Nordic Mines holds start of production at Laiva mine and withdraws proposed share issue

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. This is not a legal document.

PRESS RELEASE 25 June 2015

As previously communicated, Nordic Mines AB (publ) (Nordic Mines or the Company) has been working to secure an optimal financing solution to restart operations at the Laiva mine at a point in time when external factors in particular, such as the price of Gold and the exchange rate, create conditions for profitable mining.

SRK Consulting UK Ltd (SRK), as communicated previously, collaborated with Nordic Mines during the winter of 2014 and 2015 to develop a business plan for the restart of the operations at the Laiva mine. The business plan is based on the mineral reserve as of 1 January 2015, as calculated by SRK, totalling 9.4 million tonnes with a head grade of 1.2 g/t. In conjunction with preparations to restart its mining operations, Nordic Mines prepared a detailed mining plan for the first 18 weeks on the basis of additional drill hole data. Negative deviations in the detailed mining plan resulted in further review of the mineral reserve in its entirety. The determination has now been made that a higher gold price than what was used in previous assumptions is required to ensure sufficient profitability for the restart of the Laiva mine. The review of the mineral reserve also indicates that a small drilling programme is recommended to optimise the planning for the mining. The Board of Directors has therefore decided to hold off on the start of production at the Laiva mine.

The Company is also continuing to work on the preparation of a financing solution which given the right conditions would make it possible to restart operations at the Laiva mine with sufficient profitability. Such a solution could consist of, individually or in combination, the pre-sale of gold production and gold deliveries, the renegotiation of supplier terms, other types of bridge financing for working capital, share issues or collaborations with strategic or financial partners. The Company is therefore holding discussions with its lenders. If Nordic Mines is in significant breach of its project financing agreement, the bank consortium is entitled to apply for a default of the Finnish composition plan.

In the notice to attend the Company's AGM in Uppsala on 30 June 2015, which has already been published, the Board attempted to create some room for negotiation in its continued work to secure an optimal financing solution for the Company. The notice therefore included a proposal for a resolution on a rights issue and a directed share issue (and related actions, such as changes to the Articles of Association and a decrease in the share capital). Since the Board has now decided to hold off on the start of production at the Laiva mine, the Company currently will not seek additional capital from its shareholders or external investors via the share issues proposed in the notice to attend the AGM. The Board has therefore decided to withdraw the matter under point 15 of the proposed agenda (i.e. the share issue proposals and related actions).

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

For further information, please contact:
Eva Kaijser, CEO,+46 (0)70 932 09 01
Jonatan Forsberg, CFO, +46 (0)76-105 13 10

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 25 June 2015 at 8:00 a.m.

Nordic Mines is a Nordic mining and exploration company. The Laiva 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 the Nasdaq Stockholm's Small Cap list. Also refer to www.nordicmines.se.