Year-end report January – December 2012

Significant events during the fourth quarter of 2012

• The convertible loan was converted into 3,708,738 new shares, and the number of shareholders increased to 78 in total.
• The first phase of the drilling campaigns at the Väsman field and Blötberget was concluded.

Fourth quarter, 1 October – 31 December 2012

• Income amounted to SEK 0 million (0)
• Earnings after tax were SEK -5.1 million (-3.8)
• Investments during the period October – December amounted to SEK 11.9 million (4.3)
• Earnings per share, basic, were SEK -0.51 (-0.49)

Full-year period 1 January – 31 December 2012

• Income amounted to SEK 0 million (0)
• Earnings after tax were SEK -21.9 million (-7.4)
• Investments during the period January – December amounted to SEK 26.2 million (16.9)
• Earnings per share, basic, were SEK -2.63 (-0.98)
• Cash and cash equivalents at 31 December 2012 amounted to SEK 18.9 million (0.7)

Significant events after the end of the period

• The published results from the drill campaign resulted in a significant increase in mineral resources, to 170 million tonnes.
• A letter of intent was signed with Oxelösunds Hamn AB (the port of Oxelösund) regarding deliveries of up to 5 million tonnes/year.
• The application for an environmental permit was published by the Land and Environment Court.

CEO’s comments

In the fourth quarter of 2012 and at the start of 2013, Nordic Iron Ore achieved important successes. Our drilling campaigns at Blötberget and the Väsman field in the summer turned out well, and we could consequently increase our indicated and inferred mineral resources to a total of 170 million tonnes in January. We have also signed a letter of intent with the port of Oxelösund regarding future deliveries, clearly emphasising further the fact that our project enjoys a very strong logistics solution. Our plan to start up iron ore production at the Ludvika mines in the latter part of 2015 remains in place.

Work on the feasibility study is in progress, and an important part of this work is process test work, which will form the basis for optimising the process layout, which will also govern the forthcoming procurement of process plant equipment.

The last six-month period saw mining projects which failed to reach expected targets. This is unfortunate for the Scandinavian mining industry, and gives rise to uncertainty. At the same time, our task now is to demonstrate that our project has completely different fundamentals, and that it is possible to successfully conduct complex industrial projects with the right organisation and expertise combined with long-term owners. It is therefore our ambition to establish a financially stable ownership circle before the Company is listed. We believe this is crucial to the Company’s possibilities of attracting the desired plant and equipment financing over the next 12-month period. While the Company is still prepared for a stock market listing, the board of directors has, due to the uncertain climate on the financial market, not made a decision regarding the timing of listing the Company’s shares.

Christer Lindqvist, CEO Nordic Iron Ore

Nordic Iron Ore Group is a mining company with the ambition to revive and develop the iron ore production of Ludvika Mines in Blötberget and Håksberg. The company also intends to expand its mineral resources, and upgrade them to ore reserves, primarily through exploration and other studies of the connecting Väsman field. For more information, see www.nordicironore.se.