Reference is made to press release dated 17 September 2006 regarding Nordic Mining's acquisition of a mineral deposit at Engebøfjellet from ConocoPhillips Investments Norge AS.

Nordic Mining has been granted concession from the Norwegian Ministry of Trade and Industry, and the rights (utmål) to the mineral deposit will now be transferred to Nordic Mining.

 

The deposit contains an ore resource estimated to 380 million tons, with a titanium dioxide content of 3-5 percent. The rutile concentrate which can be produced from the minerals in Engebøfjellet may serve as feedstock for pigment production and as feedstock for production of titanium. Pigments from titanium dioxide are used in a range of consumer products, i.a. in production of paints, plastics and paper. Titanium is a high-value metal with growing demand and strategic importance. Titanium has an expanding scope of applications, i.a. within aerospace, offshore, sporting goods, and health care.

 

The titanium dioxide resource at Engebøfjellet is considered by NGU as a world-class deposit, and the acquisition is an important milestone in Nordic Mining's strategy to acquire and develop strategic mineral deposits.

 

Nordic Mining will directly commence work related to impact studies of an industrial development of the deposit.

For questions please contact CEO Ivar S. Fossum, telephone + 47 - 22 94 77 90.

Oslo, 18 January 2007
Nordic Mining ASA