Dannemora Mineral contemplates a new bond loan and issue of warrants for investments in profitable mining operations

As an integral part of the development of the Dannemora Mine, Dannemora Mineral
AB (“Mineral”) and its subsidiary Dannemora Magnetit AB (“Magnetit”) today
decided to recapitalize the group by offering investors to subscribe, on certain
conditions, to bonds and warrants as part of a long-term financing solution for
investments planned in respect of the mine. In addition to a new bond loan, the
financing solution also includes, inter alia, the conversion of the existing
bond loan to shares in Dannemora Mineral AB (“Mineral”) and the conversion of
outstanding convertible debt instruments.

The development of the Dannemora Mine involves an investment programme of
approximately SEK 450 million intended to increase production with approximately
40% and to create cost savings of approximately SEK 60 million per annum within
the ore production process.

With the support of the existing bondholders, the new bond loan will be offered
on a private placement basis with bonds issued by Magnetit in an amount not
exceeding USD 100 million. The related warrants will be issued by Mineral and
will entail the material dilution of existing shares in Mineral. Subscriptions
will only be permitted for bonds and warrants jointly and at an amount of at
least USD 200,000, which means that no formal prospectus will be produced.

The companies intend to offer the current shareholders and holders of the
convertible debt the opportunity to invest in bonds and warrants on
substantially the same terms as those offered to the capital market. This offer
is expected to be made during the current calendar quarter.

The financial restructuring requires the consent of the general meeting of
shareholders and amendments to the company’s articles of association and the
approval of the existing bondholders and the holders of the convertible debt.

The offer is not underwritten, which means that the bonds and warrants will only
be issued if enough commitments have been obtained.

The bond loan shall be used for, among other things, the repayment of the bridge
financing and to finance the investments required to increase the iron ore
production in the Dannemora Mine.

Swedbank is acting as Dannemora Mineral’s financial adviser.

The information provided to prospective investors may be retrieved at Dannemora
Mineral’s website under http://dannemoramineral.se/en/investors.

Detailed information on the offer can be obtained from Wilhelm Koren, tel +47
2311 6266.
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
intends to engage in exploration activities to increase the iron ore base
locally and regionally.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.