Dannemora Mineral AB: Press Release 10 December 2009

SECTOR-LEADING CONSULTING COMPANY
                  CONFIRMS DANNEMORA MINE POTENTIAL

  * The technical, environmental, legal and financial due diligence
    processes for the Dannemora iron ore project have now been
    completed. The process was carried out by Micon Ltd, one of the
    mining industry's most renowned and respected consulting
    companies. The results largely confirm the conclusions from the
    previous feasibility study, and mean that the current project
    plan for the Dannemora mine is considered viable from a
    technical, environmental and legal perspective and that the
    project rests on a sound financial base and has the potential to
    generate an attractive return on invested capital.

  * The plans for the mining project in Dannemora have been gradually
    refined and certain key figures have therefore been changed.
    Total investments are now expected to be SEK 832 million
    (previously 838 million). Production costs now include lease
    costs for mobile machinery, which was not  previously the case,
    and are expected to be SEK 193 per tonne of finished product
    (previously 179).

  * The mine project's discounted cash flow (net present value, NPV)
    is estimated at around SEK 2 billion, based on the updated
    investment and operating expenses and new forecasts regarding
    iron ore prices and the dollar rate.

  * Dannemora Mineral is working on a number of initiatives aimed at
    improving the mine project's NPV. There is thought to be good
    potential for increasing the iron ore reserves considerably,
    which would add many years to the life of the mine. Annual
    production is also likely to be higher than expected as the iron
    ore processing plant is projected for an annual capacity of 2
    million tonnes, while the NPV is cautiously based on annual
    production of 1.5 million tonnes.

  * The market and prices experienced favourable development during
    autumn, with demand for iron ore continuing to soar in China.
    Capacity utilisation in the global steel industry has risen
    sharply since the beginning of 2009 and the World Steel
    Association (WSA) estimates that total world steel production
    will increase by 9.2% in 2010 which will put it back at the same
    level as in 2008. The spot price for iron ore delivered to China
    is just over 30% above the year's contracted benchmark prices and
    indicates an increase in the benchmark prices for 2010.


The press release (including tables) can be downloaded from the
following link: