Dannemora Magnetit enters into agreement for rock work in Dannemora mine

Dannemora Magnetit has signed an agreement with Bergteamet AB for
completion of the rock work in the Dannemora mine. The work involves
ramp placement and pre-production development work.

Mobilisation work is beginning immediately, with ramp placement due
to start in December. The rock work will be completed in early 2010.

The new ramp will connect the existing ramp at the Strömsmalm ore
with the mine's main level. The ramp, which will connect levels 162
metres and 350 metres, will be approx. 1,600 metres long. The new
ramp will open up the mine to transportation, while the facility to
bring the ore up from the mine by truck via the ramp will ensure an
early production start. The dimensions of the new ramp will be 6 by 4
metres.

The agreement also includes approx. 700 metres of tunnelling for
development prior to the start of production. The development work
will be carried out in the Strömsmalm ore, which is one of the ores
that will be mined in the first production year.

The placement of the new ramp and the development drifts will
generate approximately  50 thousand metric ton iron ore. Dannemora
Magnetit is now investigating the possibilities to sell the iron ore
and other material from the rockworks. Such sales would bring the
company early revenue and cash flow.

Bergteamet AB is one of Sweden's leading tunnelling and shaft
contractors.

For further information, please contact:

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

Kjell Klippmark, CEO Dannemora Magnetit AB
Telephone 0295- 24 44 21
kjell.klippmark@dannemoramineral.se






Dannemora Mineral AB is a mining and exploration company, with the
main goal to recommence mining 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 mineable deposits is considered good.

Dannemora Mineral comprises the parent company Dannemora Mineral AB
and the wholly-owned subsidiaries Dannemora Magnetit AB, responsible
for operation of the Dannemora mine, Dannemora Prospektering AB,
responsible for all exploration in the Group, and Dannemora
Förvaltnings AB, responsible for the Group's property portfolio.

The Company's most important asset is the iron deposit in the
Dannemora Mine, and initial activity will be focused primarily on the
planned mining of this deposit.

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