Lappland Goldminers files for bankruptcy

The Board and the Chief Executive Officer of Lappland Goldminers AB (publ) (”the
Company”) have decided to file a petition of bankruptcy for the Company. The
trading of the shares has been halted.
The Company has previously submitted an application for a composition proceeding
at the Lycksele District court, scheduled to April 1st 2014. The composition
proposal is conditioned by that the subsequent set off issue and preferential
rights issue can be executed, strengthening the balance sheet and providing the
Company with SEK 40 million in new capital to secure a continued going concern.

The set off issue and the subsequent preferential rights issue are subject to
that the current gold production and associated costs thereto are in line with
the projections made under the restructuring plan for the Finnish subsidiary
operating the mine.

The achieved gold grades from production in the Finnish subsidiary have, since
end of February 2014, been significantly lower than projected, which has
affected the gold production of the Company negatively. This has resulted in
that the Finnish subsidiary does not have coverage for their production cost
and, consequently, the company will be unable to generate the necessary
liquidity required to meet the financial assumptions on which the restructuring
program for the Finnish subsidiary is based.

Based on the financial position of the Parent company at present, the
prerequisites to successfully execute the planned share issues, which is
imperative for the company to be able to conclude the ongoing restructuring
process and to secure going concern, are missing.

The Board of the Company has, for this reason, made the assessment that the only
realistic alternative is a liquidation of the Company and its operations by way
of a bankruptcy proceeding. The petition for bankruptcy will also be submitted
for the Swedish subsidiary Lappland Goldminers Fäboliden AB.

Lappland Goldminers AB (publ)

For additional information, please visit: www.lapplandgoldminers.se or contact:

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

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

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

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.