Axactor SE

Regulatory Filings • Jun 20, 2014

NMG: Nickel Mountain Group successfully completes first round of optimisation tests for Rönnbäcken Nickel Project

NMG: Nickel Mountain Group successfully completes first round of optimisation tests for Rönnbäcken Nickel Project

Nickel Mountain Group AB (publ) (OSE: NMG) is pleased to provide the

following update on the results of the first 8 flotation tests for

process optimisation.

Highlights:

· The tests indicate that costs can be reduced by flotation at natural

pH for most of the process stages; this represents a significant

reduction in processing costs.

· Two stage milling and flotation has been demonstrated to improve

flotation selectivity by 2.9 times compared to one stage milling as used

in previous tests.

· The generation of a 30%Ni concentrate grade from the primary

mill/float stage is feasible. This allows the secondary mill/float stage

the latitude and flexibility to be optimised entirely for the character

of feed it is receiving.

By using natural pH in rougher flotation and in the first stages of

cleaner flotation significant cost savings can be achieved compared to

previous estimations. The use of natural pH in flotation also has

significant environmental benefits as it reduces the amount of chemicals

in the flotation process and hence the requirements associated with

transportation and storage.

From a processing perspective the introduction of an intermediary

flotation step to treat primary mill product in a production plant

environment will allow better control of gangue and magnesium-bearing

minerals.

In a production plant a two-stage milling circuit will be used to obtain

the fine grind required of 80%-50?m. For convenience, laboratory test

work to date has used a single stage mill. This is known to be

inefficient when grinding to less than 75µm and it was suspected that

gangue and magnesium-bearing host rock were being overground and thereby

significantly raising their floatability - a situation which may not be

realistic on a production scale.

Test work showed this to be the case. Relative to one-stage grinding to

80%-50?m, primary grinding to 50%-75?m reduces gangue and magnesium

floatability and improves nickel selectivity by 2.9 times. In turn, this

aids the control of gangue and magnesium-bearing host rock in the

secondary mill/float stage.

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

Torbjörn Ranta

Managing Director

For information, please contact:

Torbjörn Ranta

Managing Director

Tel: +46 8 402 28 00

Mobile: +46 708 855504

E-mail: torbjorn.ranta@nickelmountain.se

Or contact:

Erlend Dunér Henriksen

Deputy board member

Mobile: +47 920 18 950

E-mail: erlend@henriksen.as

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.