Northland Considers Strategic Opportunities for Swedish Gold and Base Metal Projects

VANCOUVER, BRITISH COLUMBIA, Aug 27 (MARKET WIRE) --
Northland Resources Inc. ("Northland") (TSX: NAU)(OSLO: NAUR)(FRANKFURT:
NBS) is pleased to announce that it will conduct a strategic review of
opportunities for Northland's non-ferrous projects in Sweden. The
projects include the Barsele gold project, which has NI 43-101 compliant
gold resources of 367,749 oz in the indicated category and 398,630 oz in
the inferred category and a granted Exploitation Concession, the Norra
VMS prospect, and a number of promising early-stage projects in the
immediate vicinity of Barsele and Norra.

The strategic review has been initiated by the Board of Northland in
order to determine how best to realize the significant value of
Northland's non-ferrous projects, through a cooperation or sale of the
assets. There was been significant interest in these assets and Pareto
Securities AS has been retained as financial advisors with respect to
potential transactions.

Mr. Buck Morrow, President and CEO of Northland, commented, "The Board of
Northland believes that the non-ferrous projects have significant value.
Barsele has a NI 43-101 compliant resource estimate and a valid
Exploitation (Mining) Concession, and Northland has performed extensive
drilling, metallurgy, geochemical and geophysical studies on the projects
over the last years. However, as Northland is very focused on developing
its iron ore projects in Kaunisvaara and Hannukainen in Sweden and
Finland, the Board of Northland believe that the value will be better
reflected through a cooperation with, or outright sale to, an entity that
can devote its resources to developing the Swedish non-ferrous assets
into mining operations. Northland will evaluate proposals from mining
companies with a focus on maximizing shareholder value. Northland will
through these potential transactions be better able to focus its efforts
on developing the Kaunisvaara and Hannukainen projects into long term
mining operations in stable EU countries."

A further announcement regarding the strategic review will be made in due
course.

Background on Barsele

On April 12, 2006, Northland completed a NI 43-101 compliant resource
calculation for the Barsele gold project (see press release dated March
1, 2006). Using a 0.8g/t Au cut-off the resources are:

Indicated: 367,749 ounces of gold contained in 6,565,182 tonnes @ 1.74
g/t Au.

Inferred: 398,630 ounces of gold contained in 7,431,101 tonnes @ 1.67 g/t
Au.

Gold mineralization at Barsele is predominantly within a granodiorite
that ranges in width from 200 to 500 metres with a strike extent in
excess of some 8 kilometres. The Central and Skirasen Zones have a
combined strike length of 1.35 kilometres by some 250 metres wide. The
Avan Zone has a strike length of 1,400 metres and a width varying from
200 to 500 metres.

Background on Norra

The Norra prospect is interpreted as a Skelleftea VMS-type precious
metal-rich, base metal sulphide deposit that has subsequently been
modified by metamorphism and deformation.

The footprint of the main mineralized body at Norra, based on drilling,
is some 300 metres in strike length and 50 metres in width.

In June 2007, the Chief Mine Inspector of Sweden granted Exploitation
(Mining) Concessions (see press release dated June 26, 2007) for the
extraction of gold and silver at Barsele, including the Avan, Central and
Skirasen zones, and for the extraction of gold, silver, lead and zinc at
Norra. Granting of the Exploitation (Mining) Concessions, which are valid
for 25 years, is subject to a standard consultation and appeals process
with all interested stakeholders.

Qualified Person

Dr. Vladimir Benes, Vice-President of Exploration of Northland, is the
Qualified Person as defined in National Instrument 43-101 responsible for
overseeing company's exploration programs, and has verified that the
information presented in this release is an accurate summary of the NI
43-101 Resource Report of April 12 2006 for the Barsele and Norra project
as provided to Northland by Chlumsky, Armbrust & Meyer of Lakewood,
Colorado USA.

Visit our website: www.northlandresourcesinc.com

Contacts:
Northland Resources Inc. - Oslo
Anders Hvide
Executive Chairman
+47 92 88 98 58

Northland Resources AB, Stockholm
Deborah Craig
Vice President
+46 70 638 4300
www.northlandresourcesinc.com

Pareto Securities AS
Kris Gram
Corporate Finance
+47 24 13 21 47/ +47 97 10 53 25
kris.gram@pareto.no

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