IGE Nordic Announces Encouraging Drill Results from the Rönnbäcken Nickel Project

IGE Nordic AB (“IGE Nordic”) is very pleased to provide the first results from its first 8,000 metre drill program at Rönnbäcken, which began in April 2008. Core drilling was done in two high priority areas, 33 holes at Vinberget (4,304 m) and 37 holes at Rönnbäcksnäset (5,748 m), about 6 km north of Vinberget in Sweden . The objective of the program was to test the concept of a very large, low grade nickel deposit amenable to open-pit mining.

Highlights:

1. The results are encouraging in that they confirm the analytical results from the surface sampling that was done previously, and they show that the mineralization extends at depth and along strike.
2. IGE Nordic has assay results for nickel in sulphide and total nickel from 13 out of 70 holes
3. All thirteen holes reported similar levels of nickel mineralization
4. The mineralization extends at depth and along strike
5. The nickel in sulphides are homogenous over wide intervals with 0.12-0.13% nickel in sulphide and a total nickel content of 0.18-0.20% nickel
6. Previous metallurgical testing in pilot scale has shown that a concentrate with 25-35% nickel can be produced
7. The project has well established nearby infrastructure; a stable economic and political environment and well defined legal framework; potential future capital costs could be low relative to laterites; conventional mining methods could be used; and it should not have any significant acid mine drainage from the pits, waste rock or tailings.
8. IGE is moving ahead to define a mineral resource of 130-170 million tonnes
9. Another 8,000 metres of drilling is underway
10. Scott Wilson will be engaged to provide a mineral resource estimate and prepare a Scoping Study, which is expected to be completed by the second quarter of 2009.

IGE Nordic now has assay results from 13 out of 70 holes. The results are encouraging in that they confirm the analytical results from the surface sampling that was done previously, and they show that the mineralization extends at depth and along strike. The analytical results include measurements of both total nickel and nickel in sulphide. The rationale for the nickel in sulphide analysis is that it governs the metallurgical recovery of nickel to a saleable concentrate, giving confidence to the project. All thirteen holes reported similar levels of nickel mineralization. The Company will report on the remaining results as they become available.

The grades of nickel in sulphides are quite homogeneous over wide intervals with 0.12-0.13% nickel in sulphides (“Ni-AC”) and a total nickel content of 0.18-0.20% nickel. This means that on average, 70% of the nickel occurs in sulphides, and therefore can be recovered by conventional concentration methods.

Even though the nickel grade is low, previous metallurgical testing, also in pilot scale, has shown that a high-grade nickel concentrate (25-35% Ni) can be produced at good recovery with significant byproduct credits, including a cobalt content of 1.5-2.0% in concentrate. Typical nickel concentrate grades range from 7% to 12% Ni. A higher grade concentrate will result in lower freight and smelting costs per tonne of nickel.




In addition, Rönnbäcken has well established nearby infrastructure such as power, water, roads and communications. The Rönnbäcken project is also favoured by a stable economic and political environment as well as a well defined legal framework.

The fact that Rönnbäcken consists of sulphide nickel mineralisation makes investment costs relatively low compared with laterite nickel projects. Another advantage is that conventional processing methods can be used, entailing low technical-economic risks. An environmental advantage, specifically for the post mining phase, is that no significant amount of acid mine drainage from pits, waste rock or tailings disposal sites is to be expected because of predominantly basic rock nature and the low content of iron sulphides.

At Vinberget, drilling has been performed in fans of holes on sections 50 and 100 m apart. The lens has a steep dip, plunging towards the north-west and is up to 240 m thick. The deepest hole assayed so far (VIN30) intersected mineralization between 0 and 270 m down the hole which gives a vertical depth of 180m below surface. (See attached pdf-file for map and typical cross section of Vinberget).

At Rönnbäcksnäset, the drill spacing is 100 m between sections with two to three holes on each section. The serpentinite is a 30-140 m thick sheet dipping about 50 degrees towards the north-west. Of the 2,500 m total length of outcropping serpentinite, only a strike length of 1,100 m has been tested so far (See attached pdf-file for map and typical cross section of Rönnbäcksnäset).

The drill cores are surveyed continuously for magnetic susceptibility and density determinations. The density of nickel bearing serpentinite is approximately 2.6-2-7 g/cm3, indicating a high proportion of serpentine, which correlates with the areas having a high proportion of nickel in sulphides.

The objective of the ongoing drilling program is to define a mineral resource of 130-170 million tonnes at a grade of 0.10 to 0.15% nickel in sulphide in the area. The first phase of 8,000 m of drilling was completed by the end of August and the second phase of another 8,000 m is proceeding. The plan is to drill the continuation of serpentinite at Vinberget and Rönnbäcksnäset.

On the basis of these encouraging results, IGE Nordic will engage the mining engineers consultant Scott Wilson Roscoe Postle Associates Inc. (www.scottwilson.com) to provide a mineral resource estimate and prepare a Scoping Study that will meet the requirements of a Preliminary Assessment under NI 43-101 regulations and include a preliminary open pit design, and economic analysis on the Rönnbäcken Nickel Project. The scoping study is expected to be completed by the second quarter of 2009.

In addition, IGE Nordic has requested mineralogical evaluations by the Xstrata Process Support (Canada) and Outotec Minerals Oy (“Outotec”) (Finland), metallurgical tests by Outotec. A study for the location of the tailings pond has commenced and another study on the industrial infrastructure will be launched shortly.

The drill program for the Rönnbäcken Project is the responsibility of Benny Mattsson, Exploration Manager of IGE Nordic. Benny Mattsson is registered as a Qualified Person (“QP”) with Swedish Association of Mines, Mineral and Metal Producers (“SveMin”).

See attached pdf-file of the location map, the exploration licenses and typical cross sections of Vinberget and Rönnbäcksnäset.



The following table shows the location of the holes for all the reported to-date Rönnbäcken assays.


Hole #
Area
North
(m) East
(m) Elevation (m) Azimuth
(°) Dip
(°) Total length (m)
VIN26 Vinberget 7262514 1484207 661 45 -50 167.0
VIN27 Vinberget 7262509 1484204 660 225 -60 76.5
VIN29 Vinberget 7262595 1484144 666 225 -50 141.0
VIN30 Vinberget 7262669 1484076 661 45 -50 272.2
VIN31 Vinberget 7262663 1484070 660 225 -50 171.0
VIN32 Vinberget 7262712 1484041 664 45 -50 255.0
RON51 Rönnbäcksnäset 7268394 1481141 528 110 -50 89.3
RON52 Rönnbäcksnäset 7268325 1481101 536 110 -50 143.0
RON53 Rönnbäcksnäset 7268513 1481156 520 110 -50 119.2
RON57 Rönnbäcksnäset 7268586 1481255 533 110 -50 92.3
RON59 Rönnbäcksnäset 7268695 1481250 519 110 -65 104.4
RON61 Rönnbäcksnäset 7268803 1481269 499 110 -60 75.6
RON64 Rönnbäcksnäset 7268497 1481218 532 110 -50 101.2

The following table shows all the reported to-date Rönnbäcken assays.

Hole # From To Length Total Ni Ni-AC Total Co Total S
(m) (m) (m) (%) (%) (%) (%)
VIN26 1.6 109.5 107.9 0.18 0.12 0.009 0.10
10.0 44.0 34.0 0.19 0.16 0.009 0.11
VIN27 1.1 72.2 71.1 0.19 0.13 0.009 0.08
VIN29 12.0 114.0 102.0 0.19 0.12 0.009 0.06
VIN30 0.0 264.0 264.0 0.19 0.13 0.009 0.10
184.0 236.0 52.0 0.19 0.16 0.009 0.16
VIN31 1.2 146.7 145.5 0.19 0.13 0.010 0.09
72.0 106.0 34.0 0.20 0.15 0.010 0.09
VIN32 0.2 251.8 251.2 0.18 0.13 0.009 0.10
RON51 5.2 64.2 59.0 0.18 0.10 0.009 0.07
RON52 64.0 84.0 20.0 0.19 0.12 0.010 0.08
RON53 52.0 102.0 50.0 0.18 0.13 0.009 0.08
RON57 30.0 80.0 50.0 0.19 0.13 0.009 0.07
RON59 50.0 89.8 39.8 0.17 0.11 0.009 0.08
RON61 49.9 68.0 18.1 0.17 0.07 0.008 0.08
RON64 14.0 60.0 46.0 0.20 0.14 0.010 0.08

Sample Preparation and Assays
The cores were transported to Skellefteå in Sweden, and logged and sent to ALS Chemex lab in Piteå where the drill core is split in two halves by a diamond saw. The sample intervals are normally 2 m.


One half of the core is crushed to 70 % minus 2 mm and 250 g is pulverized to 85 % minus 75 microns and sent to the laboratories. The other half of the core is stored securely in Skellefteå together with the coarse rejects. The pulverized samples are split and sent to ALS Chemex in Vancouver Canada and Labtium in Finland. Duplicates, standards and blanks are inserted in the batches. The total nickel and cobalt is assayed by ME-ICP61 with near total digestion by hot 4-acid leach at ALS in Vancouver, Canada.

The nickel in sulphides (“Ni -AC”) is assayed by ICP-AES after ammonium citrate leach and sulphur by ICP-AES after aqua regia leach at Labtium in Finland. ACME in Vancouver is used as a secondary lab for control assays. At the secondary lab the nickel in sulphides is assayed by ammonium citrate leach and ICP-MS and total nickel by near total digestion by hot 4-acid leach and ICP-ES.

As part of the ongoing mineralogical studies, the assays of nickel in sulphides and the deportment of nickel between different host minerals will be verified using a combination of QEMSCAN and EPMA at the Xstrata Process Support laboratory at Sudbury and also by metallurgical bench scale tests at Outotec in Finland. A basic mineralogical study is in progress by Ekström Mineral in Sweden.

Forward-Looking Statement
This press release contains or refers to forward-looking information, including statements regarding estimates and/or assumptions about potential mineralization, potential mineral resources and reserves, Rönnbäcken project development, recoveries and grades for concentrate, the ability of the Company to create strategic partnerships and is based on current expectations that involve a number of business risks and uncertainties. Actual results may vary from the forward-looking information contained herein.

The Company provides this information to shareholders and analysts because they are the key drivers of the business. Readers are cautioned that this information may not be appropriate for other reasons. The Company updates its Forward-looking Information as material information becomes available.

Factors that could cause actual results to differ materially from any forward-looking information include, but are not limited to, failure to establish an estimated mineral resources and reserves, the possibility that actual circumstances will differ from the estimates and assumptions used in the potential of Rönnbäcken Nickel Project (there is no certainty that the concentrate grade or recoveries proposed will be achieved), the environmental and social cost of proceeding with any of the projects, uncertainty relating to the availability and costs of financing needed in the future, general business and economic conditions, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, changes in legislation governing emissions into the air and water, waste, and the impact of future legislation and regulations on expenses, capital expenditures and taxation and other risks involved in the mineral exploration and development industry. When used in this press release, words such as "schedule", "could", "plan", "anticipate", "estimate", "expect", "believe", "intend", "may" and similar expressions are forward-looking information.

This forward-looking Information represents the views as of the date of this press release. The company anticipates that subsequent events and developments may cause its views to change.

For further information, please contact:

Fredric Bratt, CEO Benny Mattsson, Exploration Manager
Mobile: +46 762 35 32 60 Mobile: +46 703 19 93 56
E-mail: fredric.bratt@igenordic.se E-mail: benny.mattsson@igenordic.se