Endomines resolves on a directed share issue to LDA Capital Limited

The Board of Directors of Endomines AB (publ) ("Endomines" or the "Company") has, based on the authorisation granted by the Annual General Meeting on 10 June 2021, resolved on a directed issue of 2,000,000 shares to LDA Capital Limited ("LDA") at a price of EUR 0.248 (corresponding to SEK 2,51[1]) per share (the “Directed Issue”), providing total issue proceeds of EUR 496,000 (corresponding to SEK 5 029 4901). The proceeds from the Directed Issue are intended to be used to finance the ongoing ramp-up at the Company's projects at the Friday mine in the US and the Pampalo mine in Finland.

The Directed Issue is carried out as part of the financing package which Endomines has entered into with LDA, which was communicated through a press release on 8 May 2021. The financing package comprises, inter alia, a put option agreement (the “Agreement”) under which the Company has a right to request that LDA, at one or more occasions during the term of the Agreement, subscribes for shares in the Company for a total amount of up to EUR 8 million at a price corresponding to 90 percent of the volume weighted average price of the Company's shares on Nasdaq Helsinki during a period of 30 trading days. At the Annual General Meeting 2021, the shareholders in Endomines authorised the Board of Directors to resolve on directed issues, including to LDA in accordance with the Agreement. The Board of Directors has established that there is a current need of financing relating to the ongoing ramp-up at the Company's projects at the Friday- and Pampalo mines and has found that the Directed Issue is the most appropriate way for the Company to raise this capital; both from a cost perspective and from a time perspective. The Board of Directors has evaluated various financing options and deems that an issue to LDA on market terms in accordance with the Agreement is the best option for the Company and its shareholders compared to other possible financing options. In light of the limited size of the issue amount, that the Company will get quick access to capital, subscription levels in previous rights issues and after consultation with major shareholders in the Company, the Board of Directors does not deem a rights issue to be an appropriate option.

The subscription price for the shares in the Directed Issue has, in accordance with the Agreement, been set to 90 percent of the volume weighted average price of the Company's shares on Nasdaq Helsinki during the period 26 July-3 September 2021, which according to the Board of Directors' assessment is in line with the market value, with a customary discount. The total issue proceeds from the Directed Issue amounts to EUR 496,000. In accordance with the Agreement, Endomines shall, as previously disclosed, pay a fee of in total EUR 160,000 to LDA for its undertaking. Payment of the fee shall be made in two instalments of EUR 80,000 each. Endomines will pay the first instalment in connection with the Directed Issue, why the net proceeds from the Directed Issue amounts to EUR 416,000 (corresponding to SEK 4 218 2821).

The Directed Issue is expected to be registered with the Swedish Companies Registration Office on or around 7 October 2021, and the first trading day of the new shares on Nasdaq Stockholm and Nasdaq Helsinki is expected to be on or around 12 October 2021. Following the registration of the Directed Issue, the share capital in Endomines will increase by SEK 4,000,000 to SEK 446,240,070, and the total number of outstanding shares and votes in Endomines will increase by 2,000,000 shares and votes to 223,120,035 shares and votes. The Directed Share Issue entails a dilution of approximately 0.9 percent of the number of votes and shares in the Company, based on the total number of shares and votes in Endomines after the Directed Issue.

Contact person

Marcus Ahlström, Interim CEO and CFO, +358 50 544 68 14, marcus.ahlstrom@endomines.com

This information was submitted for publication through the contact person set out above at 15:30 CEST on 6 October 2021.

About Endomines

Endomines is a mining and exploration company with its primary focus on gold. The Company explores for gold along the Karelian Gold Line in Eastern Finland and develops mining operations in Idaho, USA and Finland. Endomines aims to improve its long-term growth prospects by increasing its exploration activities and through acquisitions. Endomines aims to acquire deposits that are situated in stable jurisdictions and can be brought to production rapidly with limited investments.

The shares trade on Nasdaq Stockholm (ENDO) and Nasdaq Helsinki (ENDOM).

[1] Based on the Swedish central bank's (Sw. Sveriges Riksbank) official EUR/SEK rate of 10,1401 on 5 October 2021.