Axactor SE

Legal Proceedings Report • Feb 12, 2014

NMG: The Swedish Government states that Vapsten's complaint to CERD should be declared inadmissible

NMG: The Swedish Government states that Vapsten's complaint to CERD should be declared inadmissible

Nickel Mountain Group AB (Nickel Mountain) summarizes as follows the

communication from the Swedish Government (the Government) to the UN

Committee on the Elimination of Racial Discrimination (CERD) regarding

the projected mining operations in Rönnbäcken. The communication is a

response to a committee note, asking for the Government's view on the

admissibility of a complaint made to CERD by the Vapsten Sami Village

(Vapsten), and a request to suspend all mining operations in Rönnbäcken.

The communication expresses the Government's position that Vapsten's

complaint should not be tried by CERD, for the following reasons.

Firstly, the Government clarifies that no mining operations are

conducted in Rönnbäcken at this point and that such operations are not

permitted until Nickel Mountain has applied for, and been granted, an

environmental permit by the Land and Environment Court. Hence, there are

no operations to suspend. Moreover, an exploitation concession does not,

in itself, have any significant impact on the possibilities to carry out

reindeer herding in these areas. The Government therefore does not

consider Vapsten to be victims under the Convention on the Elimination

of All Forms of Racial Discrimination (the Convention).

Secondly, the Government states that Vapsten has not shown that they,

due to their Sami ethnic origin, have been treated less favorably than

other parties affected by the exploitation concession. Instead,

Vapsten's petition focused mainly on the right to property. Since the

Convention is only applicable to arguable claims of racial

discrimination in relation to the rights of the Convention, the

Government considers that the claims brought by Vapsten cannot be tried

by the CERD.

Finally, the Government stated that Vapsten cannot be considered to have

exhausted domestic remedies, which is a requirement for CERD to admit

the case. Vapsten has applied for a judicial review of the Government's

decision on the exploitation concession and the matter is still pending

before the Supreme Administrative Court. Such a review includes a re

-assessment of the facts, the evidence and whether the decision in

question violates the principles of objectivity, impartiality and

everybody's equality before the law.

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

Torbjorn Ranta

Managing Director

For information, please contact:

Torbjorn Ranta

Mail: torbjorn.ranta@nickelmountain.se

Tel: + 46 8 402 28 00

Mobile: +46 708 855504

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) changes in 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.