Nordic Mining ASA — Interim / Quarterly Report 2017

May 11, 2017

Nordic Mining's interim report per 31 March 2017

Nordic Mining's interim report per 31 March 2017

Enclosed please find Nordic Mining's interim report for the first quarter 2017.

The interim report and company updates will be presented tomorrow, Friday 12 May

2017 at 10.00 in the company's office at Vika Atrium, Munkedamsveien 45

(Entrance A, 5th floor), N-0250 Oslo.

Important events in the first quarter 2017 and year-to-date:

Corporate overview

· Profitable first quarter due to upgrade of Keliber value

In Q1 2017, the total net result for the Group was positive. The net profit from

the associated company Keliber amounting to NOK 10.2 million was higher than the

Group's operating loss. The positive result from the associated company is

explained from reversal of previous impairment and a profit resulting from

recent equity issues in Keliber where Nordic Mining's shareholding were reduced

(deemed disposal).

· Fully financed for planned development activities in 2017

· Value increasing feasibility studies well under way

The ongoing feasibility studies for the Engebø rutile and garnet project (pre

-feasibility study - PFS) and the Keliber lithium project (definitive

feasibility study - DFS) are important ongoing value increasing activities. Both

studies will be completed in the second half of 2017.

Engebø rutile and garnet project

· Mining and processing planning based on two attractive minerals

The Engebø project will be developed as a dual mineral operation with rutile and

garnet, providing strategic and commercial strength and flexibility.

· Crushing and grinding circuit defined

A comprehensive and systematic test program has been completed, and the chosen

crushing and grinding setup demonstrates high performance in terms of mineral

liberation and operational parameters.

· Significant progress in rutile process test work

The test work program has achieved a rutile product of 95% TiO2 at recoveries

exceeding 50%. Work is ongoing to improve the recovery even further whilst

maintaining product quality. The process solution is based on industry standard

process technology, combining methods such as magnetic, gravimetric and

electrostatic separation.

· Garnet optimisation test work ongoing

Garnet production is divided in coarse and fine product streams. Fine garnet

products have been produced to market specifications, and focus is now on

developing the coarse garnet production flowsheet.

· Improved market outlook for rutile and garnet

Product prices for titanium feedstock, including rutile, has increased over the

last months. Going forward, the supply/demand balance is expected to further

tighten, and the price outlook is positive. The garnet market is developing and

the demand growth in the coming years is expected to be higher than the general

growth of the global economy (GDP).

· Increasing production and sales potential for Engebø garnet

Updated market perspectives for garnet indicate that the long-term sales target

for the Engebø project will exceed the previously communicated level of 200,000

tonnes per annum.

Keliber lithium project

· Positive lithium market development

The lithium market is developing positively, and product prices have increased.

The demand for lithium in various applications is growing fast, in particular

related to batteries for electric/hybrid vehicles and energy storage where the

expected annual growth rate in the coming years is estimated at a level of 14%

(Roskill). Contract prices for lithium carbonate have generally doubled in 2017

compared to 2016. Going forward, a tight market balance for battery grade

lithium carbonate is expected. Current spot prices in China are reported to be

well above the indicated contract level of USD 13 - 14,000 per tonne.

· Good progress on definitive feasibility study

A comprehensive work program is ongoing related to the definitive feasibility

study (DFS) which is aiming to provide a solid foundation for the subsequent

project financing to implement the lithium project.

· Construction start in 2018

Keliber's current plan targets completion of the ongoing permitting process and

start of construction in 2018.

· Financing of project development work

In March 2017, Keliber executed a private placement with gross proceeds of EUR

5.0 million. A repair issue was executed in April, also with gross proceeds of

EUR 5.0 million. In addition, an incentive share issue for board members was

completed in April with proceeds of EUR 0.1 million.

Nordic Mining participated pro-rata to its shareholding in the repair issue.

Following from the equity issues year-to-date in Keliber, Nordic Mining's

shareholding is approximately 22%.

Other

· Completion of second tranche of private placement

In January 2017, Nordic Mining completed the second tranche of the private

placement which was initiated in December 2016. The gross proceeds were around

NOK 6.9 million. The second tranche of the private placement was approved by the

extraordinary general meeting on 10 January 2017.

· Annual report 2016

Nordic Mining's annual report for 2016 was published 24 April 2017.

· Ordinary general meeting

The ordinary general meeting in Nordic Mining will take place on 23 May 2017.

For further information, please contact CFO Lars K. Grøndahl on telephone +47

901 60 941.

Oslo, 11 May 2017

Nordic Mining ASA

Nordic Mining ASA (www.nordicmining.com)

Nordic Mining is a resource company with focus on high-end industrial minerals

and metals in Norway and internationally. The Company's project portfolio is of

a high international standard and holds a significant economic potential. The

Company's assets are in the Nordic region.

Nordic Mining is undertaking a large-scale project development at Engebø in Sogn

and Fjordane where the Group has rights 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. 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. Nordic Mining is also exploring

opportunities related to seabed mineral resources.

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