Interim report January-March 2010

Interim Report                        January - March 2010



EVENTS DURING THE PERIOD

·         In the first quarter, Dannemora signed trial delivery agreements
covering a total of 30,000 tonnes of iron ore products with the German steel
companies Salzgitter, Rogesa and ThyssenKrupp.

·         Production of iron ore products for trial deliveries began with
underground work in January.  Processing started in March.

·         Draining of the Dannemora iron ore mine was completed during the
quarter. This was earlier than planned and represents a major step towards
making the mine operational again.

·         This year's iron ore price negotiations resulted in large price
increases. The spot price for high-quality iron ore rose sharply during the
first quarter and is now more than 100% higher than the 2009 benchmark prices.

·         A new share issue brought the Company SEK 165 million. The new capital
will help bring forward time-critical investments in transport ramps and mine
exploration.

·         Profit/loss after net financial items for the period January - March
2010 amounted to SEK -13.9 (-5.7) million.

·         The period's cash flow from operating activities was SEK -1.3 (-7.9)
million.

·         Investments in the period January - March 2010 amounted to SEK 3.4
(20.0) million.

·         Cash & cash equivalents at 31 March 2010 amounted to SEK 216.4 (118.1)
million.



EVENTS AFTER THE END OF THE REPORTING PERIOD

  * After the new share issue, transport ramp placement and exploration drilling
    began in the mine.

The complete interim report including tables can be downloaded from the link
below:



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