Interim Report January-September 2012

| Source: Dannemora Mineral AB Dannemora Mineral AB 

Significant events during the period


  * Production has increased gradually in the third quarter.  The increase in
    production in September was 57 percent compared with the previous month and
    the growth rate was equally high in October.

  * Dannemora has signed a contract with the German steel company ROGESA
    (Roheisengesellschaft Saar mbH) to supply approx. 13,000 tonnes of iron ore
    products.

  * Dannemora has signed a contract with ArcelorMittal to supply approx. 26,000
    tonnes of iron ore products. The new agreement should be seen as the
    beginning of a long-term contractual relationship between the parties.

  * With effect from 1 September, Pär Göting is responsible for operations at
    the Dannemora iron ore mine after Kjell Klippmark.
  * Net sales for the period January-September 2012 amounted to SEK 56.0 (2.3)
    million. Profit/loss after net financial items for the same period amounted
    to SEK -136.4 (-95.9) million and earnings per share was SEK -9.22 (-6.92).

  * Total cash flow for the period January-September 2012 was SEK -490.2 (424.2)
    million.
  * Cash & cash equivalents at 30 September 2012 were SEK 132.4 (637.0)
    million.



Significant events after the end of the period



  * Dannemora Mineral has signed a supply contract with SSI UK (Sahaviriya Steel
    Industries, United Kingdom), via Stemcor Ltd, for approx. 15,000 tonnes of
    iron ore products as a first step towards a longer collaboration.

  * Dannemora Mineral has decided to issue a convertible loan of between SEK
    130 million (min) and SEK 150 million (max). The loan is subject to approval
    by an Extraordinary General Meeting to be held on 12 November.

  * Hargs Hamn AB has received an environmental permit to make a deeper channel
    into the port, which will mean that larger vessels can be used for the
    Company's iron ore shipments, thereby allowing lower transport costs per
    tonne.

  * In view of the convertible loan, Dannemora Mineral has decided not to
    implement the private placement of SEK 130,000,000 or the repair issue of
    approx. 1 million shares previously announced.


Read report below


[HUG#1652604]

Attachments

Interim Report January-September 2012.pdf