Dannemora Mineral’s subsidiary Magnetit presents composition proposal

Dannemora Magnetit AB, the subsidiary of Dannemora Mineral AB where the majority
of the operations is conducted, today presented a composition proposal for their
unsecured creditors, in which the creditors would receive 25 per cent in payment
for their debts. This would be paid within 12 months of the completion of the
reconstruction. The remainder of the debt would be written off through the
proposed composition.

The composition proposal is only part of the solution if the Dannemora Group is
to be reconstructed and avoid bankruptcy. The Dannemora Group will only be able
to be reconstructed if the financial negotiations that are currently underway
can be completed according to plan and if a private agreement can be reached
with the creditors in the parent company, Dannemora Mineral AB. As a public
composition is needed for Dannemora Magnetit AB, legal proceedings are required,
which take time. This means that these proceedings have to be initiated before
knowing whether the financial negotiations can be completed according to plan
and whether a private agreement can be reached in the parent company.
For further information, please contact:

Ralf Nordén, President and  CEO
Telephone 46 70 937 48 91
ralf.norden@dannemoramineral.se

or

Karl Ove Grönqvist, acting CFO
Tel 070 283 5307
Karlove.gronqvist@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.