Axactor SE

Business and Financial Review • Apr 8, 2014

NMG: Nickel Mountain Group activities focused on moving company forwards

NMG: Nickel Mountain Group activities focused on moving company forwards

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

following update of on-going activities of the company in recent months.

Highlights:

· An updated Pre-feasibility Study plan for the Rönnbäcken Project has

been completed by SRK Consulting.

· The final share capital reduction has been registered.

· Work is proceeding on the plan for separation of the Diamond

business segment.

· A court process against previous board members is being prepared by

Company solicitors.

· The Board and management are evaluating various financing options.

"The Board and management of Nickel Mountain Group have undertaken a

number of initiatives aimed at establishing a stable footing for the

company, so that it can focus on steady development of its key asset the

Rönnbäcken Nickel Project. SRK has provided us with a framework for

moving forwards with the Pre-feasibility Study and has incorporated

flexibility into the plan to allow adjustability of the work program,

according to fund availability. We have a number of processes currently

underway this year including restructuring, directed at placing the

company on a stronger financial base. The Board of Directors is taking

measures aimed at enabling a positive future direction for this

company," commented Torbjörn Ranta, Managing Director.

Updated Pre-feasibility Study plan completed for Rönnbäcken Nickel

Project

Nickel Mountain Group (NMG) was presented with a detailed plan for

proceeding with a Pre-feasibility Study (PFS). The international mining

consultancy SRK Consulting (Sweden) AB (SRK) reviewed previous related

work conducted by NMG, and evaluated the remaining project tasks

required to complete a full PFS. PFS work was already initiated early in

2014, including a program of re-logging of 29,000 meters of drill core,

and additional flotation trials aimed at achieving higher recovery

factors and/or lower operating costs. Environmental consultants Golder

Associates were engaged to conduct long-term testing of waste rock and

tailings from the Rönnbäcken Nickel Project. Each of these tasks

represents an important milestone in a PFS, and the results will be

published when received later in the year.

SRK estimates remaining PFS activities to cost Swedish kronor 62 million

(MSEK) including contingencies, which is lower than earlier estimates,

primarily due to a need for less in-fill drilling. Given stable

financing, SRK expects completion of the PFS to require 18 months.

Share capital reduction finally registered

The Extraordinary Shareholders' Meeting (EGM) on November 22, 2013

elected to lower the share capital by reducing par value per share from

Swedish Kronor (SEK) 2.50 to SEK 0.50. The share capital reduction was

registered by the Swedish Companies Registrar ("Bolagsverket"),

following expiry of the notice period at the end of March 2014. The

share capital of NMG now amounts to SEK 10,613,860.50.

Ongoing plan for separating the Diamonds business segment

The Board of NMG has decided on a plan to finally separate the Diamonds

business segment from the rest of the group. Ahead of the separation and

as previously announced, NMG needs to conduct a share issue to the Board

members Svein Breivik and Ole Weiss, Deputy Board member Erlend Dunér

Henriksen and the largest owner Altro Finans AB, in connection with loan

repayments and conversion of receivables. Such a share issue requires an

approved prospectus and the special approval of an EGM, which NMG will

shortly call for. The share issue will be conducted on the same

conditions as the share issue conducted in late January 2014.

Preparations for conducting court process

NMG is pursuing all measures to recover a 50 MSEK receivable on Alluvia

Mining Ltd. Swedish regulators have invalidated the acquisition of Ghana

Gold AB from Alluvia Mining. Moreover, company solicitors have been

engaged to prepare a civil court process against those previous board

members of NMG responsible for damages arising from the invalidated

transaction. NMG's claims will be submitted to the Stockholm District

Court in the spring, barring any new information coming to light. As

this legal process may be drawn-out, NMG has reclassified the claim on

Alluvia Mining from a current asset to a financial fixed asset in its

2013 year-end accounts. The value of the claim has, for reasons of

prudence, been impaired to 30 MSEK, as informed in the most recent

interim report.

External financing options evaluated

At the same time as it is pursuing its claim on Alluvia Mining, the

Board of Directors and management of NMG are actively investigating

opportunities for external financing to cover working capital

requirements during the second half of 2014. The market will be updated,

once specific options have been selected.

Norwegian translation can be obtained from the company by request.

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

Torbjörn Ranta

Managing Director

For information, please contact:

Torbjorn 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.