Nordic Mining’s interim report per 30 September 2016

Enclosed please find Nordic Mining’s interim report for the third quarter 2016. The interim report and company updates will be presented today, Friday 11 November 2016 at 10.00 in the company’s office at Vika Atrium, Munkedamsveien 45 (Entrance A, 5th floor), N-0250 Oslo.

Important events in the third quarter 2016 and year-to-date:

Nordic Rutile (100%) - Engebø project

• Increased resource estimates 
  The revised JORC compliant estimates published in September 2016 show a significant increase of the qualified resources at the Engebø rutile deposit, higher titanium dioxide grades and substantial quantities of garnet. Preliminary estimated operating parameters indicate a reduction of the TiO2 cut-off grade. With a cut-off grade of 2% TiO2 the estimated total resources in the measured and indicated categories are 125 million tonnes at an average grade of 3.53% TiO2. In addition, 255 million tonnes of resource at an average grade of 3.22% TiO2 is estimated in the inferred category indicating a substantial resource potential. The revised resource model will be basis for the pre-feasibility study (“PFS”).
  
  
• Hatch assigned for coordination of the PFS 
  The international engineering and consultancy company Hatch has been appointed for technical advisory services and coordination of the Engebø PFS. Hatch is a leading international mining and processing specialist with extensive experience across the mining industry, including titanium feedstock. A detailed work plan has been established for the PFS, and the work is progressing well.
  
  
• Comprehensive PFS program on comminution and process test work
  Various comminution and process test work activities are ongoing or in preparation. Certain additional work has been agreed as a result of initial tests in order to supplement the data. The work program is still in an early phase. Delays in transport and customs clearance of material to some of the test sites have affected the slot times for certain activities. The purpose of the test work is to optimise recovery of commercial products and secure a cost efficient set up. The updated time schedule for the PFS targets completion in Q2 2017. 
  
  
• Zoning plan and discharge permit are final 
  In February 2016, the King in Council dismissed an appeal related to the discharge permit. Consequently, the discharge permit is final and without further possibility for appeal. The zoning plan was final directly following the government’s approval in 2015. The EFTA Surveillance Authority (“ESA”) has stated in a letter to complainants that the Norwegian authorities’ handling of the permitting process is in compliance with European regulations. ESA’s final conclusion is awaited.
  

Keliber (25%) - Lithium project

• Positive lithium market development
  The lithium market is developing positively and product prices have increased. The demand for lithium in various applications, in particular related to batteries for electric/hybrid vehicles and energy storage, is expected to grow substantially in the coming years. A tight market balance for battery grade lithium carbonate is expected to continue.
  
  
• Definitive feasibility study (“DFS”) ongoing
  Keliber completed a positive PFS for the lithium project in March 2016. The international engineering and consultancy company Hatch is assigned for the coordination of the DFS which is targeted for completion in Q2 2017. The study work is progressing well.
    
• Assessment of financing options
  Keliber has appointed an advisor for corporate finance services. The purpose is to investigate options and possibly carry out transactions in order to position Keliber strategically and financially for the fast-growing development in the lithium industry. 
    

Nordic Quartz (100%) - Kvinnherad project

• Independent quartz resource estimates completed
  In February 2016, an independent assessment of the Kvinnherad hydrothermal quartz was completed based on information from the drilling program which was executed in the fall 2015. The Competent Persons have estimated significant quartz-containing mineral resources in the inferred and indicated categories. The quartz content varies in the deposit with a substantial part in the massive zone category (>95% quartz content).
       
  

Nordic Ocean Resources (80%) – Seabed minerals

• MarMine exploration sampling completed
  In August/September 2016, an exploration cruise was carried out on the Norwegian part of the Mid-Atlantic Ridge (“MAR”). Mineral samples were collected on selected locations. Subsequent of the cruise, mineral analysis and preliminary process test work will be executed.

Corporate matters

• Financing in place
  In June 2016, Nordic Mining completed a rights issue with gross proceeds of approximately NOK 65.9 million. Based on current estimates, Nordic Mining’s existing funding exceeds the costs to complete the Engebø PSF and prioritised other activities with a comfortable margin.  
   

For further information please contact CFO Lars K. Grøndahl, telephone +47 901 60 941.


Oslo, 11 November 2016 
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 in Norway and internationally. The Company’s project portfolio is of high international standard and holds a significant economic potential. The Company’s assets are in the Nordic region.

Through the subsidiary Nordic Rutile AS Nordic Mining is undertaking a large-scale project development at Engebøfjellet in Sogn and Fjordane where the Company has rights and permits to a substantial eclogite deposit with rutile and garnet. Permits for the project have been granted by the Norwegian government. Nordic Mining has rights for exploration and production of high-purity quartz in Kvinnherad in Hordaland and develops the project through its subsidiary Nordic Quartz AS. Nordic Mining’s associated company Keliber Oy in Finland plans to start mining of lithium bearing spodumene and production of lithium carbonate. Nordic Mining holds exploration rights on the Øksfjord Peninsula in Troms and Finnmark, where the Company has discovered a prospective area of sulphide mineralisation. Through the subsidiary Nordic Ocean Resources AS, Nordic Mining is exploring opportunities related to seabed mineral resources.

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