Dannemora Mineral AB: Press release 13 january 2009

DECLARATION OF INTENT SIGNED WITH THE SWEDISH RAIL ADMINISTRATION ON
    RENOVATION OF THE RAILWAY LINE BETWEEN THE DANNEMORA MINE AND
                              HARGSHAMN

The Swedish Rail Administration, Dannemora Magnetit AB, Hargs Hamn
AB, Holmen Paper AB, Östhammar municipality, Norrtälje municipality
and the Regional Council of the county of Uppsala have this day
signed a declaration of intent on the renovation of the railway line
on the Örbyhus - Dannemora - Hargshamn - Hallstavik section.

Annual iron ore deliveries from the Dannemora mine are expected to
amount to approx. 1.5 million tonnes. The declaration of intent
ensures renovation of the railway line, which will be required in
order for the ore to be transported by rail - a form of transport
which brings cost-efficiency and offers environmental advantages.

The section from the main line at Örbyhus via Dannemora to Hargshamn
will allow goods traffic at speeds of up to 70 kph and an axle load
of up to 22.5 tonnes. The traffic control system will also be
upgraded to the latest standards to allow efficient management of the
increase in traffic.

The renovation of the Hargshamn line and the branch line to the
Dannemora mine is scheduled for completion by the middle of 2010,
while the new traffic control system is excepted to be operational by
the end of 2012.

The Swedish Rail Administration has undertaken to implement and
finance the renovation of the Örbyhus - Dannemora - Hargshamn -
Hallstavik section and the upgrading of the traffic control system.
The Swedish Rail Administration has estimated the costs of this work
at SEK 100 million. Dannemora Magnetit has undertaken to implement
and finance the upgrading of the branch line from the Dannemora mine
to the main line. The Swedish Rail Administration has estimated the
costs of this work at SEK 10 million. Dannemora Magnetit will also
take over ownership of the branch line from the Swedish Rail
Administration. The municipalities of Östhammar and Norrtälje have
undertaken to provide noise and vibration protection and to
strengthen level crossings where required. The Swedish Rail
Administration has estimated the costs of this work at SEK 5 million.

A feasibility study on the Dannemora iron ore project (see press
release dated 28 January 2008) investigated transportation of the ore
by lorry from Dannemora to Hargshamn. Although the rail option
represents a somewhat higher cost of investment for Dannemora
Magnetit, the variable transport costs are expected to fall
considerably. Overall, the rail option is seen as offering much
better profitability than the previously considered lorry
alternative.

In addition to lower transport costs, the rail option will also bring
environmental advantages in the form of reduced emissions of
greenhouse gases and other environmentally harmful substances and
less noise pollution. The rail option will also result in a
substantial reduction in the traffic load on the local road network.

Renovation of the railway line requires a government decision on
financing and form of financing, and is also conditional on an
implementation agreement relating to the project being signed no
later than June 2009.


For further information, please contact:

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