Axactor SE

Legal Proceedings Report • Oct 31, 2014

NMG: SAC issues a positive ruling in the judicial review regarding the granting of exploitation concessions to NMG

NMG: SAC issues a positive ruling in the judicial review regarding the granting of exploitation concessions to NMG

The exploitation concessions granted to Nickel Mountain Group ("NMG") by

the Swedish Chief Mine Inspector have been a heavily debated issue over

time. Vapsten reindeer husbandry co-operative ("Vapsten") conducts its

reindeer husbandry in the area of the Rönnbäcken nickel project. Vapsten

has tried to stop or delay the project with reference to its concerns

that the project will negatively influence the reindeer husbandry around

the area of the future nickel mine. NMG respects Vapsten's position,

although NMG considers that the mining activities and the reindeer

herding can co-exist.

Vapsten appealed the Chief Mine Inspector's decisions to grant three

exploitation concessions for the Rönnbäcken nickel project. In 2013

Vapsten applied to the SAC (Sw: Högsta Förvaltningsdomstolen) for a

judicial review of the Swedish Government's decision to dismiss the

appeals. A hearing took place in Stockholm in June this year.

The SAC (Swedish Supreme Administrative Court) has now published its

ruling dated October 29, according to which the Government's decision is

upheld. The SAC finds that Government's decision is not in conflict with

any rule of law.

The ruling by the SAC is not a decision that assesses the detailed

environmental issues relating to the possible future mining activities.

These issues will be assessed by the Land and Environment Court in the

coming process for a permit under the Environmental Code.

For NMG this SAC ruling is important since the pending process has

created a lot of uncertainty for the project. NMG can now move forward

with the initiated pre-feasibility study (PFS) and later on submit its

application for an environmental permit.

For and on behalf of the Board of Directors of Nickel Mountain Group AB:

Torbjörn Ranta

Managing Director

For more information, please contact:

Torbjörn Ranta

Managing Director

Tel: +46 8 402 28 00

Mobile: +46 708 855504

E-mail: torbjorn.ranta@nickelmountain.se

Cautionary Statement: Statements and assumptions made in this document

with respect to Nickel Mountain Group AB's ("NMG") current plans,

estimates, strategies and beliefs, and other statements that are not

historical facts, are forward-looking statements about the future

performance of NMG. Forward-looking statements include, but are not

limited to, those using words such as "may", "might", "seeks",

"expects", "anticipates", "estimates", "believes", "projects", "plans",

strategy", "forecast" and similar expressions. These statements reflect

management's expectations and assumptions in light of currently

available information. They are subject to a number of risks and

uncertainties, including, but not limited to, (i) changes in the

economic, regulatory and political environments in the countries where

NMG operates; (ii) changes relating to the geological information

available in respect of the various projects undertaken; (iii) NMG's

continued ability to secure enough financing to carry on its operations

as a going concern; (iv) the success of its potential joint ventures and

alliances, if any; (v) metal prices, particularly as regards nickel. In

the light of the many risks and uncertainties surrounding any mineral

project at an early stage of its development, the actual results could

differ materially from those presented and forecast in this document.

NMG assumes no unconditional obligation to immediately update any such

statements and/or forecasts.