Communiqué from extraordinary general meeting of Dannemora Mineral

COMMUNIQUE FROM EXTRAORDINARY GENERAL MEETING OF DANNEMORA MINERAL

At an extraordinary general meeting held on 24 February 2011, Dannemora Mineral decided to grant the Board a mandate to issue up to 3 million class B shares without preferential rights for shareholders. It was also decided that the new mandate would supersede the existing mandate granted at the Annual General Meeting on 3 May 2010, which authorised the Board to issue up to one million class B shares.

The rationale behind the mandate to issue new shares is to enable the Board to decide to supplement the planned loan financing for the Dannemora iron ore mine with additional capital and give Dannemora Mineral the manoeuvrability to participate in other iron ore projects outside the Dannemora field.

The reason for derogating from preferential rights for shareholders (private placement) is to give the Board the flexibility to raise the capital required for the Company's continuing development of the Dannemora mine and for its other operations in the best possible way.

The Board's mandate
The extraordinary general meeting decided to grant the Board a mandate to issue up to 3 million new class B shares on one or more occasions before the next annual general meeting, without preferential rights for shareholders, to be paid for in cash, by set-off or in kind. The purpose of the mandate and the reason for derogating from preferential rights for shareholders is to ensure shareholders benefit from an optimal financing solution of loans and the Company's own capital for the development of the Dannemora mine and for the Company's other iron ore projects.

The Press Release can be downloaded from the link below