Dannemora Mineral AB: Press release 24 june 2008

Dannemora Magnetit signs contract to drain the mine from water

 As per June the 17th a contract was signed with a joint venture of
ITT Water & Wastewater AB and Contector AB in order to drain the mine
                      in Dannemora from water.

The contractors will commence mobilization after the summer and
pumping will start in 2009 and will be completed 2010. This time
schedule complies with Dannemora Magnetit's master plan for all other
activities in order to commence production by the end of next year.
Submersible pumps will be installed in the main shaft whereby
draining down to level minus 465 will be facilitated. After this a
permanent pump system will be installed in order to drain the mine
continuously during the lifetime of the mine.

Dannemora Magnetit has earlier received permit for drainage from
Länstyrelsen, the regional authority for environmental protection.



This document is a translation of the original Press Release in
Swedish. In case of divergence, the Swedish version shall have
precedence.

For further information, please contact:

Staffan Bennerdt, Group President Dannemora Mineral
Telephone 0295- 24 44 22
staffan.bennerdt@dannemoramineral.se

Lars Alm, Deputy CEO Dannemora Magnetit
Telephone 0295- 24 44 17
lars.alm@dannemoramineral.se




Dannemora Mineral AB is a mining and exploration company, with the
main goal to recommence operations in the Dannemora iron ore mine.
The Company also engages in exploration activities to increase the
iron ore base locally and regionally, and to explore base and
precious metals in several areas in Uppland where the potential for
finding feasible mineralisations is considered to be good.

Dannemora Mineral consists of the parent company Dannemora Mineral AB
and the wholly-owned subsidiaries Dannemora Magnetit AB, responsible
for the operations of the Dannemora iron ore mine, Dannemora
Prospektering AB, responsible for all exploration, and Dannemora
Förvaltnings AB, responsible for the property portfolio.

The Company's most important asset is the iron ore deposit at
Dannemora, and activities will initially focus mainly on the planned
mining of this deposit.

The Company's Certified Advisor on First North is E. Öhman J:or
Fondkommission AB.