Northland Signs Agreement with Peab for the Civil Works at the Kaunisvaara Iron Ore Project

Luxembourg, May 31, 2011: Northland Resources S.A. (TSX: NAU, OSE: NAUR,
Frankfurt: NPK - "Northland" or "the Company") is pleased to announce that Peab
AB ("Peab") has been engaged to construct all the civil works for the industrial
area of the Kaunisvaara Project.  The order is valued at approximately SEK 800
million (USD 125 million).

The Agreement covers all the civil works for the Kaunisvaara Project including
detailed engineering, earthworks, foundations, buildings and related works. The
scope includes crusher stations, conveyor tunnels, stockpile buildings, mill
foundations and the construction of the process plant building. Also included
are the truck workshop and a number of smaller buildings. Construction of the
civil works is expected to be completed in the third quarter of 2012.

 "We continue to build our relationship with Peab, a company we have a found to
be an excellent partner during the development of the Kaunisvaara Project. Peab
is highly experienced with civil works for mining companies in our region," said
Karl-Axel Waplan, President & Chief Executive Officer of Northland Resources
S.A. "Our focus continues to be on bringing the project in on time and on
budget."

The Kaunisvaara Iron Ore Project is located in northern Sweden, approximately
100 km north of the Arctic Circle, in the municipality of Pajala. After
completion, the annual capacity of the process plant will be 12 million tonnes
of dry iron ore and 5 million tonnes of iron ore concentrate.

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 magnetite iron ore deposits, feeding a single, multi-line processing
facility in Sweden. The process yields a very high-grade, high-quality magnetite
iron concentrate. The Company is also preparing a Definitive Feasibility Study
for the Hannukainen Iron Ore Copper Gold Project in northern Finland.

Peabis an innovative construction and civil engineering company which combines
the strengths of a large group with those of a local company's ability to crate
flexible solutions. Net sales in 2010 were SEK 38 billion and the company
employs approximately 14,000 people across the Nordic region. More info on
www.peab.com

On behalf of the Board

"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
Patrick Foster, Director Finance, 44 7710 123 603

Or visit our website: www.northland.eu


This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.






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

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Unternehmen: Northland Resources S.A. - ISIN: LU0488722801