Northland's Stora Sahavaara Project Initial Test Results Yield High Grade Iron Ore Pelletizing Feed

Market Wire, July, 2007

Northland Resources Inc. (TSX VENTURE: NAU)(FRANKFURT: NBS)(OSLO: NAUR) is pleased to announce that it has completed the initial metallurgical test program for its Stora Sahavaara iron project located in northern Sweden. Earlier this year, Northland mined a 2,000 tonne underground bulk sample of which 240 tonnes was shipped to an independent Canadian metallurgical lab, SGS Lakefield Research, Ltd. ("SGS"). SGS conducted pilot-plant, beneficiation test work based upon the results of previous bench-scale work reported in Northland's news releases dated February 12 and 15, 2007.

The process involves crushing the raw mined material to a small enough size to enable magnetic separation and flotation to concentrate the magnetite into high iron pellet feed. Test results indicate that magnetite ore from the deposit will produce a high-grade pelletizing feed (concentrate) with a typical average composition of:

----------------------------------------------------------------------
        Total
Assay    Iron     S  SiO2  Al2O3   MgO  TiO2         P2O5    CaO   MnO
----------------------------------------------------------------------
                                                Less than
Wt%      67.0  0.06  0.97   0.31  4.41   0.1         0.01   0.02  0.18
----------------------------------------------------------------------

SGS processed approximately 50 tonnes of iron ore and produced 26 tonnes of concentrate. Preliminary evaluations suggest that overall recovery of magnetite is anticipated to be approximately 90 percent. Based on the results of Northland's initial evaluations of concentrate and from commercial pelletizing operational data, it is anticipated that sulphur will be largely removed during the commercial pelletizing operations, with the final sulphur levels expected to be approximately 0.01 percent.

The concentrates generated during pilot plant operations are currently being prepared and blended prior to dispatch to various facilities for pelletizing test work. This test work will begin as planned in September at COREM in Canada, and at Corus Group's R&D Centre in the Netherlands.

"The ability to demonstrate high recovery of iron and the production of a concentrate with a low percentage of deleterious elements is another step forward toward production at Stora Sahavaara," said Buck Morrow, President of Northland. "In addition, we are pleased that Corus, a subsidiary of Tata Steel, the world's sixth largest steel producer, will conduct pelletizing test work on our concentrate."

Additional information will be released when the final SGS report is completed.

Qualified Person

The metallurgical work was performed under the supervision of Paul Marsden, VP Metallurgical Development and Operations for Northland. Mr. Marsden is a member of the IMMM, a Chartered Engineer and a Chartered Scientist and is the Qualified Person as defined in NI 43-101 responsible for overseeing the design and execution of the metallurgical test work program at Stora Sahavaara. M. Marsden has verified that the results presented here have been accurately summarized from the results reported to Northland.

About Northland ( www.northlandresourcesinc.com )

Northland is a well-structured, debt free junior exploration company with a portfolio of high quality iron, gold, and base metal exploration projects in Sweden and Finland.

ON BEHALF OF THE BOARD

Buck Morrow

NORTHLAND RESOURCES INC.

The TSX Venture Exchange has not reviewed and does not take responsibility for the accuracy of this release.

Contacts: Northland Resources Inc. Buck Morrow President Toll Free: 1-866-719-8962 Northland Resources Inc. Ralph Rushton Investor Relations Toll Free: 1-866-719-8962 Website: www.northlandresourcesinc.com