Nordic Mining ASA (EN Expand:NOM) - Interim report per 31 March 2021

Nordic Mining ASA (EN Expand:NOM) - Interim report per 31 March 2021

Please find enclosed Nordic Mining’s interim report for the first quarter of 2021. The company updates for the first quarter of 2021 and results of the Engebø Updated Feasibility Study will be presented digitally today, Tuesday 11 May 2021 at 10.00 (CET). The presentation and Q&A session will be held in English and transferred via webcast. You will have the opportunity to post questions online throughout the webcast session. The webcast will be available on: https://channel.royalcast.com/landingpage/hegnarmedia/20210511_12/

Important events in the first quarter of 2021 and year to date:

CORPORATE

Successful capital raise of NOK 80 million

In February 2021, the Company completed a private placement with gross proceeds of NOK 80 million. The proceeds enabled a significant participation in Keliber’s equity issue in March/April as described below. The remaining proceeds will be used towards securing financing for the Engebø project, and preparing for execution, as well as development of the Group's position within the seabed mineral resources area and general corporate purposes and business development.

ENGEBØ RUTILE AND GARNET PROJECT (100% ownership)

Results from Updated Definitive Feasibility Study (UDFS) will be presented 11 May

In the UDFS process, results from mining and plant design optimizations and responses from the contractor market indicate a reduction in the initial capital expenditure around USD 100 million from the USD 311 million level in the DFS from January 2020. Further, significant reductions are indicated related to operating costs following from flowsheet optimizations with energy savings and general unit cost improvements. In contrast, an expected reduction of demand for garnet in the short-term implies a revision of projected sales volumes in the first years of production. The economic results of the UDFS optimizations will be presented 11 May.

Electrical dryers reduce CO₂ footprint by more than 80%

In the UDFS process, the viability of electrical dryers for drying of minerals in the production process has been successfully confirmed. The concept uses proven technology that has been qualified for increased production volumes. The use of electrical dryers will reduce the CO₂ emissions from the project with more than 80% and in effect make the process plant completely free of CO₂ emissions. Going forward, the Company will assess possibilities to further reduce CO₂ emissions, mainly related to the mining operations.

Revised discharge permit granted

In January 2021, the Environment Agency granted a revised discharge permit implying a substitution of chemicals from the original permit, commenting that the significant reduction in chemical consumption will have lower impact on the environment than the previously planned consumption.

KELIBER LITHIUM PROJECT (14.3% ownership)

Building international partnership with leading international mining company

In February 2021, Keliber entered into an investment agreement with the leading international mining company Sibanye-Stillwater Limited (SSW) for an initial phased equity investment of EUR 30 million for approximately 30% shareholding in Keliber. In March, the first tranche of the initial investment was closed with SSW subscribing for shares for EUR 15 million, and at the same time a share issue of up to 250,000 shares was opened to existing shareholders of Keliber. In the issue, which was conducted in March/April 2021, Nordic Mining was allocated in total 58,975 shares at an issue price of EUR 40 per share corresponding to approximately 23.6% of the share issue, to retain an ownership of approximately 14.3%. SSW plans to play a key role as an industrial anchor investor in the project financing planned for mid-2022, and has in accordance with the investment agreement the option to secure a majority shareholding in Keliber, following the completion of the updated feasibility study.

Oslo, 11 May 2021
Nordic Mining ASA

Nordic Mining ASA (www.nordicmining.com)

Nordic Mining ASA (“Nordic Mining” or the “Company”) is a resource company with focus on high-end industrial minerals and metals. The Company’s project portfolio is of high international standard and holds significant economic potential. The Company’s assets are in the Nordic region.

Nordic Mining is undertaking a large-scale project development at Engebø on the west coast of Norway where the Company has rights and permits to a substantial eclogite deposit with rutile and garnet. Nordic Mining also holds 14.3% of the shares in Keliber Oy, which is developing a lithium project in Finland to become the first European producer of battery grade lithium hydroxide.

In addition, Nordic Mining holds interests in other initiatives at various stages of development. This includes patented rights for a new technology for production of alumina and exploration of seabed minerals.

Nordic Mining is listed on Euronext Expand Oslo with ticker symbol “NOM”.