Nordic Mines receives around SEK 80 million from the new share issue and receives a new industrial main owner

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The English text is an unofficial translation of the Swedish original, and in the event of any discrepancies between the Swedish text and the English translation the Swedish text shall take precedence.

PRESS RELEASE 13 November 2015

Nordic Mines receives around SEK 80 million from the new share issue and receives a new industrial main owner

Subscription applications corresponding to approximately SEK 80 million were submitted in Nordic Mines AB's (publ) ("Nordic Mines" or "the Company") rights issue for existing shareholders (the "Rights Issue"). The Board of Directors of Nordic Mines ("the Board") therefore has made the assessment that the conditions for reaching a satisfactory subscription rate in the Rights Issue are good and that it should be possible to fulfil all of the terms and conditions for the Rights Issue. Nordic Mines will then also be able to fulfil its commitments in accordance with the agreement with the Company's lenders entered into on 6 October 2015, under which Nordic Mines will acquire all of the lenders' claims on Group companies in accordance with the existing project financing agreement.

Assuming that submitted subscription applications are fulfilled, Nordic Mines will gain a new main owner - Lau Su Holding AB ("the Investor"), which will own 61.5 per cent of the shares. The Investor is controlled by a number of investors with a background in the Indian Gold industry among other areas. These investors include Royal Refinery Private Limited, which is based in Mumbai, India.

"We are satisfied with the preliminary outcome of the rights issue and the support from both old shareholders and our new main owner. After we receive the funds from the rights issue, we will be able to conclude the agreement reached with the Company's lenders regarding the acquisition of the debt to the banks and thus regain full control over pledged assets. Nordic Mines now gains financial longevity as it waits for a more beneficial gold price and in addition also the opportunity to start a strategic journey with our new ownership base," comments Nordic Mines CEO Eva Kaijser on the outcome of the rights issue.

Rights Issue

The Rights Issue was decided by the Board on 20 September 2015 and approved by a Nordic Mines extraordinary general meeting on 21 October 2015.

The Company has now received applications for the subscription of new shares in the Rights Issue totalling 397,272,829. In addition, 114,419,495 shares will be issued that will be paid for by offsetting the Investor's share-based commitment compensation (see Commitment to subscribe to new shares below). This means that the number of shares in the Company increases to a total of 565,722,756 and that the Company's share capital increases by SEK 5,116,923.24 to SEK 5,616,923.24 kronor. Of the shares for which subscription applications were received, 150,377,749 shares were subscribed for with preferential rights and 246,895,080 were subscribed for without preferential rights.

Payment

Payment notices will be sent to the subscribers within the next few days. Payments for the Rights Issue must be made in accordance with the included instructions to a special account at Evli Bank. The funds will be released to the Company first after required payments for the issue are received, which is estimated to occur around 28 November 2015, after which the Rights Issue can be concluded.

Once payment for the new shares has been received, the paid subscribed shares (BTAs in Swedish) will be booked on each subscriber's VP account. This is expected to occur at the earliest in week 49. These BTAs will be traded on Nasdaq Stockholm. As soon as the increase in the share capital has been registered by the Swedish Companies Registration Office, received BTAs will be converted into new shares.

The new shares that are received will be admitted for trading on Nasdaq Stockholm.

Commitment to subscribe to new shares

The Company has entered into an agreement with the Investor, which has committed to the subscription of new shares for a total of SEK 46.7 million. As payment for the commitment, the Investor, according to the agreement, is entitled to a share-based compensation, which will be paid by offsetting against additional shares in conjunction with the conclusion of the Rights Issue. After the completed Rights Issue, but not including shares received by way of the share-based compensation, the Investor's ownership corresponds to 51.7 per cent. After offsetting the share-based compensation, the Investor's ownership increases to 61.5 per cent post completion of the rights issue.

The Investor has applied for and received an exemption from the mandatory bid from the Swedish Securities Council since its ownership will exceed 30 per cent of the votes in the Company through the realisation of its commitment in the Rights Issue (AMN 2015:35).

A supplemental prospectus will be published as a result of the information presented in this press release.

For further information, please contact:

Eva Kaijser, CEO,+46 (0)70 932 09 01

Jonatan Forsberg, CFO, +46 (0)76-105 13 10

The information presented above has been disclosed pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was published on 13 November 2015 at 8:00 a.m.

Nordic Mines is a Nordic mining and exploration company. The Laiva mine in Finland produced gold between 2011 and 2014. The deposit is among the largest in the Nordic region. Nordic Mines is a member of SveMin and applies its reporting regulations for public mining and exploration companies. The Nordic Mines share has been admitted for trading on Nasdaq Stockholm's Small Cap list. Also refer to www.nordicmines.se.

IMPORTANT INFORMATION

The information in this press release does not contain or constitute an offer to acquire, subscribe or otherwise trade in shares, subscription rights or other securities in Nordic Mines. Any invitation to the persons concerned to subscribe for shares in Nordic Mines will only be made through the prospectus published by Nordic Mines on its web site.

This press release may not be published or distributed, directly or indirectly in or into United States, Australia, Canada, Hong Kong, Japan, New Zealand, Singapore, South Africa or any other jurisdiction where such action is wholly or partially subject to legal restrictions or where such action would require additional prospectuses, registrations or other actions in addition to what follows from Swedish law. Nor may the information in this press release be forwarded, reproduced or disclosed in such a manner that contravenes such restrictions or would require such requirements. Failure to comply with this instruction may result in a violation of applicable securities laws.

No subscription rights, OTAs or BTAs (interim shares) or new shares will be registered under the United States Securities Act of 1933 ("Securities Act") or securities legislation in any other state or other jurisdiction in the United States and may not be offered, subscribed, sold or transferred, directly or indirectly within the United States, other than pursuant to an exemption from the registration requirements of the Securities Act and in accordance with securities laws in relevant state or other jurisdiction in the United States.

This press release may contain forward-looking statements which reflect Nordic Mines' current view on future events and financial and operational development. Words such as "intend", "expect", "anticipate", "may", "believe", "plan", "estimate" and other expressions which imply indications or predictions of future development or trends, and which are not based on historical facts, are intended to identify forward-looking statements. Forward-looking statements inherently involve both known and unknown risks and uncertainties because they depend on future events and circumstances. Forward-looking statements do not guarantee future results or development and the real outcome could differ materially from the forward-looking statements.