Endomines enters into agreement to sell Kalvinit Oy together with its ilmenite deposits to Cove Resources Ltd.

Endomines AB (publ) ("Endomines") has on 5 July 2012 entered into an agreement
with the Australian company Cove Resources Ltd. ("Cove Resources"), whereby
Endomines agrees to sell all of the shares in its wholly owned subsidiary
Kalvinit Oy ("Kalvinit") to Cove Resources, if Cove Resources finds the results
of a feasibility study to be performed by Cove Resources before 15 April 2013
satisfactory. Kalvinit is focused on the development of industrial mineral
ilmenite deposits and holds certain exploration rights to ilmenite deposits in
the Kälviä area in Finland.

If Cove Resources proceeds with the acquisition after completion of the
feasibility study, Cove Resources will pay a total purchase price of EUR
3,000,000 in cash for the shares in Kalvinit, plus a royalty of 2 per cent of
the Net Smelter Return of produced and sold minerals from the deposits held by
Kalvinit. The maximum amount of royalty payable under the agreement is EUR
7,000,000. Of the initial purchase price of EUR 3,000,000, a non-refundable
amount of EUR 150,000 is paid in connection with signing of the transaction
agreement. A further EUR 850,000 will be paid upon completion of the
transaction, and the remainder of the purchase price will be paid in two
installments, on 15 January 2014 and on 15 October 2014.

Prior to completion of the transaction, Cove Resources will conduct a customary
feasibility study of the ilmenite deposits held by Kalvinit. The feasibility
study shall be completed no later than 15 April 2013. Completion of the
transaction is conditional on the results of the feasibility study being
satisfactory to Cove Resources.

Kalvinit's limestone and copper assets in Kuovila and Rähväkkö are not included
in the transaction and will be transferred to Endomines or a wholly-owned
subsidiary of Endomines prior to completion. Endomines has issued customary
representations and warranties regarding Kalvinit to Cove Resources in the
transaction agreement. Provided that the results of the feasibility study by
Cove Resources are satisfactory to the purchaser, the transaction is expected to
close in Q2 2013.

Karl-Axel Waplan, Chairman of the Board of Endomines, comments: “We are very
pleased to have entered this agreement with Cove Resources and that we now have
a good long-term solution for the ilmenite deposits. This agreement ensures that
we are compensated for our earlier investments in Kalvinit, and shall have a
further return on our investment once production of ilmenite begins.
Furthermore, this transaction now allows Endomines to focus on the development
of the Pampalo Gold Mine as well as our other deposits along the Karelian Gold
Line”, continues Karl-Axel Waplan.

About Kalvinit Oy
Kalvinit was founded in 1995, and is responsible for the exploration and
development of Endomines' ilmenite deposits in the Kälviä area, on Finland's
West Coast. The industrial mineral ilmenite is used in several different
industries, including titanium oxide (TiO2) production. Titanium oxide is used
as colour pigment in paints, titanium metal production and cosmetic products
etc.

Since founding, Kalvinit has carried out two major test-mining and processing
trials at the Koivu and Kaire deposits, totalling 24,000 tons, in co-operation
with a third party. The material mined during these trials has been used for
processing tests and to ensure product quality.

About Cove Resources Ltd.
Cove Resources Ltd. is an Australian based mineral company that is listed on the
Australian Stock Exchange. The company develops mineral projects which have the
potential for exploration success. They also seek to identify complementary
merger and acquisition opportunities. The company currently has eight projects
located in Queensland and Western Australia.

For further information, please contact:
Karl-Axel Waplan
Chairman of the Board of Endomines AB
tel. +46 70 510 42 39

About Endomines AB:
Endomines AB is a Nordic mining and exploration company with its first operating
gold mine in production since February 2011. The mine is located in Eastern
Finland, on the Karelian Gold Line, a 40 km long gold critical belt, where
Endomines controls all currently known gold deposits.

The company has several other gold and industrial mineral properties at various
stages of development. All Endomines’ mineral assets are located in Finland,
which is politically stable, has a highly developed infrastructure and is ranked
as one of the most favorable jurisdictions for the mining industry.

Endomines aims to increase shareholder value by developing its strong portfolio
of assets, as well as exploring new deposits on the Karelian Gold Line and in
Finnish Lapland. The company will also consider new opportunities and
acquisitions for further growth.

The company’s business practices and mining operations are based on sustainable
principles and on minimizing the impact on the environment.

Endomines applies SveMin's & FinnMin's respective rules for reporting (public
mining & exploration companies). It has also chosen to report mineral resources
and ore reserves according to the JORC-code, which is the internationally
accepted Australasian code for reporting ore reserves and mineral resources.

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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This news release may contain forward-looking statements, which address future
events and conditions, which are subject to various risks and uncertainties. The
Company's   actual   results, programs and financial position could differ
materially from those anticipated in such forward-looking statements as a result
of numerous factors, some of which may be beyond the Company's control. These
factors include: the availability of funds; the timing and content of work
programs;   results   of exploration activities and development of mineral
properties, the interpretation of drilling results and other geological data,
the uncertainties of resource and reserve estimations, receipt and security of
mineral property titles; project cost overruns or unanticipated costs and
expenses, fluctuations in metal prices; currency fluctuations; and general
market and industry conditions.

Forward-looking statements are based on the expectations and opinions of the
Company's management on the date the statements are made. The assumptions used
in the preparation of such statements, although considered reasonable at the
time of preparation, may prove to be imprecise and, as such, undue reliance
should not be placed on forward-looking statements.