Nordic Mining ASA

Earnings Release • May 10, 2023

Nordic Mining ASA (EN Expand:NOM): Interim report per 31 March 2023

Nordic Mining ASA (EN Expand:NOM): Interim report per 31 March 2023

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

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

presented digitally today, Wednesday 10 May 2023 at 10.00 (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/20230510_6

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

KEY EVENTS

· Final investment decision for Engebø Project, following completion of

project financing

· Nordic Rutile USD 100 million senior secured bond listed on Nordic ABM

· Engebø construction on track to start production in 2024

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

-years of production

· Memorandum of Understanding for offtake of pyrite

· Rutile demand weakened in Q1 due to subdued pigment demand

· Supreme Court to hear appeal by Artic Mineral Resources

CORPORATE

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 Nordic Rutile on 8 March 2023, satisfying all relevant financing

conditions for the long stop date. The gross proceeds from the private

placement, together with the equity from the sale of the shares in Keliber, the

USD 100 million in senior secured bond issued by Nordic Rutile in November 2022

and USD 50 million non-dilutive royalty financing agreement entered into between

Nordic Rutile and mining investment firm Orion Resource Partners ("Orion") in

February 2023. The royalty agreement entails that Orion will pay USD 50 million

to Nordic Rutile 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. Nordic Rutile 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 Nordic Rutile to draw down any amounts under the financing, including

i.e. that all equity contributed to Nordic Rutile 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.

The project financing package of in total USD 277 million is expected to fund

all costs and expenditures to bring the Engebø Project into commercial

production, including a project reserve of USD 30 million.

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 PROJECT (100% ownership)

Nordic Rutile USD 100 million senior secured bond listed on Nordic ABM

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

ISIN NO0012734112 was listed on Nordic ABM with ticker NORUT01 PRO with listing

date 12 April 2023.

Engebø construction on track to start production in 2024

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 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. The process plant area has been prepared for

concrete work on the first two buildings, administration and control room

building, and workshop, and we expect to prepare the remaining parts on bench

level 22 on schedule during May 2023. Blasting of the underground crushing

chamber and raise drilling of the vertical ore pass is well under way and we

expect to complete the work on schedule during May. The mine access road to the

open pit tunnel portal and is around 95% complete. Local EPC building

contractor, Åsen & Øvrelid AS, has started the concrete work on the

administration and control room building, and workshop and we expect that work

on the remaining buildings will start in Q2 2023. Currently, the Project has

around 70 workers at Engebø.

Detail Engineering on the process plant is ongoing by Nordic Bulk AS and

Normatic AS. The main parts of the Details Engineering are expected to be

completed in H1 2023, with subsequent bulk procurement and fabrication of steel

to start in Q2 2023. This will allow start of mechanical and electric

installation work and project team is now focusing on detail planning this phase

together with the EPC partners. Further ramp-up of personnel on site is expected

in this period.

The four lump-sum EPC contracts cover around 57% of the remaining plant and mine

capital expenditure of USD 167 million as of 31 March 2023, excluding

commitments of around USD 10 million.

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

2023 allowed Nordic Mining 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, with start of the main mechanical installations expected during Q3

2023. In total, around 78% of the mechanical packages of around USD 30 million

are under contract at the date of this report, with price and delivery agreed.

The Project team is working with a plan for logistics and quality surveillance

of the production.

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

of production

In 2022, Nordic Rutile 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, Nordic Rutile entered into a global exclusive offtake agreement

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 weakened in Q1 due to subdued pigment demand

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

the first quarter of 2023, due to the ongoing revival of air traffic, as well as

demand for non-Russian products. The outlook remains strong throughout 2023.

The first quarter 2023 showed a slower start for titanium feedstock producers.

Rutile sales volumes were below or at production levels and reported average

prices for rutile showed a diverse picture. The first quarter of 2023 has been

mixed for the TiO2 industry; however, in Asia, led by China, signs of recovery

of pigment demand are reported. Pigment demand in North America remained steady

whereas in Europe, reported demand was still weak. Rebound of pigment demand is

projected as European pigment plants have re-started last quarter combined with

the northern hemisphere spring paint season ramp up. Current inventories are low

due to the actions taken in H2 2022

Reported bulk natural rutile prices in Q1 2023 have been from around USD

1,450/mt FOB and above, with the main producers expecting pricing to be steady

onwards.

Supreme Court to hear appeal by Artic Mineral Resources

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

the case between Artic Mineral Resources ("AMR") and Nordic Rutile AS ("NRU")

will be heard before the Supreme Court. The Oslo District Court and the

Borgarting Court of Appeal both ruled in favour of NRU and concluded that AMR

shall pay NRU'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. NRU maintain that AMR's claims have no merit and will continue to

defend the case rigorously and is confident that the ruling from the Supreme

Court will be in NRU's favour, i.e. in line with the previous rulings.

Furthermore, two NGO's have summoned the Norwegian Government claiming that

Nordic Rutile's disposal permit granted by the Norwegian Government in 2015 is

null and void.

Oslo, 10 May 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's project

portfolio is of high international standard and holds significant economic

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

Nordic Mining is undertaking a large-scale project development at Engebø on the

west coast of Norway where the Company has 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 is listed on Euronext Expand Oslo with ticker symbol "NOM".