Northland Resources SA announced that it has signed a letter of intent to sell the company's non ferrous projects in Sweden to Orex Minerals Inc. The total consideration is valued at a minimum of USD 15.5 million, and includes a mix of upfront cash and shares, as well as deferred cash and share payments, guaranteed investments and a 2% net smelter royalty.

Mr Karl Axel Waplan president & CEO of Northland said that "The signed LOI for the sale of the non ferrous projects in Sweden, including the Barsele Gold Project, is in line with the Company's strategy to focus on iron ore and dispose of non core assets. The board of directors believes that the inherent value of the Swedish non ferrous projects will be better developed by a team that can focus its resources and technical expertise on advancing these projects towards mining operations."

Northland will receive a total of USD 5 million in cash over two years, and USD 3.5 million worth of Orex shares to be issued over a period of four years from signing of the Final Agreement. Orex has also guaranteed that a minimum USD 3 million will be spent on the non-ferrous projects in the first two years. Finally, Northland will retain a 2% NSR, which can be purchased at any time by Orex for USD 4 million in cash. Northland will also have the right to appoint a director to the board of Orex.

Final details, conditions and approvals are expected to be completed over the next few months, with closing expected on or about January 26th 2011. A further announcement will be made upon closing. Pareto Securities AS has acted as financial advisor with respect to this transaction.