Good possibilities for a restart of the Dannemora mine -Scoping study indicates conditions to produce 67.9 % iron ore concentrate

Nordic SME listed Grängesberg Exploration Holding AB - GRANGEX - presents the results of the completed Scoping study that indicates good conditions regarding the restart of the Dannemora mine. The study shows that it's possible to produce an iron ore concentrate with very high quality. The overall conclusion of the comprehensive study is that with the proposals on how a restart of the Dannemora mine can be carried out and with the cost calculations prepared, there are good conditions to restart the Dannemora mine and produce an iron ore concentrate, containing 67.9 % iron, that is in high demand on the market.

Golder Associates ("Golder") has been the study leader and has submitted the complete report to the Company.

"I am pleased that we can present the study showing the good economic potential for restarting the Dannemora mine. The scoping study shows the possibilities to produce a world class concentrate that will fulfil the requirements of the steel industry to produce so called green steel", says Christer Lindqvist, CEO of Grängesberg Exploration Holding AB.

Highlights of the report:

• An iron ore concentrate with 67.9% iron content and with low levels of impurities can be produced. The product analysis meets the high-quality requirements for sponge iron production, so-called direct reduction iron (DRI).
• According to a report as of December 31, 2014, the mineral resource in the mine amounts to 25.2 Mt Measured and Indicated assets and 6.3 Mt Inferred assets. Approximately 0.5 Mt of the Measured and Indicated mineral resources were mined out in early 2015 before the mine closed. (*)
• The possibility of extending the life of the mine has been studied and a total of seven different areas in the mine have been identified for exploration efforts. These exploration targets have been estimated at 20 to 35 Mt with an iron content between 34 and 39%.
• Based on the previous production in the mine until 2015, an estimate of a future production of ore can be made which shows that approximately 22.69 Mt of ore is available from the Measured and indicated mineral resources. The inferred mineral resource is not included.
• The annual run-of-mine (ROM) rate has been calculated to 3 Mt resulting in a production of 1.1 Mt (equivalent dry weight) high-grade iron ore concentrate.
• The capital expenditures (CAPEX) amount to MUSD 116 up to and including start of production. The CAPEX estimates include 10% unforeseen expenses for the mine and 15% for the process plant. CAPEX is mainly based on budget quotes and current price lists.
• To maintain the annual ROM-rate production of 3 Mt ore during approximately eight years of production, the sustainable CAPEX is estimated at MUSD 7.
• The total production cost, FOB Port of Hargshamn, is calculated at USD 52.3 per tonne of iron ore concentrate.

Based on the results of the Scoping Study, and future market expectations, the conclusion is that the project should be taken to a Pre-Feasibility (PFS) stage. The metallurgical test work completed during the Scoping Study clearly indicates that there is a good opportunity to increase the Fe-concentrate grade, which would further enhance the viability and sustainability of the project, with the sale of a premium product, high in demand.

Much of the work carried out as part of this Scoping Study is based on information/data and knowledge gained by key individuals (now part of the Scoping Study team) who previously worked at Dannemora during the 2012-2015 period. This level of knowledge and input to the Scoping Report is invariably of a high-level and contains more detail and certainty than is normal for a Scoping Study.

Golder states that large parts of the study maintain a higher level of information than is normal for an international Scoping study according to JORC 2012 and work is underway to identify the parts that need to be supplemented to achieve a Pre-feasibility status according to the JORC code.

The mineral resources in the study were estimated out in accordance with JORC 2012 and carried out by M.Sc. Thomas Lindholm, GeoVista AB.

Dr. Bo Arvidson (Qualified Person according to NI 43-101) with extensive experience in developing process solutions for producing high-quality Fe concentrate has led the work with tests and preliminary design of the processing flow chart proposed in the study.

(*) The historical mineral resources are not considered to be current by the company since they do not comply with current disclosure standard, the reader is therefore advised to exercise caution.

• A competent person has not done sufficient work to verify and classify the estimates as mineral resources in accordance with the current disclosure standard;
• The company does not treat any of the historical estimates of mineral resources as mineral resources or reserves in accordance with the current disclosure standard; and
• The historical estimates of mineral resources are not reliable as a base for decisions on investment.

CONTACT PERSON

Christer Lindqvist, CEO, phone. +46 70 591 04 83.

This information is such information that Grängesberg Exploration Holding AB is obliged to publish in accordance with the EU Market Abuse Regulation. The information was submitted, through the agency of the above contact person, for publication on May 27, 2021 at 10.55 (CEST).

ABOUT GRANGEX, GRÄNGESBERG EXPLORATION HOLDING AB (publ)

Grängesberg Exploration Holding AB (publ) is a new company group formed to investigate the conditions for the extraction of apatite and iron ore. The Company's business concept is by utilizing existing infrastructure and facilities, combined with modern enrichment technology; prospect and develop high-quality apatite and iron ore deposits.
The Company's share (GRANGX) Is traded on NGM Nordic SME.
ISIN-code: SE0007789417
FISN-code: GRANGESBER/SH
Instrument-ID: 9XX
Legal Entity Identifier (LEI) number: 549300MZ7HL7X6AXMC13.

More information www.grangesbergexploration.se