Northland Drills Extension of Stora Sahavaara Magnetite Body

Northland Resources Inc. (TSX VENTURE:NAU)(FRANKFURT:NBS)(OSLO:NAUR) is pleased
to provide an update on recent exploration work at the Company's 100%-owned
Stora Sahavaara iron project in Sweden which has significantly expanded the
known dimensions of the magnetite mineralization and will likely result in the
definition of additional resources at the project.


A new grade-thickness compilation of all available drill data identified a
possible thickening of the Stora Sahavaara deposit within the middle part of the
magnetite body, angling to the north at depth. Four new diamond core holes were
drilled to test this potential between the 600 and 1000 profiles. All 4 holes
successfully cut good widths of typical Stora Sahavaara magnetite mineralization
at depths ranging between 302m and 503m, outside the limits of the existing
resource, indicating good potential to add significant new magnetite resources
at the project. The table below summarizes the salient results from the new
holes, with approximate ranges for the true thickness of mineralization. Updated
drill collar plans and sections will be posted shortly on the Northland website.




-----------------------------------------------------------------------
                                                      Iron    Est. True
                         From      To    Interval    Grade        Width
Hole ID       Section      (m)     (m)         (m)      (%)          (m)
-----------------------------------------------------------------------
SAH07018         600N   302.8   330.3        27.5     34.9        23-27
                        376.7   388.6        11.9     39.9         9-11
-----------------------------------------------------------------------
SAH07021(i)     1000N   459.9   521.2        61.3     39.2        56-60
-----------------------------------------------------------------------
SAH07022         800N   350.0   397.0        47.0     48.5        39-43
-----------------------------------------------------------------------
SAH07023         700N   413.8   466.9        53.1     41.4        33-37
-----------------------------------------------------------------------
(i) Hole SAH07021 encountered drilling problems at a depth of 502m. A wedge
    was inserted at 463m and drilling continued from there. The result
    shown is a composite of assays from SAH07021 up to 463m and assays from
    the deflection (SAH07021B) from 463m to the end of the hole at 532.7m.



The magnetite body appears to continue at depth below these 4 holes.

Another hole, SAH07005 was completed on the northernmost profile (1300N) where
historic work had suggested that the Stora magnetite body would be approximately
30m in downhole thickness. However, the hole cut a well-mineralized core length
of nearly 63m grading 40.9% Fe from 240m downhole. This suggests potential for a
second wide lobe of magnetite mineralization, raking to the north in addition to
the one described above.




-----------------------------------------------------------------------
                                                      Iron    Est. True
                         From      To    Interval    Grade        Width
Hole ID       Section      (m)     (m)         (m)      (%)          (m)
-----------------------------------------------------------------------
SAH07005        1300N   221.0   283.7        62.7     40.9        58-62
-----------------------------------------------------------------------



Northland's geologists are recommending that additional holes be drilled on the
northern sections from 1200N through 1400N, to test the potential rake of the
deposit to the north.


Buck Morrow, the President of Northland, said: "We have always believed that
there was excellent potential to increase the NI43-101 resource at Stora
Sahavaara and our latest drilling appears to confirm this. I've asked our
exploration team to schedule more drilling to follow up these results in advance
of a new resource calculation to be completed this year."


Tapuli Resource Calculation

Management would also like to provide an update on the timing of the NI43-101
compliant resource calculation for the Tapuli project. Management had been
expecting the final sign off by Geovista and Micon by mid-January but was
recently informed by Geovista that delivery of the final resource numbers would
be delayed for up to 2 weeks. Northland now anticipates releasing the resource
figures before the end of January.


Assay Protocol

The core was cut at Northland's core facility in Kolari, Finland. A one half
split core from Salmivaara was prepared at ALS Chemex Lab in Pitea, Sweden and
then transported to ALS Chemex in Vancouver, British Columbia Canada for
analysis.


Copper and Iron were analyzed by Sodium Peroxide Fusion multi element analysis,
ICP-AES Method ME-ICP81. Gold was analyzed by Lead Fire Assay Pre-concentration
with ICP-AES Method Au-ICP21 finish.


In addition to the ALS Chemex internal sample preparation and assay QC protocol,
Northland maintains a rigorous QA/QC program consisting of inserting blanks,
duplicates and certified standards to the analytical process.


Background

Northland has delineated a NI43-101 compliant resource at Stora Sahavaara (see
news release dated May 18, 2006). Using a 25% Fe cut off, the magnetite body
contains:




--------------------------------------
Category        Tonnes    Fe %    Cu %
--------------------------------------
Measured    77,063,210   43.32   0.080

Indicated   44,634,770   43.28   0.076

Inferred    23,346,373   41.76   0.051
--------------------------------------



Qualified Person

Resource estimates were prepared by third party consultant (Bart Stryhas, PhD
Structural Geology); the resource model and estimates were subsequently reviewed
by Chlumsky Armbrust & Meyer L.L.C. ("CAM") an independent, mineral resource,
consulting and engineering group based in Lakewood, Colorado, USA. CAM believes
that the Stora Sahavaara resource and resource model have been prepared
according to accepted engineering practice for a project at this level of
development.


The technical information in this release was prepared under the supervision of
Mr. David Cass, who is a member of the Association of Professional Engineers and
Geoscientists of British Columbia, and a "Qualified Person" in accordance with
National Instrument 43-101.


ON BEHALF OF THE BOARD

Buck Morrow

NORTHLAND RESOURCES INC.