HispanicBusiness

Going Concern and long term financial solution

Since the process of raising additional capital did not turn out as expected, other avenues to cover the capital need had to be explored. In order to conduct this in an orderly manner the Board of Northland Resources S.A. together with the Boards of the Swedish entities decided to file for reconstruction for the Swedish entities on February 8 and 12, 2013. To strengthen the short term liquidity of the Company the bondholders will during the present week make USD 6 million available as a short term cash support.

At present there is an intensive work ongoing to find the best possible financial solution for the Company and its stakeholders. Since there is a substantial number of industrial, as well as financial investors, seriously interested in participating in the funding, the Board of Directors and the Management is confident that it is possible to obtain an appropriate solution within the near future. Consequently the Board has decided that the going concern principle still can be applied. With these additional funds the finalization of the Kaunisvaara project with the Tapuli mine and the two process lines would be safeguarded. This would then bring the production volume well above the point where a positive cash flow is assured.

Accounting policies

The unaudited interim condensed consolidated financial statements of Northland Resources S.A. have been prepared in accordance with IAS 34 of International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) as adopted by the European Union. With respect to the Company's unaudited interim condensed consolidated financial statements for the twelve months ended December 31, 2012, there are no material differences between IFRS as adopted by the European Union and the one issued by the IASB.

The unaudited interim condensed consolidated financial statements have been prepared under the historical cost convention. In addition these unaudited interim condensed consolidated financial statements have been prepared using the accrual basis of accounting, except for cash flow information.

The unaudited interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's consolidated financial statements as at December 31, 2011. The preparation of the interim consolidated financial statements in conformity with IFRS, as endorsed by the European Union, requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group's accounting policies. Estimates and judgments are continually evaluated and are based on historical experience as adjusted for current market conditions and other factors. However, actual outcomes can differ from these estimates.

Coming Report Dates

March 26, 2013: Audited Financial Statement and MD&A for Q4 2012

May 8, 2013: Financial Statement and MD&A for Q1 2013

August 8, 2013: Financial Statement and MD&A for Q2 2013

November 14, 2013: Financial Statement and MD&A for Q3 2013

Annual General Meeting

The 2013 Annual General Meeting of Northland S.A. will be held on Thursday, May 16, 2013 in Luxembourg.

Additional information relating to the Company, including the Company's Annual Information Form, is available on SEDAR at www.sedar.com or on the Company's website www.northland.eu.



Contacts:
Northland Resources S.A.
Karl-Axel Waplan
President and CEO
+46 705 104 239

Northland Resources S.A.
Peder Zetterberg
Acting CFO
+46 708 652 120

Northland Resources S.A.
Anders Antonsson
Vice President - Investor Relations
+46 709 994 970
www.northland.eu