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Northland Resources Inc.

(NAUR)
Hannukainen coming to play, we increase target from 20 to 50
The last drilling results confirms continued IOCG mineralisation westwards, substantiating a
resource of ~100m tons and >15 years minelife. Must now include Hannukainen in estimates.
• The Hannukainen drilling results announced yesterday confirms Rating STRONG BUY
a large IOCG (IronoxideCopperGold) deposit, as all drill holes (rating unchanged) High Risk
from the 2006 drilling program now have shown IOCG
mineralization. The latest drilling update delivers good grades.
17
• The Hannukainen deposit must now be recognized (although
not being a 43-101 compliant resource) as a major ICOG 15

deposit, its size should now have reached 100 million tonnes, 13
substantiating more than 15 years minelife. The economics will
be phenomenal. Even in a super bearish scenario this project 11

should produce 100mUSD EBITDA, at current mineral prices we 9


are talking 400mUSD in EBIT from Hannukainen alone. The
Hannukainen copper and gold grades alone are higher than the 7

Aitik mine run by Boliden, which is Europes biggest open pit 5


copper mine. We also get 45% high quality iron ore pellets. mar-05 jul-05 nov-05 apr-06 aug-06 des-06

• These drilling results will later be backed up by a 43-101


Share price (USD):
resource statement. We expect this during 2nd quarter, possibly 2.83
Target price (USD):
earlier. This will be the final proof for the Canadian investment 8.0
community, which shy any resources not 43-101 compliant. WeNo. of shares outstanding 81 730
Market cap.
can take the liberty to believe in management upfront, and we 1 414
Market cap (USDm): 232
do so with solid confidence. When the broader market
Weight OSEAX (Source: OSE) 0.0
understands Hannukainen the value upside is massive. Average daily volume this year 1 091
• Hannukainen will now be included in our estimates together Free float of shares (E) 90
with Stora Sahavaara, itself generating a USD 200m 2010 EBIT.
Reuters code NAUR.OL
• Awaiting a 43-101 resource statement on Hannukainen, we Bloomberg code NAUR NO
Sector Basic Materials
hope to see positive drilling updates from the Barsele gold
project over the next couple of months, as well as further good Analyst Henning Lassen
drilling results from Hannukainen. We increase our risked E-mail henning.lassen@pareto.no
valuation to NOK 44 per share from NOK 29 and expect to Telephone +47 22 87 87 45
increase the risked valuation above NOK 50 over the next 6
months. We up our target price to NOK 50, USD 8. Strong Buy.
• The recommendation was not presented to the issuer before
dissemination.

Op.rev. EBITDA EBITA EPS P/E EV/EBITA EV/EBITDA P/B Yield ROE
USDm USDm USDm USD % %
2007E - (25) (26) (0.3) - - - 13.4 - (84.9)
2008E - (15) (20) (0.7) - - - (6.0) - 523.2
2009E 151 74 40 0.0 68.3 28.9 15.8 (6.5) - (9.1)
2010E 460 252 194 0.9 3.2 5.6 4.3 6.2 - 8 416.1
2011E 735 421 351 2.3 1.2 2.6 2.1 1.0 - 144.1
2012E 1 238 726 652 5.2 0.5 0.7 0.7 0.4 35.4 105.9

Pareto Securities ASA Nordic Partners, Inc.


www.pareto.no Tel: +47 22 87 87 00 www.nordic-partners.com Tel: +1 (212) 829-4200
Bloomberg: PASE (go) Fax: +47 22 87 87 10 Member of the NASD A joint venture between Evli Bank Plc, Finland; E.
Reuters: PARETO Video Conf.: +47 22 87 88 45 488 Madison Avenue, 17th Floor Öhman J:or Fondkommission AB, Sweden and
P.O. Box 1411 Vika Trading desk: +47 22 87 87 04 New York, NY 10022 USA Pareto AS, Norway
N-0115 Oslo, Norway
28 februar 2007 1(10)
Northland Resources Inc. (NAUR)

Risked valuation increased from NOK 29 to NOK 44 per share.

Following yesterdays drilling results, the probability of Hannukainen coming into operation is high, probably above 90%.
We increase our probability to 75% but will up that to 90% when a 43-101 resource statement is published. The
Hannukainen mine has previously been operating (open pit first by Rautaruukki and later by Outokumpu), historically
delivering high quality iron ore and significantly higher grades of copper and gold than we assume. Almost all required
infrastructure (except processing plant) is in place. In our view the risk is on execution, how quick the project can be
advanced and at what cost. We believe our cost estimates are conservative. The progress will depend on issues like
environmental permitting, this is in our view is only a matter of time. The management in this company is highly
experienced, having taken many mines into production in their previous jobs. Sweden and Finland are politically stable and
mining friendly countries, probably this is the best mining region in the world.

Concluding the risked valuation, subtracting existing cash allocated for project development and assuming the Barsele gold
project is sold during 2008 to fund the equity portion of a processing plant, we arrive at NOK 44 per share. A 90%
probability on Stora Sahavaara and Hannukainen will up that value to NOK 53. We expect to do so over the next 6 months.

The risked value thereby allocates a large discount to completion risk and time value of money. We expect to see the share
price reach NOK 50 over the next 12 months.

Northland Resources (NAUR)


Unrisked Value Risked Value
USDm NOK/Share Probability USDm NOK/Share
43-101 compliant resources
Barsele Gold 83 6.5 50 % 42 3.2
Stora Sahavaara (Iron ore) 153 11.9 75 % 114 9.0
Resources compliant with Finnish GTK
Hannukainen - gold 193 15.1 75 % 144 11.3
Hannukainen - copper 251 19.6 75 % 188 14.7
Hannukainen - Iron Oxide Copper Gold 133 10.4 75 % 100 7.8
Total resources 812 64 72 % 588 46.1
Other
Pipecoating Ironore shipments form Hannukainen 60 4.7 10 % 6 0.5
Exploration 2007 20 1.6 10 % 2 0.2
Exploration 2008 90 7.0 10 % 9 0.7
Total other 170 13 10 % 17 1.3
Cash
Net Cash 30.10.2006 45 3.5 45 3.5
Net Asset Value 650 50.9

Assume Barsele and cash pays for required equity, risked valuation 44.1

As will be seen in the valuation table on page 4, the potential valuation of this company exceeds NOK 250 per share. We
arrive at this figure by taking a P/E 8x on 2012E EPS of NOK 28 and adding another NOK 25+ per share in potential from
other exploration activities.

By 2010 these other projects should be quite mature and potentially have a value exceeding Northland’s current valuation.
Northland control a big belt of promising iron ore and IOCG deposits in northern Sweden and Finland, these are the last
significant undeveloped iron ore deposits in Europe. Hannukainen and Stora Sahavaara are the first two to come in
production, but we expect iron ore output to increase by 50%-100% from 2012 to 2015. Northland Resources looks set to
become a 15-20m tonne producer by 2015, approximately half the size of LKAB in Sweden, which is Europe’s only
significant iron ore producer today supplying Europe with approximately 13% of its demand. Europe’s remaining iron ore
demands are mainly met by supplies from Brazil and Australia.

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Northland Resources Inc. (NAUR)

Key figures. Going live from 2010. Massive cash flow thereafter

The economics are summarised in the below tables. We have applied current commodity prices. A sensitivity table on
EBITDA based on 3 scenarios is found below.

Northland made simple, rough figures 2007E 2008E 2009E 2010E 2011E 2012E 2013E
Project parameters
Production
Iron Ore S.S. mT 1.6 5.0 5.0 5.0 5.0
Copper S:S 000 tons 1 463 4 455 4 455 4 455 4 455
Iron Ore Hannukainen mT - - 2.0 5.7 5.7
Gold HK Oz. - 45 882 130 000 130 000
Copper HK 000 tons - 12 353 35 000 35 000
Prices (applying current prices)
Iron ore pellets USD/ton 88 88 88 88 88
Gold USD/Oz 650 650 650 650 650
Copper USD/ton 5 500 5 500 5 500 5 500 5 500

Profit and loss, mUSD 2007E 2008E 2009E 2010E 2011E 2012E 2013E
Revenues
Iron Ore S.S. 143 436 436 436 436
Copper S:S 8 25 25 25 25
Iron Ore Hannukainen - - 177 501 501
Gold HK - - 30 85 85
Copper HK - - 68 193 193
Total 151 460 735 1 238 1 238
Cash cost iron USD/ton 30 32 33 35 36
Transport costs iron USD/ton 6 6 7 7 7
Total cash cost iron USD/ton 36 38 40 42 44
Cash cost copper and gold mUSD 15 15 30 60 63
Cash cost iron mUSD 49 156 230 370 388
Transport costs mUSD 10 31 46 74 78
Gross margin 78 258 429 735 709
Overhead costs (1) (3) (4) (6) (8) (8) (9)
EBITDA (1) (3) 74 252 421 726 701
Depreciation (1) (5) (33) (58) (69) (74) (79)
EBIT (2) (8) 40 194 351 652 621
Net finance 1 (28) (37) (93) (86) (67) (25)
PTP (1) (36) 3 101 265 585 597
Tax (28) (74) (164) (167)
Net profit (1) (36) 3 72 191 421 430

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Northland Resources Inc. (NAUR)

Cash flow, mUSD 2007E 2008E 2009E 2010E 2011E 2012E 2013E
Operating cash flow - (31) 37 159 335 659 676
Plant investment (10) (250) (500) (250) (50) (50) (50)
Project development (12) (12) (12) (6) (5) (5) (5)
Sale of Barsele 75
Debt financing 300 500 50 -150 -500 -200
Dividends -25 -100 -100 -450
Net cash flow -22 82 25 -72 30 4 -29
Cash IB 40 18 100 125 53 83 87
Cash UB 18 100 125 53 83 87 58
Capitalisation 2007E 2008E 2009E 2010E 2011E 2012E 2013E
Interest bearing debt 0 300 800 850 700 200 0
Net interest bearing debt -18 200 675 797 617 113 -58
Market capitalisation 231 231 231 231 231 231 231
EV 213 431 906 1 028 849 344 173

The below table shows the valuation multiples, assuming all equity can be funded through a sale of the Barsele deposit and
further assuming remaining capex funded by debt. We expect around 1bnUSD in plant and related investments (this should
allow for solid price increases). With bankable feasibility studies completed and off-take agreements with leading steel
producers in place, banks will be eager to fund that cash. Both assumptions are in our view highly realistic. Europe today
imports 85% of its iron ore consumption, mainly from Brazil and Australia, and Northland will supply a hungry clientele.

Valuation 2007E 2008E 2009E 2010E 2011E 2012E 2013E


EV/sales 6.0 2.2 1.2 0.3 0.1
EV/EBIT -142.1 -53.8 22.5 5.3 2.4 0.5 0.3
P/E 3.2 1.2 0.5 0.5
Per share data 2007E 2008E 2009E 2010E 2011E 2012E 2013E
Shares fully diluted m 91.5 91.5 91.5 91.5 91.5 91.5 91.5
EPS NOK 4.8 12.8 28.2 28.7
Share price at P/E 8x 39 102 225 230

Scenarios

Even applying almost historically low commodity prices we arrive at solid economics. This owes to the copper and gold
credits in Hannukainen. This provides a phenomenal cushion in bad times and superb cash flow in better times. Even a
moderate 6x EBITDA multiple on the medium scenario supports share price in excess of NOK 100 when assuming a trade
sale of Barsele at around USD 75m and the remaining capex funded by debt. This is our view a valid assumption.

2012 Scenarios Exceptionally low Medium Current spot

Iron ore pellets USD/ton 45 67 88


Gold USD/Oz 400 525 650
Copper USD/ton 2 000 3 750 5 500

Revenues 600 930 1 240


EBITDA 100 420 725

News flow next 6 months

We expect further drilling updates from Hannukainen and Barsele this spring, we expect resource upgrades at Barsele and a
43-101 resource statement at Hannukainen over the next 6 months. This should open international investor eyes big time.

Conclusion

Its massive iron ore deposits will generate revenues of around 1200mUSD at current commodity prices. The almost unique
Hannukainen IOCG deposit has hardly been discovered by a broader set of investors.

The share price still has >10-fold potential, we aim for NOK 50 over the next 12 months. Strong Buy

28 februar 2007 4(10)


Northland Resources Inc. (NAUR)

Sector Basic Materials


17
Analyst Henning Lassen
15 Share price (ord. shares) NOK 17.3
No. of shares outstanding 1 000 81 730
13 Market cap. NOKm 1 414
Market cap. USDm 232
11 Weight OSEAX (Source: OSE) % 0.01
Average daily volume (this year) 1 000 1 091
9
Free float of shares (E) % 90
7 Performance This year -1M -3M -12M
Share price 123.2% 33.1% 140.3% #N/A
5
mar-0 5 jul-0 5 no v-0 5 ap r-0 6 aug -0 6 d es-0 6
Rel. OSEBX 117.4% 32.1% 127.5% #N/A
High/low (NOK) 17/8 17/12 17/7 #N/A

PROFIT & LOSS USDm 2013E 2012E 2011E 2010E 2009E 2008E 2007E 2006E
Operating revenues " 1 238 1 238 735 460 151 - - 0
Operating costs " (538) (512) (314) (208) (78) (15) (25) (10)
Depreciation & amortisation " (79) (74) (69) (58) (33) (5) (1) (0)
Operating profit " 621 652 351 194 40 (20) (26) (10)
Associated companies " - - - - - - - -
Net interest " (25) (67) (86) (93) (37) (36) - -
Other financial items " - - - - - - - -
Profit before taxes " 597 585 265 101 3 (56) (26) (10)
Minority interest " - - - - - - - -
Taxes " (167) (164) (74) (28) - - - -
Net profit " 430 421 191 72 3 (56) (26) (10)

EBITA " 621 652 351 194 40 (20) (26) (10)


Net profit adj. " 430 421 191 72 3 (56) (26) (10)
Cash flow " 509 496 260 131 37 (51) (25) (10)

BALANCE SHEET USDm 2013E 2012E 2011E 2010E 2009E 2008E 2007E 2006E
Cash & int. bearing assets " 101 203 232 141 68 132 8 43
Other current assets " 0 0 0 0 0 0 0 0
Other assets " 896 896 896 896 896 330 10 0
Total assets " 998 1 100 1 128 1 037 965 461 17 43
Interest bearing debt " - 450 900 1 000 1 000 500 - -
Non interest bearing debt " 164 82 0 0 0 0 0 0
Shareholders' equity (incl. min. int.) " 834 568 228 37 (35) (39) 17 43

Market cap. " 231 231 231 231 231 231 231 231
Net interest bearing debt " (101) 247 668 859 932 368 (8) (43)
Enterprise value " 130 478 899 1 090 1 163 599 223 188

PER SHARE DATA (NOK) 2013E 2012E 2011E 2010E 2009E 2008E 2007E 2006E
Average no. of shares 1 000 81 730 81 730 81 730 81 730 81 730 81 730 81 730 55 427
Share price USD 2.8 2.8 2.8 2.8 2.8 2.8 2.8 2.8
EPS (reported) " 5.3 5.2 2.3 0.9 0.0 (0.7) (0.3) (0.2)
EPS " 5.3 5.2 2.3 0.9 0.0 (0.7) (0.3) (0.2)
CFPS " 6.2 6.1 3.2 1.6 0.4 (0.6) (0.3) (0.2)
Book value " 10.2 6.9 2.8 0.5 (0.4) (0.5) 0.2 0.5
Dividend " 2.0 1.0 - - - - - -

PRICING MULTIPLES
P/E (reported) 0.5 0.5 1.2 3.2 68.3 - - -
P/E 0.5 0.5 1.2 3.2 68.3 - - -
P/CF 0.5 0.5 0.9 1.8 6.3 - - -
EV/EBITA 0.2 0.7 2.6 5.6 28.9 - - -
EV/EBITDA 0.2 0.7 2.1 4.3 15.8 - - -
EV/Sales 0.1 0.4 1.2 2.4 7.7 - - -
P/B 0.3 0.4 1.0 6.2 (6.5) (6.0) 13.4 5.4
Yield % 70.7 35.4 - - - - - -

KEY FIGURES
Revenue growth % - 68.5 59.7 204.6 - - - -
EBITA-margin % 50.2 52.7 47.8 42.1 26.6 - - (2 450.0)
ROE % 61.3 105.9 144.1 8 416.1 (9.1) 523.2 - -

SEGMENTS & ASSUMPTIONS 2013E 2012E 2011E 2010E 2009E 2008E 2007E 2006E

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Northland Resources Inc. (NAUR)

Disclaimers and disclosures


This document provides additional disclosures and disclaimers relevant to research reports and other investment
recommendations (“Recommendations”) issued by Pareto Securities ASA (“Pareto”), cf. the Securities Trading Act Section 2-
10 with further regulations.

Basis and methods for assessment


Recommendation for shares and share related instruments are based on price targets fixed with different valuation
methods that may include analysis of earnings multiples (absolute and relative), valuation of a company using DCF
calculations (discounted cash flow) and by carrying out net asset value (NAV) assessments. Price targets are changed when
earnings and cash flow forecasts are changed. They may also be changed when the underlying value of the issuer’s assets
changes or when factors impacting the required rate of return change.

Pareto credit analysts provide credit ratings which is a framework for comparing the credit quality of rated debt securities.
The ratings are based on the same rating scale as international rating agencies and represent the opinion of Pareto as to
the relative creditworthiness of securities. A credit rating on a stand alone basis should not be used as a basis for
investment operations. Pareto Securities may also provide credit research with more specific price targets. These price
targets are based on different valuation methods. These methods may include analysis of key credit ratios and other factors
describing the securities creditworthiness, peer group analysis of securities with similar creditworthiness and different DCF-
valuations.

Definitions of key terms:


Strong Buy: Pareto expect this financial instruments’ total return to exceed 20% over the next six months.
Buy: Pareto expect this financial instruments’ total return to exceed 10% over the next six months.
Hold: Pareto expect this financial instruments’ total return to be 0-10% over the next six months.
Reduce: Pareto expect this financial instruments’ total return to be negative over the next six months.

Risks related to investments and Recommendations


There is risk attached to all investments in financial instruments. The analyst’s assessment of the risk is identified by the
terms High, Medium or Low Risk in the relevant Recommendation. There may be uncertainties with respect to the
accurateness and reliability of any information, interpretation and assessment. There are uncertainties and risks attached to
the correctness of any Recommendation by Pareto and with respect to forward looking statements and expectations.

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Pareto complies with the standards for recommendations issued by the Association of Norwegian Stock broking Companies
and the Norwegian Society of Financial Analysts. Pareto is under the supervision of the Financial Supervisory Authority of
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No agreement with the issuer concerning Recommendations


Pareto has no agreements with issuers with respect to dissemination of Recommendations. Generally Pareto will however
present the Recommendation for the issuer prior to dissemination to assure a correct factual basis.

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Compensation schemes for analysts


No part of analysts’ salaries or compensations relates directly to investment banking services or other services provided by
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Updating of Recommendations
Pareto has no fixed schedule for updating.

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Northland Resources Inc. (NAUR)

Disclosure of positions in financial instruments


Please see Appendix A for an overview of positions in financial instruments held by Pareto and related companies and
persons.

Disclosure of assignments and mandates


Please see Appendix B for an overview of (a) all financial instruments in which Pareto or related companies are market
makers or liquidity providers, (b) all financial instruments where Pareto or related companies have been lead managers or
co-lead managers over the previous 12 months and (c) all issuers of financial instruments to whom Pareto or related
companies have rendered investment banking services over the previous 12 months. Please be aware that agreements and
services that are still subject to confidentiality are excluded.

Previous Recommendations
For an overview of Pareto’s Recommendations in the financial instruments of the issuing company the last 12 months,
including data on changes in Recommendations. Log on to www.pareto.no, type in company name or symbol in the search
field and click search. Under Reports you will find previous Recommendations. Please be aware that certain informal
Recommendations may be excluded.

Statistics on Recommendations
Please see Appendix C for quarterly statistics on the overall ratio of “Strong Buy”, “Buy”, “Hold” and “Reduce” in Pareto’s
Recommendations in financial instruments, including a split with respect to issuers where Pareto have provided investment
banking services the previous 12 months.

Additional provisions on Recommendations distributed in the United States


This research reports is prepared by Pareto Securities ASA (“Pareto”) and distributed in the United States by Nordic Partners
Inc. (“Nordic Partners”). The research report is intended for distribution in the United States to institutional investors only.
Nordic Partners is a broker-dealer registered with the U.S. Securities and Exchange Commission and is a member of the
NASD. U.S. persons seeking more information about any of the securities discussed in this report, or wishing to execute a
transaction in these securities, should contact Nordic Partners at 488 Madison Avenue, NY 10022, Tel. 212 829 4200. To
the extent required by applicable U.S. laws and regulations, Nordic Partners accepts responsibility for the contents of this
publication. Investment products provided by or through Nordic Partners or Pareto are not FDIC insured, may lose value
and are not guaranteed by Nordic Partners or Pareto. Investing in non-U.S. securities may entail certain risks. This
document does not constitute or form part of any offer for sale or subscription, nor shall it or any part of it form the basis
of or be relied on in connection with any contract or commitment whatsoever. The securities of non-U.S. issuers may not be
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securities of comparable U.S. companies.

Nordic Partners and/or Pareto may have material conflicts of interest related to the production or distribution of this
research report which are disclosed on the following Appendix A and Appendix B.

Disclaimer
Pareto and the analyst accept no responsibility and expressively disclaim any and all liabilities for any and all losses related
to investments caused by or motivated by Recommendations from Pareto. Any person receiving a Recommendation from
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shown to be erroneous or incomplete or based upon incorrect or incomplete facts, interpretations or assessments or
assumptions by Pareto, and irrespective of whether Pareto or any person related to Pareto can be blamed for the incident.

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Northland Resources Inc. (NAUR)

Appendix A

Disclosure requirements pursuant to the Investment Recommendation Regulation §


2-4 (2) and § 2-5, letter a-b

Pareto Securities ASA does not alone or together with related companies or persons – hold a
portion of the shares exceeding 5 % of the total share capital – in any companies where a
recommendation has been produced or distributed by Pareto Securities ASA.

Pareto Securities ASA may hold financial instruments in companies where a recommendation
has been produced or distributed by Pareto Securities ASA in connection with rendering
investment services, including Market Making.

Please find below an overview of material interests in financial instruments held by employees
in Pareto Securities ASA, in companies where a recommendation has been produced or
distributed by Pareto Securities ASA.

By material interest is meant holdings exceeding a value of NOK 50,000.

Analyst Total Analyst Total


Company name: holding holding Company name: holding holding
ACERGY S.A. 0 95 401 NORTHLAND RESOURCES 0 530 000
AKER ASA A-AKSJER 0 1 508 NORWEGIAN PROPERTY ASA 0 10 000
AWILCO HEAVY TRANSPORT 0 417 000 OCEAN RIG ASA 0 10 418
BLOM ASA 0 125 001 OLAV THON EIENDOM ASA 0 501
BONHEUR ASA 0 2 804 ORKLA ASA A-AKSJER 0 4 761
CAMILLO EITZEN 0 28 500 PAN FISH ASA 0 15 000
CERMAQ ASA 0 3 000 PETROJARL ASA 0 2 000
CREW GOLD 0 9 361 PROSAFE ASA 0 8 105
DNB NOR ASA 0 13 074 QUESTERRE ENERGY CORP 0 23 000
EMENTOR ASA 0 2 080 RENEWABLE ENERGY CORP 0 4 700
FARSTAD SHIPPING ASA 0 2 401 RIEBER & SØN ASA 0 2 000
FRED OLSEN ENERGY 0 400 ROYAL CARIBBEAN CRUI 0 202
FRONTLINE LTD 0 4 895 SANDNES SPAREBANK GR.FOND 0 5 654
GANGER ROLF ASA 0 7 604 SHIP FINANCE 0 394
GREEN REEFERS ASA 0 34 001 SINVEST ASA 1 14 367
GRENLAND GROUP ASA 0 6 000 SPAREB. NORD-NORGE GR.FOND 0 4 802
HAVILA SHIPPING ASA ORD. 0 28 050 SPAREBANKEN MØRE GR.FOND 0 361
LERØY SEAFOOD GROUP 0 28 400 SPAREBANKEN ØST GR.F 0 2 036
NATURAL ASA 0 1 600 SPB MIDT-NORGE GR.FOND 0 1 055
NORDIAG ASA 0 12 000 STATOIL ASA 0 7 567
NORMAN ASA 0 1 001 STOREBRAND ASA ORD. 0 1 378
NORSE ENERGY CORP. A 0 53 000 TELENOR ASA 0 9 482
NORSK HYDRO ASA 0 6 455 TGS NOPEC GEOPHYSIC. 0 7 204
NORSKE SKOGIND. ASA 0 1 002 TOMRA SYSTEMS ASA 0 1 704
YARA INTERNATIONAL 2 400 22 864

This overview is updated monthly (last updated 31.12.2006).

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Northland Resources Inc. (NAUR)

Appendix B

Disclosure requirements pursuant to the Investment Recommendation Regulation §


2-5, letter d-f, ref the Securities Trading Act Section 2-10

Overview over issuers of financial instruments where Pareto Securities ASA have prepared or
distributed investment recommendation, where Pareto Securities ASA or related companies
have been lead manager/co-lead manager or have rendered publicly known not immaterial
investment banking services over the previous 12 months:

- Ability Group ASA - MPF Corp


- Aker ASA - MPU Offshore Lift
- Aker Biomarine - Norchip
- Aker Yards - Norse Energy Corp
- Akva Group - Northland Resources
- Altinex - Norwegian Property
- Austevoll Seafood - Ocean Rig
- Awilco Offshore - Oceanteam Power & Umbilical
- B+H Ocean Carriers - Odjell Invest
- B2 Holding - Offshore Rig Services
- Bergesen Gas - PA Resources
- BN-Bank - Pan Fish
- Camillo Eitzen - Pertra
- Concedo - Peterson
- Consorte Group - PetroJack
- Crew Gold Corp - Petrolia Drilling
- Crew Minerals - PetroMena
- Davie Yards - PetroProd Ltd
- Deep Drilling Invest - Playsafe Holding
- Deep Ocean - Prosafe
- Deep Sea Bergen Invest - Protector Forsikring
- Deep Sea Supply - Questerre
- DeepOcean - Remora
- DOF ASA - Romania Invest
- Dofcon - Ross Olympic
- Dolphin - RXT
- Eitzen Chemical - Scan Geopysical
- Faktor Eiendom - SeaDragon
- Ferncliff Drilling - SeaDrill
- FPS Ocean - Sevan Drilling
- Geo ASA - Sevan Marine
- Grieg Seafood - Sinvest
- Hafslund - Songa Offshore
- Havila Shipping - Standard Drilling
- Heritage - Tandberg Data
- Imarex - Tandberg Televisjon
- InterOil - Technor
- Kommunalbanken - Umoe
- Lerøy Seafood - Viking Drilling
- Maritime Industrial Services - Ya Holding
- Mosvold Jackup -

Overview over issuers of financial instruments where Pareto Securities ASA have prepared or
distributed investment recommendation, where Pareto Securities ASA or related companies are
market makers or liquidity providers:

- I. M. Skaugen ASA - TrefOil

This overview is updated monthly (this overview is for the period 01.01.2006 – 31.12.2006).

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Northland Resources Inc. (NAUR)

Appendix C

Disclosure requirements pursuant to the Investment Recommendation Regulation §


2-5 (4)

Column I shows the overall ratio of “Strong Buy”, “Buy”, “Hold” and “Reduce” in Pareto’s
Recommendations in financial instruments.

Column II shows the ratio of “Strong Buy”, “Buy”, “Hold” and “Reduce” in Pareto’s
Recommendations in financial instruments, where Pareto have provided investment banking
services to the issuer the previous 12 months.

Column I Column II
Strong Buy 2,9 % 4,8 %
Buy 60,5 % 88,1 %
Hold 30,2 % 7,1 %
Reduce 6,4 % 0,0 %

This overview is updated quarterly (last updated 31.12.2006).

Pareto Securities ASA (“Pareto”) is responsible for the production and dissemination of this recommendation. For further disclosures on relevant definitions,
methods, risks, potential conflicts of interests etc. and disclaimers please see www.pareto.no. All investment Recommendation should be reviewed in
conjunction with the information therein.
28 februar 2007 10(10)