Northland and Kiruna Wagon to design a prototype for new railcars

Northland Resources S.A. (TSX:NAU)(FRANKFURT:NPK)(OSLO:NAUR) ("Northland" or "the Company") is pleased to announce the start of a cooperation with Kiruna Wagon to develop a railcar specially designed to meet the demand for handling the high-grade iron ore concentrate from Northland's Kaunisvaara mine.

The aim of the cooperation is to develop a railcar which meets the requirements of Northland and the national transport agencies in Sweden and Norway. The iron ore deliveries from Kaunisvaara are expected to begin first quarter 2013 and in total Northland will need of maximum of 220 railcars.

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 exploit magnetite iron ore deposits, feeding a single, multi-line processing facility in Sweden. The process yields a very high-grade, high-quality magnetite iron concentrate. The Company is also preparing a Definitive Feasibility Study for the Hannukainen Iron Oxide Copper Gold Project in Kolari, northern Finland.

The Kiruna Wagon consortium was founded in 2004 to manufacture the new generation ore wagons for LKAB, with a capacity of up to 100 metric tonnes. Today the company Kiruna Wagon is owned by Nybergs Mekaniska Verkstad and Rönnqvist & Wettainen and has developed, manufactured and repaired ore wagons for LKAB and Boliden.

Read the full news release here. Photo of Kaunisvaara from Northland.