Northland Resources SA has announced that it received from the Mining Inspectorate of Sweden the exploitation concession for the Sahavaara magnetite deposit. As indicated in the NI 43-101 compliant report on the Kaunisvaara Iron Concentrate Project, the concession allows for mining of 122 million tonnes of measured, indicated and inferred resources.

The Sahavaara deposit is approximately 2,000 meters long and 400 meters deep and it will be mined as an open cast mine. The exploitation concession is based on extensive geological documentation and a thorough Environmental Impact Assessment. The concession will form the basis for an application of a mining permit that is expected to be filed shortly at the Environmental Court in Umea.

The ore will be processed in a dedicated section in the Kaunisvaara mill, for which, the company recently received an environmental permit from the Finnish Swedish Border River Commission. The permit allows for processing of 20 million tonnes per annum magnetite ore. The mill will require a flotation section for removal and safe disposal of sulphides from the Sahavaara concentrate.

The product, a high quality magnetite pellet feed concentrate, will be mixed with the concentrate from the Tapuli mine and they will be managed as one product in the logistics system. At full capacity, the output is expected to be 5 million tonnes per annum.

To secure access to the mining area, a process for purchase of properties in the Sahavaara village is underway. The Company is seeking voluntary agreements with each of the property owners. Mining of the Sahavaara deposit is an important part of the Kaunisvaara project, enabling increased production and extended project life.

Northland is a development-stage mining company with a portfolio of iron projects in northern Sweden and Finland. Northland's Kaunisvaara Project contemplates the staged development of 3 magnetite iron ore deposits that would provide feed to a single, multi line processing facility in Sweden, producing a high grade, high quality magnetite iron concentrate. The results of the Feasibility Study on the Kaunisvaara Project were released September 27th 2010.