======================================================================
Re: News Release - Monday, June 18, 2007
Northland Resources arranges C$107-million Private Placement
======================================================================
Vancouver, June 18, 2007: Buck Morrow, President of Northland Resources
Inc. ("Northland") is pleased to announce that, subject to exchange
approval, the Board has decided to increase the Company's equity base
through a private placement of up to 22,795,894 shares at a price of
NOK 26.5 per share (CAD $4.68 per share, or a 4% discount to the
closing price in Oslo on Monday, June 18, 2007) through Pareto
Securities ASA of Oslo, Norway ("Pareto"). In addition, Pareto has also
been granted an over-allotment allocation ("greenshoe") of 6,838,768
shares.
Following completion of the private placement, the Company will conduct
a subsequent offering in which additional new shares constituting up to
10% of the number of Shares issued in the Private Placement (being up
to 2,952,700 new shares) will be offered at the same subscription price
as in the private placement. In the subsequent offering, shareholders
of the Company registered in the VPS on 18 June 2007 and not being
invited to participate in the private placement will, to the extent
possible, be given preferred allocation.
The proceeds from the offering will be used to finance the Company's
investment program for its iron-copper-gold projects in Sweden and
Finland (CAPEX and ordering of long lead process items) and for general
corporate purposes.
As consideration for acting as agent, Pareto will be paid a commission
equal to 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. While these shares will be free trading on the
Oslo B�rs, they 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.
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
======================================================================
Copyright (c) 2007 NORTHLAND RESOURCES INC. (NAU) All rights reserved.
For more information visit our website at
http://www.northlandresourcesinc.com/ or send
mailto:karenr@goldgroup.com
======================================================================
.