Nordic Mining ASA — Earnings Release 2016

Nov 30, 2016

Update on the Engebø rutile project

Update on the Engebø rutile project

Activities in connection with the ongoing pre-feasibility study ("PFS") are

progressing well. Preliminary plans have been established for open pit and

underground mine operations. Comprehensive test work is carried out to optimise

recovery of rutile and garnet products from the Engebø deposit. Market

information for garnet products indicates a potential for significantly higher

garnet sales than previously assumed.

Mine planning

Preliminary plans have been established for the open pit and the underground

mine operations. The resources in the measured and indicated categories as

published in the JORC compliant report in September 2016 (ref. stock market

release 12 September 2016) are the basis for the extraction planning. In

addition, the inferred category resources are considered in connection with

capacity evaluation and optimisation.

Hatch, the technical coordinator of the PFS has done extensive analyses to

determine the size and shape of the open pit, and the pit design can now be

finalised.

Assessment of mining methods for the underground operations is ongoing. Together

with Hatch, SINTEF Building and Infrastructure is assessing geotechnical

information to optimise the extraction rate.

Processing test work

A comprehensive test program has been initiated in collaboration with Hatch's

expert team in South Africa to maximize recovery of suitable rutile and garnet

products from the Engebø deposit.

Process testwork is carried out at IHC Robbins in Australia. IHC Robbins is a

leading consultancy company with core competence in heavy minerals separation

(including rutile). Currently, the Engebø test work has high priority at IHC

Robbins and wet processing tests (spiral separation and magnetic separation)

have been carried out. Further test work will include dry magnetic separation

and electrostatic separation.

In addition, the Norwegian University of Science and Technology (NTNU) is doing

processing tests to produce samples of rutile concentrate.

Comminution tests, i.e. grinding and crushing, are carried out at different

vendors and consultants to evaluate suitable equipment and to optimise mineral

liberation and operating costs.

Garnet market information

Market studies for rutile and garnet have been initiated in connection with the

PFS. So far, preliminary information of the garnet market has been obtained. An

update on the rutile market will be given at a later stage.

Generally, garnet consumption is closely linked with the general state of the

economies. The primary markets for garnet are in waterjet cutting and abrasive

blasting with additional market of coarse product in water filtration. There is

also a market in abrasion resistant material such as flooring.

In waterjet cutting, garnet is the dominant abrasive used. Previous test work

has demonstrated that the Engebø garnet is of high quality, well suited for

waterjet cutting applications. For blasting abrasives, garnet competes with

several other materials, i.a. various slag, crushed glass and olivine, mainly

based on price. In certain applications and for harsh environment, coarse

grained garnet is the preferred blasting abrasive, i.a. in the offshore oil and

gas industry.

The potential for the Engebø garnet is considered to be more favourable than

previously assumed. Therefore, and due to the substantial garnet content of the

deposit, Nordic Mining will target a significantly higher sales volume and a

wider product specter than indicated at an earlier stage. The new target volume

for garnet is at a level of 200,000 tonnes per year, which is a doubling of the

previous sales volume assumption. Hence, a higher garnet revenue potential

compared with previous assumptions will be targeted as part of the ongoing PFS

work.

For questions please contact Project Manager Thomas B. Addison, telephone

+47 971 21 339.

Oslo, 30 November 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 with ticker symbol "NOM".