Endomines decides on major investment in mining and proposes equity issues

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     in whole or in part, in the US, Canada, Australia or Japan

  * Endomines accelerates investment and plans to start mining in
    Pampalo by the second half of 2009
  * Endomines proposes a combination of a directed issue and rights
    issue to finance the investment plan
  * Shareholders representing a total of approximately 49 percent of
    the shares and votes in Endomines have expressed support for the
    investment plan and the proposed new issues


Background

Endomines AB (publ) ("Endomines") was listed on First North Stockholm
in June 2007. In connection with the listing, the company raised
approximately 80 MSEK in capital through the issue of new shares. The
rationale for the equity issue was to provide Endomines with
sufficient initial capital to continue gold exploration in the
Pampalo deposit and along the Karelian Gold Line. As described in the
listing prospectus, Endomines intended to raise further capital
through a rights issue during the fourth quarter of 2008. The main
purpose of this intended issue was to finance a concentrator that
would allow for mine production to commence in Pampalo by 2010.

Endomines now sees a possibility to accelerate the investment plan
laid out in the prospectus by making certain key investments in the
near future, followed by larger investments thereafter. The
investments would enable Endomines to begin production ahead of
schedule during the second half of 2009. To facilitate an accelerated
time plan, the Board of Directors of Endomines (the "Board") proposes
a two staged financing plan with a directed issue in June 2008 and a
rights issue to existing shareholders during the fourth quarter of
2008. The Board believes that this accelerated investment plan would
create additional shareholder value.

Investment plan

The key investments that are required before the fourth quarter of
2008 are primarily related to foundation work and civil engineering
work around the Pampalo mine and to secure the purchase of strategic
components such as milling circuits.

Financing

To facilitate the accelerated investment plan, Endomines proposes a
two staged financing plan. To finance the initial key investments,
Endomines intends to make a directed issue of shares to new
institutional investors in June 2008, with the intention of raising
total proceeds of approximately 45 MSEK. To secure financing to take
the company through to actual gold production, Endomines intends to
make a rights issue to existing shareholders in the fourth quarter of
2008, with the intention of raising total proceeds in the region of
110 MSEK.

Extraordinary shareholders' meeting

The Board has decided to convene an extraordinary shareholders'
meeting to be held on June 9, 2008 to address the matters of the two
share issues. A formal notice convening the extraordinary
shareholders' meeting will be issued in due time.

The Board will propose that the shareholders' meeting resolves to
authorise the Board to, on one or several occasions until the next
annual shareholders' meeting (i) resolve on a new issue of shares
with deviation from the shareholders' preferential rights (the
directed issue), whereby the share capital of the company can be
increased by no more than 32,500,000 SEK (distributed on not more
than 6,500,000 shares) and (ii) resolve on a new issue of shares with
preferential right for the shareholders (the rights issue), whereby
the share capital of the company can be increased by no more than
187,500,000 SEK (distributed on not more than 37,500,000 shares).

The main reason for deviating from the shareholders' preferential
rights in connection with the directed issue, is that the
implementation of the accelerated plan to start mining in Pampalo
requires that financing is in place before the summer holidays. It is
not possible for practical and timing reasons to carry out a rights
issue before the autumn of 2008. The directed issue also gives the
company the opportunity to broaden its institutional ownership for
the benefit of all shareholders. The Board expects that such new
institutional investors will also participate in the subsequent
rights issue.

Shareholder support for investment plan and proposed equity issues

Shareholders representing a total of approximately 49 percent of the
number of shares and votes in Endomines have informed the Board that
they support the accelerated investment plan and the proposed
financing through equity issues, and have expressed their intention
to vote for the Board's proposal at the extraordinary shareholders'
meeting.

Indicative time schedule for the new issues


Extraordinary shareholders' meeting: June 9, 2008
Directed issue:                      June 2008
Rights issue:                        Fourth quarter 2008


Endomines has engaged SEB Enskilda as financial advisor in connection
with the new issues.


Stockholm, May 21, 2008

Endomines AB (publ)
The Board of Directors



For further information, please contact:

Karl-Axel Waplan, Chairman, phone +46 70 510 42 39
Timo Lindborg, CEO, phone +46 8 611 6645

This is Endomines

Endomines AB (publ) prospects and develops mineral deposits in
Finland. The company owns exploration rights or mining concessions
for all known gold deposits along the Karelian Gold Line, among
others it owns mining concessions in Pampalo mine in which the
company has a goal of commencing production during the second half of
2009. Endomines also has exploration rights for a number of gold
deposits in the Finnish Lapland. Further to gold the company also
focuses on the industrial mineral ilmenite which is showing stable
demand growth and price development. These ilmenite deposits are
located in Central Ostrobothnia, Finland.

Endomines applies SveMin's and FAERI's common reporting rules for
public mining and exploration companies. Endomines has chosen to show
mineral resources according to the JORC or NI 43101 code, both
accepted internationally. Endomines also applies International
Financial Reporting Standard (IFRS) as reporting standards for
account principles and practice. This thereby increases the
possibility to compare the company to international mining and
exploration companies.


Nothing in this press release shall be deemed to constitute an offer
to invest or otherwise deal in shares in Endomines. The rights issue
will not be directed towards shareholders in the United States of
America, Canada, Japan or Australia or other countries where
participation requires further prospectuses, registrations or other
measures than what follows from Swedish law. No securities of the
company will be registered pursuant to the United States Securities
Act of 1933 (the "Securities Act') or any provincial act in Canada
and may not be transferred or offered for sale in the United States
of America or in Canada or to persons resident there or for the
account of such persons other than in such exceptional cases that do
not require registration in accordance with the Securities Act or any
provincial act in Canada.