Dannemora starts trial delivery production

                   DANNEMORA STARTS TRIAL DELIVERY PRODUCTION

In the lead-up to commencement of mining operations in Dannemora, the Company
has now started production of iron ore products for this spring's trial
deliveries. About 60,000 finished products will be produced for shipment to
several European steel companies.

Bergteamet AB has been engaged as sub-contractor, and this company will produce
approximately 160 000 tonnes of crude ore with sub-level caving from a level of
162 metres in the Ströms ore. The campaign got underway in the early part of the
year with the drilling phase. The mining itself is due to start shortly.

A temporary processing plant has been established outside the entrance down to
the Ströms ore. Magnetic separation takes place in the existing plant which was
set up during the autumn campaign. Hallstaviks Schakt AB is the contractor for
the processing chain through to the port transport.

The finished products will then be gradually moved to Hargshamn for shipment to
steelwork customers. MLT (Mellansvenska Logistiktransporter AB) is responsible
for transportation.

The entire mining and processing operation is expected to run from the middle of
March until June, with gradual deliveries to specific customers.

Approximately 9,000 tonnes of iron ore products were delivered to Austrian steel
company Voestalpine last year. Final testing is in progress and an overall
evaluation of the blast furnace tests will be made shortly, after which
negotiations on long-term supply agreements are expected to begin.

The Press Release can be downloaded from the link below:



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