Lappland Goldminers submits an application to extend the ongoing corporate restructuring process

The Board of Lappland Goldminers has on 20th December 2013, in consultation with
the company’s administrator, submitted an application with the district court of
Lycksele for extension of the corporate restructuring process.
Lappland Goldminers and the subsidiary which owns Fäboliden’s gold project,
Lappland Goldminers Fäboliden AB, was granted corporate restructuring by the
district court of Lycksele on 24th of June 2013. A second restructuring period
covering an additional three months period was granted to the parent company and
subsidiary by the district court of Lycksele on 7th October 2013. The companies
have now applied for a second extension of the restructuring process for an
additional three months period.

Simultaneously with the corporate restructuring process of the Swedish companies
in the group, an equivalent restructuring process is pending in the Finnish
subsidiary, Lappland Goldminers Oy. Lappland Goldminers Oy owns the gold
producing Pahtavaara mine. The Finnish administrator at the law firm Castrén &
Snellman in Helsinki has, in consultation with the Board, submitted a proposed
restructuring plan which will essentially improve the financial situation of the
Finnish subsidiary. The Finnish restructuring proposal contains a composition
scheme of 50 % for the non-prioritised creditors, which is equivalent to a debt
reduction of approximately 30 million SEK should the acceptance be fixed. The
target is to settle the acceptance in the Finnish subsidiary before the end of
January 2014.

The company’s Board is presently evaluating different alternatives to secure a
long-term survival for the group and to simultaneously enable for all the
companies in the group to exit from the ongoing restructuring process. The
analysed alternatives contain cost reductions, debt reductions and
financing/capitalizing measures. The last mentioned aims to primarily handle the
outstanding convertible debt with a total nominal value amounting to122 million
SEK, falling due on 30th December 2013 which the company at present is not able
to repay. Strong measures have already been taken regarding cost reductions in
the parent company. The plan is that implemented cost reductions related to
personnel, office space, consulting costs, negotiations with subcontractors etc.
will reduce the costs with nearly 9 million SEK on a rolling twelve month-basis
with the aim to reduce the costs to a level of around 4 million SEK per year as
from 1st July 2014.

At present the company is focusing on the preparation of a final proposal to
successfully exit from the ongoing restructuring process for both the parent
company and the subsidiary and simultaneously secure a long-term survival and
economic growth. The company is, among other things, presently discussing with
non-prioritised creditors and major holders of convertible bonds aiming to
create conditions to carry out a debt reduction (composition agreement) in
combination with refinancing/financing of the company.

A press release describing the Board’s proposal will most likely be communicated
before the end of January 2014.

Lappland Goldminers AB (publ)

For further information, please see www.lapplandgoldminers.com, or contact:

Thomas Häggkvist, acting VD/CFO                                      Sven
Rasmusson, chairman of the Board

Tel. +46 70-552 26 22
Tel. +46 70-605 83 15

thomas.haggkvist@lgold.se
sven.rasmusson@raspart.se

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Lappland Goldminers AB is a producing mining company. The Company is listed on
the market place First North Premier in Sweden under the name GOLD.

Lappland Goldminers’ strategy is to develop mineral deposits into producing
mines. The Company is strategically positioned with the fully permitted
Fäboliden gold project in northern Sweden. The Pahtavaara gold operation is
located in the north 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.