Dannemora Mineral AB: Press release January 28 2008

Dannemora Mineral AB has during 2007 commissioned three consultant
companies to carry out a Feasibility Study for the planned resumption
of operations in the Dannemora Mine. The Study has now been finalized
and is presented more detailed in appendix 1 to this press release.
The Feasibility Study represents a sound technical and economical
base for further development of the project.  The Board of Dannemora
Mineral AB is pleased by the positive result of the study and is
below summarizing and commenting the report and its results.

On behalf of Dannemora Mineral AB, the Feasibility Study in regards
to the Dannemora iron ore mine has been performed by three
independent companies.

- ARRC Geoconsulting AB (mineral resources)
- Vattenfall Power Consultant AB (ore reserves, all parts of the
study related to mining, the compilation of the study and the
economical valuation)
- PROing H&J AB (process and the ore treatment plant)

The feasibility study, performed by the three independent consultant
companies, constitutes the base for:

- the investment decision (resumption of the production)
- the funding of the project

The Feasibility Study is picturing the present situation. Like all
studies of this type, it includes however simplifications and
assumptions. Given this, the study proves the project to be clearly
economical feasible. Besides the study itself, efforts to optimize
solutions have been ongoing. This has impacted the scope of work
whereby the study has been delayed. Continuous work to optimize the
operation is ongoing with the goal to cut costs and to make the
project even more attractive.

The Board identifies a number of potential activities to further
improve the feasibility of the project.


  * One important item is when, and to what extent, it is possible to
    transport ore with rail road from the mine to the harbour. In the
    study the assumption is to use trucks during the lifetime of the
    mine which impacts the cost for transportation heavily.

  * Recently completed tests indicate possibilities to increase the
    percentage of lump ore in the final products. Since lump ore is
    paid better than fines a positive result of the continuing tests
    will have a positive impact on the result.

  * Many of the known ore bodies are "open" downwards and there are
    also possibilities to find new orebodies in the extension of the
    field along the strike (south-north). As a consequence we have
    planed to spend SEK 5 millions in yearly exploration and we have
    also designed the ore treatment plant to be able to handle more
    ore than considered in the study


A risk and also a possibility is the calculated average level of the
product price. As shown in the study the price of our iron ore
products has a huge impact on the economical result.

Another basic factor is the ability to finance the project. Crucial
for the shareholder value is the structure of the future financing
(ratio between equity capital and borrowed capital) and the capital
cost level for financing. Dannemora Mineral now investigating
different possibilities of financing including among other things
equity capital, bank loans and leasing alternatives. The purpose is
to find the most profitable financial solution for the share holders.

The full press release can be downloaded from the following link: