Scoping Level Sensitivity Studies indicate that Fäboliden has a significant value at the current gold prices

- Work to complete the feasibility study continues

Scoping level sensitivity studies carried out by Golder Associates indicate that
at  the current gold price of USD 1,400 per  ounce, using a discount rate of 8 %
and  assuming that all inferred resources can  be converted to measured and / or
indicated  above the current underground cut-off, Fäboliden has the potential to
yield  an NPV of SEK 1.4 billion and an  Internal Rate of Return (IRR) of 19.2 %
associated  with  a  possible  mineral  resource  of  1.22 million  ounces.  The
feasibility  study is expected to cost  an estimated SEK 26 million to complete.
As  previously announced, the full-year forecast for gold production in 2010 was
reached  already in November.  Combined with the  current gold price, this means
that  no external  financing is  deemed necessary  to complete  the study," says
Kjell Larsson, CEO of Lappland Goldminers.

Background
On  behalf of Lappland  Goldminers, the international  consulting company Golder
Associates  has conducted scoping level studies of  an open pit, coupled with an
underground  mining  operation  designed  to  mine  the  higher grade zones at a
production rate of 1.5 million tonnes per annum. This has provided the basis for
continued work on the feasibility study for the future mine and processing plant
at  Fäboliden.  The  feasibility  study  is  being  carried  out parallel to the
evaluation  of an optimum financing solution for  the project and is expected to
be finalized in the second quarter of 2011.

Financial evaluation of the project
To  facilitate the  assessment of  the project,  a financial evaluation has been
carried  out based on three different gold prices, using an exchange rate of SEK
7.25 per  USD  and  a  discount  rate  of  8%. The  peak  funding requirement is
estimated   at  approximately  SEK  1.3 billion,  including  a  contingency  for
investments  of SEK 225 million. The gold recovery  in the process plant for the
average  grade material has been estimated at 86%. The diagram below illustrates
the  sensitivity of  the net  present value  (NPV) of  the project  assuming the
inferred  resources are converted to measured  and / or indicated,  at different
gold price levels, before and after tax.

A  gold price of  USD 1,400/oz provides an  NPV before tax  of approximately SEK
1,400 million,  while  USD  1,250/oz provides  an  NPV of approximately SEK 800
million and USD 1,100/oz an NPV of just over SEK 200 million.

Optimization
On  July 5, 2010, Lappland Goldminers published  a mineral resource estimate for
Fäboliden.  Based on this estimate,  an extensive effort has  been made with the
purpose  of identifying an optimum strategy for mining and processing based on a
gold  price of USD 1,000 per ounce. A higher gold price may be used in the final
feasibility  study that would improve the profitability of the project. The work
so  far has identified a most appropriate configuration of mining and processing
using:

  * Selective open pit mining with a cut-off grade of 0.5 grams of gold per
    tonne
  * Selective underground mining with a cut-off grade of 1.2 grams of gold per
    tonne
  * Processing plant with an annual capacity of 1.5 million tonnes

Mineral resources
Given  the  above  cut-off  grades,  the  provisional  estimates of Measured and
Indicated Mineral Resources for open pit mining amounts to 6.7 million tonnes of
ore with an average grade of 1.44 grams of gold per tonne. Provisional estimates
of  the corresponding resources  for underground mining  are approximately 15.2
million  tonnes with an average grade of  1.84 grams of gold per tonne, of which
approximately 5,4 million tonnes consist of Inferred Resources. Further drilling
will  be carried  out with  the aim  of converting  Inferred Mineral Resource to
Measured or Indicated Resources.

Permits
Lappland  Goldminers has a  mining concession for  the Fäboliden deposit and was
granted an environmental permit by the Supreme Environmental Court in the autumn
of  2008. The facilities in Fäboliden will be  built to meet rigorous safety and
environmental requirements.

Mine and processing plant
The scenario currently being evaluated involves an open pit mine being mined for
five  years  which  would  provide  access  to  and concurrent development of an
underground  mine  which  would  have  a  life  of  approximately  13 years. The
processing  plant is designed  for an annual  capacity of 1.5 million tonnes and
the  stages of the  process consist of  crushing, autogenic grinding, flotation,
cyanide leaching and elution.

The  reader is  advised that  this study  contains an  economic assessment about
ongoing  studies that  is preliminary  in nature  and includes  inferred mineral
resources  that are considered too speculative geologically to have the economic
considerations  applied  to  them  that  would  enable them to be categorised as
mineral reserves, and there is no certainty that the preliminary assessment will
ever be realised, in whole or in part.

Ersmarksberget
It  was  previously  announced  that  an  updated  mineral resource estimate for
Ersmarksberget  would  be  published  in  December.  This work has been somewhat
delayed and the estimation will instead be published in January 2011.

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For additional information:
Kjell Larsson, CEO
Tel. +46 70-385 03 57
kjell.larsson@lgold.se

Also visit: www.lapplandgoldminers.com

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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  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.


The full press release including the chart can be downloaded from the following
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