Lappland Goldminers starts mine production at the Pahtavaara gold mine, Finland.

Lappland Goldminers AB (publ), listed on First North and the
Norwegian OTC list, has decided, after completion of planning work,
to start the mining production at the gold mine in Pahtavaara,
Finland.

The Company has completed the necessary planning work and arranged
the required financing by loan to start mining production at the
Pahtavaara mine in northern Finland. The plan is to start production
immediately, and to bring it up to full capacity during spring 2009.
The production through the processing plant is estimated to be 400
000 tons of ore from the mine and 100 000 tons from the waste rock
deposit, totalling 500,000 ton/year, equivalent to approx. 900 kg
(29,000 oz) gold/year, at a production cost of around 480 USD /oz
 with the exchange rate of 8.10 SEK/USD.  The annual profit for the
wholly-owned subsidiary Lappland Goldminers OY, starting from spring
2009, is estimated to be around 50 MSEK (6.5 MUSD) with current
exchange rate, before depreciation and interest.

As presented in press release 2008-10-03, the ore reserve and
resource estimate provides raw material for three years worth of
production, with a mineralization open towards the depth. The
potential for increasing the life span of the mine seems to be good.
The drilling in the mine will continue, and will gradually be
extended to other promising areas nearby."Our strategy is to carry out thorough planning before an activity is
started; this also includes the required financing. We now have
operational financing in Finland through a long-term agreement with
the main entrepreneur in the mine Lemminkäinen/Tolarock and the
Finnvera Oyj. We are very pleased with the support and interest we
have seen from the authorities as well as from our entrepreneurs and
the employees, which makes it possible to now start up production
quickly and create a good cash flow. It is very comforting that the
record high gold prices expressed in Swedish Kronor (188 000
SEK/kilo), still persist when we now are starting our mine
production", says Company CEO VD Karl-Åke Johansson.

The  Company  acquired   the  Pahtavaara   deposit  and   surrounding
exploration permits  in April  2008. The  deposit is  located in  the
Sodankylä municipality in  northern Finland, around  150 km north  of
Rovaniemi.  An area near the processing plant of Pahtavaara seems  to
be very interesting for the company because it has good possibilities
to find new gold deposits with possibilities for new mines which  ore
could be transported to the processing mill.

For additional information:

Karl-Åke Johansson, CEO              Tomas Björklund, Board Member
Ph. +46 950-275 01, +46 70-625 22 57 Ph. +46 70-662 35 35
karl-ake.johansson@lgold.se          tomas.bjorklund@lgold.se


Also visit: www.lapplandgoldminers.com

About Mangold Fondkommission:  www.mangold.se

Lappland Goldminers AB is an exploration company and a producing
mining company. The company is listed on the market place "First
North" under the name GOLD, with Mangold Fondkommission AB as the
Certified Adviser, as well as on the Norwegian OTC list. Lappland
Goldminers has secured a number of gold deposits along the so-called
Guldlinjen ("The Gold Line") in Västerbotten. The Company's strategy
is to develop a profitable, producing gold company, with centrally
located processing plants in Fäboliden and Blaiken, Sweden, and in
the Haveri area in southern Finland and Pahtavaara in Northern
Finland, supported by ore from one or several mines either through
the Company's own exploration or alternatively through acquisitions.
Lappland Goldminers is a member of SveMin, the trade association for
mines, minerals and metal producers in Sweden (formerly called the
Swedish Mining Association) and follows SveMin's reporting rules for
public mining and exploration companies.