Vancouver, September 26, 2006: Buck Morrow, President of Northland Resources Inc. (TSXV:NAU) is pleased to advise that the Company has arranged a private placement of 24,303,000 shares at a price of 7.25 NOK per share (approximately CAD $1.25 per share) through Pareto Securities ASA and Pareto Private Equity ASA ("Pareto") of Oslo, Norway. As consideration for acting as agent, Pareto will be paid a commission equal to 5.5 per cent of the subscription proceeds realized from the sale of the shares. Shares are being sold only to subscribers who are non-Canadian residents. The shares will be subject to a statutory holding period such that they cannot be resold through the facilities of the TSX Venture exchange or otherwise in Canada for a period of four months and one day from their issue.
With the closing of this financing the Company will have sufficient working capital to meet the listing requirements of the Oslo Stock Exchange (OSE), and will be fully funded for the next three years of development work on its three main projects. A prospectus to obtain an OSE listing has been filed with the OSE and a response is anticipated before month end.
The proceeds of the placement will be used to advance the exploration and development of Northland's projects in Sweden and Finland, in particular for:
1. Additional resource drilling, metallurgical testing and a scoping study on Northland's Stora Sahavaara magnetite project located near Pajala, in the Norrbotten District of Sweden;
2. Advancing Northland's iron-oxide-copper-gold target at Hannukainen, Finland to a NI 43-101 compliant resource,
3. Evaluating several other known iron-oxide-copper-gold targets within Northland's land holdings along the Pajala Sheer Zone, a structural feature that trends across the Sweden-Finland border.
4. Further drilling at the Barsele Gold Project in Sweden with the aim to increase the resources to +1 M ounces of gold.
Pareto is one of the leading Norwegian investment banks focused primarily on resources (oil, gas and metals/minerals), oil services, and shipping. Its institutional sales focus is Scandinavia, London and the USA. Closing of the private placement is subject to the approval of the TSX Venture Exchange.
Background Northland Resources Inc. 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.
This press release contains "forward-looking information" that is based on Northland's current expectations, estimates, forecasts and projections. This forward-looking information includes, among other things, statements with respect to Northland's plans, outlook and business strategy, and in particular the manner in which the funds from the private placement will be utilized. The words "may", "would", "could", "should", "will", "likely", "expect," "anticipate," "intend", "estimate", "plan", "forecast", "project" and "believe" or other similar words and phrases are intended to identify forward-looking information. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Northland's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Readers should not place undue reliance on such forward-looking information. Northland disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.
The TSX Venture Exchange has not reviewed and does not take responsibility for the accuracy of this release.
CONTACT INFORMATION Northland Resources Inc. Buck Morrow, President Toll Free: 1-866-719-8962 www.northlandresourcesinc.com