Northland Reviews Progress During 2005 in Finland and Sweden

Northland is a well-structured, debt free junior explorationcompany with a portfolio of high quality gold, iron and base metalexploration projects in Sweden and Finland. The Company aims toestablish itself as a mining company with gold, copper and ironproduction on the doorstep of the major industrial manufacturingregions of Europe. Key highlights of Northland's progress during 2005are:

- Delivery in March 2005 of a NI43-101 compliant Gold resource atthe Barsele-Norra gold project, and completion of a 14 hole drillprogram. The Indicated gold resource at Barsele-Norra was increased by40% from the previous resource calculation. A revised NI43-101compliant resource estimation is expected in early 2006;

- A significant expansion of Northland's land position in Swedenand Finland through staking and earn-in agreements;

- The completion of a major metallurgical drill program at theStora Sahavaara magnetite body in Sweden. A comprehensivemetallurgical test program is currently in progress and a 43-101resource estimation is expected in early 2006;

- The outlining of a potentially important copper-gold mineralizedzone within the Hannukainen magnetite body in Finland;

- Identification of a series of high priority iron oxide coppergold targets in Sweden and Finland for drill testing in the comingwinter season;

- $6.1-million has been raised through equity financings in 2005;

- Name change from North American Gold to Northland Resources tobetter reflect the focus of NAU's activities in northern Europe.

Management is extremely satisfied with the Company's progressduring the year and is looking forward to receiving 43-101 compliantresource estimates for the Barsele-Norra and Stora Sahavaara projectsin the New Year. Good progress has been made towards the objective ofbecoming a strategically placed European gold, copper and ironproducer.

Buck Morrow, the President of Northland, commented: "2005 has beena banner year for Northland. We've taken some very solid steps towardsdevelopment of the Barsele-Norra gold system and the Stora Sahavaarairon project and the Management team is looking forward to deliveringNI43-101 compliant resource estimations for both projects in the firsthalf of 2006 and we'll be working hard to unlock their value for ourshareholders."

Barsele Norra Gold Project, Sweden

The Barsele gold project has developed well for Northland andfurther progress is anticipated in 2006. In the first quarter of 2005,we received a NI43-101 compliant resource estimate for the projectwhich resulted in a 40% increase in the indicated gold resource atBarsele (News Release, March 16, 2005; Report titled Technical ReportBarsele Project Northern Sweden, available on www.sedar.com). TheIndicated Resource currently stands at 290,788 contained ounces(5.176-million tonnes @ 1.75 g/t Au) and the Inferred Resource standsat 348,196 contained ounces of gold (6.623-million tonnes @ 1.64 g/tAu).

Northland also completed a drill program at Barsele. The resultsincluded a best intersection of 41m @ 2.4 g/t Au in hole 008 within abroader interval of 178m @ 1.26 g/t Au (News November 15, 2005).Highlights include:

- 41m @ 2.4 g/t Au in hole 008 within a broader interval of 178m @1.26 g/t Au

- 32m @ 2.0 g/t Au in hole 007 within a broader interval of 229m @1.1 g/t Au

- 18m @ 2.2 g/t Au in hole 009 within a broader interval of 196m @0.8 g/t Au

- 16m @ 2.2 g/t Au in hole 010 within a broader interval of 91m @1.2 g/t Au

The new drill results will be incorporated into a revised 43-101compliant resource estimate to be completed in the first quarter of2006.

Stora Sahavaara Iron Project, Sweden

In late 2004, North American Gold (now Northland Resources)entered into an option agreement with Anglo American, plc ("Anglo") toacquire a 100% interest in two exploration permits -the Pajalaproperties- covering approximately 18,000 hectares of ground whichhost a number of known iron-oxide+copper-gold (IOCG) targets inSweden. One of the permits covers the Stora Sahavaara magnetite bodywhich was originally identified by the Swedish Geological Survey. Themagnetite body can be traced from drill intersections for 1,300m alongstrike, and sub-crops close to surface below a few meters of glacialtill. The body appears to be open down dip.

During 2005, Northland completed a 14 hole drill program at StoraSahavaara. A composite weighted average of all significant magnetiteintersections (657m total) from Northland's drilling indicates anaverage grade of 45.2% Fe and 0.07% Cu over an average down holethickness of 47 meters for the main magnetite horizon. The truethickness is estimated from cross sections to be 90% of the down holeintercept length. Initial metallurgical test work on magnetite corefrom Stora Sahavaara returned very encouraging results and Managementis looking forward to receiving the full report from Midland ResearchCenter in Nashwauk, Minnesota, which is carrying out the test work(see NAU press release dated November 17, 2005).

NAU's technical team will now advance the project as rapidly aspossible towards development of a NI43-101 compliant resourceincorporating the new analytical data.

Hannukainen Mine, Finland

Northland's work at the Hannukainen magnetite mine area in Finlandidentified a significant copper-gold target centered near thepast-producing open pit mine. The target was identified by re-loggingand re-assaying of historic drill core from Hannukainen stored at theGeological Survey of Finland (GTK) core library. Northland'sre-assaying program returned numerous anomalous copper-goldintersections which were reported in NAU's news release dated November7, 2005. Highlights include 32.4m @ 0.91% Cu and 0.38 g/t Au in holeLau-251, and 21.5m @ 0.87% Cu and 0.56 g/t Au in hole Han-089.

The target is currently defined as a linear zone measuringapproximately 800 meters by 200 meters, is open to the northeast andsouthwest, and projects into areas untested by previous drilling. Itextends to the limits of previous drilling 375 meters southwest of thepit and an unknown distance to the northeast of the pit. Northland'sgeologists suspect that the northeast-trending linear featurerepresents a zone of remobilization or the presence of a "feederstructure" containing copper-gold mineralization. It is located withinthe historic Hannukainen magnetite resource but lies largely outsidethe limits of the historic mining activities.

This new data provides Northland with an important new drilltarget in the shear-controlled Hannukainen IOCG district. The presenceof high copper and gold grades at Hannukainen would significantlyenhance the economics of the known magnetite iron deposits in thearea. Northland's exploration efforts in the coming winter will befocused on defining further drill targets on this importantcopper-gold-rich magnetite body and on verifying the grade and tonnageof the existing magnetite resource.

The Hannukainen area represents one of a number of knowniron-oxide-copper-gold (IOCG) type magnetite occurrences in the KolariDistrict, Finland currently being re-evaluated by Northland.

Regional Exploration for Additional IOCG Targets

In mid-December, NAU announced that it had reached agreement withAnglo American Exploration B.V. ("AAE"), a wholly owned subsidiary ofAnglo American plc, to earn into a 100% interest on a group of 7licenses in Sweden covering just over 21,000 hectares (News Releasedated December 14, 2005).

AAE has identified a series of potential IOCG-style targets on thelicenses. AAE has completed extensive compilation work and preliminaryexploration on the licenses and have made its full exploration database for the properties -including target selection- available toNorthland. These have not yet been drill tested and NAU will befunding a program, beginning in early 2006, to test the highestpriority targets. The terms of the deal with AAE are outlined in theDecember 14 release.

The highest priority target within the license package lies on theSaarijarvi No. 2 License, where AAE's initial data compilation andprospecting work identified what is believed to be subcrop ofcopper-gold mineralization. Grab samples collected within theSaarijarvi No. 2 License returned copper and gold grades ranging fromtrace to a highest grade of 7.6% copper and 14.3 g/t Au in a sulphide(chalcopyrite and bornite) mineralized boulder. The source of theboulder is believed to be subcrop within the Saarijarvi No. 2 license.AAE also identified a significant copper-in-peat anomaly approximatelycoincident with the high-grade subcrop sample ranging up to 0.75% Cuin peat. The reader is cautioned that Northland has not independentlyverified these results.

Corporate Activities

In September the Company changed its name from North American GoldInc. to Northland Resources Inc., retaining the stock symbol NAU. Thename was changed to better reflect the Company's core businessoperations in Finland and Sweden.

The Company successfully completed 2 equity financings during2005, raising a total of just under C$6.1-million for its activitiesin Finland and Sweden.

Qualified Person

Vance V. Thornsberry, P.Geol., Vice President of Exploration forNorthland Resources, is the Qualified Person as defined in NI43-101,responsible for overseeing the design and execution of the Barsele andStora Sahavaara exploration programs.

ALS Chemex Sweden AB, of Pitea, Sweden was responsible for samplepreparation and shipment of sample pulps to Vancouver for analysis.ALS Chemex of Vancouver, Canada, using international standards ISO9001:2000 and ISO 17025:1999 has completed and certified all ofNorthland Resources' analytical work for the Barsele Project Sweden.Gold analysis was performed using fire assay with an atomic absorptionfinish "Au-AA26, Ore Grade Au 50g FA-AA finish". In addition toChemex's internal sample preparation and assay QC protocol, Northlandmaintains a rigorous quality control program consisting of insertingblanks, duplicates and certified standards to the analytical process.

Northland's routine sample analyses for the Sahavaara Project,Pajala, Sweden, were carried out at The Geological Survey of FinlandAnalytical Laboratory, Rovaniemi Finland, which is accreditedaccording to the SFS-EN ISO/IEC 17025 and in compliance with therequirements of the Standards Council of Canada (CAN-P-1579)"Guidelines for Accreditation of Mineral Analysis TestingLaboratories". Iron and Copper analyses were performed using SodiumPeroxide Fusion multielement analysis with ICP-AES Technique, Method720P and gold analysis was performed by Lead Fire AssayPreconcentration with ICP-AES Technique, Method 704P. In addition tothe GTK internal sample preparation and assay QC protocol, Northlandmaintains a rigorous QA/QC program consisting of inserting blanks,duplicates and certified standards to the analytical process.

Background

Northland Resources Inc. is a well-structured, debt free juniorexploration company with a portfolio of high quality iron, gold, andbase metal exploration projects in Sweden and Finland.

ON BEHALF OF THE BOARD

Buck Morrow

NORTHLAND RESOURCES INC.

The TSX Venture Exchange has not reviewed and does not takeresponsibility for the accuracy of this release.

Northland Resources Inc. (TSX VENTURE:NAU)