Dannemora Mineral completes private placement

Press release 1 July 2008

Dannemora Mineral completes private placement

Dannemora Mineral has completed a private placement in which a total of 3,100,000 shares were subscribed for at an issue price of SEK 50.

Exercising the mandate it was granted at the EGM held on 24 June 2008, the Board of Dannemora Mineral AB (publ) made the decision to issue new shares. The purpose of the new share issue is to finance the pumping of the iron ore mine in Dannemora and other time-critical installation work. The reason for implementing the share issue without preferential rights for shareholders is to broaden the company’s ownership.

A total of 3,100,000 class B shares were subscribed for. The issue price was set at SEK 50, which will bring the Company SEK 155 million before issue expenses. Following the new share issue, the number of shares amounts to 7,760,000, of which the new shares correspond to 39.9 percent of the capital and 16.7 percent of the votes.

In conjunction with the share issue, some Board members will lend B shares to facilitate the implementation of the issue. The directors lending shares are Nils Bernhard (250,000 B shares - own and family), Lennart Falk (250,000 B shares) and Nils Sandstedt (100,000 B shares). These shares will be returned when the new share issue is registered by the Swedish Companies Registration Office.

E. Öhman J:or Fondkommission AB has acted as financial advisor for the share issue.