Nordic Mining ASA — Audit Report / Information 2016

Mar 14, 2016

Keliber's Pre-Feasibility Study indicates significant economic potential

Keliber's Pre-Feasibility Study indicates significant economic potential

Nordic Mining's associated company Keliber (Nordic Mining owns approximately

25%) has completed a Pre-Feasibility Study ("PFS") for its lithium project in

Finland. The study indicates a significant economic potential from production of

high-quality lithium carbonate. A preliminary net present value ("NPV") of EUR

92 million based on an 8% discount rate and with an internal rate of return

("IRR") of 20% has been estimated based on an annual lithium carbonate

production of 9,000 tonnes. A possible start of production is indicated late

2018, or early 2019. The estimated payback time from production start-up is

approximately 4 years.

The estimated mineral resource and ore reserve base for the project, as well as

the process flow sheet and Keliber's approach with regard to product and market

strategies, indicate an upside potential which will be further investigated in

the forthcoming Bankable Feasibility Study ("BFS"). Preparations for further

financing have started, and Keliber plans to complete the BFS mid-2017.

Nordic Mining's comments to the PFS

CEO Ivar S. Fossum comments: "We are pleased that Keliber has completed the PFS.

The study outlines the basic parameters for a profitable and robust lithium

project in Finland. The current lithium market is dynamic, indicating a

tightening supply/demand balance going forward. Hence, there is an upside

related to further commercial development compared with the preliminary

financials in the PFS. Keliber's management team has done a good job completing

the PFS as a significant milestone for the development of the lithium project."

Background, participants and scope

Sweco Industry Oy ("Sweco"), with responsible project manager Tomi Keskinen, has

been assigned for coordination of the PFS process. The Competent Persons Markku

Meriläinen (MAusIMM) and Pekka Lovén (MAusIMM), Outotec Finland Oy («Outotec»)

have been responsible for the estimations of mineral resources and ore reserves.

Mineral processing test work to produce spodumene concentrate from the pegmatite

ore has been conducted by GTK Mintec. Outotec has been responsible for the test

work related to production of lithium carbonate from the spodumene concentrate

samples. Based on the above, Outotec has provided the preliminary design of the

technology package for lithium production. The technology package includes the

material balances, process flow diagrams, equipment lists, price estimates and

process descriptions for the selected unit processes.

In the autumn 2015, a market report was prepared by the lithium market

consultant SignumBOX Inteligancia de Mercados ("SignumBOX"). The price

assumptions for the preliminary financial analysis in the PFS are based on the

SignumBOX report.

Sweco has carried out the financial analyses for two scenarios of annual lithium

carbonate production; 6,000 tonnes and 9,000 tonnes, respectively. The 9,000

tonnes per year scenario, which is indicated as the most profitable, will be

developed further in the BFS.

Sweco has presented recommendations to further strengthen and improve Keliber's

lithium project and to reduce risks. The recommendations will be evaluated and

taken into consideration in the development work going forward.

Preliminary project financials

The following key figures have been estimated for the two lithium carbonate

production scenarios:

+--------------------------+---------------------+---------------------+

| |6,000 tonnes per year|9,000 tonnes per year|

+--------------------------+---------------------+---------------------+

|Basic investments |EUR 152 million |EUR 164 million |

+--------------------------+---------------------+---------------------+

|Operating time |16.2 years |11.2 years |

+--------------------------+---------------------+---------------------+

|Payback time from start-up|Approx. 7 years |Approx. 4 years |

+--------------------------+---------------------+---------------------+

|NPV @ 8% discount rate |EUR 51 million |EUR 97 million |

+--------------------------+---------------------+---------------------+

|IRR |13% |21% |

+--------------------------+---------------------+---------------------+

As Keliber has only one project; the lithium project, the basic investments

estimated in the PFS include general costs and management costs. The main part

of the investments, approximately EUR 133 million, is related to the processing

plant for lithium carbonate. The additional investments in the 9,000 tonnes

scenario is mainly related to increased grinding and leaching capacity.

The assumed product mix in the financial analysis is a 90/10 combination of

battery grade lithium carbonate, min. 99.5% Li2CO3, and high-purity grade, min.

99.9% Li2CO3.

The lithium carbonate sales prices are based on the SignumBOX market report from

autumn 2015 which indicates a moderate price increase from a starting point of

USD 6,800 - 8,000 per tonne for the two lithium carbonate qualities. The assumed

prices in the PFS calculations are conservative compared with recent price

information which indicates a tightening market balance. Sensitivity analyses

are included in the PFS to illustrate effects of possible variations in key

assumptions.

Based on the current assumptions, both production scenarios indicate a

profitable project. Due to higher profitability and expected potential from

mineral exploration to further extend the operating time for the project, the

9,000 tonnes per year scenario will be basis for the forthcoming BFS.

Mineral resource and ore reserve estimations

The table below shows the Competent Persons' estimates for the mineral resources

and the ore reserves:

+---------+---------+-------------+----+--------+---------------------+------+

|Deposit |Resource |Tonnage(mill.|Li2O|Reserve |Tonnage(mill. tonnes)|Li2O %|

| |class |tonnes) |% |class | | |

+---------+---------+-------------+----+--------+---------------------+------+

|Syväjärvi|Indicated|1.53 |1.35|Probable|1.48 |1.19 |

| |Inferred |0.19 |1.32| | | |

+---------+---------+-------------+----+--------+---------------------+------+

|Rapasaari|Indicated|1.81 |1.25|Probable|1.75 |1.09 |

| |Inferred |0.16 |1.30| | | |

+---------+---------+-------------+----+--------+---------------------+------+

|Länttä |Measured |0.44 |1.10|Proven |0.47 |0.95 |

| |Indicated|0.91 |1.04|Probable|0.54 |0.93 |

| |Meas. + |1.35 |1.06|Prov. + |1.01 |0.94 |

| |Ind. | | |Prob. | | |

+---------+---------+-------------+----+--------+---------------------+------+

|Outovesi |Indicated|0.28 |1.40|Probable|0.25 |1.20 |

+---------+---------+-------------+----+--------+---------------------+------+

The mineral resources and ore reserves have been estimated using a 0.5% Li2O cut

-off grade. Ore loss is assumed at 5% and waste rock dilution 15% for the

estimated ore reserves. Keliber's mining operations will consist of open pit

mining only. No inferred mineral resources are used in the estimation of ore

reserves. The ore reserves are the portion of the mineral resources that have

been identified as mineable within a design pit.

Process flow sheet and technical descriptions

Comprehensive information is included in the PFS related to the test work and

studies which have been carried out related to production of spodumene

concentrate and lithium carbonate. Further, the report outlines the process flow

sheet and technical descriptions for the project.

For further information, please see the PFS report which will be available on

Keliber's webpage; www.keliber.fi.

For questions please contact CFO Lars K. Grøndahl, telephone +47 901 60 941.

Oslo, 14 March 2016

Nordic Mining ASA

Nordic Mining ASA (www.nordicmining.com)

Nordic Mining ASA ("Nordic Mining" or "the Company") is a resource company with

focus on high-end industrial minerals and metals in Norway and internationally.

The Company's project portfolio is of high international standard and holds a

significant economic potential. The Company's assets are in the Nordic region.

Through the subsidiary Nordic Rutile AS Nordic Mining is undertaking a large

-scale project development at Engebøfjellet in Sogn and Fjordane where the

Company has rights and permits to a substantial eclogite deposit with rutile and

garnet. Permits for the project have been granted by the Norwegian government.

Nordic Mining has rights for exploration and production of high-purity quartz in

Kvinnherad in Hordaland and develops the project through its subsidiary Nordic

Quartz AS. Nordic Mining's associated company Keliber Oy in Finland plans to

start mining of lithium bearing spodumene and production of lithium carbonate.

Nordic Mining holds exploration rights on the Øksfjord Peninsula in Troms and

Finnmark, where the Company has discovered a prospective area of sulphide

mineralisation. Through the subsidiary Nordic Ocean Resources AS, Nordic Mining

is exploring opportunities related to seabed mineral resources.

Nordic Mining is listed on Oslo Axess.