Lappland Goldminers AB (publ): Interim report January-September 2008



Third Quarter

* Result after financial items -6,647 TSEK (-3,110)
* Investments have been 56,088 TSEK (10,066)

First nine month

* Result after financial items -19,184 TSEK (-9,031)
* Investments have been 110,670 TSEK (67,764)


Key ratio
                                          Jan-Sept Jan-Sept Full year
                                            2008     2007     2007
Profit/loss after financial items          -19 184   -9 031   -10 861
Equity/Debt ratio                            75,0%    96,7%     96,5%
Total Assets                               351 118  266 654   265 516
Equity                                     263 246  257 906   256 224
Number of yearly employee at the end of
period                                          47       14        15
Equity per share before dilution              4,18     4,27      4,24
Equity per share after dilution               4,10     4,27      4,24
P/L per share before dilution                -0,30    -0,15     -0,18
P/L per share after dilution                 -0,30    -0,15     -0,18
Number of shares before dilution at the
end of period, thousands                    63 001   60 401    60 401
Number of shares after dilution at the
end of period, thousands                    64 131   60 401    60 401



P/L of fiscal period
The most important goal of an exploration company that is focused  on
becoming a producer  is to transform  funds raised through  financing
into increased ore reserves and mineral resources, and to develop the
projects technically and economically.  During the fiscal period  the
company has continued extensive  exploration on several objects.  The
company capitalizes expenses on mature projects, and due to this  the
P/L reported depends both on the total expenditures and the  relative
distribution between  mature and  early projects.  The Company  asses
that gold production can generate positive cash flow during the first
half of 2009.

For information:

Karl-Åke         Tel: +46 950 275 E-mail: karl-ake.johansson@lgold.se
Johansson, CEO   01, +46 70 625
                 22 57
Tomas Björklund, Tel: +46 70 662  E-mail: tomas.bjorklund@lgold.se
Director         35 35


Significant events


  * The first assessment of mineral resources for Haveri Gold project
    in southern Finland, in compliance with NI 43-101 was presented.
    The Company has, together with independent consultants, analyzed
    and compiled the substantial amount of geological information
    present. The first assessment of the project's mineral resource
    in compliance with the Canadian NI 43-101 consisting of 6.9
    million tonnes of measured and indicated mineral resources with
    an average grade of 1.37 g/t Au equivalent to 308,663 troy ounces
    of Au, for those parts of the project included in this study. The
    mineral resource is 24.7 Mtonne with 0.89 g/t Au at a cut off at
    0.5 g/t Au, equivalent to 710,238 troy ounces of Au.

  * Test run generated profits at the Pahtavaara processing plant in
    Finnish Lapland. After routinely replacing of wear parts in the
    mill, production resumed on July 15. During August, the operation
    has gradually increased up to a continuous three shifts, and is
    expected to produce approx. 25 Kg (800 oz) of gold per month. The
    production was based on material that previously had been
    classified as waste rock. The test run indicates that a
    relatively high percentage of previously mined waste rock holds
    gold grades at a level that makes them profitable when mined at a
    low cost. The Company estimates that the plant can be operated at
    full capacity for at least two years using exclusively such
    material. The cost of processing previously mined material is
    low, and the profits for processing this material alone is
    estimated at approx. SEK 2 million/month before depreciation and
    interest.

  * The Company has from the receiver in bankruptcy for Scan Mining
    AB and its subsidiaries Blaikengruvan AB, acquired the processing
    plant and the mines at Blaiken for SEK 40 million. The
    acquisition will be paid in four segments for a period of three
    years. The Company calculates that the operations will resume
    during autumn 2008, and that the entire purchase sum will be
    earned back during 2009. Initially, the operation will focus on
    mining of the Ersmarksberget gold deposit. The acquisition was
    financed with a directed new share issue of SEK 26 million to a
    group of institutions. A part of that was the for the first
    installment. The remaining part of the issue was operating
    capital. The issue price was 10 SEK/share

  * The Supreme Environmental Court announced on September 17 its
    ruling regarding the mine and processing plant at Fäboliden in
    the municipality of Lycksele in Västerbotten. The ruling gives
    the Company approval to fully develop and operate the project.
    Fäboliden, with the planned processing plant, is centrally
    located in the so-called "Gold Line", where the Company already
    has several projects with the potential of being developed into
    profitable mines.



Events after the end of the reporting period



  * The environmental permit, for the Fäboliden mine, process plant
    and tailing facility, gained legal force at October 23. This
    means, since no additional appeal was submitted, that the permit
    for Fäboliden cannot be further contested.

  * The Company has completed planning work and arranged the required
    financing by loan to start mining production at the Pahtavaara
    mine in northern Finland, with mine production for at least three
    years. 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, totaling
    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.

  * The verdict from the Supreme Environmental Court of Appeals,
    which has gained legal force means that the Fäboliden Gold
    Project now is ready for financing.  With the reference to the
    deep decline of the economic situation, and the difficulties
    which now exist regarding financing of major projects, the
    Company has decided to priorities the start up of the two mines
    at Pahtavaara and Blaiken. An upgrade of the Feasibility Study
    will be done and financed by the cash flow from these activities.

  * The fast decline of prices for steel and other base metals are
    expected to have a positive and profound impact on the cost for
    the planned investment at Fäboliden. This factor will also affect
    the time for the investment decision. The Company will evaluate
    the time when the price level for the investment and market
    conditions for financing are the best conceivable for the Company
    and its share holders.



The fast decline of prices for steel and other base metals are
expected to have a positive and profound impact on the cost for the
planned investment at Fäboliden. This factor will also affect the
time for the investment decision. The Company will evaluate the time
when the price level for the investment and market conditions for
financing are the best conceivable for the Company and its share
holders.


The Interim Report for January to September 2008 has not been subject
to special examination by the Company's auditors.

Income statement - Group
SEK (,000)               3 month   3 month  9 month  9 month
                                                                 Full
                        July-Sept July-Sept Jan-Sept Jan-Sept    year
                          2008      2007      2007     2008      2007
Income
Net turnover                3 076         0    3 076        0       0
Changes in inventory        2 209         0    3 470        0       0
Capitalized work              558       763    2 511    2 673   3 671
Change in value of
biological assets               0         0        0        0   5 752
                            5 843       763    9 056    2 673   9 423

Other external costs       -7 188    -2 608  -15 375   -6 363  -9 096
Personnel costs            -4 963    -1 893  -12 512   -6 125  -9 061
Depreciation of
tangible and
intangible fixed
assets                       -185      -137     -439     -315    -418
Operating Profit/Loss      -6 494    -3 875  -19 270  -10 130  -9 151

P/L from financial
investments:
Financial income                4       775      426    1 363   1 797
Financial costs              -157       -10     -340     -264  -3 507
Profit/Loss after
financial items            -6 647    -3 110  -19 184   -9 031 -10 861
Taxes                           0         0        0        0       0
Net Profit/Loss for
fiscal period              -6 647    -3 110  -19 184   -9 031 -10 861

Average number of
shares before dilution,
thousand                   60 876    55 602   60 758   55 602  57 731
Average number of
shares after dilution,
thousand                   62 006    55 602   61 712   56 260  57 731
P/L per share before
dilution                    -0,11     -0,06    -0,32    -0,16   -0,19
P/L per share after
dilution                    -0,11     -0,06    -0,31    -0,16   -0,19




Balance Sheet - Group
SEK (,000)                             Sept 30 Sept 30 Dec 31
                                        2008    2007    2007
Assets
Fixed assets
Intangible fixed assets                231 385 180 614 200 322
Tangible fixed assets                  106 830  22 762  22 562
Financial fixed assets                   3 028   1 567   3 028
                                       341 243 204 943 225 912
Current assets
Inventory                                4 174       0       0
Other receivables                        4 885   3 507   2 702
Investments , cash and bank balances       817  58 204  36 902
Total Current assets                     9 875  61 711  39 604

Total Assets                           351 118 266 654 265 516

Equity and Liabilities
Equity                                 263 246 257 906 256 224
Allocations                              4 490       0       0
Long-term liabilities                   60 288   2 000   2 000
Short-term liabilities                  23 094   6 748   7 291
Total Equity and Liabilities           351 118 266 654 265 516
of which interest-bearing               29 978       0       0




Changes in Equity - Group
                                                                 Full
SEK (,000)               3 month   3 month    9 month  9 month   year
                         July-Sept July-Sept Jan-Sept Jan-Sept
                           2008      2007      2008     2007    2007
Equity at the                                                     139
beginning of period        243 742   261 221  256 224  139 259    259
                                                                  132
New issue                   26 000         0   26 000  132 777    777
Issue cost                    -405      -205     -405   -5 634 -5 963
Currency
effects/acquired
equity                         557         0      611      535  1 012
                                                                  -10
P/L of fiscal period        -6 647    -3 110  -19 184   -9 031    861
Equity at the end of                                              256
period                     263 246   257 906  263 246  257 906    224
Cash Flow Analysis - Group
                                                                 Full
SEK (,000)               3 month   3 month    9 month  9 month   year
                         July-Sept July-Sept Jan-Sept Jan-Sept
                           2008      2007      2008     2007    2007
Cash flow from
operating activities
before changes in
working capital             -6 462    -3 176  -18 745   -8 716 -9 324
Changes in working                                                -13
capital                      8 548    -2 578    9 445   -9 367    017
Cash flow from                                                    -22
operating activities         2 086    -5 754   -9 299  -18 083    341
                                                             0      0
Cash flow from                                                    -84
investing activities       -56 086   -10 066 -110 670  -67 764    478
Cash flow from
financing activities        54 409         0   83 883   94 368 94 037
Changes in liquid                                                 -12
assets                         409   -15 821  -36 086    8 520    782

Liquid assets at the
beginning of period            408    74 025   36 902   49 684 49 684
Liquid assets at the
end of period                  817    58 204      817   58 204 36 902
Undisposed overdraft
facilities                   2 983     5 000    2 983    5 000  5 000
Disposable cash at the
end of period                3 800    63 204    3 800   63 204 41 902


Financing
After the time of this/the report, the Company has been successful in
securing financing for the start up of production at its mines in
Blaiken and Pahtavaara through loans from certain shareholders and
financial institutions together with loans from public authorities.
Total funds secured are almost 40 MSEK. Production at the both sites
will start before end of 2008.


Personnel/consultants
The Company has 47 (last year 14) employees. In addition to this, the
Company engages consultants and contractors for various projects on
continuing basis. Altogether the Company engages the equivalent of 75
full time employees.

Reporting dates
Notice of year-end statement 2008
February 27, 2009

Accounting principles
The accountings has been prepared according to (ÅRL- Annual Accounts
Act), RFR 2.1 "Reporting for legal entities", International Financial
Reporting Standards (IFRS) and interpretations by International
Financial Reporting Interpretations Committee (IFRIC), as adopted by
EU, and according to RFR 1.1 "Complementary reporting principles for
groups". The parent company also applies to RFR 2.1 "Reporting for
legal entities" and Årsredovisningslagen (ÅRL - Annual Accounts Act).

This report has been prepared in compliance with IAS 34 - Interim
Financial Reporting.
Same accounting principles have been applied as in the issued Annual
Report for 2007.
For detailed information regarding accounting principles, refer to
Annual Report 2007.

The annual report and the group report have been approved for issue
by the Board on April 11, 2008. The group Income statements and
balance sheet and the parent company income statements and balance
was adopted at the Annual General Meeting on May 30, 2008.

                     Lycksele November 28, 2008
                         Karl-Åke Johansson
                                 CEO

Attachments

Interim report January-September 2008.pdf