Increased mineral resources in Ersmarksberget and extended life expectancy in Pahtavaara

 - Lappland Goldminers report uppdated ore reserves and mineral resources at the
Pahtavaara   gold   mine   as   well  as  updated  mineral  resources  for  gold
mineralization at Ersmarksberget


      -  The  mineral  resources  and  ore  reserve at Pahtavaara strengthen our
understanding  that it  is possible  to find  new mineralisations  near the mine
infrastructure  and  also  towards  depth.  Thereby  we estimate to continue the
production next two years at present production rate and simultaneously increase
the  ore  reserves.  The  increase  of  the  mineral resources at Ersmarksberget
enables us to, together with some more diamond drilling, do a feasibility study.
Depending  on  the  result  of  the  study  a decision on production start-up at
Ersmarksberget  can  be  taken  during  2011, says  Kjell  Larsson, CEO Lappland
Goldminers.


Pahtavaara
The proven and probable ore reserves as off January 1(st), 2011 total 577
Ktonnes with 2,64 grammes of gold per tonne (678 Ktonnes with 2,79 grammes of
gold per tonne January 1(st) 2010*). Under 2010 approx. 26 000 m core was
drilled, both underground and on surface. The estimation of the mineral
resources on, which the ore reserves are based, are carried out with variable
cut-off depending on the continuity, geometry and localization of the orebodies.
The DB- and C-ores are estimated with a cut-off set at 1,5 gramme/tonne Au and
others with a cut-off 2,0 gramme/tonne Au. The Länsi mineralization is included
in the mineral resources with the tonnage and grade as reported in news release
5(th) July, 2010. The total measured and indicated mineral resources are 574
Ktonnes with 3,30 grammes of gold per tonne (738 Ktonnes with 3,37 grammes of
gold per tonne 1(st) January 2010*). In addition there is an inferred mineral
resource of 88 Ktonnes with 7,14 grammes of gold per tonne (no inferred mineral
resource reported 1(st) January 2010*). After conversion of mineral resources to
ore reserves a measured and indicated mineral resource of 89 Ktonnes and an
inferred mineral resource of 88 Ktonnes remain to convert to ore reserve. The
amount of gold of 1580 kg based on the ore reserve corresponds roughly to two
years production at present production rate. The gold grades in the production
get lower because of the relatively short life expectancy of the present ore
reserves that force us to mine more low-grade ore to be able to maintain
continuous production. During 2010 the average grade of the mined ore was 1,81
grammes of gold per tonne.

The  estimation is done by Åsa Corin, geologist at Lappland Goldminers Oy, under
supervision  of  Thomas  Lindholm,  GeoVista  AB,  independent consultant and by
SveMin  and  FinMin  registered  as  a  Qualified  Person, QP. The estimation is
carried  out according to the rules of SveMin and FinMin which are in compliance
with  the Canadian NI 43-101 reporting and disclosure. The evaluation is done by
Ordinary Krieging.

Mineral Resource and Ore Reserve at Pahtavaara_20110101.pdf

Ersmarksberget
The  measured  and  indicated  mineral  resources  for  the Central and South 1
mineralizations  total 519 Kton with 3,25 grammes of gold per tonne (447 Ktonnes
with  2,86 grammes of  gold per  tonne October  2009*). In addition  there is an
inferred  mineral resource of  143 Kton with 4,24 grammes  of gold per tonne (46
Ktonnes  with 3,38 grammes of gold per tonne October 2009*). The increase of the
mineral resource is based on approx. 6000 m of core that has been drilled during
2010.



The mineral resource is estimated by Thomas Lindholm, independent consultant and
by  SveMin and FinMin registered Qualified Person, QP. The estimation is carried
out according to the rules of SveMin and FinMin which are in compliance with the
Canadian  NI43-101 reporting and disclosure.  The evaluation is  done by Inverse
Distance Squared.

Mineral Resource at Ersmarksberget Centrala and South 1_January 2011.pdf




* For differencies between the estimations see the respective news release.



The  technical content in this news release  has been controlled and approved by
Risto Virkkunen, Chief Geologist at Lappland Goldminers and by SveMin and FinMin
approved Qualified Person, QP.



For  a complete report regarding  the estimates of the  ore reserves and mineral
resources please see the attached documents to this news release.



For further information:
Kjell Larsson, CEO

Tel. 0950-275 06, 070-385 03 57

kjell.larsson@lgold.se





Besök även: www.lapplandgoldminers.com

Om Mangold Fondkommission: www.mangold.se



Lappland   Goldminers   AB  is  a  producing  mining  company  with  significant
exploration  activities. The Company  is listed on  the market place First North
Premier  under  the  name  GOLD,  with  Mangold  Fondkommission  AB as Certified
Adviser.  Lappland  Goldminers'  strategy  is  to  develop mineral deposits into
profitable producing mines. The Company is strategically positioned with the the
fully  permitted  Fäboliden  gold  project  and  the  Ersmarksberget deposit and
processing plant in northern Sweden. The Pahtavaara gold operation is located in
the  north  of  Finland  and  the  Haveri  gold deposit in the south of Finland.
Lappland  Goldminers is a  member of SveMin,  the Swedish association for mines,
minerals  and metal producers,  and follows SveMin's  reporting rules for public
mining and exploration companies.


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