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The Swedish Transport Administration and Northland Resources AB Sign a Letter of Intent and an Agreement


Luxembourg - The Swedish Transport Administration and Northland Resources AB (wholly-owned subsidiary of Northland Resources S.A. - TSX: NAU, OSE: NAUR, Frankfurt: NPK) signed on Saturday, March 26th, a Letter Of Intent on co financing and an Agreement on cooperation regarding transport solutions, e.g. how the iron ore concentrate will be transported between Kaunisvaara and Narvik.

The Letter Of Intent details the party’s objectives regarding:
* financing of initial studies
* financing of upcoming projects

The initial study will clarify actions needed in order to solve transport needs both in the short and long term. The short term solution includes the application for dispensation which Northland Resources submitted to The Swedish Transport Administration. The application is related to transportation on roads carrying heavier loads and driving longer vehicles.

The parties at same time signed an agreement regarding a survey on buoyancy and technical solution for the roads between Kaunisvaara and Svappavaara. This survey is expected to determine:
- technical solutions on how vehicle design (e.g. axel load, number of axels, length of vehicle etc.) will affect the strain on the road and therefore also the possibilities for and the extent of dispensation compared to the request from Northland.
- the roads status and how they will stand the expected increase of traffic and higher axel loads.

The signing was done by Arnold Vonkavaara, CEO Swedish Transport Administration Northern Region, and Karl-Axel Waplan, Chairman Northland Resources AB, at a seminar in Pajala on March 25, 2011.

Northland Resources AB is a development-stage mining company with a portfolio of iron ore projects in northern Sweden and Finland. The Company’s Kaunisvaara Project is expected to develop magnetite iron ore deposits, feeding a single, multi-line processing facility in Sweden. The process is expected to yield a very high-grade, high-quality magnetite iron concentrate. The Company is also preparing a Definitive Feasibility Study for the Hannukainen Iron Ore Copper Gold (IOCG) Project in northern Finland.

The Swedish Transport Administration is the trade organisation of local and regional public transport in Sweden. It also has associated members who are suppliers and consultants to the industry. It provides support and service to its members by being a powerful voice for public transport, spreading know-how on and increasing the insight into its advantages among decision-makers, nationally and internationally. It works on developing forms of co-operation within the industry and operational development based on the needs of the passengers.


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