Dannemora Mineral AB: Interim Report January - September 2008

* London-based Endeavour Financial Ltd has been engaged as advisor
    for the loan part of the Dannemora mine financing. Completion of
    the financing is planned for Q1 2009.

  * Rock work in the Dannemora mine starts in December of this year
    with ramp placement, followed by pre-production development work.
    Bergteamet AB has been engaged as contractor for the rock work.

  * The ramp placement will generate iron ore by the start of Q1
    2009. The ore will be used for trial deliveries to potential
    customers and sold as coarse ballast.

  * According to the company's investment plant, the ore processing
    plant will be operational in Q1 2010. Production in the mine and
    plant will then gradually work up to full capacity by the turn of
    year 2011/2012.

  * The Dannemora ore's sintering properties have been tested at SGA
    in Germany over the summer.  The tests show that the Dannemora
    ore sinters well with ore from other iron ore producers.

  * In Q3 2008, Dannemora Mineral was granted three new exploration
    permits for iron mineralisations: Riddarhyttan no. 1 and Persberg
    nos. 1 and 2. The permits are aimed at securing further iron
    reserves as part of the company's strategy to become an important
    niche supplier of iron ore.

  * Profit/loss after net financial items in the period January -
    September 2008 amounted to SEK -13.3 (-4.9) million.

  * Cash flow from operations in the period January - September 2008
    was SEK -18.9 (-5.7) million.

  * Investments in the period January - September 2008 amounted to
    SEK 44.2 (15.7) million.

  * Cash & cash equivalents at 30 September 2008 were SEK 167.9
    (68.0) million.


The full report with tables can be downloaded from the following
link: