Grangex AB announced the results of an Updated Feasibility Study ("DFS") for Dannemora, confirming Dannemora's technical and economic viability to be a producer of high-grade magnetite concentrate. The Updated DFS was completed by SLR Consulting Limited ("SLR") in accordance with the JORC Code1). Together with the Company's recent acquisition of the brownfield Sydvaranger iron ore mine in Norway, the completion of the Dannemora Updated DFS further advances the Company's strategy of becoming a leading independent producer of high quality iron ore products for the global green steel revolution.

The conclusion from SLR is that based on the results of the DFS and future market expectations, Dannemora should be advanced to the next stage of development and project financing. Furthermore, SLR have identified a number of potential opportunities to further improve and optimize the development of Dannemora which will now be considered by the Company. Grangex will now, together with its advisors, continue the development of Dannemora towards a final investment decision.

Further announcement regarding Dannemora project development will be made by the Company as appropriate. A cashflow model evaluation has been completed for Dannemora, analyzing capital costs, operating costs and revenue on an annual basis over the full 13-year project life. The Dannemora plan comprises a 28-month pre-development period, followed by 11 years of mine production and processing to a saleable high-grade magnetite concentrate.

A financial model for Dannemora has been prepared based on a run-of-mine ("RoM") estimate of approximately 30.95Mt @ 30.62% Fe, 1.75% Mn and 0.21% S, and on LoM physical schedules, capital and operating costs, discount rate and revenue assumptions provided by the Company and compiled by SLR. A conventional discounted cashflow model has been prepared to derive a Dannemora NPV, IRR, payback period and cashflow results on a before and after-tax basis. A standard discount rate of 8% has been applied that considers cost of capital and geographical risk.

Based on the DFS capital expenditure and operating cost inputs, Dannemora generates a pre-tax USD 269m NPV at a discount rate of 8%, with a pre-tax IRR of 25.6%. This results in a post-tax USD 200m NPV, with a post-tax IRR of 21.9%, and a payback period of 4.09 years from start of production. Total pre-production capital expenditure for Dannemora has been estimated at USD 215.1m, including a USD 18.3m contingency.

Total LoM capital expenditure has been estimated at USD 262.4m, including the pre-production capital expenditure. Estimates have been based on supplier quotations and Company estimates to within an estimated +/- 10-15% order of accuracy, reviewed and compiled by SLR. In the capital expenditure calculations, leasing has been used to finance a major part of the underground equipment (such as loaders, drill rigs and trucks).

Leasing has also been used to finance part of the electrical equipment. The leasing for the underground equipment has been based on a 15% downpayment and the balance payable over the lifetime of the equipment and the monthly leasing cost calculated as operating costs. The leasing of the electrical equipment is based on a proposal received from a major player in electrical power industry in Sweden.