VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/08/08 -- Bill Wagener, the COO of Northland (TSX: NAU)(FRANKFURT: NBS)(OSLO: NAUR), is pleased to report that the Company has now received all assays for the final three holes from this year's drilling at the Pellivuoma iron deposit in Sweden, located about 15km west of Northland's Tapuli project. The drilling continues to indicate that a substantial tonnage of potentially open-pittable magnetite may be present at Pellivuoma, within hauling distance of the proposed Tapuli-Stora Sahavaara iron ore processing facility, which could significantly extend the life of the planned complex. Highlights include:

Hole PEL08005: 56.8m @ 30.7% Fe from 13.3m downhole

Hole PEL08007: 38.7m @ 33.9% Fe from 66.6m downhole

A full table of result is given below and work is underway on a geological model and follow-up drilling program aiming towards a NI 43-101 resource calculation for Pellivuoma which is scheduled for completion in Q1 2009.

The Company has also received the preliminary results of geophysical modeling of gravity and magnetic surveys completed by GeoVista AB over the Pellivuoma region which support the conclusions from the drill program and indicate that there is real potential to expand the known magnetite mineralization at Pellivuoma (The geophysical target map has been posted on the Northland's website at www.northlandresourcesinc.com).

The size and intensity of the gravity and magnetic anomaly associated with Pellivuoma, tested by this year's drilling, indicate a magnetite source analogous in size to Northland's Tapuli deposit some 15 km to the east. GeoVista's interpretation has also flagged a number of new targets, with signatures suggestive of magnetite bodies, supporting presence of additional mineralization and additional exploration upside. Geological interpretation and analysis is in progress to outline an aggressive follow-up drilling program.

One high priority target is the Marjarova property, which appears to be the southeast extension of the magnetite mineralization at Pellivuoma. Northland is submitting an application for additional claims to extend the Company's control over the whole area and additional geophysical modeling is scheduled.

Buck Morrow, the President of Northland, commented: "Our exploration drilling throughout the Pajala Shear Zone continues to demonstrate that we are in the middle of an iron ore camp where we have identified numerous mineralization occurrences in addition to our core project areas. These satellite mineralization zones have the potential to add substantial tonnages to our existing resource base. Pellivuoma is just one of over 25 identified exploration projects which are targeted for additional exploration.