Operational and financial update

Production from the Dannemora mine is proceeding well and has at times exceeded
the adopted capacity. The first stage of the investment programme has produced a
sustained increase in recovery levels. Recently completed tests show that it is
likely that the planned investment in the next stage will not result in a
sufficient further increase. In view of this, plans are in place to bring
forward the wet stage, which means that the Company's short-term capital
requirement will increase, with a need for additional new equity.
Production
Production at the Dannemora mine continues to increase and there is positive
growth in recovery levels. Production for the third quarter amounted to 274 kt.
The Company's measures and investments have produced good effects, and
production has at times exceeded the previously adopted annual capacity of three
million tonnes. Production capacity at the sorting plant is coping well with the
increased production from the mine. In the third quarter, the average recovery
was 39 percent, which shows that the investment in June (stage one) has brought
a sustained increase in recovery levels above the anticipated three percentage
points. The top figures were noted during weeks 40 and 41 with levels of 47 and
49 percent, respectively. There are market outlets for everything that the mine
produces. The Company is working hard on cost savings and the entire
organisation has undergone a review aimed at reducing costs and increasing
efficiency and productivity.

At present, crushing takes place on the surface, which is not an optimal
arrangement, either in terms of cost or respect for the environment.
Preparations to place the crushing operation underground have been in progress
for a long time. To complete this process will require further preparation,
mainly in the form of underground work. Annual cost savings from the changed
crushing operations are estimated at approx. SEK 50 million.

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Investments
The full-scale tests and evaluations of the planned second investment stage were
completed during the third quarter. They show that it is likely that the
improvements in recovery levels will not be large enough to guarantee a
profitability improvement of the size that would enable the Company to finance
the subsequent investment in a wet stage of the process with its own cash flow.
As a consequence of this, the Company is considering bringing forward the wet
stage investment in a single, large investment programme. The wet stage is based
on well-known and proven technology and is the process that has historically
been used at the Dannemora mine, when the recovery from the mine was steady at
an average of 58 percent. The plans will be reviewed by SRK Consulting.

Compressing the investments will result in a larger current capital requirement,
but also brings forward the time when the Company's full profit potential will
be achieved.

Financing
The revised investment programme means that, in addition to the previously
announced short-term financing requirement of SEK 120 million in working capital
for the remainder of 2013 and SEK 80 million for investing in stage two, there
will also be a financing requirement for the wet stage investment that is being
brought forward, the completion of the work to place crushing operations
underground and working capital during the investment period.

Financing of the expanded investment programme is an important part of the
negotiations that have been in progress for some time with the Company's bond
and convertible holders. The investment programme means that the Company needs a
substantial increase in capital in the form of equity and a financial structure
that allows for such capital to be raised.

The waivers that the bondholders approved are amongst others conditional on the
Company being able to present a solution to its financing needs by the end of
November. Extensive efforts to secure financing and a capital structure have
been in progress for some time. This work is being led by the Company's
financial advisor Swedbank First Securities in Oslo.
For further information, please contact:
Ralf Nordén, President and  CEO
Telephone 46 709374891
ralf.norden@dannemoramineral.se
Dannemora Mineral AB is a mining and exploration company of which the primary
activity is mining operations in the Dannemora iron ore mine. The Company also
intends to engage in exploration activities to increase the iron ore base
locally and regionally in several areas in Uppland where the potential for
finding workable 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 Iron Ore Development AB, responsible for the
Group's exploration, and Dannemora Förvaltnings AB, responsible for the property
portfolio.

The Company’s most important asset is the iron deposit in the Dannemora Mine,
and activity is focused mainly on the mining of this deposit at present.

The Company is listed on NASDAQ OMX First North, Stockholm, and Oslo Axess. The
Company's Certified Advisor on First North is Remium Nordic AB.

The Company's independent qualified person is mining engineer Thomas Lindholm,
Geovista AB, Luleå. Thomas Lindholm is qualified as a Competent Person as
defined in the JORC Code based on education and experience in exploration,
mining and estimation of mineral resources of iron, base and precious metals.