======================================================================
Re: News Release - Tuesday, July 17, 2007
Northland Provides Update on Metallurgical Testwork at
Hannukainen Iron-Copper-Gold Project, Finland
======================================================================

Vancouver, July 17, 2007: Buck Morrow, the President of Northland
Resources Inc., is pleased to announce preliminary results from
on-going metallurgical test work on drill core collected from the
Company's 100% owned Hannukainen iron-copper-gold project in Northern
Finland.

The Hannukainen project is made up of 5 iron-oxide-copper-gold style
(IOCG) magnetite bodies: Laurinoja, Vuopio, Kuervaara, Lauku and
Kivivuopio. Northland's current work at Hannukainen is focused on
completion of a resource model and detailed metallurgical test work on
composite samples of drill core from Laurinoja.

Initial metallurgical tests on a nominally representative sample of
Hannukainen magnetite have been extremely encouraging and indicate that
the project can generate a very high grade iron concentrate with
low-acid gangue potentially suitable as a feed for high quality DR
pellets. Additionally, first indications are that the project may
yield concentrate with a relatively coarse grain size suitable for
sinter feed. The first stage metallurgical tests produced a
concentrate with approximately:

71% total iron + 0.61% SiO2 + 0.34% Al2O3 + 0.3% MgO + 0.02% S.

Mineralogical examination of the core from Laurinoja has identified no
unexpected or unusual mineralogy and confirms that virtually all the Cu
present occurs as chalcopyrite. Davis tube magnetic results show very
high recoveries (up to 99%) of magnetite to the concentrates at a
variety of grind sizes, demonstrating good liberation characteristics
for the magnetite in the Hannukainen resource. Flotation test work to
produce a copper-gold concentrate is underway and results will be
reported as they become available.

In the second half of the year, Northland will examine the logistics of
collecting a substantial bulk sample of magnetite from Laurinoja to
confirm the positive preliminary metallurgical findings which are
reported below.

Resource Modeling

Northland's resource model for the project is advanced but a number of
areas have been identified where additional drill information is needed
to fill in "holes" in the resource model, and to better define the
resource as either measured or indicated category. Northland's
independent consultants are nearing completion of their NI43-101 report
and they recently traveled to Rovaniemi to finalize the geologic model,
and to ensure that all assay data is incorporated into the model. The
consultants must also complete their field visit to verify certain
physical data. Management anticipates that the resource calculation
will be completed sometime during August of this year.

Qualified Person

Vance V. Thornsberry, P.Geol., Vice President of Exploration for
Northland, is the Qualified Person as defined in NI 43-101, responsible
for overseeing the design and execution of the Hannukainen drill
program and has verified that the information contained in this release
is an accurate summary of the data received by the Company.

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 Hannukainen. Mr Marsden has
verified that the results presented here have been accurately
summarized from the results reported to Northland.

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.

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


Northland Resources Inc.
Buck Morrow, President
Tel: 303-663-7829

Ralph Rushton, Investor Relations
Tel: 604-408-7965
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
======================================================================
.