Axactor SE

Earnings Release • Aug 28, 2014

NMG: 6 month interim report for the period January - June 2014 - Nickel Mountain Group (publ) AB

NMG: 6 month interim report for the period January - June 2014 - Nickel Mountain Group (publ) AB

Highlights during the 2nd quarter 2014

· Work continued on the Rönnbäcken project's Pre-feasibility Study

(PFS) during the second quarter of 2014.

· A debt set-off issue amounting to Swedish Krone 5.6 million (MSEK)

was conducted in May 2014, whereby 1,474,619 new shares were issued at

an issue price of SEK 3.80 per share.

· In June 2014, finally, the separation of the African operations was

completed via a dividend 1:1 pro-rata of subsidiary African Diamond AB

(ADIAM) to the shareholders of NMG.

· A civil law suit against previous board members was filed with the

Stockholm District Court in June.

· At end of June NMG sold the nearly empty subsidiary IGE Diamond AB

for a consideration of MSEK 2 up front. In the future, NMG may get an

additional MSEK 2 given the fulfilment of certain criteria.

· The net result after tax for the six month period January - June

2014 amounted to MSEK -10.2 (MSEK -85.7). This corresponds to earnings

per share (EPS) of SEK -0.49 (SEK -0.47). The EPS figure for 6 m 2013 is

before a reversed share split 10:1 conducted in end of December 2013.

The sale of IGE Diamond has positively affected the net result by

approximately MSEK +2.

· The total comprehensive loss for the first half year of 2014 was

MSEK -11.3 (MSEK -85.6).

· The net result after tax for the April - June quarter of 2014

amounted to MSEK -3.3 (MSEK -79.7). This corresponds to earnings per

share (EPS) of SEK -0.15 (SEK -0.44).

· The total comprehensive loss for the second quarter of 2014 was MSEK

-4.4 (MSEK -76.7).

· At the AGM held on June 4, 2014 a new board of Directors was elected

and the shareholders authorized the Board to decide on new issues of

shares or convertible debt instruments with or without observing the

preferential rights of shareholders. The maximum dilution allowed is

20%.

· The Vapsten Reindeer Herding Co-operative in Northern Sweden, the

major opponent to the Rönnnbäcken Nickel Project, was in the middle of

June granted the opportunity to attend a session of the Supreme

Administrative Court in Sweden (Högsta Förvaltningsdomstolen), in which

the Government's decision not to re-consider the granting of three

exploitation licenses to Nickel Mountain Group underwent a judicial

review. The Court's considerations are expected to be published before

the end of this year.

Events after the end of the reporting period

· In July 2014, NMG took up short-term interest bearing straight loans

from a limited group of investors. The term of the loan is 12 months and

the interest rate agreed is 10% p.a. in SEK. A total amount equivalent

to some MSEK 1.1 was attracted and improved the financial situation

somewhat.

· The financial and liquidity situation of the group is however still

very critical, and the Board and management are together with their

financial advisors investigating ways of attracting more external

financing. If this does not happen in the closest future, the company

may potentially face an insolvency situation.

(Complete report enclosed for the second quarter 2014)