Endomines completes directed new share issue raising SEK 48 million

- proceeds to be used for accelerated exploration
The Board of Endomines AB (publ) (the “Company”) has, exercising the mandate
that was granted at the AGM held on 26 April 2012, made the decision to make a
directed issue of 7,944,000 new shares (the “Issue”).

There was significant interest for the Issue and allotment of 7,944,000 shares
was made to mainly Swedish and Finnish investors. The issue price was set
through book building at SEK 6.10, which corresponds to a discount to
yesterday’s volume weighted average share price of 6.3 percent. Payment for the
new shares shall be made in cash three days after settlement note has been sent.
Through the Issue, approximately SEK 48 million will be brought to the Company
before issue expenses.

Following the Issue, the number of shares amounts to 87,385,625 of which the new
shares correspond to approximately 9.1 percent of the equity. The Company’s
share capital increases with SEK 23,832,000 from SEK 238,324,875 to SEK
262,156,875.

The new shares will entitle to dividends for the first time at the record date
for dividend that is closest after the new shares have been registered in the
share register kept by Euroclear Sweden AB.

The reason for deviating from the shareholders’ preferential right is to reach
institutional investors and broaden the Company’s investor base.

Use of proceeds from the Issue

The proceeds from the Issue are intended to be used to fund a more expansive
exploration program along the Karelian Gold Line in Eastern Finland. The main
target of the intensified exploration will be the highly potential Korvilansuo
-Elinsuo-Muurinsuo-area, which is totally 6 km long and has already established
mineral resources in three different deposits and several bedrock gold
anomalies.

“All of the results so far obtained from the Korvilansuo- area support our firm
conviction that the Korvilansuo-area has real potential for growing into a
significant and successful gold project. The area is a textbook example of
intrusive-related orogenic gold mineralization and has all the typical
characteristics of an Archean greenstone-hosted gold province”, comments Markus
Ekberg, CEO of Endomines. The geology of the area is explained in the attached
map on next page.

[image]

Figure 1: Geological map of the area

“We are only at beginning of our exploration program but what is encouraging us,
is that we already have three clearly defined mineralization targets with
established mineral resources surrounding the Kuittila-tonalite", comments
Endomines CEO Markus Ekberg.

“Although the main exploration target area will be around the Kuittila tonalite,
we will also continue our evaluation of other deposits. Our aim is to complete
industrial scale test mining at Rämepuro during summer of 2013 and bring it to
production in the summer of 2014, when we expect that the environmental
permitting procedure is completed. At the high grade Hosko deposit we aim to do
large scale bulk sampling and pilot plant processing tests during the summer of
2013 and follow with the industrial scale test mining and processing in the
summer of 2014”, continues Markus Ekberg.

Pareto Öhman AB is financial adviser to the Company in connection with the
Issue. Cederquist is the legal adviser in connection with the Issue.

For further information, please contact
Markus Ekberg, CEO, tel. +358 40 706 4850

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Endomines AB discloses the information provided herein pursuant to the Swedish
Securities Markets Act and/or the Swedish Financial Instruments Trading Act. The
information was submitted for publication at 08:45 CET on March 27, 2013.

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IMPORTANT INFORMATION

The information above is not intended for, and may not be distributed to or be
published in, directly or indirectly, Australia, Canada, Hong Kong, Japan, New
Zeeland, South Africa, the USA, or any other jurisdiction where this would
require registrations measures or would constitute a breach of law.

The information above does not contain or constitute an invitation or an offer
to acquire, subscribe for, sell or otherwise trade in shares or other securities
in the Company (“the securities”). Nor does it constitute a prospectus under the
terms in Directive 2003/71/EC.

No securities are or will be registered in accordance with the U.S. Securities
Act of 1933 (“Securities Act”) or any provincial act in Canada or any
legislation in Australia, Hong Kong, Japan, New Zeeland or South Africa. The
securities may therefore not, directly or indirectly, be sold, resold, offered
for sale, delivered or spread within or to any of these jurisdictions, or to any
person located there at that point of time or resident there, or on account of
such person, and further not to or within any other jurisdiction where such
measure would violate the laws of the jurisdiction or require registrations
measures, other than in accordance with an applicable exemption. A failure to
comply with this instruction may result in a violation of the Securities Act or
laws applicable in other jurisdictions.

Pareto Öhman is acting for the Company and no one else in connection with the
Issue and will not be responsible to anyone other than the Company for providing
the protections afforded to its clients or for providing advice in relation to
the Issue and/or any other matter referred to in this announcement. Pareto Öhman
accepts no responsibility whatsoever and makes no representation or warranty,
express or implied, for the contents of this announcement, including its
accuracy, completeness or verification or for any other statement made or
purported to be made by it, or on its behalf, in connection with the Issue and
nothing in this announcement is, or shall be relied upon as, a promise or
representation in this respect, whether as to the past or future.

About Endomines AB:
Endomines AB is a Nordic mining and exploration company with its first operating
gold mine in production since February 2011. The mine is located in Eastern
Finland, on the Karelian Gold Line, a 40 km long gold critical belt, where
Endomines controls all currently known gold deposits.

The company’s business practices and mining operations are based on sustainable
principles and on minimizing the impact on the environment.

Endomines applies SveMin's&FinnMin's respective rules for reporting (public
mining & exploration companies). It has also chosen to report mineral resources
and ore reserves according to the JORC-code, which is the internationally
accepted Australasian code for reporting ore reserves and mineral resources.

The shares of Endomines AB are quoted on NASDAQ OMX Stockholm under ticker
ENDO.ST. Pareto Öhman acts as Liquidity Provider.

Read more about Endomines on www.endomines.com