Year-End Report January - December 2009

     DANNEMORA SIGNS TRIAL DELIVERY AGREEMENTS WITH EUROPEAN STEEL GROUPS

·         The global economy showed clear signs of recovery in the second half
of the year. This resulted in higher iron ore spot prices, while the World Steel
Association predicted that global steel consumption will rise by 9,2 percent in
2010.

·       In the fourth quarter, the Austrian steel group Voestalpine signed an
agreement with Dannemora Mineral   for the trial delivery of 10,000 tonnes of
iron ore products.

·         In its due diligence report, the international consultant Micon Ltd
reported that the Dannemora mine project is realistic and sound, with good
financial viability.

·         Geophysical surveys in the northern part of the Dannemora field
indicate that the ore extends down to several hundred metres.

·         As part of its efforts to expand the ore base, Dannemora Mineral
applied for and was granted an exploration permit for the Riddarhyttan field.

·         In autumn, the Swedish Rail Administration and Dannemora Mineral
signed an agreement on the renovation of the railway line from the mine area to
Hargshamn.

·         Net sales for 2009 amounted to SEK 6.0 (2.9) million. Profit/loss
after net financial items during the same period amounted to SEK -23.4 (-22.7)
million. Net sales for the 4th quarter of 2009 amounted to SEK 3.6 (1.2)
million, while profit after net financial items was SEK -6.1 (-9.4) million.

·       Cash flow from operating activities in 2009 was SEK -22.4 (-20.5)
million. Cash flow for the 4th quarter of 2009 was SEK -5.2 (-1.6) million.

·         Investments in 2009 amounted to SEK 53.2 (65.7) million and in the
4th quarter of 2009 to SEK 3.8 (21.5) million.

·         Cash & cash equivalents at 31 December 2009 were SEK 64.6 (148.6)
million.


                SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE


·         The German steel group Salzgitter and Dannemora Mineral have signed an
agreement for trial delivery of 13,000-18,000 tonnes of iron ore, to be
delivered during the second quarter.

·         The draining of the Dannemora mine was completed in February 2010.
Installation work preparations can now begin.

The Year-End Report (including tables) can be downloaded from the following
link:






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