IGE Nordic AB 2008 Half year results

IGE Nordic AB (“IGE Nordic” or the “Company”) announced today results for second quarter ended June 30, 2008. For the quarter, IGE Nordic reported a net result of SEK 5,688 thousand, including sale of exploration permits and write offs of intangible assets, or SEK 0.21 per share. Since the Company was only founded in the fourth quarter of 2007, there are no meaningful results for the same period in 2007. Investments in exploration activities during the second quarter of 2008 totalled SEK 4,515 thousand. At June 30, 2008 the Company had cash and cash equivalents of SEK 72,001 thousand, and no interest-bearing debt.

For the period ending June 30, 2008, the Company reported a net result of SEK 1,998 thousand or SEK 0.07 per share. Investments in exploration activities in the first six months of 2008 totalled SEK 5,833 thousand.

Update on the 2008 work program

IGE Nordic continued its diamond drilling program on the Rönnbäcken nickel, Gladhammar and Solvik gold and Bidjovagge gold-copper projects. In 2008, the Company is expecting to complete more than 15,000 metres of drilling with an exploration budget of at least SEK 25 million. In the first six months of 2008, roughly SEK 5,800 thousand was spent. The Company is anticipating an active exploration program in the second half of 2008.

• At the Rönnbäcken nickel project (IGE Nordic 100%), 33 holes were drilled for a total of 4,585 metres by the end of June; a further 6 holes and 638 metres were drilled in July. The initial drilling program which is for 8,000 metres is expected to be completed in September – October. The Company has an option for an additional 10,000 metres under the same contract. First assays are expected by the end of September.

• At the Bidjovagge gold-copper project (IGE Nordic 90%, Geologiske Tjenester AS 10%), drilling started at the end of June with two rigs. By the end of July 2,186 metres were drilled out of a 5,000 metre program. First assays are expected by the end of September.

• At the Solvik gold project (IGE Nordic 50%, Archelon Mineral AB 50%), recent drilling has confirmed a continuation of the gold zone to the south-east, and it is open at strike and to depth. In addition, two new gold structures were identified from boulders and outcrops as a result of soil sampling in the northern area. In the fourth quarter of 2008, additional drilling and geochemical and geophysical surveys are planned.

• A diamond drilling program began on the Gladhammar gold project (IGE Nordic 50%, Wiking Mineral AB 50%) in March. One of the six holes had an important result of 34.25 m with 1.94 g/t gold including 2.00 m with 6.58 g/t gold. The result mirrors previous exploration work at Gladhammar. It confirms a zone of mineralization, but on a small scale. IGE Nordic and Wiking Mineral are considering next steps at Gladhammar.

• Västansjö (IGE Nordic 100%) is a new nickel project located in the Västerbotten County in Sweden. The property hosts a Proterozoic aged gabbro complex that is an excellent setting for nickel deposits. With boulders of up to 3.5% nickel, it was decided that a geochemical program would be carried out in the second quarter. The program included surface and deep till and bedrock sampling to define the source of the nickel rich boulders found at surface. The findings included some nickel anomalies in the soil and the bedrock. In addition, several untested magnetic and electronic anomalies were found. An application for a new exploration license to the south of the first license has been submitted. Geological field work is planned for the third quarter, and a diamond drill program of 1-2,000 m is planned for the fourth quarter.

• Norrsken Energy Limited (IGE Nordic 49%) has prepared a comprehensive work program for the uranium exploration. Data compilation, particularly in the historical prospecting areas, is underway and will be followed by reconnaissance exploration and more advanced geochemical and geophysical surveys. Drilling programs are scheduled to be undertaken on the high priority targets during the upcoming Swedish fall field season and the Company is in the process of securing a drilling rig for these priority targets.


New entities created

Uranium: Norrsken Energy Limited
• During the quarter, IGE Nordic created a new entity with an Australian investment company, Energy Ventures Limited (EVE), to explore their combined Swedish uranium exploration projects. Under the terms of the agreement, Norrsken Energy Limited is owned by IGE Nordic 49% and EVE 51%. EVE is the manager and has committed SEK 5 million (approximately A$870,000) to fund the initial exploration programs within the first 18 months. The new entity comprises 100% ownership of 17 exploration permits, and comprises an area of about 1,200 km2 in Sweden. As was noted in the May 26th 2008 press release, this transaction had a non-cash book profit of SEK 16.25 million and is included in Other Revenue.

Iron Ore : Nordic Iron Ore AB
• At the end of June, a new company, Nordic Iron Ore AB was founded, with IGE Nordic holding 31.6%. IGE Nordic has transferred at book value all its iron ore exploration permits to the new company. When combined with exploration permits from the other partners Archelon Mineral AB and Kopparberg Mineral AB, Nordic Iron Ore AB has a significant portfolio of iron ore exploration permits.



New partner at Norrliden zinc-copper project

During the quarter, North Atlantic Natural Resources AB, a subsidiary of Lundin Mining Corp, sold its 90% ownership in the Norrliden zinc-copper project to Gold-Ore Resources (“Gold-Ore”). IGE Nordic’s 10% ownership remained unchanged.

Gold-Ore is a Canadian-based mining and exploration company with one operating gold mine, Bjorkdal, and various exploration properties, all in Sweden. Gold-Ore have been looking to expand its activities in Sweden and Norrliden, which is located approximately 45 km west of the Company’s gold mine. This acquisition fits well with the Company’s strategy.

Scott Wilson engaged for independent review of the Rönnbäcken nickel and Bidjovagge Gold Projects

For technical support on the Rönnbäcken nickel and the Bidjovagge gold projects, IGE Nordic has engaged Scott Wilson Roscoe Postle Associates Inc. (“Scott Wilson RPA”). Scott Wilson RPA will visit the two properties in August 2008 and will review and provide advice on IGE Nordic’s work including Quality Assurance/Quality Control, drill hole spacing and related matters. When sufficient information is available, Scott Wilson RPA will be retained to carry out an independent estimate of mineral resource of the Rönnbäcken property and will prepare a National Instrument 43-101 compliant report. During the site visit to Rönnbäcken, Scott Wilson RPA will also visit the Bidjovagge property in Norway. Scott Wilson will review the available data and provide recommendations for further work.

About the Scott Wilson Mining Group
The Scott Wilson Mining Group (www.scottwilson.com) consults to major mining companies and junior mining and exploration companies, on all aspects of mining development and operation. Scott Wilson has carried out independent extensive resource and reserve work on advanced exploration and development nickel projects, including the preparation of NI 43-101 reports.

Employee bonus program

During the reporting period, the Company granted the employees a bonus program based on the share price. The bonus program, which is effective July 1, 2008, will have a duration of 3.5 years and is limited to a maximum corresponding to 42 monthly salaries for each employee.

Reporting period

The reporting period for IGE Nordic is calendar year. This interim statement comprises the period from 1 January to 30 June 2008 and compared with the same period 2007.

Business description

IGE Nordic is presently an exploration company currently operating in Sweden and Norway. The Company has a large and well diversified exploration portfolio in combination with an experienced team of geologists and field technicians with core competences and a unique expertise in evaluating opportunities in the geological conditions specific to Sweden and Norway.

Investments during the period

Net investments during the period amounts to 6,233 TSEK (855 TSEK).


Financial position

Net cash flow for the period amounted to -22,269 TSEK (163 TSEK) and the balance sheet amounted to 135,685 TSEK (8,490 TSEK) at the end of the reporting period. Cash and cash equivalents at period-end amounted to 72,001 TSEK (622). Shareholders equity amounted to 130,770 TSEK (6,977) at the reporting date i.e. a solvency ratio of 96.4 % (82.2 %).

Assets pledged and contingent liabilities

Assets pledged are 197 TSEK (104) and contingent liabilities are 0 TSEK (0).

Coming reports

Interim report Jan-September, 2008 November 20, 2008
Interim report 2008 February 20, 2009

This interim report has not been audited by the company’s auditors.

Stockholm August 27, 2008
Fredric Bratt
Chief Executive Officer
IGE Nordic AB (publ)