Nordic Mining ASA — Management Reports 2018

Mar 19, 2018

Engebø Rutile and Garnet; update on feasibility study

Engebø Rutile and Garnet; update on feasibility study

Following from the successful completion of the prefeasibility study (PFS) for

the Engebø rutile and garnet project in October 2017, a comprehensive work

program related to the definitive feasibility study (DFS) is now progressing.

The work program includes i.a. geological and geotechnical assessments, process

optimisation and verification, mine design and detailed engineering and

preparations related to project execution.

The international engineering and consultancy company Hatch has been appointed

for technical advisory services and coordination of the DFS. Hatch was also the

technical advisor and coordinator of the PFS. An update of ongoing activities

and work program is summarised below.

Drilling program finalised

A limited drilling program was carried out at Engebø from mid-January to mid

-February 2018. The drilling went according to plan. In total, 1,581 meters was

drilled in 10 drill holes. The aim of the drilling was to increase the knowledge

of the ore body and the geotechnical conditions in the open pit.

Drill core logging is completed and drill cores are being chemically assayed.

The data will be basis for updating of the current block model and ore

classification. Qualified Person, Adam Wheeler is responsible for this work, and

will complete an updated resource estimate within April 2018.

The international mining consultancy company, SRK has been contracted for

geotechnical, hydrogeological and structural logging and modelling based on

drill hole data. SRK will make recommendations on slope angles and stability

conditions for the open pit and underground infrastructure.

The resource and pit stability assessments will form a basis for Hatch's final

open pit design and mine schedule, assessing ore and waste rock tonnages from

the open pit mining operation. Consideration of measures to optimise the mine

plan is ongoing.

Process optimisation and flowsheet design

The DFS process test work is divided in three stages 1) process optimisation, 2)

repeatability demonstrations, and 3) ore variability testing.

The process optimisation test work is well under way. Tests carried out at IHC

Robbins (IHC) in Australia have been successful in making cost saving changes to

the flowsheet and confirming some critical process parameters.

Ongoing work is carried out at IHC and Light Deep Earth (LDE) in South Africa to

investigate process solutions to recover additional coarse garnet. The coarse

garnet distribution in the deposit is complex. Optimal crushing and grinding, as

well as maximising recovery is important to secure stable output volumes of

coarse garnet from the process plant. After process optimisation, bulk samples

will be processed at IHC and LDE for repeatability and variability testing.

Process test work is currently on the critical path for the DFS. The assurance

of an optimised, cost efficient and robust flowsheet as the basis for

engineering and detailed design is crucial. The DFS timeline will be reviewed

based on the progress of critical path activities.

Strengthening of organisation and project execution planning

Recruitment processes have been initiated to strengthen the Engebø project team

both on project management as well as for various discipline areas.

The Norwegian engineering and architectural advisory company Asplan Viak has

been contracted to coordinate the planning of fresh water supply to the

processing plant, the re-direction of county road 611 and various detailing of

buildings and infrastructure at the process plant and mining operation areas.

In cooperation with the Directorate for Cultural Heritage and the University

Museum in Bergen, plans have been established for archeological investigations

at selected locations within the regulated industrial area. The purpose is to

register possible cultural heritage footprints in accordance with regulations

and prior to construction start-up. The investigations will be executed in the

second half of 2018.

Nordic Mining aims to secure structured and effective work programs on all

preparatory issues that are important for the overall progress plan for the

project. Dialogue meetings and good communication with Naustdal municipality and

other authorities, as well as the landowners and other stakeholders, are vital

for the implementation of the project.

For further information please contact CEO Ivar S. Fossum, telephone +47

Oslo, 19 March 2018

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.

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. Permits for the project have been

granted by the Norwegian government, and a prefeasibility study was completed in

October 2017. Nordic Mining's associated company Keliber in Finland is in the

process of completing its definitive feasibility study and preparing for

production of lithium carbonate. Nordic Mining has rights for exploration and

production of high-purity quartz in Kvinnherad in Norway. Further, the Company

holds exploration rights at Reinfjord in northern Norway where a prospective

area of sulphide mineralisation has been discovered. Nordic Mining is also

exploring opportunities related to seabed mineral resources.

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