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Successful Pelletizing Test for Northland's Stora Sahavaara Iron
Project
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Vancouver, October 2, 2007: Mr. Simon Ridgway, Chairman of Northland
Resources, is pleased to report the results of initial pelletizing
trials, which began in June 2007, conducted by Corus Group R&D Centre
in Ijmiuden in the Netherlands on 2.5 tonnes of iron ore concentrate
generated by Northland's Stora Sahavaara bulk sample programme.

The results demonstrate that the pellets made from the Stora Sahavaara
concentrate already fulfil or exceed all of the necessary chemical and
physical characteristics of commercial-grade iron ore pellets.

The aim of the tests was to confirm that concentrate from Stora
Sahavaara could make a commercial quality pellet with acceptable
chemical composition suitable for withstanding handling and
transportation without the use of additional additives such as lime,
dolomite or bentonite. After pelletization, the pellets returned the
following chemical analysis:

ELEMENT Fe total % Al2O3 % SiO2 % MgO % TiO2 % CaO MnO %
Sample 1 65.6 0.38 1.19 4.23 0.094 0.07 0.17
Sample 2 65.6 0.39 1.19 4.27 0.094 0.07 0.18

Sulphur analysis of pellets made from the same concentrate has been
completed by COREM in Canada and found to be low at 0.008% S.

Demonstrating that iron ore pellets have acceptable physical properties
is just as important to potential customers as an acceptable chemical
composition. The results of the physical tests will show how the
pellets will stand up to repeated handling during and after
pelletization (for example, loading and unloading into ships and
trains) and how they will behave in the blast furnace. Northland's test
work on the pellets' physical properties returned the following very
positive results:


- Green1 ball strength -- exceed average of 4 drops, with good samples
being around 6

- Green ball compressive strength (VPG) average around 800g

- Good green ball porosity at around 37.5%

- Cold Compression Strength2 of the fired pellets exceeds 250kg (as
specified by the German steel industry)

- Free swelling tests on the two selected pellet tests: -PPI2853 PPI2854
- /\V 30 min: 5.5 % & 5.9 % (extremely low and welcomed by steelmakers)

- /\V 90 min: -6.8 % & -7.2 % (negative and welcomed by steelmakers)

- Porosity: 25.1% & 24.5 % (good)

1 "green" refers to the pellets before they are fired in the
pelletizing process.

2 "cold compression strength" reflects the weight, or crushing
pressure, required to break a pellet.

Buck Morrow, the President of Northland, said: "These results, which
are from 6 pelletizing pot-grate tests, are more than encouraging. They
satisfy all of the main physical characteristics for commercial pellets
and are expected to give a good Fe grade pellet. Indeed, the
free-swelling characteristics displayed by pellets made from Stora
Sahavaara concentrate would be high on the wish list of many
steelmakers, as the use of these pellets in the blast furnace would aid
stability, help maintain air-flow and reduce slips. The data generated
by Corus has given a great springboard for COREM to use in their
further development of the detailed pelletizing process, work which is
already well underway."

Test Program Details

The metallurgical tests completed by Corus are their own test
procedures which do not conform to ISO Standard Test Procedures. The
tests used by Corus are based on ISO procedures but adapted for more
practical and useful use by the steelmaker. The test results will be
verified by conducting similar tests on the same pellets using ISO
Standards later this month. The test work programme consisted of:


-Drying
- Raw materials characterization

- Balling
- Bentonite %
- Moisture %

- Indurations
- Maximize cold crushing strength
- minimise abrasion index
- Goal to obtain two samples of pellets for metallurgical testwork

- Metallurgical test work
- Free swelling, HOSIM, IJSST

Corus have yet to complete the HOSIM and IJSST tests.

Qualified Person

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

About Northland (www.northlandresourcesinc.com)

Northland 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

"Simon Ridgway"
NORTHLAND RESOURCES INC.

The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.

CONTACT INFORMATION
Northland Resources Inc.
Buck Morrow, President
Investor Relations: North America, Ralph Rushton: Toll Free:
1-866-719-8962
Europe, Gabriella Roos: Tel. +44 791 286 9936

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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
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