Dannemora Mineral AB : Press release of unaudited annual

Summary of significant events and results in 2007:

* In June, Dannemora Magnetit AB submitted an application to the
  Environmental Court at Nacka District Court in regard to the
  resumption of operations in the Dannemora Mine.

* Ore reserves in the Dannemora field have been estimated at 28.5
  Million tons with 35.2% iron and 1.8% manganese (20.6 million tons
  of proven ore reserves with 35.1% iron and 1.8% manganese and 7.9
  million tons of probable ore reserves with 35.3% iron and 1.7%
  manganese).  With the assumptions made, this is sufficient for more
  than 12 years of mining operations at Dannemora.

* With full production it is planned that 2.45 million tons of ore
  will be mined per year, which is estimated to give 1.5 million tons
  of processed products (50% lump ore and 50% fines).

* Investment costs for resuming operation in the Dannemora Mine have
  been estimated at just under MSEK 840 spread over four years.

* Operating costs at full production have been estimated at approx.
  SEK 179 per ton of processed products FOB Hargshamn, which equates
  to approx. SEK 109 per ton of ore.

* Net present value (NPV) of the iron ore project has been calculated
  in the feasibility study as MSEK 956 with an 8% cost of capital.
  The average price of the processed products has been set at SEK 358
  per ton (20% lower than the price in 2007 and without taking any
  payment for the manganese content into consideration).

* The moraine sampling that was carried out during the year resulted
  in a number of anomalous gold areas along a belt running northwards
  from the Dannemora Mine.

* In the autumn TEM measurements conducted by helicopter and in drill
  holes indicated a number of interesting electrical conductors in
  the bedrock.

*  During the year, the Dannemora Group has built up a
  well-functioning management organisation for the parent company and
  for both the subsidiary companies.

* A new share issue and listing on the First North equity market were
  carried out during the year. The new share issue contributed SEK
  85.4 million before issues costs to the Company.

* Profit/loss after net financial items during the year amounted to
  MSEK -10.2 (-2.6). Profit/loss after net financial items in Q4
  amounted to MSEK -5.3 (-0.9).

* Cash flow from operating activities during the year amounted to
  MSEK -7.8 (-2.1). Cash flow from operating activities in Q4
  amounted to MSEK -2.2 (-0.2).

*  Investments during the year totalled MSEK 17.6 (5.9). Investments
  during Q4 totalled MSEK 1.9 (3.8).

* Cash equivalents as per 31 December 2007 totalled MSEK 63.5 (9.7).


Summary of important events during 2008:

* Dannemora Mineral and Östhammar Municipality have agreed on the
  transfer of an area of land of approx. 400 ha from the
  municipality's private limited company Dannemora Gruvfastigheter to
  Dannemora Mineral.

* During February, the Brazilian mining conglomerate Vale has
  negotiated price increases of 65% for iron ore with major Asian
  steel manufacturers such as Japan's Nippon Steel and South Korea's
  Posco.

The full report with tables can be downloaded from the following
link:
Dannemora Mineral AB : Press release of unaudited annual earnings January - December 2007

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