Nordic Mining has entered into agreement with Nannok Invest AS to purchase 85% of the shares in Gudvangen Stein AS, Aurland, Norway, with an option to purchase the remaining 15%. Gudvangen Stein has an annual production of around 220 000 tons of anorthosite from its mine in Gudvangen and makes different product qualities for export and for the Norwegian market. The turnover is increasing and was in 2006 around NOK 20 mill. with an operating result of approximately NOK 1.5 mill.

 

The anorthosite resource in Gudvangen is one of Norway's most important mineral resources. Gudvangen Stein has an estimated resource of around 500 mill. tons. The anorthosite from Gudvangen is used as raw material for rock wool and as component in asphalt production.

 

Nordic Mining and Gudvangen Stein entered into agreement in September 2006 with the purpose of elaborating on product development, logistics and marketing of anorthosite. The work which is done in cooperation with SINTEF, Trondheim shows possibilities for new applications of anorthosite.

 

The purchase of Gudvangen Stein will give Nordic Mining operational mining activity and an important mineral resource. Nordic Mining sees good growth possibilities in existing product applications and in developing new special products.

 

The parties intend to finalize the transaction by 31.05.2007 latest, after due diligence is done.

 

For questions please contact Executive Vice President Commercials Ottar Nakken on telephone + 47 - 928 91 780.

 

Oslo, 5 March 2007
Nordic Mining ASA