Axactor SE

Regulatory Filings • Jun 20, 2014

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

Nickel Mountain GroupAB (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%-50μm. 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%-50μm, primary grinding to 50%-75μm 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 toNickel MountainGroupAB'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 usingwords 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 whereNMGoperates; (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 fromthose presented and forecast in this document. NMGassumes no unconditional obligation to immediately update any such statements and/or forecasts.