Dannemora Mineral AB: Press Release 31 March 2009

STEEL DEMAND SITUATION DELAYS OPERATIONAL START-UP IN DANNEMORA MINE

Steel companies in Northern Europe have made considerable cut-backs
in production, typically around 40-50%, in response to a sharp
decline in demand for steel. Consequently, most steel companies have
not ordered the iron tonnage agreed with iron ore producers for the
contractual period ended 31 March 2009. For this reason, many of
Dannemora Mineral's potential companies are anxious to postpone the
previously discussed trial deliveries of iron ore.

The trial deliveries and subsequent long-term delivery agreements are
a pre-requisite for completion of the loan financing planned for the
mining project in Dannemora. The postponement of the trial deliveries
and loan financing means that the large investment projects and the
start-up of full-scale operations in the Dannemora mine have been
delayed.

Based on what Dannemora Mineral's potential customers have indicated
regarding the timing of trial deliveries, the delivery agreements and
loan financing are now expected be in place in the first half of
2010. This will make it possible to commence operations in the new
plant in summer 2011, with full capacity achieved in autumn 2012. The
schedule for operational start-up and full capacity utilisation is
therefore slightly more than six months behind the previously
communicated schedule.

The ongoing installation projects for pumping out the mine and rock
work for ramp placement and development continue. The rock work is
mainly focused on development work in the Ströms ore. The development
at level -162 metres will be implemented in spring, giving access to
approx. 250,000 tonnes of developed iron ore for caving until summer
2009. This quantity of ore is fully sufficient for the planned trial
deliveries. When the trial deliveries begin, the ore will be
processed into lump ore and fines in a temporary separation plant.

The above projects will continue to the extent they are time-critical
to the start-up of operations in accordance with the new schedule.
Investments and activities which are not time-critical will be
postponed in order to maintain Dannemora Mineral's good liquidity and
sound financial position. This will give the Group freedom of action
even in a more long-drawn-out recession.

Staffan Bennerdt CEO and President of Dannemora Mineral: "The deep
recession and crisis on the financial markets has hit the mining
sector hard. For Dannemora Mineral, the crisis is not all bad news.
Prices of all types of equipment are falling and delivery times are
being cut. The lack of qualified personnel is not the problem it was,
and a large number of competing projects have been delayed.  With our
short period to production start-up, Dannemora Mineral is perfectly
positioned to benefit from an upturn in the economy when it arrives."


For further information, please contact:

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

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


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, which is
responsible for operation of the Dannemora mine and the Group's
exploration activities, and Dannemora Förvaltnings AB, which is
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.