Lappland Goldminers informs about the ongoing restructuring process

| Source: Lappland Goldminers AB
As part of the ongoing restructuring process for Lappland Goldminers, the
company has obtained the necessary prior approvals from the creditors included
in the composition. Lappland Goldminers will therefore submit an application for
composition agreement to Lycksele district court. In addition the company has
established a balance sheet for liquidation purposes under the framework of the
ongoing restructuring process.
According to a Lappland Goldminers AB (publ) (the "Company") press release dated
February 17th, 2014 the Board of the company prepared a composition proposal in
which the company's subordinated creditors were offered full payment up to a
maximum amount of SEK 6,000 and an additional 30% of the amount of the
outstanding claim exceeding SEK 6,000. The Company's subordinated creditors
consist primarily of the Company's convertible bond holders whose claims in the
composition agreement amounts to about SEK 124 million. The composition proposal
is subject to a decision, on an upcoming extraordinary general meeting, to
execute a subsequent set-off issue directed towards the creditors under the
Company's outstanding convertible loan, who are offered to settle the remaining
debt (after the implementation of the composition agreement) to new shares in
the Company at a subscription price of one (1) SEK/share. Thereafter, the
Company intends to conduct a, fully or to the main part, underwritten rights
issue of approximately SEK 34-42 million.

As part of the Company's application for the composition agreement, it has,
among other things established a restructuring report together with a statement
from the administrator, a composition agreement and an estate inventory. These
documents have been provided to the Company's creditors by way of a dispatch
executed on March 3rd, 2014. The documents are also made available on the
Company's website

In combination with the preparation of the application for the composition
agreement, the Board has reviewed the values of the Company’s assets accounted
for in the balance sheet. This review has resulted in that the Board has found
it necessary to make substanital impairments of the values related to Fäboliden
project, amongst others. Based on the current market for mineral projects and
the present gold price, the Fäboliden project has been impaired with SEK 177
million to SEK 0 in the balance sheet of the subsidiary, Lappland Goldmines
Fäboliden AB. As a result of this impairment the receivable related to Fäboliden
in balance sheet of the Company, Lappland Goldminers AB, has been impaired
correspondingly. In addition, the main part of the Company’s claim on its
Finnish subsidiary Lappland Goldminers Oy has been converted to an unconditional
shareholder’s contribution as a consequence of the restructuring program
approved in Finland. As a result hereof the Company’s receivable on its Finnish
subsidiary amounts to SEK 9 million. The Board considers SEK 20 million to be
fair value of the shares in the Finnish subsidiary in the balance sheet of the

Given the impairments decided by the Board, the Company reports a negative
equity of about SEK 130 million, resulting in that the Company's Board prepared
a balance sheet for liquidation purposes showing an equity deficit of the
corresponding amount, of about SEK 130 million.

As a result of the deficit in equity the Company will propose to an upcoming
Extraordinary General Meeting, to decide upon the matter of continued operation
or if the Company shall go into liquidation. Provided that the Board's
refinancing plan is implemented, the Company's equity will be restored by the
Board of Directors’ proposed measures. The Company's Board will therefore
propose to the Extraordinary General Meeting to decide to continue with the
Company's operation.

Lappland Goldminers AB (publ)

For additional information, please visit: or contact:

Sven Rasmusson, chairman of the Board                             Thomas
Häggkvist, CEO/CFO

Tel. +46 70-605 83 15
Tel. +46 70-552 26 22


Lappland Goldminers AB is a producing mining company with significant
exploration activities. The Company is listed on the market place First North
Premier in Sweden under the name GOLD, with Mangold Fondkommission AB,, +46-8-503 015 50, as Certified Adviser.

Lappland Goldminers’ strategy is to develop mineral deposits into profitable
producing mines. The Company is strategically positioned with the fully
permitted Fäboliden gold project in northern Sweden. The Pahtavaara gold
operation is located in the north of Finland. Lappland Goldminers is a member of
SveMin, the Swedish association for mines, minerals and metal producers, and
follows SveMin’s reporting rules for public mining and exploration companies.