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Corporate Presentation

Corporate Presentation. March 2012. Please see Cautionary Statement on last slide. Poised for Production. Overburden removal is well underway. Construction of the primary crusher for the Tapuli line.

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Corporate Presentation

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  1. Corporate Presentation March 2012 Please see Cautionary Statement on last slide

  2. Poised for Production Overburden removal is well underway Construction of the primary crusher for the Tapuli line Q4 2012: Mining of Tapuli starts Q1 2013: First shipment from Port of Narvik 2

  3. Northland’s Advantages Existing infrastructure and skilled workforce in established mining region Cooperation with transportation and logistics specialists Strong future iron ore market Premium price for high quality iron ore 100% Off-take Disciplined project development Experienced board and management 3

  4. Listed in Toronto and Oslo Share Price Development Share Overview Toronto, NAU Oslo, NAUR * Market Cap based on closing prices on March 13, 2012 on TSX and OSE 4

  5. Shareholders and Analysts NAU+NAUR+NAUR R Analyst coverage Management & Board control 1.8 million of 514 million shares = 0.4% Northland compiled data using internal sources, Oslo Børs and VPS as of March 13, 2012 5

  6. Northland has Two Projects Kaunisvaara Project Hannukainen Project • Brownfield project • Permitting underway • DFS anticipated in Q1 2012 • First shipment TBA • Expected production volume: 2m mtpa • Mining fully-permitted for first production in Q4 2012 • First shipment expected in Q1 2013 • Ramp-up to reach 4.4m dmtpa end of 2016 Northland controls two near-term development projects in an established major iron ore province 6 6

  7. Company History Having established itself as a successful exploration company, Northland is now developing the Kaunisvaara project. By 2013, Northland is expected to be a producer of high quality magnetite concentrate. 1987 2003 2004 2005 2006 2007 2008 2009 2010 2011 Conducts two financings in the Oslo market and is subsequently listed on the Oslo Stock Exchange; drilling commences at Hannukainen Kaunisvaara DFS finalized and fully-permitted for first production Off-take agreements for 100% of production Acquires properties in the Pajala area, including Tapuli and Sahavaara Graduates from the TSX Venture Exchange tothe Toronto Stock Exchange Lists as a biotech company on Vancouver Stock Exchange Acquires 100% of the Pajala area properties and completes US$100m financing in the Oslo market Becomes an exploration company (“North American Gold Inc.”) and commences conducting business in Sweden Changes name to Northland Resources Inc and stakes multiple targets in Finland, including the Hannukainen mine North American offices close as Company focuses on development of Kaunisvaara Start of Kaunisvaara project and the DFS updated to include logistics. Construction of Fagernes Terminal initiated. At the end of 2011 the project is on time and budget 7

  8. Significant Milestones 2011/2012 • Construction contracts in place – Start of the Kaunisvaara Project  • MLA banks and Caterpillar approvals received  • Agreements signed regarding Mining Equipment and Process Plant  • Letter Of Intent signed with Swedish Transport Administration  • Updated model and DFS logistics  • Signed civil work and construction contract with Peab  • Agreement with logistical partners (Savage, Peab and Grieg)  • Received final approval to operate an iron ore terminal in Narvik  • Tapuli ore body uncovered  • STA grant a further truck testing of 90 tonnes gross weight  • Bridge Financing (USD 50m) signed with Standard Bank  • 2012: • Finalizing syndication for the Project financingQ1 2012  • Hannukainen DFS complete Q1 2012 • Pellivuoma (additional deposit at Kaunisvaara) DFS complete Q2 2012 • Start up production in Kaunisvaara Q4 2012 • First concentrate shipment Q1 2013 8

  9. Kaunisvaara Financing Long-term financing of Kaunisvaara, USD 325 million in equity and USD 350 million in bonds Short-term bridge loan of USD 50 million signed with Standard Bank in December 2011. Repaid in February 2012 Standard Bank has credit approved a senior secured cost overrun facility up to a maximum of USD 40 million Caterpillar Financial confirmed USD 50 million mobile equipment lease facility LOI with Stemcor for a USD 50 million working capital facility 9

  10. Project Updates – Kaunisvaara 1 • Kaunisvaara – overburden removal at the Tapuli section • Exterior walls of the process plant are finalized and work continues on the filtering section • Work of foundation of the iron ore stockpile 3 2 March 2012 10

  11. Project Updates – Pitkäjärvi • Located outside the town of Svappavaara,close to major roads and rail head • Construction of Pitkäjärvitransshipment terminal has begun • In year one, 2013, about 1.5 million tonnes of iron concentrate will be transshipped here. At full production the amount will be about 5 million tonnes per year. That means four 500-metre trains every day. The storage hall will be able to store a week’s production. 1 2 3 March 2012 11

  12. Project Updates – Narvik Aerial photo of the Fagernes Terminal area and ongoing work at site 2 3 March 2012 12

  13. Kaunisvaara Project Overview 13

  14. Kaunisvaara Process Plant Efficient process design and plan for dual line processing facility, using known and well tested technology. 14

  15. Benefits from Existing Transportation and Logistics Network… Roadway • Existing 150 km public road from Kaunisvaara to Pitkäjärvi • New trans-loading terminal with heated storage facility at Pitkäjärvi will provide access to railway 1 1 3 2 Railway Pitkäjärvi • Existing 226 km Malmbanan railway built and used today for iron ore transportation • Northland has equal access to railway • Two new passing sidings are to being built to ensure capacity in place to transport 5 mtpa of concentrate 2 1 1 Seaport (Narvik) • Currently partially used by LKAB • Port Authority agreement for use of existing port • Ice free port allowing Cape Size vessels • New iron ore terminal with heated storage facility to be constructed 3 Trucking route Rail route Well-maintained, existing infrastructure, with good accessibility 15

  16. …and Tailoring them to Northland’s Needs Truck Rail Port • 10 years lease agreement with Port of Narvik, with extension option • Capacity for +10 mt per annum • Construction permit for new port terminal. De-icing facility for railcars • Port ice free all year • Cape Size vessels • Port operations to be outsourced • Use Historic Iron Road • Swedish Transport Administration expected to grant dispensation for 90 tonnes trucks • Trucking to be fully outsourced • Rail line used by iron ore producers since 1902 • Kiruna Wagon prototype railcar in process. • Rail services to be fully outsourced • Rail line highly reliable: downtime estimated to 14 days/year due to weather 16

  17. Tippler and Shiploader in Narvik For illustration purposes only 17

  18. Northland’s terminal in Narvik Fagernes Terminal Export jetty with ship loader Storage facility De-icing plant LKAB Terminal Rail car unloading Northland Terminal 18

  19. High Quality and Value Product • Northland’s Kaunisvaara magnetite pellet feed has high quality and high Fe-content • Kaunisvaara pellet feed offers great Value-in-Use • Magnetite generates heat during oxidation, which reduce pellet plant energy consumption • Very fine particle size makes it already ground for pelletizing, saving costs and energy; • Low silica and alumina content lead to lower flux additions and lower energy consumption • High MgO content replaces other fluxes • Very low levels of trace elements, e.g, K, Na, P and V bring advantages to the steel producers • Low moisture, high Fe content and favourable port location gives shipping advantage • Shipowners charge rate per wet metric tonnes but iron ore customers evaluate cost per Fe Unit delivered Customers are willing to pay a premium for high grade Fe and Value-in-Use. 19

  20. Reference Prices (TSI 58% Fe and 62% Fe) Prices in USD / DMT for different products Premium in USD / FE unit 20

  21. Calculation of Northland Margin DFS 2011 Pricing for Asian Delivery 119 • Above price example based on • Long term DFS price forecast 2015-2025 by Raw Materials Group (RMG) for Carajas pellet feed of USD 110/tonne concentrate • Converted to 62% Fe reference product CFR China using 192 c/dmtu • Calculation of Northland CFR price using long term Fe-premium of USD 7 per Fe % unit, as forecast by RMG • Shipping costs long term as forecast by RMG in original DFS study • New Opex of USD 56/tonne (USD 59 in the June 2011 DFS) • Current price CFR China is USD 140/tonne concentrate Source: Northland, TSI 21

  22. Steel Intensity Drives Demand Principal layout of steel intensity in economies of different development Source: Metal Strategies; RMG 22

  23. Steel Production 1980-2030e Chinese and Indian steel production including forecast to 2030 (1,000’s tonnes) Source: World Steel Association 1980 – 2010; RMG Forecast 23

  24. Global Iron Ore Supply • Currently supply barely meets demand • Continued very tight supply over the next few years • ”Swing producers” in China operating at 120–140 USD/tonne (62% Fe equivalent) • Large expansion projects primarily in Australia, South America and Africa of which the “Big three” (Vale, BHP Billiton and Rio Tinto) plus FMG account for the lion’s share of completed projects • Great difficulties to meet project timelines due to environmental permitting issues (Brazil), bottlenecks in logistics solutions (globally) and political instability (West Africa) • Exports from India to diminish due to high costs and increasing domestic demand Sources: Industry Sources (e.g. SBB, RMG, AME) 24

  25. Challenges to bring on new supply Million tonnes Project pipeline to come on stream and completed projects Source: RMG 25

  26. Will Supply Meet Demand? • Yes, in about 2–3 years time, if; • Announced projects are commissioned as planned; • Demand develops as forecast, but… • No, not if; • The tendency of delays of project start-ups and project completions seen during the last years continue, or • The demand exceeds the forecast (e.g. goals for economic growth in many Chinese provinces exceeds the official goals set by the Central Government in Beijing) Sources: Industry Sources (e.g. SBB, RMG, AME) 26

  27. 100% Off-take Contracted 27

  28. Kaunisvaara DFS – 2012 update Logistic solutions wholly owned by Northland NPV reduced, USD 800 million (934) Life of Mine CAPEX increased to USD 1,085 million (892), incl contingency CAPEX to reach 4.4 dmt per annum tonnes of USD 875 million with adjustments for cost optimisation and current exchange rates (765) Total OPEX per tonne of concentrate delivered FOB at the port of Narvik for the LOM is estimated to average USD 55.6 per tonne concentrate (58.8) Estimated premium for the Northland pellet feed of USD 7 per Fe % unit 1 NPV and IRR are calculated after taxes and interest More information in the Company Update February 1, 2012 on www.northland.eu 28

  29. Project Benchmark Peer Group Cash Costs adjusted for Fe% (USD/t conc.) On an Fe adjusted basis, Kaunisvaara’s cash costs sit favorably compared to their peers Source: Equity Research USD 5/Fe unit below or above 62% Fe p = in production, c =in construction 27 Source: Ocean Equities, Company 29

  30. Kaunisvaara – Mine Development Scope Source: Kaunisvaara DFS and Company Update February 2012 30

  31. Mine Production Sequence New production profile (million dmtpa) • Tapuli ramping up to produce 4m dmtpa in 2015 • Sahavaara production commencing late 2016, while Tapuli production is scaled down • Sahavaara ramping up normal capacity in 2017 • Production level of ~4.4m dmtpa* from 2017 Mining will be simple, conventional shovel and truck open pit operation 27 Source: Company Update, February 1, 2012 *Note: 4.4m dmtpa equals 4.66m wmtpa (assuming 6% moisture) 31

  32. Kaunisvaara – Pellivuoma Deposit • Pellivuoma deposit ~15 km from Kaunisvaara industrial area • Was included in the PEA presented in September 2009 • Will extend life of, or add production volume to, the Kaunisvaara area • Definitive Feasibility Study started, expected in second quarter 2012 Source: SRK 2010 32

  33. Kaunisvaara Mineral Reserve Statement* Tapuli Whittle Pit Shell from Kaunisvaara DFS (June 1, 2011) Note: The Mineral Reserve Statement generated by SRK Consulting (UK) Limited (“SRK”), based on the Mineral Reserve Statement made public in the June 1, 2011 Technical Report. SRK’s resource and reserve statements are presented in accordance with the definitions and guidelines of the CIM Standards for reporting Mineral Resources and Reserves (the CIM Code) Sahavaara Whittle Pit Shell from Kaunisvaara DFS (June 1, 2011) Ample drilling has led to a very good understanding of the high quality orebodies. 33

  34. Hannukainen – Located Close to Kaunisvaara 34

  35. Hannukainen Iron-Copper-Gold • Hannukainen is a Brownfield project • Copper/Gold concentrate by-product is a major revenue contributor • DFS completion in Q1 2012 • Planned production rate of 2m mtpa of ~69% Fe concentrate All data from the PEA performed by Hatch in 2010 Please refer to Northland Press Release dated May 12, 2010 for PEA results 35

  36. Additional Value Through Exploration • Hannukainen • Drilling program launched in Q3 (11), consisting of 17 long drill holes (totaling 7,240 meters) targeted to deep extensions of the Hannukainen deposit, in order to provide better constraints for the extent and grade of potential underground resources. • To date, 13 of 17 drill holes (5,834 meters) have been completed. • Drilling has provided plenty of new information on the structure of the Hannukainen ore body at deep levels. • Rautuoja Fe-Cu-Au Deposit • Exploration launched a step-out resource lineation drilling program at Rautuoja – one of Northland’s major near-Hannukainen mine exploration targets. • The program consisted of 5 drill holes totaling 1,570 meters. • Two of the holes targeted SW extensions of the main Fe-Cu-Au mineralization, while 3 are back holes for the main profiles targeted to increase the resources at depth. 36

  37. Experienced Management Team Anders Hvide,Executive Chairman. Former Managing Director Metals & Mining Corporate Finance, Pareto Securities AS. 22+ years experience. Karl-Axel Waplan,President & CEO. Former President & CEO of Lundin Mining. He also had direct supervision responsibilities for the development of Boliden’s Storliden mine. 33+ years experience Peter Pernlöf, COO and VP – Procurement and Energy.Previously consultant in energy, procurement and logistics. Former CEO of BasEL AB. Experience also includes VP – Procurement at Boliden AB. 40 years international experience. Peder Zetterberg, ActingCFO. 30+ years of international experience from CEO and CFO positions. Prior to joining Northland, Mr. Zetterberg, served as the CEO for the Swedish listed company Brio Group. Bert-Ove Johansson,VP – Swedish Operations. Former Regional Director of Operations for Northland’s Swedish subsidiary. 30+ years international senior management experience. Jukka Jokela,VP – Finnish Operations, has over 25 years of international experience in mineral exploration, geological research, and project and company management in different mining and exploration companies. 37

  38. Experienced Management Team (contd.) Petri Peltonen, VP – Exploration. Dr. Peltonen has more than 20 years international experience in mineral exploration and research on several commodities, such as iron, nickel, gold and diamonds. Hans Nilsson,VP – Marketing. FormerGM of the LKAB iron ore port in Luleå, in the early 90's Regional Sales Manager for LKAB in Singapore and later Regional Sales Manager at Minelco AB. 30+ years experience Jonas Lundström, VP – Human Resourcesand Corporate Communications. Former President of the Norrbotten Chamber of Commerce and Deputy Mayor of the City of Luleå. 12+ years experience Manfred Lindvall,VP – Environment, Health & Safety. Former VP, EHS of Boliden and Lundin Mining. 34+ years experience. Anders Antonsson, VP – Investor Relations. 15+ years experience in Investor Relations, including positions as Director of IR and Corporate Communication at Intrum Justitia and consultant in Investor Relations Patrick Foster, Director of Finance. 30+ years experience, including working with mining companies both as a Director and as an advisor on corporate strategy, fund raising and investor relations. Berndt Hedin, Project Manager. Mr. Hedin worked within BDX group for ten years with various positions in management. He is Engineer in Building and Construction. He also has mining experience in the Construction of Lamco mine in Liberia. . Willy Sundling, Project Manager – Logistics. Extensive experience as Project manager for large public projects in Swedish municipalities (Kalix and Luleå) 38

  39. Board of Directors Anders Hvide (Chairman) See Company Management Stuart Pettifor (Director) Mr. Pettifor is a past Director and COO of Corus Steel, and has operated steel mills in the UK, Netherlands, Sweden and USA. Tuomo Mäkelä (Director) Mr. Mäkelä is the President of Outokumpu Mining Oy. He has over 30 years of experience directing exploration and development operations on steel alloy metals and base and precious metal properties worldwide. Birger Solberg (Director) Mr. Solberg is the Managing Director and CEO of Sibelco Nordic. He has broad international experience in the extraction, sales and marketing of industrial minerals, particularly some of the key minerals used in the iron and steel industry. Matti Kinnunen (Director) Mr. Kinnunen is presently involved in international mining projects. He has a strong background in Investment Banking at the Carnegie Group, including member of the board, COO and Deputy CEO at the Head Office in Stockholm. He has also served as a Board Member of Nasdaq OMX Nordic Ltd. 39

  40. Northland Resources S.A.Scorpio Building7A, rue Robert StümperL-2557 Luxembourg www.northland.eu Project Office:Northland Resources ABDatavägen 14SE-977 54 LuleåSwedenTel. +46 (0)920 779 00 Next updates: Upcoming report dates: May 10, 2012: Financial Statement and MD&A for Q1 2012 May 16, 2012: Annual General Meeting, Luxembourg August 9, 2012: Financial Statement and MD&A for Q2 2012 November 14, 2012: Financial Statement and MD&A for Q3 2012 40

  41. Cautionary Statement This PowerPoint presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and applicable Canadian Securities laws. We have tried, whenever possible, to identify these forward-looking statements using words such as “anticipates”, “believes”, “expects”, ”plans”, ”intends”, “potential” and similar expressions.  These statements reflect our current belief and are based on currently available information. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company’s actual results, performance or achievements to differ materially from those expressed or implied by such statements.  Readers are cautioned that forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, those factors discussed in the section entitled “Risk Factors” in the Company’s listing prospectus dated February 24, 2012, its annual information form dated February 22, 2011, and the management’s discussion and analysis of results of operations and financial condition for the full-year ended December 31, 2011. Except as required by law, we undertake no obligation to update or advise in the event of any change, addition, or alteration to the information contained in this PowerPoint presentation, including such forward-looking statements. This PowerPoint presentation does not constitute an offer of the securities described herein. Resources Quoted in this Presentation Dr. Petri Peltonen, Managing Director of Northland Exploration Finland and Vice President of Exploration for Northland Resources S.A. is the Qualified Person in accordance with National Instrument 43-101 responsible for overseeing the execution of Northland’s exploration programs and for verifying that the information presented in this presentation is an accurate summary. Dr Peltonen is a member (CP) #306710 of the AusIMM, and member #961 of the European Federation of Geologist (EurGeol), being the Qualified Person for geology, resources and QA/QC. Dr. Peltonen has verified that the results presented in this presentation have been accurately summarized from the results reported to Northland. 41

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