Norrlandsfonden of Sweden provides additional funding for IGE's Rönnbäcken Nickel Project

Norrlandsfonden of Sweden provides additional funding for IGE's

Rönnbäcken Nickel Project

IGE Resources AB (OSE: IGE) today announced that the Company has

accepted a SEK 5 million convertible loan for its Rönnbäcken nickel

project from Sweden's Norrlandsfonden.

The funding from Norrlandsfonden will be used as working capital in the

ongoing exploration and development of the Rönnbäcken project, one of

Scandinavia's largest nickel deposits.

"The participation by Norrlandsfonden is a clear endorsement of the

Rönnbäcken project. Norrlandsfonden recognizes the importance of this

project for the region and is co-funding the Rönnbäcken development with

a long-term perspective. The loan will be well-timed to help finance

Prefeasibility Study activities," said Fredric Bratt, CEO of IGE Nordic.

The SEK 5 million (USD 600,000) loan is designated for use as working

capital for the Rönnbäcken nickel project. The loan is repayable in

eight years, timed to coincide with Rönnbäcken starting to generate

positive a cash flow. In case of conversion to equity, the conversion

rate is fixed at the IGE share price on the date of issue (NOK 0.48 per

share) with a 20 per cent conversion premium. The term of the loan is

STIBOR 90 days (currently 0.67 percent) plus 4 percent. Norrlandsfonden

has indicated that additional funding for the Rönnbäcken project could

be available.

Norrlandsfonden provides risk capital loans for small and medium-sized

companies in Sweden's five northernmost counties. The fund provides

loans, convertible loans and guarantees for start-ups, development and

expansion. For information about the activities of Norrlandsfonden,

please refer to their website

(www.norrlandsfonden.se (http://www.norrlandsfonden.se/))

For additional information, please contact:

Tomas Fellbom

CEO, IGE Resources AB

Phone: +46 8 402 28 00 / Mobile: +46 73 322 57 86

Fredric Bratt

CEO, IGE Nordic AB

Phone: +46 8 402 28 00 / Mobile: +46 762 35 32

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