Endomines AB Press Release, Summary of interim report January - June 2010

Pampalo Gold Mine construction progressing on schedule

Summary of events

Pampalo Gold Mine:

  * Pampalo Gold Mine construction continues in-line with the budget, with some
    minor overruns due to quality-improvements with regards to the crushing
    circuit and mine site laboratory
  * Underground infill drilling assay results were received in April, and the
    production area for the first two to three years of production was
    delineated.
  * Major building works were completed in May.
  * Installation of processing plant equipment commenced in May as scheduled.
  * A Shareholders Day was held at 19th June at Pampalo Gold Mine.

Company overview:
  * MSc (Mining Engineering) Rauno Pitkänen was elected as a new board member
    after Per Torell's resignation at the Annual General Meeting.
  * Endomines Board of Directors has decided to write-down Kälviä ilmenite
    assets 44,993 KSEK.
  * The current market value of Endomines' gold price and interest rate hedge
    programs is -168 169 KSEK, mainly due to the strengthening of the gold price
    in dollar and the weaker Euro.


Operations overview

Construction  of the Pampalo  Gold Mine continued  efficiently during the second
quarter of 2010.

All assay results from a 43 holes, 2,727-meter diamond-core drilling campaign at
the  Pampalo underground gold mine were received in April. These results confirm
the planned production start-up schedule, with test production commencing at the
end of 2010, and full-scale production in the first quarter of 2011.

The  completed infill drilling campaign will allow production down to 320-meter
levels  without  any  additional  diamond  core  drilling.  The ore has now been
delineated  to cover  the first  two-three years  of production. The new results
will  also be used for the Pampalo mine ore reserve estimation that is currently
under preparation by independent qualified consultants.

Major  building  works  were  completed  in  early May according to schedule and
within  budget  despite  the  very  cold  winter  conditions. The first batch of
processing  equipment containing flotation cells from Metso Minerals Sala AB was
received  in  May.  All  equipment  deliveries  and  installation  have happened
according to project schedule.

Underground  development works continued with ventilation raise drifting as well
as  drifting in ore and  waste rock. The ore  from development drifting has been
regularly sampled and these have returned grades, which comply with the expected
grades  from respective areas. All ore derived from development drifting will be
stockpiled for further processing and gold production after the processing plant
and power line have been commissioned.

The erection of the new 47-kilometre power line from Ratilanvaara to the Pampalo
Gold  Mine site  is progressing  ahead of  schedule. The  line is expected to be
commissioned   well  before  year-end,  which  will  allow  for  efficient  test
production to commence during Q4/2010.

A  Shareholders' Day  was held  on June  19th, attended by about 50 shareholders
from Finland and Sweden.

There  was one lost time  accident in the underground  mine during the reporting
period  resulting for three  days sick leave.  The total work  force on-site has
been on average 15 Endomines and 46 contractor employees.

Kälviä Ilmenite assets write down

Endomines'  Board of Directors has recently  carried out a thorough market study
and  analysis of  the Kälviä  ilmenite assets,  including commissioning  a study
conducted  by independent consultants. As a  result, and particularly due to the
fact  that the Board  does not foresee  the possibility of allocating sufficient
capital  to  continue  exploration  of  these  assets  as  well as investment in
production facilities, the Board has decided to write down the assets by 44,993
KSEK.  The  company  will  consider  options  to  Joint  Venture or farm-out the
project.

Outlook 2010

Construction  at the Pampalo  Gold Mine will  continue according to schedule and
budget.  Test production is  expected to commence  during Q4/2010 and full-scale
production during Q1/2011.

Underground  development works will continue according  to the project plan. The
first  long-hole stope  will be  taken into  production in  September. Following
this,  drifting in the waste rock and in  the ore, as well as long hole stoping,
will  continue. The target is to  create a stockpile of approximately 3-4 months
of ore supply on the surface before start-up of full-scale production. This will
secure sufficient ore supply for production start-up, and will contribute to the
achievement of first year underground ore production targets.

Hedge program effects

The  market value  of the  hedge programs  will fluctuate  in the  future due to
USD/Euro  exchange rates  and gold  price developments.  The effect of the hedge
programs will be realized at term date. The company real profit will be based on
a  combination of operating  cost, gold production,  hedge price and spot price.
The  50% hedge leaves scope to gain from the  strong US Dollar price of gold and
the  weak Euro, as  Endomines' operating costs  are in Euros  and its production
sold in US Dollars.

Personnel

In  the near  future, Endomine's  head count  will increase  to production level
manning  as on-going training  programs will be  completed and the trainees will
join the Pampalo Gold Mine team.

Summary of key financial figures for January-June 2010 (2009)
  * Earnings after tax -61,867 KSEK (-6,553)
  * Earnings per share -0.84 SEK (-0.19)
  * Investments 87,387 KSEK (7,053)
  * Total Cash Flow -57,033 KSEK (-14,467)


Full interim report (in Swedish) is available at www.endomines.com.


For further information:

Markus Ekberg, CEO of Endomines AB, cell phone: +358 40 706 48 50


About Endomines

During  2009-2010 Endomines  has  taken  several  important steps to develop the
business from exploration to full-scale gold production. By the end of 2010, the
company  will commence  production at  the Pampalo  Gold Mine,  with a projected
output of 900-1.000 kg of gold per annum. Other deposits along the Karelian Gold
Line  will be exploited subsequently. Endomines has additional claims in Finnish
Lappland     (gold),    Ostrobothnia    (ilmenite)    and    Southern    Finland
(limestone/wollastonite).

Endomines  applies SveMin's &  FinnMin's respective rules  for reporting (public
mining  &  exploration  companies).  Endomines  has  chosen  to  report  mineral
resources  and  ore  reserves  according  to  JORC  or  NI 43-101-cod, which are
internationally  accepted. Endomines  applies International  Financial Reporting
Standards (IFRS) as approved by the European Union.

The  shares of  Endomines AB  are quoted  on the  First North Premier segment in
Stockholm  under ticker  ENDO.ST. Erik  Penser Bankaktiebolag  acts as Certified
Adviser and Liquidity Provider.

Read more about Endomines on www.endomines.com


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