Lappland Goldminers AB - Strategic update and first report from the Fäboliden feasibility work.

The new mineral resource estimate for Fäboliden forms the basis of open pit
optimisation and studies into options for underground mining. The ongoing
feasibility studies will seek to establish the optimum mining rate and
extraction of payable ore.

The Fäboliden gold mineralisation is a central part in the strategy for Lappland
Goldminers to develop as a major gold producing mining company in Europe. Golder
Associates, a renowned international consulting company, has finalised their
review of the mineral resource estimate which will, together with capital
investment and operating costs, form the basis of a new ore reserve calculation
which will be reported on in the feasibility study.

The updated resource estimate shows that the measured and indicated mineral
resource at a cut-off grade of 0.4 grams of gold per tonne amounts to 57.8
million tonnes with 1.05 grams of gold per tonne and 2.81 grams of silver per
tonne. In addition there is an inferred mineral resource of 32.4 million tonnes
with 1.04 grams of gold per tonne and with 3.37 grams of silver per tonne. As
shown in Table 1, both tonnage and gold grades in the measured and indicated
mineral resource are lower than previously reported estimates.

Golder Associates has also estimated the measured and indicated mineral
resources at different cut-off grades as shown in Table 2. This shows the
variations of gold and silver grades and tonnages with varying cut-off grades.

The lower gold grade in the measured and indicated category at a cut-off of 0.4
grams of gold per tonne impacts the future circumstances for profitable mining
and will be dependent the future level of the gold price expressed in SEK. The
feasibility study will therefore need to consider cut-off grades appropriate to
the mining methods now under consideration. This means selective mining of
higher grade portions of the mineralisation will be investigated that may result
in lower production rates and plant throughputs and a shorter mine life.

If the current high gold price (about 300 SEK per gram) persists, it will have a
positive impact on the study.

The updated mineral resource estimate has led to a need to consider alternative
selective underground mining methods and the need to define a new production
optimum. As a result of these additional studies, the feasibility study is now
due to be completed in the second quarter of 2011.

Fäboliden Mineral Resource Estimate June 2010.pdf



The efforts to increase the ore reserves continues in Pahtavaara.

Pahtavaara mine, where Lappland Goldminers has ongoing gold production, is
located in the municipality of Sodankylä in Finland. The area is considered to
have great potential to host additional gold mineralisation's that could be
mined and sent to the company´s concentrator. The shallow parts of the Länsi
mineralisation, located immediately adjacent to the existing mine, has been
drilled and investigated with 31 core drill holes and 13 reverse circulation
holes (totally 4 700 meter). Measured and indicated mineral resources are
estimated to 60.0 thousand tonnes with 2.97 grams of gold per tonne (Table 3).
The estimate is carried out by T. Lindholm (GeoVista AB) that is an independent
consultant and qualified person (QP), according to the Svemin, the FinnMin and
the JORC codes for reporting.

Estimate of Länsi mineral resource June 2010.pdf

The Länsi mineralisation is still open towards northwest and towards depth. A
drilling program comprising 6000 meter, where the majority is drilled in the
Länsi area, has started in June to investigate the mineralisation further.



Continued core drilling at Ersmarksberget

During the fourth quarter of 2009, a drilling program was resumed to investigate
the previously identified Central and South One gold mineralisation´s at depth.
Within the current mining concession, fourteen core drill holes were drilled
(3 400 meter). The analyses from eight holes aimed at Central and from two aimed
at South One, are available for disclosure (Table 4). The results so far
indicate that further drilling is required towards depth in Central
mineralisation. South One mineralisation has been extended and is still open to
the south. An additional drill program comprising of 3 000 meter core drilling
has been started during May 2010.

Ersmarksberget Core Drilling Phase I.pdf

The goal for the ongoing investigation at Ersmarksberget is to define enough
mineral reserves to allow for profitable mining. If the outcome of the
investigation is positive a mineral resource estimate will be finalised. After
metallurgical tests and estimates of operating costs and a subsequent
calculations of ore reserves it should possible to make a decision in quarter
three 2010 about the potential future start up of production.



For further information:

Kjell Larsson, CEO
Tel 0950-27506 eller 070-385 03 57
E-mail:kjell.larsson@lgold.se

Also visit: www.lapplandgoldminers.com

About Mangold Fondkommission: www.mangold.se

The technical part of this press release has been approved by Risto Virkkunen,
the company´s and by SveMin and FinnMin registered qualified person (QP).



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, as well as on the Norwegian OTC list. 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.



[HUG#1429501]