Notice of extraordinary general meeting of Dannemora Mineral

NOTICE OF EXTRAORDINARY GENERAL MEETING OF DANNEMORA MINERAL

The Board of Dannemora Mineral is convening an extraordinary general meeting on 24 February 2011 to consider a proposal to grant the Board a mandate to issue up to three million B shares, without preferential rights for present shareholders. The Board also proposes that the new mandate should 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.

As previously communicated, Dannemora Mineral plans to have the Dannemora iron ore project financing completely in place during the present quarter. It is the Board's opinion that the majority of the remaining financing requirement for the Dannemora mine can be covered by loan capital, although a certain proportion should come from the Company's own capital.

The rationale behind the proposed mandate to issue new shares is to enable the Board to supplement the planned loan financing for the Dannemora 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.