Update on the Development of the Blötberget project

About this update from Nordic Iron Ore Ab

The Company's ongoing preliminary feasibility study has shown both significant improvements to the project and some remaining challenges. The improvements relate to the mineral resources and the possible concentrate production. The challenges relate to the annual ore extraction rate and mining costs due to the geometry and depth of the mineralization. One way to increase the annual production rate is to include additional deposits in the preliminary feasibility study, primarily from the Södra Väsman field. The technical study regarding the biproduct with phosphorus and rare earth elements indicates an opportunity to improve the profitability of Blötberget if such a biproduct would be included. As the financial results of the ongoing preliminary feasibility study are not yet considered sufficient, the Company has decided to extend and expand the preliminary feasibility study, which is now expected to be completed in the third quarter.The exploration results included in the preliminary feasibility study indicate an increase in the mineral resources of about 20 million tons, from about 67 previously to about 87 million tons - a significant increase. The previously published target of increasing mineral resources by 35 million tons remains and the Company expects that this is likely to be achieved by including additional exploration results from drilling carried out during the autumn and early winter.The changed mining method and the indicated increased mineral resources could, in a continued preliminary feasibility study, result in an increase in the mineral reserves (ore) by about 15 million tons, from about 34 to about 49 million tons. This in turn would lead to an increased production of ultra high-grade iron ore concentrate by about 8 million tons, from about 16 to about 24 million tons. While this is considered a significant increase, it could increase further with further increased mineral resources.The preliminary feasibility study indicates that the changed mining method cannot increase the annual ore extraction rate to the desired extent. The increase appears to end up below 10%. Geotechnical work has shown that the mineralization consits of thinner lenses and veins than previously assumed, and that the surrounding rock requires more careful mining and more rock reinforcement. The limited ore extraction rate and the fact that the increased mineral r...

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