Operational and financial update

The demand for Dannemora Mineral’s products has been strong and all available
production for 2013 is sold out at good price levels. Production of finished
products during October and November is approximately 197 000 tonnes whereof
189 000 tonnes left port of Hargs Hamn for delivery to customers. The recovery
rate continues to stay at levels above 40 percent.

During the autumn, agreements have been entered into equivalent to the expected
production of finished products in 2014 indicating a strong demand for Dannemora
Mineral´s products. Dannemora Mineral’s price levels relative to reference price
have improved for 2014.

[image]

Management considers that operations are approaching the full potential of the
current facility. As previously communicated, significant new investments are
needed to improve the recovery rate and output of finished products. In the
absence of such investments, it is unlikely that the company will be able to
operate profitably on a sustainable basis.

During the autumn the company and its advisers have run a comprehensive process
for raising the new financing necessary to realize the investment program. A
large number of industry leading investors have been contacted, but the capital
raising has proved challenging. With efforts still ongoing, it is becoming
increasingly evident that a comprehensive restructuring of the company’s balance
sheet will be needed to accommodate raising new capital.

In this regard, Dannemora Mineral and its advisers are engaged in a constructive
dialogue with major creditors including trade creditors/suppliers and senior
bondholders. As previously disclosed, the company is currently not paying
interest on its’ debt in understanding and agreement with its’ senior
bondholders and most of the convertible bondholders.
For further information, please contact:
Ralf Nordén, President and  CEO
Telephone 46 709374891
ralf.norden@dannemoramineral.se

or

Niklas Kihl, CFO
Telephone 46295 - 24 44 20, 46730 797 363
niklas.kihl@dannemoramineral.se
Dannemora Mineral AB is a mining and exploration company of which the primary
activity is mining operations in the Dannemora iron ore mine. The Company also
intends to engage in exploration activities to increase the iron ore base
locally and regionally in several areas in Uppland where the potential for
finding workable deposits is considered good.

Dannemora Mineral comprises the parent company Dannemora Mineral AB and the
wholly-owned subsidiaries Dannemora Magnetit AB, responsible for operation of
the Dannemora mine, Dannemora Iron Ore Development AB, responsible for the
Group's exploration, and Dannemora Förvaltnings AB, responsible for the property
portfolio.

The Company’s most important asset is the iron deposit in the Dannemora Mine,
and activity is focused mainly on the mining of this deposit at present.

The Company is listed on NASDAQ OMX First North, Stockholm, and Oslo Axess. The
Company's Certified Advisor on First North is Remium Nordic AB.

The Company's independent qualified person is mining engineer Thomas Lindholm,
Geovista AB, Luleå. Thomas Lindholm is qualified as a Competent Person as
defined in the JORC Code based on education and experience in exploration,
mining and estimation of mineral resources of iron, base and precious metals.