The production rate at the Laiva mine is increasing step by step, our goal is a positive cash flow this summer

 Press Release, 9 May 2012 The fine-tuning of our process plant and ramp-up of production at the Laiva mine continued in the first quarter. The goal is for the company to generate a positive cash flow in the summer. This is as stated in Nordic Mines' Interim Report for the first quarter 2012. Gold production has increased progressively each month...

 Press Release, 9 May 2012

The fine-tuning of our process plant and ramp-up of production at the Laiva mine continued in the first quarter. The goal is for the company to generate a positive cash flow in the summer. This is as stated in Nordic Mines' Interim Report for the first quarter 2012.

Gold production has increased progressively each month. In January and February, we produced over 30 kg of gold each month, and 68 kg in March. In April, after the end of the period, we produced a preliminary 90 kg of gold.

"We estimate that production should increase to approximately 5 kg of gold per day by the summer, which means we would then generate a positive cash flow, even considering the company's financial obligations. Work will then continue to reach the production capacity the plant is dimensioned for," commented Nordic Mines' CEO Michael Nilsson.

The production rate in the quarter was below the long-term production target. This is because fine-tuning of the process plant at the Laiva mine and the ramp-up of production was delayed because of late component deliveries.

Net sales for the first quarter were MSEK 22.6 (0 MSEK). The profit/loss after financial items was MSEK -83.4 (MSEK -6.1), and the profit/loss after tax was MSEK -62.4 (MSEK -4.7). Net profit/loss per share for the period after dilution was SEK -1.77 (SEK -0.12). Cash and cash equivalents at the end of the period were MSEK 15.3 (MSEK 41.1). Un-utilised credit facilities of MSEK 6.2 were additional.

The delayed production start meant that revenues for the period were lower than expected. As previously reported, the Board of Directors decided to strengthen the company's liquidity further, primarily through a new hedging programme.

The Laiva mine is one of the largest gold deposits in Europe. A new calculation, that indicates a four million tonne expansion of mineral reserves at the Laiva mine, corresponding to another two years' operations, was published yesterday.

"The original schedule has been delayed, but we have attained significant production and are continuing to work towards our goal of Nordic Mines becoming one of Europe's leading gold producers," concluded Michael Nilsson.

The complete Report for the period January - March 2012 is available at www.nordicmines.se.

For more information, please contact: Michael Nilsson, CEO of Nordic Mines. Tel +46 (0)18 843 4501, [email protected].

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