Dannemora Mineral AB: Press Release 26 May 2009

Draining of Dannemora mine underway

After eleven months of preparation, draining work in the Dannemora
mine began on Tuesday. At a capacity of approx. 300 litres per
second, the installed pumps in the existing central shafts will drain
the mine down to the 460 metre level.

Dannemora Mineral has invested in a large sedimentation plant. This
plant and the water-control programme approved by the County
Administrative Board will ensure good environmental control.

The draining operation, which is being carried out by a consortium
made up of ITT Water & Wastewater and Contector, is expected to be
completed in March 2010.

Staffan Bennerdt CEO and President of Dannemora Mineral: "This is a
crucial step towards our planned operational start-up in the
Dannemora mine in summer 2011. It is encouraging to note that the
draining project has proceeded entirely according to plan so far -
both in terms of implementation and cost."


For further information, please contact:

Staffan Bennerdt, Group President
Telephone 0295- 24 44 22
staffan.bennerdt@dannemoramineral.se

This document is a translation of the original press release in
Swedish. In case of divergence, the
Swedish version shall have precedence.


Dannemora Mineral AB is a mining and exploration company, with the
main goal to recommence mining operations in the Dannemora iron ore
mine. The Company also engages in exploration activities to increase
the iron ore base locally and regionally, and to explore base and
precious metals in several areas in Uppland where the potential for
finding mineable deposits is considered good.

Dannemora Mineral comprises the parent company Dannemora Mineral AB
and the wholly-owned subsidiaries Dannemora Magnetit AB, which is
responsible for operation of the Dannemora mine and the Group's
exploration activities, and Dannemora Förvaltnings AB, which is
responsible for the property portfolio.

The Company's most important asset is the iron ore deposit at
Dannemora, and activities will initially focus mainly on the planned
mining of this deposit.

The Company's Certified Advisor on First North is E. Öhman J:or
Fondkommission AB.