Operational start-up at sorting plant

On Monday, the sorting plant started its crude ore production for commercial use
in Dannemora. This means that Dannemora Mineral AB has met the target for an
operational start-up in the second quarter of 2012 and has kept to the schedule
for a construction period of one year from the start of construction.

 "This is a very important milestone for the Company," says President and CEO
Staffan Bennerdt who was present when the plant began operations on Monday. "We
are underway with production, and in the near future we shall streamline the
sorting plant to achieve maximum efficiency."

 The sorting plant has been designed for an annual capacity of 2.0 million
tonnes of finished products in the proportion of 60 percent lump ore and 40
percent fines.
 Production at the sorting plant will increase in phases from today's start of
production until the Company reaches full production. Dannemora estimates that
full production will be reached when hoist system (ore skip) is installed in
March next year. Until the ore skip is installed, crude ore will be transported
up to the sorting plant by truck via the newly opened ramp connection to the
surface.

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