Grängesberg Exploration Holding AB - GRANGEX - presents the results of a Feasibility study (the Study or FS) for the recommencement of mining at their Dannemora Iron Mine, with a carbon free focus. The Study establishes, among more, that Dannemora can be a producer of high-grade iron ore concentrate with a very low carbon footprint, having strong pre-requirements to become a preferred supplier for green steel producers. The Study was prepared and signed by SLR Consulting Limited.

The financial evaluation of the project completed as part of the Study has estimated pre-production capital expenditure including contingency and first year production costs of MUSD 178.3, (MSEK 1,872.6), sustaining capital during the life of mine (year 2 and forward) of USD 17.3 million giving a total CAPEX during the life of mine of USD 195.6 million. The unit operating cost, FOB port of Oxelösund, is USD 54.7/dmt concentrate for production of 68% low sulphur iron ore concentrate. Based on a product price FOB of USD 129/dmt and 10.50 SEK: USD this gives the following financial results, pre-tax[1]; Net Present Value @ 8%; USD 274 million Internal Rate of Return (IRR); 31 % Payback time less than 4 years from production start.

The report is based on recent quotations and price lists and thereby captures the current effects of the inflationary economy, which results in higher capital and operating costs. The process plant flowsheet design criteria targets a mass yield of 36.61% Fe(tot) and a recovery of 76.88% to produce ca. 1.14 Mt/yr.

at a grade of ca. 68.15% Fe when in full production. This is based on 400 t/hr run-of mine (ROM) (3,000,000 t/year) feed at a grade of 32.1% Fe.

The annual ROM rate has been calculated at 2.83 Mt resulting in an average production of 1.01 Mt (dry weight), 68 % iron ore concentrate, meeting the requirements for direct reduction iron (DRI) and thus green steel production. A key conclusion of the FS is the possibility that the Dannemora mining project can be a producer of high-grade iron ore with an extremely low carbon footprint and achieve this by operating a fully electrified underground mining and beneficiation process while producing a high-grade magnetite concentrate with Green Steel credentials. Thus, having the possibilities to become a preferred supplier in the emerging transition of the steel industry towards the production of green steel.

An updated JORC 2012 compliant Mineral Resource Estimate for the mine amounts to 32.20 Mt, at 34.91 % Fe, Measured and Indicated; and 5.94 Mt at 33.33% Fe, Inferred. The Probable Ore Reserves for Dannemora Mine, as of 31stOctober 2022, is estimated to be 31.11 Mt, with 32.10% Fe, at a cut-off grade of 15%, giving a Life of Mine (LOM) of 11 years. Further relogging of existing drill core has resulted in an extension of the Life of Mine (LOM) compared to the Pre-Feasibility Study (PFS).

The exploration potential for most of the interpreted mineralized bodies is open at depth due to the shallow nature of the majority of the drilling. The total Exploration Target tonnage is estimated to be between about 20 Mt and 35 Mt with an estimated grade between of between 34% and 39 % Fe, from a total of seven Exploration Target areas identified.