Nordic Mining ASA

Earnings Release • Aug 15, 2023

Nordic Mining ASA (EN Expand:NOM): Interim report per 30 June 2023

Nordic Mining ASA (EN Expand:NOM): Interim report per 30 June 2023

Please find enclosed Nordic Mining's interim report and company presentation for

the second quarter of 2023. The interim report and company updates will be

presented from the construction site for Engebø Rutile and Garnet today, Tuesday

15 August 2023 at 11.00 (CET). The presentation and Q&A session will be held in

English and transferred via webcast. You will have the opportunity to post

questions online throughout the webcast session. The webcast will be available

on: https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20230815_6

Summary of important events in the second quarter of 2023 and year to date:

KEY EVENTS

· Nordic Mining's first Transparency Act Report released in June 2023

· Final investment decision for Engebø Project, following completion of

project financing

· Engebø Rutile and Garnet progressing on plan with construction at Engebø

· Engebø Rutile and Garnet USD 100 million senior secured bond listed on

Nordic ABM

· Binding offtake agreements for full production of minerals for the first 5

-years of production

· Memorandum of Understanding for offtake of pyrite

· The Norwegian state to support Nordic Mining in Supreme Court

CORPORATE

Nordic Mining's first Transparency Act Report released in June 2023

In June 2023, Nordic Mining released its Transparency Act Report for 2023. The

report is available on the company's webpage:

www.nordicmining.com/sustainability/corporate-responsibility/

Final investment decision for Engebø Project, following completion of project

financing

In March 2023, Nordic Mining secured the remaining equity component of the total

USD 277 million project financing package for the Engebø Project in a private

placement of NOK 940 million. The private placement was resolved by the

Extraordinary General Meeting and Board of Directors on 3 March 2023 and

contributed to Engebø Rutile and Garnet on 8 March 2023, satisfying all relevant

financing conditions. The gross proceeds from the private placement, together

with the equity from the sale of the shares in Keliber corresponding to around

NOK 474 million, the USD 100 million in senior secured bond issued by Engebø

Rutile and Garnet in November 2022 and USD 50 million non-dilutive royalty

financing agreement entered into between Engebø Rutile and Garnet and mining

investment firm Orion Resource Partners ("Orion") in February 2023 is expected

to fund all costs and expenditures to bring the Engebø Project into commercial

production, including a project reserve of USD 30 million. The royalty agreement

entails that Orion will pay USD 50 million to Engebø Rutile and Garnet as a

fixed, one-time consideration for the right to receive a 11 % royalty of the

gross revenue from the sale of products from the Engebø Project for up to 90

years. Engebø Rutile and Garnet has the right to buy back 50% of the royalty

against a reduction in the royalty payments to 5.5%. The royalty financing will

hold second priority lien on senior security package, subject to the terms of an

Intercreditor Agreement. The financing agreements, including the royalty

agreement, are subject certain pre-disbursement conditions precedent order for

Engebø Rutile and Garnet to draw down any amounts under the financing, including

i.e. that all equity contributed to Engebø Rutile and Garnet has been spend

towards the development and construction of the Engebø Project. The royalty

agreement will not have any accounting effects until drawdown of the one-time

consideration of USD 50 million, except transaction costs related to completion

of the royalty financing agreement. Please see note 7 for more information on

financial costs.

In April 2023, the subscription period for a subsequent offering in Nordic

Mining of up to 216,666,667 new shares at a subscription price of NOK 0.60 per

share expired. The final number of valid subscriptions received in the

subsequent offering was 136,544,091, of which all was allocated in accordance

with the allocation criteria set out in the prospectus. The new capital was

registered in Norwegian Register of Business Enterprises and the shares issued

on 28 April 2023. The gross proceeds from the subsequent offering were

approximately NOK 81.9 million.

ENGEBØ RUTILE AND GARNET AS (100% ownership)

Nordic Rutile AS changes company name to Engebø Rutile and Garnet AS

In June 2023, Nordic Rutile AS changed its company name to Engebø Rutile and

Garnet AS ("Engebø Rutile and Garnet"). The amended Articles of Association,

including the change of company name and company address, has been registered in

the Norwegian Register of Business Enterprises.

Kenneth Nakken Angedal, who has had the position as Operations Director for

Engebø Rutile and Garnet, was at the same appointed Managing Director, and will

report to the CEO of Nordic Mining. Angedal will have the overall responsibility

of the Engebø Project.

Engebø Rutile and Garnet progressing on plan with construction at Engebø

Following completion of project financing of the Engebø Project in March 2023

the four lump-sum EPC ("Engineering, Procurement and Construction") contracts

with Sunnfjord Industripartner AS, Åsen & Øvrelid AS, Nordic Bulk AS and

Normatic AS were fully activated. The local groundworks contractor, Sunnfjord

Industripartner AS, has undertaken the groundworks on the process plant area and

preparatory works for underground infrastructure at Engebø under the lump-sum

EPC contract since April 2022. Local EPC building contractor, Åsen & Øvrelid AS,

has reached the milestone of fully enclosed walls and roofs on the

administration and workshop buildings. Detail Engineering on the process plant

is ongoing by Nordic Bulk AS and Normatic AS. The main parts of the Detail

Engineering were completed in Q2 2023, and fabrication of steel and other

equipment has started.

In the second quarter of 2023 Engebø Rutile and Garnet completed several

milestones, closing out several risks related to HSE, capital expenditure and

schedule.

· Completed ore conveyor primary crushing chamber, and new bypass tunnel for

improved operational flexibility.

· Completed new 3 km access road to the mining service area.

· Completed raise bore drilling of ore vertical pass with diameter of 4.5

meters and 220 meters length to the top of Engebø with collar positioned at 285

meters above sea level.

· Geotechnical safety measures completed on rockfaces at the process plant

area and in primary crushing chamber.

· Completing soil cover at "Stommelshaugane" to reuse fertile soil from the

process area.

· Finalized mining service area base plot, ready for construction of mining

workshop.

· Erected admin and workshop building with roof and walls fully enclosed.

The civil work for the process plant buildings is well advanced and preparatory

work for mechanical and electrical work will start in Q3. Mechanical

installations are expected to start for both the underground crushing chamber

and process plant in October 2023.

The full financing and final investment decision of the Engebø Project in March

2023 allowed Engebø Rutile and Garnet to move forward with the fabrication of

long lead mechanical packages for the process plant. The client provided items

("CPIs") are procured directly by the Group and are made with leading global

suppliers of sustainable solutions for the mineral industry, including

agreements with Metso Outotec and Mineral Technology, suppliers of sustainable

end-to-end technologies, solutions, and services for the minerals industry

globally, for delivery of a comprehensive mining processing technology packages.

The current estimates for delivery time and costs for the CPI packages are in

line with expectations.

The operational team at Engebø is growing and several new key resources are

onboarding in Q3 2023 with preparations being made to open further new positions

for hire in the coming quarter.

Engebø Rutile and Garnet USD 100 million senior secured bond listed on Nordic

ABM

In April 2023, Nordic Rutile USD 100 million 5-year senior secured bond with

ISIN NO0012734112 was listed on Nordic ABM with listing date 12 April 2023.

Following the change of company name to Engebø Rutile and Garnet in June the

ticker on Nordic ABM is ERUGA01 PRO.

Binding offtake agreements for full production of minerals for the first 5-years

of production

In 2022, Engebø Rutile and Garnet entered into two rutile offtake agreements,

the first with Iwatani Corporation for close to 60% of the planned rutile

production for the first 5-year and the second agreement in October 2022 for up

to the remaining annual planned rutile production for the first 5-year. The

consideration under the rutile offtake agreements will be based on the market

price for 95% natural rutile concentrate, adjusted for actual TiO? content, as

determined from TZMI index or annual price discussions between the parties.

In January 2023, Engebø Rutile and Garnet entered into a global exclusive

offtake agreement for the full planned garnet production from Engebø for the

first 5 years of production. The offtake agreement is for the supply and

delivery of minimum total of 762,500 metric tonnes of garnet concentrate in the

5-year contract period, up to a total of 785,000 metric tonnes, which is the

full planned garnet production the first 5-years of production. Further to the

initial garnet offtake, the parties shall discuss extension of the cooperation,

comprising for example joint marketing, sales, and distribution of garnet from

the Engebø Rutile and Garnet Project. The consideration under the garnet offtake

agreement will be based on a pre-agreed price schedule.

Nordic Mining has with the rutile and garnet offtake agreements secured

committed sales for up to the full production of all minerals from the Engebø

Rutile and Garnet Project for the first 5 years of production, all with highly

reputable buyers. The offtake agreements are inter alia subject to certain

conditions precedent.

Memorandum of Understanding for offtake of pyrite

In February 2023, the Group entered into a Memorandum of Understanding ("MoU")

for a long-term joint cooperation for the offtake of pyrite from the Engebø

Project. Pyrite (Iron sulfate) is a mineral that is present in the Engebø

Eclogite-ore and that will be separated in the process of purifying the rutile

concentrate. Nordic Mining will in partnership with Green Trail Holding Ltd, a

trading company with over 30 years of experience, together pursue market

opportunities for pyrite as a new mineral production stream. Pyrite has

previously been considered as a residual waste stream from the Engebø Project.

The successful production, marketability and sale of pyrite can potentially

create value from residual mineral waste streams and reduce the need to deposit

pyrite as part of the tailings. Further, it has the potential for a significant

reduction of chemical additives in the tailings. Even though the project is

fully permitted and considered environmentally safe by the Norwegian

authorities, any reduction in additives in the tailings is regarded positive and

further reduces the risk of environmental impacts. The process plant design

already allows for finalization of the pyrite as a separate mineral concentrate

stream, with minimum additional infrastructure requirements.

Rutile demand supported by welding and Ti-sponge market segments

Titanium metal demand, being an important driver for rutile, remained robust in

the second quarter of 2023 driven by the steady demand for aircraft and general

industrial applications, combined with demand for non-Russian products. The

outlook remains strong for the rest of 2023.

For titanium feedstock producers the second quarter 2023 showed a mixed picture.

Rutile sales volumes were reported to be on par with production levels, with

reported average prices showing a minor increase from the first quarter of this

year. The TiO2 industry showed recovery in Q2-2023 compared to Q1; however, the

expected recovery of pigment demand was below expected levels due to softer real

estate markets in China, North America and Europe, and higher interest rates in

North America and Europe. Reported inventories are still low due to the actions

taken in the 9 months.

Reported bulk natural rutile prices in Q2 2023 was around USD 1,480/mt FOB and

above, with the main producers expecting pricing to remain in this range going

forward.

Industrial garnet demand in North America was variable in the second quarter of

2023. High inventories and concern for the US debt ceiling slowed demand in

April and early May. This trend reversed in June, with fairly strong demand.

Demand in Europe remained depressed in the second quarter due to softness in

larger economies. The economic pressures were directly reflected in demand for

waterjet cutting garnet. Demand for blasting garnet remained more stable on

basis of ongoing projects and strong demand in the shipbuilding and offshore

sectors. The sale of new waterjet machines remained steady in the quarter. This

is expected to continue backdrop of slowdown in capital investments for the rest

of 2023. Garnet selling prices in the main markets of North America and Europe

are coming under pressure as freight rates from Asia have reduced to pre

-pandemic levels.

The Norwegian state to support Nordic Mining in Supreme Court

In April 2023 the Supreme Court's appeals committee informed that the appeal by

Artic Mineral Resources ("AMR") on the ruling from Borgarting Court of Appeal

will be heard before the Supreme Court. In May 2023 the Attorney General of

Norway has confirmed to the Supreme Court that the Norwegian state will support

Nordic Mining and participate in the Supreme Court proceedings handling the

appeal by AMR. The hearing is tentatively scheduled to take place late October

2023. The Oslo District Court and the Borgarting Court of Appeal both ruled in

favor of Engebø Rutile and Garnet and concluded that AMR shall pay Engebø Rutile

and Garnet's legal expenses. The court rulings were in line with the operating

license granted by the Ministry of Trade, Industry and Fisheries in May 2022.

NORDIC OCEAN RESOURCES AS (100% ownership)

Nordic Mining has during the last year considered various strategic

opportunities within seabed minerals. The lead time to develop and establish

viable and commercial exploitation of seabed minerals resources is considered

excessive compared to opportunities on land. Following a strategic review,

Nordic Mining has therefor decided to pause the engagement in seabed minerals

exploration and prioritize onshore opportunities within Nordic Mining's current

strategy of exploration and production of high-end minerals and metals.

Oslo, 15 August 2023

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. The Company is undertaking a

large-scale industrial development at Engebø on the west coast of Norway through

its wholly owned subsidiary, Engebø Rutile and Garnet, which has mining rights

and permits to a substantial eclogite deposit with rutile and garnet.

In addition, Nordic Mining holds interests in other initiatives at various

stages of development. This includes patented rights for a new technology for

production of alumina and exploration of seabed minerals. Nordic Mining's

project portfolio is of high international standard and holds significant

economic potential.

Nordic Mining is listed on Euronext Expand Oslo with ticker symbol "NOM".