Dannemora Mineral AB: Financing enters final phase

* Financing of the Dannemora mining project is planned to be
    completed in Q1 2009.
  * Endeavour Financial  has been engaged as financial advisor.
  * Pre-production installation work will generate the first iron ore
    in 2009 for trial deliveries to potential customers and the
    planned sales as coarse ballast.
  * The ore processing plant is scheduled to be operational in Q1
    2010. Production in the mine and plant will then gradually work
    up to full capacity by late 2011/early 2012.


Dannemora Mineral has now entered the final phase in its funding of
the Dannemora iron ore project. The remaining capital requirement to
cover plant & equipment investments and working capital amounts to
approx. SEK 850-900 million. Following consultation with potential
lenders and advisors, Dannemora Mineral has decided that the
proportion of external capital will be approx. SEK 600-650 million,
with the remaining SEK 200-250 million made up of additional equity.

Dannemora Mineral has engaged Endeavour Financial Ltd as financial
advisor for its planned borrowing of approx. SEK 650 million.
Endeavour, based in London, has 20 years' experience specialising in
natural resources projects. These include iron ore, base metal,
precious metal and industrial mineral mining projects across the
globe.

To satisfy lenders' need for an unbiased insight into the mining
project, the customary technical, legal, environmental and financial
due diligence processes are being carried out in autumn 2008. The
combination of persisting financial turmoil and long lead times in
contracting well-reputed technical consultants for due diligence
assignments has delayed the financing work. However, both Dannemora
Mineral's financial advisor and potential lenders believe loan
financing will be available during the first quarter of 2009.

It is planned to raise the additional equity of approx. SEK 200-250
million by issuing shares or other financial instruments. Loan
financing and acquisition of equity are expected to be completed
concurrently.

The current time-critical mine pumping and underground ramp placement
projects are progressing according to plan, regardless of the ongoing
financing activity. Contracts for the ore processing plant are partly
dependent on the full financing being in place and the fact that this
has been delayed a few months. The operational start for the ore
processing plant is therefore planned for the first quarter of 2010.
The delay of up to one financial quarter will not have any
significant impact on production and project economy and will not
affect the time scale for full production of 1.5 million of iron ore
products.




This document is a translation of the original press release  in
Swedish. In case of divergence, the
Swedish version shall have precedence.

For further information, please contact:

Staffan Bennerdt, Group President
Telephone 0295- 24 44 22
staffan.bennerdt@dannemoramineral.se




Dannemora Mineral AB is a mining and exploration company, with the
main goal to recommence mining operations in the Dannemora iron ore
mine. The Company also engages in exploration activities to increase
the iron ore base locally and regionally, and to explore base and
precious metals in several areas in Uppland where the potential for
finding mineable deposits is considered good.

Dannemora Mineral comprises the parent company Dannemora Mineral AB
and the wholly-owned subsidiaries Dannemora Magnetit AB, responsible
for operation of the Dannemora mine, Dannemora Prospektering AB,
responsible for all exploration, and Dannemora Förvaltnings AB,
responsible for the property portfolio.

The Company's most important asset is the iron ore deposit at
Dannemora, and activities will initially focus mainly on the planned
mining of this deposit.

The Company's Certified Advisor on First North is E. Öhman J:or
Fondkommission AB.