Northland Resources SE announced that negotiations with the relevant labor unions regarding organizational changes have been finalized. The employment of approximately 240 employees will be terminated as a consequence of operations being halted indefinitely due to the Company's extremely constrained liquidity. As announced on October 7, 2014, the Company have halted operations in a controlled manner as a result of the recent deterioration in iron ore prices which has put further pressure on Northland's liquidity.

This is carried out in order to preserve liquidity and to allow for operations to be resumed when long-term financing has been secured. Unfortunately, most of the Company's employees will have to leave the Company as a consequence of the halt of operations. Negotiations with the relevant labor unions have now been finalized and as a result will the employment of approximately 240 employees, out of the current number of 269 employees, be terminated.

The Company and the labor unions for the administrative employees have ended the discussions. The discussions with the labor union, IF Metall has also been finalized. However, even though the discussion have been constructive, they have also been tough and a mutual understanding have not been met, for instance regarding the number of employees who will be offered to stay within the Company.

The aim is to provide the affected employees the possibility of being rehired if a long-term solution is secured within reasonable time. Northland believes that through the employees who remain, the Company will be able to continue working towards securing a long-term financing solution and try to finalize ongoing discussions with financial and industrial investors. The remaining staff will also maintain the mine and process plant in a manner allowing to start up operations as smooth and cost efficient as possible and will allow for continued work with the permit process for Sahavaara.