INTERIM REPORT PER 30 SEPTEMBER 2011

www.nordicmining.com Nordic ASA – Interim report per 30 September 2011

Nordic Mining ASA (“Nordic Mining” or “the Company”) is a resource company with operating activity and focus on high-end industrial minerals and in and internationally. The Company’s project portfolio is of high international standard and holds a significant economic potential. Nordic Mining has rights to advanced EM-applications (electro magnetic technology) for mineral and metals exploration onshore and offshore. The Company’s assets are mainly in the Nordic region.

The Company has production of anorthosite products through its subsidiary Gudvangen Stein AS (“Gudvangen Stein”). Further, Nordic Mining is undertaking large-scale project development at Engebøfjellet in Sogn and Fjordane where the Company has rights to a substantial eclogite deposit with rutile and . Nordic Mining has rights for exploration and production of high-purity in municipality in county. Through its subsidiary Keliber Oy (“Keliber”) in , Nordic Mining plans to start mining of lithium bearing spodumene and production of lithium carbonate.

Nordic Mining is listed on Axess.

Important events since 2nd quarter 2011

• Further progress on the Engebø rutile project Consideration of the industrial area plan for Engebø including a remark from the Directorate of Fisheries, as well as the application for waste disposal, are ongoing with the Ministry of the Environment. Naustdal and Askvoll municipalities approved the industrial area plan in May 2011. The county governor of Sogn and Fjordane has recommended to the Ministry that the plan is approved. On 15 November 2011 site visit and information meeting were arranged at Engebø in connection with the Ministry’s considerations.

• Positive long-term market outlook for rutile So far this year the market price for rutile has more than doubled. The Australian analyst institution TZMI expects the rutile price to increase further in 2012 to USD 2,000 per tonne. Demand for high-grade titanium feedstock is higher than production, and new projects that could possibly increase supply will be limited for several years. In a global context the Engebø project is substantial, and the industrial interest for the project is good.

• Significant progress for production of alumina from anorthosite Nordic Mining has together with IFE and in lab-scale produced high-grade alumina from the Gudvangen anorthosite. The test production is considered to have industrially scalable parameters. The results might be a break-through in the efforts to realize the value potential in the anorthosite. Gross production value of the alumina content of Nordic Mining’s anorthosite deposit is estimated to several billion NOK.

• Tests confirm ultrapure quartz deposit Nordic Mining has received positive results in making high purity concentrates from the Company’s quartz deposit at Nesodden in Hordaland county. The results confirm the deposit as world class, and indicate potential for several high-value applications and a significant commercial value. Dialogue with interested industrial companies is ongoing.

• Exiting results from geophysical measurements in the Øksfjord area Geophysical measuring indicates interesting mineralization in the Øksfjord area in Troms and . Further exploration is planned with ground geophysical measuring and drilling in spring 2012.

2 Financial performance

Unless specifically noted, all figures below relate to the consolidated accounts. For comparison, numbers in brackets relate to the same period 2010.

Nordic Mining’s operational activity relates to Gudvangen Stein. Sales revenue in the third quarter 2011 was NOK 5.8 million (NOK 5.5 million) based on a sales volume of 47,000 tons (49,000 tons). Accumulated sales revenue per 30 September was NOK 17.9 million (NOK 14.6 million) based on a sales volume of 150,000 tons (133,000 tons).

The operating loss for the Group in the third quarter was NOK -8.0 million (NOK –5.5 million). The operating loss in Gudvangen Stein was NOK -1.0 million. Accumulated operating loss for the Group per 30 September was NOK -19.2 million (NOK -19.9 million). The operating loss for the quarter and per 30 September is related to costs in connection with development of the projects at Engebøfjellet, Keliber and Gudvangen Stein, as well other exploration and development activities.

Net loss for the Group in the third quarter was NOK -8.5 million (NOK –6.0 million). Accumulated net loss per 30 September was NOK -20.1 million (NOK -21.4 million). Included in accumulated net loss is net financial costs of NOK -1.3 million (NOK -1.5 million).

Cash flow from the Group’s operating activities was negative in the third quarter and per 30 September with NOK -6.0 million (NOK -4.8 million) and NOK -18.9 million (NOK -17.8 million), respectively. Earlier this year, Nordic Mining has completed equity issues with total gross proceeds of NOK 29.0 million; ref. note 2. As per 30 September 2011, the Group’s cash and cash equivalents amounted to NOK 9.7 million (NOK 14.8 million).

Nordic Mining’s balance sheet as of 30 September 2011 was NOK 99.5 million (NOK 99.1 million). As per 30 September 2011, total equity amounted to NOK 52.3 million (NOK 51.6 million). This gives an equity ratio for the Group of 53% (52%).

Main activities in the third quarter 2011 and in the period up till the reporting date

Engebø rutile project (TiO2)

Nordic Mining intends to establish industrial operation for production of rutile concentrate (TiO2) based on its rutile deposit at Engebø.

The project will have role model standard in modern mineral industry and with regard to utilization of mining technology. Extraction and processing at Engebø and the planned short- distance shipping of products will have environmental advantages compared with current long- distance freight of products into the European markets.

Rutile is an environmentally friendly mineral and an important raw material. In the EU, rutile is considered a strategic mineral. Rutile is a high-grade raw material for production of environmentally friendly pigments used in i.a. production of paintings, plastics and paper, and for production of titanium . Rutile has significant industrial importance with several application areas within health and medicine, environmental technologies (“green tech”) and consumer products. Titanium can be used as implants in the human body and reduce weight and fuel consumption, and thus greenhouse emissions, from modern airplanes.

The mineral deposit at Engebø also contains significant volumes of garnet, and Nordic Mining plans to produce high quality garnet as a by-product. Garnet has various industrial applications and may replace industrial sands with content of free silica which is harmful for health and environment.

3 Industrial area plan and permit for waste disposal

In May 2011, the municipality boards in Naustdal and Askvoll approved the industrial area plan for the contemplated rutile production at Engebø. The considerations leading up to the approvals have had broad participation, and both locally and regionally the project has gained strong support. The approvals mark an important milestone in the process to establish long term, profitable and sustainable rutile production at Engebø.

Both rutile and garnet are considered as environmentally friendly minerals. Nordic Mining will secure high environmental standard for extraction, processing and shipping, as well as for disposal of rest minerals (tailings).

In June 2011 the county governor of Sogn and Fjordane forwarded the industrial area plan, including a remark from the Directorate of Fisheries, to the Ministry of the Environment for resolution. The county governor has recommended approval of the plan.

The Engebø project has gained strong political support locally in the municipalities and on county level in Sogn and Fjordane. This provides an important foundation for the project work going forward with the intention to start construction and production.

The Ministry of the Environment has commenced its considerations of the industrial area plan and the application for waste disposal. On 15 November 2011 site visit and information meeting were arranged at Engebø in connection with the Ministry’s considerations.

Commercial status

Rutile is an important strategic mineral with significant application areas within the pigment industry, in health and medicine, in environmental technologies and in various consumer products.

In 2011 the market for rutile products has developed very positively. By year-end 2010, rutile prices were reported around USD 550 per tonne FOB Australia. So far in 2011, prices have more than doubled, and spot prices are now reported in the range USD 1,300 – 1,400 per tonne. The reputable Australian analyst institution TZMI expects the rutile price to increase further in 2012 to USD 2,000 per tonne.

Rutile is a highly demanded titanium feedstock with significant advantages in further processing in modern pigment plants. The relative attractiveness of rutile compared with other titanium feedstock is expected to increase in the years to come. New projects that could possibly increase supply will be limited for many years. The positive market situation and outlook have boosted the international interest for the Engebø project.

Applications for rest minerals

Nordic Mining evaluates several possibilities and applications for rest materials from the production process at Engebø. The rest minerals are inert minerals without any heavy metals or radioactive elements. The rest minerals have been approved as capping material for contaminated sediments, for instance in harbor areas or similar. Both in a Norwegian and a European perspective, this can possibly represent a significant market potential for the rest minerals from Engebø. Further, the rest minerals are considered in i.a. various concrete applications, as soil conditioner and as raw material for various construction purposes. Logistically, the Engebø location with deep-water port facilities and short distance to the European markets represents a significant advantage in connection with commercial application of rest minerals. In the future, parts of the rest material may represent a positive additional value for the project, financially, and with regard to new industrial activity. In addition, waste disposal from the project can be reduced.

4 Mineral processing

Evaluation and tests continue related to methods for ore dressing and beneficiation for production of rutile and garnet. Outotec Oyj (Finland), a leading international company in mineral processing, continues as consultant in connection with process and flow sheet evaluations. In addition, Nordic Mining has assigned other international competence with the purpose to optimise the plans for mineral processing. Particular focus will be on rutile recovery.

A solid understanding has been obtained related to critical parameters for the mineral processing. Tests with electrical crushing have been executed by Selfrag AG in Switzerland. The results are positive with regard to possible increase of rutile recovery from the process.

Gudvangen Stein

Current market segments

Sales volume in the third quarter was 47,000 tonnes (49,000 tonnes). This is lower than in the second quarter, however, the underlying market trend continues on a positive note. The annual sales volume in 2011 is expected to be around 225,000 tonnes which is approximately 12% higher than in 2010. The stonewool insulation industry is the largest market segment. Renewals of contracts with larger customers confirm an underlying positive trend for anorthosite and its main application areas.

Operational issues

Production in the third quarter has had several interruptions due to problems with i.a. drilling rig and crushers. This has resulted in lower production and higher production cost than planned. Together with the low sales volume in the quarter, these factors explain the operating loss for the period.

New production areas have been prepared in the mine. Onwards this is expected to increase flexibility and reduce production cost. Installation of equipment to remove fines in the coarser product fractions is ongoing and expected to be completed by end of November 2011.

New applications and product development

Nordic Mining and Institute for Energy Technology (IFE) have produced high-grade alumina from the Gudvangen anorthosite. Production has been done in laboratory at moderate process conditions which means low temperature, atmospheric pressure and with moderate acids. The conditions are comparable with operating industrial processes. The test production is considered to have industrially scalable parameters. The test work has been carried out at IFE's laboratory at Kjeller.

The alumina content of Nordic Mining's anorthosite is approximately 30% and is therefore potentially a major alumina source. The test results might be a break-through in the efforts to realize the value potential in the anorthosite. Gross production value of the alumina content of Nordic Mining’s anorthosite deposit is estimated to several billion NOK.

Nordic Mining and IFE will continue the project work. The most important steps onwards will be to optimize the process conditions, test methods for recirculation of acid, and develop the technical design for the process as well as undertake a more detailed economic assessment of the process. It will also be important to develop a dialog with various authorities so that important aspects for an expanded production activity in Gudvangen can be incorporated in the regional planning.

In addition to processing of anorthosite for alumina production Gudvangen Stein is developing anorthosite concentrates as feedstock for various industrial applications; i.a. ceramics, glass 5 related products and as filler in various industries. Dialogue is ongoing with various international companies regarding product development and testing. Test production of anorthosite concentrates is executed in a third party production facility. Gudvangen Stein evaluates different concepts for permanent production in its own facility or in cooperation with partners.

Keliber (lithium/lithium carbonate)

Through its subsidiary Keliber in Finland, Nordic Mining will start mining and production of high- purity lithium carbonate. Lithium carbonate has a variety of industrial applications, i.a. for batteries which takes up an increasing share of the total global consumption.

Improved resource base and considerable regional potential

Keliber’s preliminary ore reserve is preliminary estimated by independant experts to 1.26 million tonnes (proven and probable). An ore reserve is the portion of a mineral resource which is evaluated as technical and economical feasible in a viable project. The ore reserve has been estimated on the basis of exploration and drilling in the Länttä and Outovesi deposits. Several additional deposits have been detected in the same area. The possibility to further increase the resource base as a result of continued targeted exploration is considered to be good.

Keliber participates in a tender initiated by the Finnish government for two lithium deposits. The deposits are attractively located adjacent to Keliber’s planned production plant. The deposits have been investigated by GTK, the Geological Survey of Finland, i.a. with drilling programs and comprehensive analysis. Keliber is considered to have the best plans to develop the deposits industrially. Consequently, Nordic Mining is optimistic that Keliber will be offered to acquire the two deposits. In order to optimize exploration work Keliber’s drilling program has been delayed awaiting the result of the auction. The Finnish government is expected to launch tenders for other lithium deposits in 2012, and Keliber will assess possible opportunities resulting from that.

Commercial status

The demand for lithium carbonate and prices for derived products have increased in 2011. A long- term positive market trend is expected to continue, mainly driven by strong growth in the battery sector as a consequence of increased sales of electrified and hybrid cars, portable tools and batteries for other industrial applications. Lithium, in combination with other minerals/ materials, brings unique properties to modern batteries. Extensive international product development is ongoing related to battery technology. Also in other application areas consumption of lithium carbonate and lithium minerals are increasing, i.a. in various glass and melting industries.

The substantial development work which is ongoing internationally, in particular with regard to battery technology, is to an increasing extent expected to make demands on raw materials and chemicals. Keliber’s lithium carbonate will be well positioned for this development.

Other exploration activity

High-purity quartz

In January 2011, Nordic Mining entered into an agreement with landowners and secured exclusive rights for investigation and development of a quartz deposit in Kvinnherad municipality in Hordaland county in Norway. Studies show that the quartz has a low content of contaminants and therefore can be regarded as high-purity type quartz.

A comprehensive analysis and test program have been executed at Dorfner Anzaplan’s laboratory in Germany. The results confirm the deposit as world class, and indicate potential for several high- 6 value applications and a significant commercial value. The tests have involved various separation methods to remove impurities, including mechanical separation and acid leaching techniques. Concentrates with a total of only 16 ppm of total impurities was produced, a purity level being comparable to the highest quality and highest priced quartz products on the market.

At NTNU in Trondheim melting tests for solar grade silicon are executed with quartz from Nordic Mining’s deposit. Preliminary results indicate good melting properties for the quartz.

Nordic Mining has established contacts with industrial companies in different market segments and is aiming at testing the quartz for various applications. Specifications and the quality level for quartz products vary between different applications and producers. While unprocessed quartz from Nesodden seems to meet specifications for solar silicon production, it may be further processed to meet the requirements for high purity markets such as optical glass, lamp tubing, crucibles, semiconductors and microelectronics.

The deposit has previously been estimated by the Norwegian Geological Survey (“NGU”) to 2.7 million tonnes of quartz appearing from a 12*600 meters long quartz vein reaching to a depth of at least 150 meters. In July 2011, Nordic Mining together with NTNU has carried out detailed mapping of the deposit. Generally, previous mapping and estimate have been confirmed.

Copper, , ,

Nordic Mining has secured exploration rights for , nickel, palladium, platinum etc. on the Øksfjord peninsula in Troms and Finnmark counties in Norway. A geophysical measuring program was executed in July 2011. Results from the measuring indicate interesting mineralization. In particular, the results from the Reinfjord area indicate promising possibilities related to i.a. copper, nickel and cobolt. Exploration field work with mapping, sampling and other geological investigations was executed in August. All data from the geophysical measuring and the field exploration has been assessed by independent experts.

Interpretation of the geophysical survey data gives indication of sulfide mineralization. The principal outcome of the interpretation was the delineation of two unexposed gently dipping conductive bodies sitting close to each other and having surface extensions of 75,000 m2 and 180,000 m2. Top edges of these bodies are at depths of 50 meter and 205 meter from the surface.

Nordic Mining will execute ground geophysical measuring over the unexposed conductors. This will give a more detailed image of the distribution and location of the conductors. The ground geophysical data will be essential to optimize the drilling which is planned spring 2012.

Gold licenses in Ecuador

The process aiming at reinstating the Los Santos licenses where Nordic Mining has economic interest is developing positively. A court decision in Ecuador has resolved that one of the licences will be returned. Registration in the national mining register is ongoing. A court process is ongoing also for the second license. According to regulations in Ecuador environmental impact assessments and plans for geological exploration must be presented. Nordic Mining has assigned a team of experienced local geologists and engineers to execute relevant work and report to the government.

Results from previous exploration in the Los Santos area give evidence of anomalies of i.a. copper, and silver. Nordic Mining will make strategic considerations of the project in Ecuador when formalities are sorted out and the government has approved the exploration plans for the license areas.

7 CONDENSED CONSOLIDATED INCOME STATEMENTS

2011 2010 2011 2010 2010 01.07-30.09 01.07-30.09 01.01-30.09 01.01-30.09 01.01-31.12 (Amounts in NOK thousands) Unaudited Unaudited Unaudited Unaudited Audited Sales 5 756 5 515 17 875 14 557 22 397 Other income 38 13 261 13 43 Cost of sales (1 141) (2 487) (3 549) (5 058) (6 497) Payroll and related costs (3 844) (2 923) (11 215) (10 786) (14 665) Office costs and business service fee (681) (670) (2 021) (2 010) (2 679) DD&A (740) (744) (2 167) (2 063) (2 783) Other operating expenses (7 399) (4 169) (18 337) (14 546) (20 488)

Operating profit/(loss) (8 010) (5 465) (19 152) (19 893) (24 673)

Financial income (28) 115 222 321 408 Financial costs (463) (612) (1 570) (1 801) (2 434)

Profit/(loss) before tax (8 502) (5 962) (20 501) (21 373) (26 699)

Income Tax - - - - 814

Net profit/(loss) (8 502) (5 962) (20 501) (21 373) (25 885)

Profit/(loss) attributable to Equity holders of parent (8 282) (5 650) (19 817) (20 743) (25 134) Minority (220) (313) (684) (630) (751)

STATEMENTS OF COMPREHENSIVE INCOME

2011 2010 2011 2010 2010 01.07-30.09 01.07-30.09 01.01-30.09 01.01-30.09 01.01-31.12 (Amounts in NOK thousands) Unaudited Unaudited Unaudited Unaudited Audited

Net profit/(loss) for the period (8 502) (8 481) (20 501) (15 411) (25 885)

Other comprehensive income:

Currency translation differences 420 (81) 314 (1 116) (1 832)

Other comprehensive income directly against equity 420 (81) 314 (1 116) (1 832)

Total comprehensive income for the period (8 082) (8 562) (20 187) (16 527) (27 717)

Profit/(loss) attributable to

Equity holders of parent (7 950) (8 316) (19 569) (15 847) (26 451) Minority (132) (246) (618) (680) (1 266) 8 CONDENSED CONSOLIDATED BALANCE SHEETS As per 30 September 2011 and 31 December 2010

2011 2010 30 September 31. desember (Amounts in NOK thousands) Unaudited Audited ASSETS Non-current assets Goodwill 7 330 7 260 Licences 7 069 6 272 Minerals, property, plant and equipment 65 037 65 404 Total non-current assets 79 436 78 936

Current Assets Inventory 4 288 2 745 Trade and other receivables 6 103 5 342 Cash and cash equivalents 9 699 7 065 Total current assets 20 090 15 152

Total assets 99 526 94 088

SHAREHOLDERS' EQUITY & LIABILITIES Shareholders' equity Share capital 14 547 12 547 Share premium 177 416 153 337 Other paid-in capital 7 033 7 033 Retained losses (153 466) (133 649) Translation adjustment (160) (408) Equity attributable to ordinary shareholders 45 370 38 860 Non-controlling interest 6 908 7 526 Total equity 52 278 46 386

Non-current liabilities Interestbearing loan 7 671 8 364 Deferred tax 8 689 8 606 Lease obligations 5 778 7 613 Other liabilities 10 744 9 859 Total non-current liabilities 32 882 34 442

Current liabilities Current portion of long-term debt 4 639 4 853 Trade Payables 4 905 4 040 Other current liabilities 4 822 4 367 Total current liabilities 14 366 13 260 Total liabilities 47 248 47 702

Total shareholders' equity and liabilities 99 526 94 088

9 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY As per 30 September Unaudited

Non - controlling Total | interest equity

(Amounts in NOK Share Share Other-paid- Translation Retained thousands) capital premium in capital adjustment earnings Total Equity 1 January 2010 9 547 129 484 5 304 910 (108 517) 36 728 8 792 45 520

Share issue 3 000 27 000 - - - 30 000 - 30 000

Transaction costs - (3 147) - - - (3 147) - (3 147)

Share based payme nt 1 730 - 1 730 - 1 730 Total comprehensive income - - - (770) (20 743) (21 513) (997) (22 510)

Equity 30 September 2010 12 547 153 337 7 034 140 (129 260) 43 798 7 795 51 593

Equity 1 January 2011 12 547 153 337 7 033 (408) (133 649) 38 860 7 526 46 386 Total comprehensive income - - - 248 (19 817) (19 569) (618) (20 187)

Share issue 2 000 27 000 - - - 29 000 - 29 000

Transaction costs - (2 921) - - - (2 921) - (2 921)

Equity 30 September 2011 14 547 177 416 7 033 (160) (153 466) 45 370 6 908 52 278

10 CONDENSED CONSOLIDATED CASH FLOW STATEMENTS For the period ended 30 September

2011 2010 01.01-30.09 01.01-30.09 (Amounts in NOK thousands) Urevidert Urevidert

Net cash used in operating activites (18 853) (17 809)

Purchases of property, plant & equipment (1 371) (815) Purchases of intangible assets (771) (154) Sale of shares - 25

Net cash used in investing activities (2 142) (944)

Share issuance 26 079 26 853 Payments of loans (666) - Proceeds from loans - 454 Principal payments on finance leases (1 778) (1 572)

Net cash from financing activities 23 635 25 735

Net change in cash and cash equivalents 2 639 6 982 Effect of changes in foreign exchange rates (5) 54 Cash and cash equivalents at beginning of period 7 065 7 782

Cash and cash equivalents at end of period 9 699 14 818

Non-cash transaction: Change in lease obligation 830 716

11 NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2011

NOTE 1 – ACCOUNTING PRINCIPLES

These interim financial statements have been prepared in accordance with International Accounting Standard (IAS) 34, “Interim Financial Reporting”. They do not include all of the information required for full annual financial reporting, and should be read in conjunction with the consolidated financial statements of Nordic Mining ASA and the Group for the year ended 31 December 2010.

This report was approved by the Board of Directors on 17 November 2011.

The accounting policies adopted are consistent with those followed in the preparation of the Company’s and the Group’s annual financial statements for the year ended 31 December 2010.

NOTE 2 – EQUITY ISSUE

Number of shares in 1,000 Ordinary shares

Opening balance 1 January 2011 125 470 Share issuance 20 000 Closing balance 30 September 2011 145 470

In the first quarter 2011, Nordic Mining issued 20 million shares for a gross proceeds amounting to NOK 29.0 million. The net proceeds was NOK 26.1 million after deducting directly attributable transaction costs of NOK 2.9 million.

Note 3 – SEGMENT

The Group shows segments on the basis of products or products under development. The three reportable segments are:

• Anorthosite which is produced by Gudvangen Stein AS.

• Lithium whereby Keliber Oy in Finland owns mineral reserves and is planning production of Lithium carbonate.

• Titanium feedstock which can be produced from the mineral deposit at Engebøfjellet; the municipalities have approved the industrial area plan for the project and Nordic Mining has submitted an application for waste disposal.

The reconciling column “Adjustments and eliminations” include the Group’s administration costs and other unallocated corporate business development costs as well as elimination entries related to preparing consolidated financial statements.

The Group uses the segments’ profit/(loss) before tax as the basis for the segment results including some allocations of corporate expenses but excluding purchase price allocations related to business combinations. All the numbers in the table below are in NOK thousands and present the period 1 January – 30 September.

12 Adjustments Anorthosite Lithium Titanium and eliminations Consolidated 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010

Revenues 18 103 14 557 34 - - - - - 18 137 14 557 Segment result (4 603) (6 299) (2 392) (2 493) (5 454) (5 383) (8 052) (7 198) (20 501) (21 373)

NOTE 4 – TRANSACTIONS WITH RELATED PARTIES

Nordic Mining has a business service agreement with Dag Dvergsten AS for i.a. office rental and administrative support functions. Dag Dvergsten AS is owned by Dag Dvergsten who was Chairman of the Board of Directors of Nordic Mining ASA till 14 September 2011. The Company’s board member Tore Viana-Rønningen who was elected to the board at an extraordinary general meeting 14 November 2011 is employed in Dag Dvergsten AS. In the period 1 January to 30 September 2011, Nordic Mining has purchased services according to the business service agreement for NOK 2.2 million from Dag Dvergsten AS.

Note 5 – SUBSEQUENT EVENTS

Further exploration in the Øksfjord area

Geophysical measuring has indicated interesting sulfide mineralization in the Øksfjord area. The exploration work will continue with ground geophysical measuring and drilling program planned in spring 2012.

Significant progress for production of alumina from anorthosite

Nordic Mining has together with IFE and in lab-scale produced high-grade alumina from the Gudvangen anorthosite. The test production is considered to have industrially scalable parameters. The results might be a break-through in the efforts to realize the value potential in the anorthosite. Gross production value of the alumina content of Nordic Mining’s anorthosite deposit is estimated to several billion NOK. Nordic Mining and IFE will continue the project work. The most important steps onwards will be to optimize the process conditions, test methods for recirculation of acid, and develop the technical design for the process as well as undertake a more detailed economic assessment of the process.

Conversion of loan in Keliber Oy

In 2006 Keliber Oy was granted a loan of EUR 200,000 with right for the lender for conversion to shares in Keliber Oy. In October 2011 the loan with accrued interests was acquired by Keliber Oy’s board member, Markku Isohanni. Mr. Isohanni’s request to convert the loan to shares according to the loan agreement has been executed and the new shares were registered in November 2011. Mr. Isohanni’s shareholding equals 5% in Keliber Oy. As a consequence of the conversion Nordic Mining ASA’s shareholding in Keliber Oy has been reduced from 68% to 64.6%.

New Board of Directors

In an extraordinary general meeting 14 November 2011 a new chairman of the board and a new board member were elected. The recommendations from the nomination committee were approved. Previous board member Tarmo Tuominen was elected chairman of the board, and Tore Viana-Rønningen was elected board member.

13 The new board consists of the following members:

Tarmo Tuominen, Chairman Camilla Fiskevoll, Deputy Chairman Anne Dæhlie, Board member Egill M. Ullebø, Board member Tore Viana-Rønningen, Board member

The background for the extraordinary general meeting with election of board members was that the Company’s previous chairman of the board, Dag Dvergsten, stepped down with effect from 14 September 2011 due to heavy work load in other engagements. Deputy Chairman Camilla Fiskevoll has in the period 14 September 2011 and up till the extraordinary general meeting been acting chairman of the Company.

14