previous resource calculation (see below). Significant intersections from the 6 hole program are tabulated below and a drill collar plan is available on Northland's web site at www.northlandresourcesinc.com. Cross sections will be posted shortly.

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Hole No         From    To   Interval (m)   Grade Au g/t
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CNTRC05-001       34    38             4             2.5
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CNTRC05-002       82   104            22             2.1
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CNTRC05-003       37    54            17             2.1
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And               63    79            16             2.0
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CNTRC05-004       56    63             7             2.1
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And              129   133             4             4.8
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CNTRC05-005             No significant values
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CNTRC05-006       70    78             8             2.0
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and              101   107             6             2.1
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and              110   129            19             2.0
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E[acute accent]All six holes were angled so the results do not reflect the true thicknesses and depths below surface. True thickness will be less than the intervals shown above and depths below surface will be less than the down hole depths.

E[acute accent]Large diameter core drilling is on going. The core drilling program, which consists of 1600 meters in approximately 10 holes within the limits of the existing resource, will provide additional data for a new NI43-101 compliant resource calculation to be completed by mid-January 2006. The aim of the new resource calculation is to increase the existing average gold grade at the Central Zone and the contained ounces of gold. Northland is targeting 1-million ounces at approximately 2 g/t Au.

E[acute accent]Background

E[acute accent]In March 2005, NAU released an updated NI43-101 compliant resource calculation. The estimated resources for the 4 mineralized zones, broken down into indicated and inferred categories, are tabulated below.

BARSELE NORRA, MARCH 2005 MINERAL RESOURCE ESTIMATE (Capped)
Inverse Distance Model

                  --------------------------------------------------
                       Indicated Resources        Inferred Resources
--------------------------------------------------------------------
Cut off                        Au    Total               Au    Total
(Au g/t)             Tonnes  (g/t)  Au (oz)    Tonnes  (g/t)  Au (oz)
--------------------------------------------------------------------
Norra
 0.8                193,038  2.90   17,987     61,487  2.76    5,451
Avan
 0.8              1,306,125  1.49   62,701  2,629,699  1.61  136,458
Central
 0.8              3,143,569  1.82  184,285  2,741,425  1.70  149,976
Skirasen
 0.8                534,147  1.50   25,815  1,190,103  1.47   56,310
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Totals
Barsele/Norra     5,176,879  1.75  290,788  6,622,713  1.64  348,196
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E[acute accent]Qualified Person

E[acute accent]Resource estimates were prepared by third party consultants (Bart Stryhas, PhD Structural Geology and Dwight Crossland BS Mining Engineering); the resource model and estimates were subsequently reviewed by Chlumsky Armbrust & Meyer L.L.C. (CAM) an independent, mineral resource, consulting and engineering group based in Lakewood, Colorado USA.