Nordic Mines announces

The English text is an unofficial translation of the Swedish original, and in the event of any discrepancies between the Swedish text and the English translation the Swedish text shall take precedence.

PRESS RELEASE 21 October 2015

Today, October 21 2015, Nordic Mines AB (publ) ("Nordic Mines" or "the Company") will be holding an extraordinary general meeting ("the Meeting") as a result of the Board's decision to conduct a new issue of shares with pre-emption rights for the Company's shareholders subject to the Meeting's subsequent approval ("the Rights Issue"). Due to the Rights Issue, the Company has also opted to move the publication of the Company's financial report for the third quarter forward to 30 October 2015. At the Meeting the Company's CEO, Eva Kaijser, will present the underlying information that Nordic Mines took into consideration prior to its decision to conduct the Rights Issue and the Company's current activities and strategy moving forward, including, for example:

• In order to obtain enhanced financial longevity while waiting for more beneficial external factors, such as the price of Gold and exchange rates, which are needed to restart operations at the Laiva mine, Nordic Mines has initiated a number of measures to reduce the Company's total operating costs. These measures include the cost savings at the Laiva mine that were described in detail in the press release dated 13 August 2015. It is the Company's expectation that the measures, when fully implemented, will reduce the Company's total operating costs by approximately one-third. Through streamlining, the Company's overhead costs have been reduced by approximately 50 percent.
• The Laiva mine's General Manager, Tom Söderman has, as previously announced, decided at his own request to step down from his post. The Company's current Exploration Manager, Peter Finnäs, will replace Tom Söderman until further notice as the Acting General Manager starting on 1 November 2015.
• Nordic Mines has made the assessment at this point in time that a gold price of around EUR 1,200 per troy ounce is required to restart operations at the Laiva mine as an independent gold project with sufficient profitability and with the possibility for future financing through loans.
• In order to fund the restart of the Laiva mine at a later date, the Company's assessment as of today is that an additional capital contribution of EUR 20 million in addition to the Rights Issue would be required whereof approximately half the amount is intended to fund working capital related to the restart. The remaining amount constitutes initial investments and a liquidity reserve for unforeseen costs and administration. This funding is assumed to be a combination of debt financing and additional capital contributions.
• The Company considers there to be possibilities for strengthening the Laiva project through partnerships and structural transactions with other actors in the Nordic gold mining industry. Nordic Mines believes that gold concentrate from several Nordic gold mines could be refined in the Nordic Mines processing plant, thereby processing the final product all the way from gold concentrate to doré bars and subsequently improving profitability. There are also clear synergies in the form of purchasing optimisation and streamlined administration.
• Given the current status of the industry and the global factors that are affecting it, the Board of Directors will regularly assess and consider strategic partnerships and mergers as well as divestitures of the Laiva project, in its entirety or in part, if such are considered to be beneficial for the Company's shareholders.

The Meeting is being held as a result of the funding solution previously presented by the Company, which entails that Nordic Mines has reached an agreement in principle with the Company's lenders under which Nordic Mines will acquire all of the lenders' claims on Group companies in accordance with existing project financing agreements. Under the agreement in principle:

• The Company will acquire all of the lenders' claims on Group companies in accordance with the existing project financing agreements for a purchase price of around EUR 5 million. This corresponds to an additional write-down of around EUR 10 million. The original debt was around EUR 45 million.
• The agreement also includes outstanding warrants held by the lenders corresponding to an ownership of 12 per cent and the thereto related promissory note.
• Nordic Mines regains through this purchase full control over the assets that are pledged in accordance with the project financing agreement.

The purchase will be financed through the Rights Issue, which will inject around SEK 108 million into the Company at full subscription. The plan is to use the funds raised by the Rights Issue for:

• The equivalent of EUR 5 million for the purchase of all of the lenders' claims on Group companies.
• Around EUR 3 million to fund the Company for the next 12 months while waiting for more beneficial external factors in the form of primarily the gold price and currency rates.
• Excess funds raised from the share issue will provide the Company with enhanced financial longevity and the ability to carry out value-enhancing activities, primarily at the Laiva mine.

The agreement in principle with the Company's lenders is conditional upon final contract documentation, on formal internal decisions regarding the approval of the agreement being made by each bank and in addition that the Company raises funds for the purchase price.

Nordic Mines has engaged Evli Bank and PWC Corporate Finance Debt & Capital Advisory as financial advisors.

Upcoming informational meetings

For further information, please contact:
Eva Kaijser, CEO,+46 (0)70 932 09 01

For more information about Nordic Mines, please visit www.nordicmines.se.

The information presented above has been disclosed pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was published on 21 October 2015 at 8:00 a.m.

Nordic Mines is a Nordic mining and exploration company. The Laia mine in Finland produced gold between 2011 and 2014. The deposit is among the largest in the Nordic region. Nordic Mines is a member of SveMin and applies its reporting regulations for public mining and exploration companies. The Nordic Mines share has been admitted for trading on Nasdaq Stockholm's Small Cap list. Also refer to www.nordicmines.se.