Positive progress for Engebø beneficiation process

On behalf of Nordic Mining, the technology company Outotec (USA) Inc. has carried out laboratory studies on recovery of rutile and garnet from the Engebøfjellet eclogite ore. The studies have focused on initial stage separation and classification, including high intensity magnetic separation. The studies are part of the development program towards a process scheme for pilot plant production and final flow sheet for the Engebø project.

The study shows that an overall recovery rate of rutile above 60% is realistic. The study also suggests new process alternatives that may exclude the use of flotation cells, which will reduce usage of flotation agents and cost of production.

"The progress report from Outotec is promising for the Engebø project", comments CEO Ivar S. Fossum in Nordic Mining. "We have so far assumed 55% recovery in our base case calculation, and a recovery rate above 60% will significantly improve the project economy," says Ivar S. Fossum.

Nordic Mining will continue its technical cooperation with Outotec in its efforts to establish an optimised, energy efficient and environmentally friendly beneficiation process for the Engebø eclogite.

For questions please contact CEO Ivar S. Fossum, telephone + 47 - 930 96 850.

Nordic Mining ASA

Nordic Mining ASA (www.nordicmining.com) is engaged in the business of exploration and production of high-end minerals and metals. Nordic Mining has a hard-rock rutile resource at Engebøfjellet in Naustdal municipality in Sogn og Fjordane in Norway, and is in the process of developing the resource with the intention to mine and produce high-grade rutile concentrate and industrial products from garnet. In addition, Nordic Mining has production of anorthosite in Gudvangen in Aurland municipality. Further, Nordic Mining is in the process of developing a lithium project in Finland with granted permits for production of high-grade lithium carbonate.

Oslo, 23 February 2010