May 2, 2012

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Article

Savage to Provide Supply Chain Management in Sweden

Press Release

May 2, 2012

Savage and Northland Resources S.A. (TSX: NAU, OSE: NAUR, Frankfurt: NPK - "Northland") have entered into an agreement for Savage to manage the supply chain logistics from the Northland iron ore mine in Kaunisvaara, Sweden, to the Port of Narvik in Norway. This supply chain will handle a planned daily volume of 14,000 tons of concentrated iron ore. The ore will travel 150 kilometers by truck, to be transloaded into railcars for a 225 kilometer trip to the port where it will be loaded onto ships for export.

"We are pleased to sign this agreement with Savage, with their extensive experience handling bulk commodities and demonstrated ability to build and operate a robust logistical chain," said Karl-Axel Waplan, president and CEO of Northland.

"We look forward to supporting Northland on this important project," said Allen Alexander, president and CEO of Savage. "Our experience getting product from mine to market with worry-free consistency ensures that we will maintain the continuous flow of material that this international supply chain demands."

The Northland mine of Tapuli is slated to begin output of iron ore volumes in the first quarter of 2013. Savage has already begun to support the operation with a management team located in Lulea. Savage will be responsible for the complete supply chain of the ore, including the coordination, management and integration of the transportation parties; Peab AB will provide transportation by truck; and Grieg Logistics AS will provide operation services at the port. Savage will also operate the 225 km long train transportation between the truck transload terminal at Pitkäjärvi and the Port of Narvik.

In addition to day-to-day management, and the rail transportation operations, Savage will deploy technology that allows Northland real-time visibility into the ore inventory, location and available truck and rail capacity.

Savage’s history of moving and managing materials from production to consumption makes it an ideal choice to handle the logistics for Northland. Savage’s customers span the globe and range from oil and gas to chemical to food grade producers. The company’s expertise in trucking, transload, rail switching and transport and port operations gives Northland access to the knowledge and resources needed to optimize this supply chain.

(5.2.12)

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