Dannemora Mineral AB: Interim Report January - June 2008

* On 18 June, the Swedish Environmental Court approved Dannemora
    Mineral's application to conduct mining activities in Dannemora.
    The ruling now has the force of res judicata and cannot be
    appealed.

  * In the second quarter, Dannemora Mineral completed a private
    placement which brought the company funds of SEK 155 million
    before expenses. A total of 3,100,000 shares were subscribed for
    at a price of SEK 50. The purpose of the new share issue is to
    finance time-critical installation work, including the pumping of
    the Dannemora iron ore mine.

  * At the end of June, Dannemora Magnetit entered into an agreement
    on pumping out the Dannemora mine with a consortium made up of
    ITT Water & Wastewater AB and Contector AB. Dannemora Magnetit
    has started preparation work and the consortium will begin its
    mobilisation immediately after summer.

  * On 1 April, the previously purchased property portfolio was
    transferred to Dannemora Mineral and a separate company was
    formed, with responsibility for ownership and management of the
    property portfolio. In conjunction with the expansion, Kjell
    Klippmark was appointed new CEO of Dannemora Magnetit AB, while
    Lars Alm became CEO of Dannemora Förvaltnings AB.

  * A warrant and share option incentive scheme was introduced for
    the CEO and key management personnel.

  * An exploration programme was initiated in spring to increase the
    reserves in Dannemora.

  * Profit/loss after net financial items in the period January-June
    2008 amounted to SEK -10.5 (-3.0) million.

  * Cash flow from operations in the period January-June 2008
    amounted to SEK -19.1 (-3.4) million.

  * Investments in the period January-June 2008 amounted to SEK 22.5
    (10.9) million.

  * Cash & cash equivalents were SEK 36.7 (81.3) million at 30 June
    2008. The proceeds of the new share issue were paid in after the
    end of the reporting period.


The full report with tables can be downloaded from the following
link: