Reference is made to press release 14 January 2008 in relation to Nordic Mining's contemplated acquisition of 68% of Keliber Oy.

 

Nordic Mining has concluded the due diligence process of Keliber with satisfactory result. Closing of the transaction is planned in June 2008. Nordic Mining will on closing issue 5,104,000 consideration shares in Nordic Mining and pay the first cash instalment (EUR 816,000) to the selling shareholders of Keliber.

 

 

Keliber Oy has mining concessions, permits and approved plans for exploration of lithium minerals in Kaustinen in the Osterbotten region in Finland. In addition to mining concessions, the plans also includes a new process plant for production of lithium carbonate. (Li2CO3). Total investments are estimated to EUR 40 - 45 million. Keliber has carried out project development for several years and the company is ready to enter into contracts for civil work, construction and erection once financing has been established.

 

Production is scheduled to commence in 2010. Production will initially be based on a resource of spodumene ore of approximately 3 million tons with a grade of 0.92% lithium oxide. The spodumene ore also contains economical grades of tantalum-pentoxide, and in addition quartz-feldspar. The planned production from this resource represents a sales value of approximately USD 250 million at current market prices for lithium carbonate. Keliber has exploration licences for two additional spodumene deposits in the region which at a later stage might be processed in the same plant.

 

Keliber's production plant is based on technology developed in cooperation with Outotec Oyj (www.outotec.com), an internationally leading company within process technology for mining and metallurgical industries. The plant will be located adjacent to a new biogas plant planned by the Finnish environment and waste handling company Lassila & Tikanoja Oyj (www.lassila-tikanoja.fi). Keliber will utilize energy and CO2 from the biogas plant in its production process.

 

 

Lithium has many industrial applications and there are several derivaties based on lithium, i.a. lithium carbonate. Lithium carbonate is used for instance in the glass and ceramic industries, for production of lubricants and in pharmaceutical products. An important application area for lithium carbonate is in lithium-ion batteries for mobile phones, computers, electric and hybrid cars, electric tools etc.. Lithium has special properties as regards ability to store electric energy, and the battery sector is an important growth area for lithium carbonate.

 

Increased focus on environmental issues and CO2 emission have already significantly affected the demand for electric and hybrid cars based on lithium ion batteries. The large international car manufacturers have development programs and focus which clearly indicate increased importance of these car types in the coming years. Toyota, as an example, has informed of plans to go 100% hybrid by 2020.

 

 

Nordic Mining is a mining company focusing on exploration and production of high-end industrial minerals and metals. Nordic Mining is listed on Oslo Axess with ticker code NOM.

 

Nordic Mining has mining operations in the subsidiary Gudvangen Stein AS with production of anorthosite from its own deposit in Aurland in Sogn og Fjordane county in Norway. Further, Nordic Mining has mineral rights for a significant resource of rutile (TiO2) at Engebøfjellet, also in Sogn og Fjordane county. In addition, Nordic Mining has exploration rights for i.a. tungsten, molybdenum, gold, thorium, nickel, palladium and platinum.

 

Further information of Nordic Mining can be found on the company's website www.nordicmining.com. Information regarding Keliber can be found on the website www.keliber.fi.

 

 

For questions please contact CEO Ivar S. Fossum on telephon +47 - 930 96 850.

 

 

Oslo, 14 May 2008

Nordic Mining ASA