Luxembourg,  May 15, 2012 -  Northland Resources  S.A. (TSX:  NAU, OSE: NAUR and
NAUR  R, Frankfurt: NPK -  "Northland" or the "Company")  is pleased to announce
hedging  of its prices for the supply of electricity for its Kaunisvaara project
for the next year.

Northland  has hedged  its prices  for the  electricity through  a contract with
Vattenfall,  the  Swedish  power  company.  The  agreement is for "Base blocks",
equivalent  to approximately 70 percent  of the estimated  total amount required
for the production in 2013.

"As  we are ramping up to  full production of high-quality magnetite concentrate
in  Kaunisvaara, we will gradually  increase our consumption to  a total of 500
GWh.  The agreed level is considerably below the 0.45 SEK/kWh (USD 0.06) assumed
in  the DFS," said Peter  Pernlöf, Chief Operating Officer  and VP - Procurement
and  Energy. "As  we are  approaching full  production in Kaunisvaara, Northland
will  grow to  become one  of the  larger consumers  of electricity in Sweden. A
foreseeable  and competitive power  market is imperative  for the development of
the mining industry."


"Karl-Axel Waplan"
President & CEO, Northland Resources S.A.


For more information, please contact:
Karl-Axel Waplan, President and CEO: +46 705 104 239
Peder Zetterberg, Acting CFO, +46 708 652 120
Anders Antonsson, Vice President - Investor Relations: +46 709 994 970
Marguerite Manshreck-Head, Investors Relations, Canada: +1 647 224 7882

Or visit our website: www.northland.eu


Northland  is a  development-stage mining  company with  a portfolio of iron ore
projects  in northern Sweden and Finland. The Company's Kaunisvaara Project will
initially  exploit two magnetite  iron ore deposits  in Sweden. The process will
yield a high-grade, high-quality magnetite iron concentrate. The construction of
the  Kaunisvaara project  in Sweden  is well  underway and  mining is planned to
start  in  the  fourth  quarter  of  2012. Northland  has  entered into off-take
contracts  for  the  entire  production  from  Kaunisvaara.  The Company is also
preparing  a Definitive Feasibility Study ("DFS") for its Hannukainen Iron Oxide
Copper  Gold ("IOCG") Project in Kolari, northern Finland and for its Pellivuoma
deposit 15 km from the Kaunisvaara process plant.

Vattenfall  is one of Europe's largest generators of electricity and the largest
producer  of heat. Vattenfall's main products are electricity, heat and gas, and
the  Group works in all  parts of the value  chain: generation, distribution and
sales.  The  Group  has  approximately  34,700 employees.  The  Parent  Company,
Vattenfall  AB, is 100%-owned by the Swedish state. The core markets are Sweden,
Germany and the Netherlands.

This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.


[HUG#1612361]