NORDIC MINES AB (publ) Interim report January - March 2014

First quarter 2014

·         Net sales proceeds for gold and silver amounted to SEK 51.6 million (SEK 85.4 million).
·         The company recorded an operating loss of SEK -36.9 million (SEK -59.0 million).
·         The period's loss after tax amounted to SEK -36.4 million (SEK -45.7 million),
corresponding to SEK -0.11 (SEK -0.17) per share.
·         The period's comprehensive income amounted to SEK -37.0 million (SEK -22.5 million), corresponding to SEK -0.11 (SEK -0.08) per share.
·         Cash and cash equivalents were SEK 21.9 million (SEK 149.7 million) at the end of the period.
·         Investments were SEK 0.5 million (SEK 16.5 million).
·         In total, 187 kilograms of gold (278 kilograms) were produced at the Laiva mine.
·         Since applying for reorganisation, the bank consortium continues to exercise an administrative option of withholding payments from sales of gold, which increases the risk of delayed or missed payments to other creditors, such as suppliers, authorities and employees.
·         On 14 January 2014, the Uppsala District Court decided that the reorganisation proceedings in the Swedish companies would continue for another three months.
·         The legal proceedings initiated by a supplier during the fourth quarter were concluded and paid in January 2014.
·         On 14 February 2014, the Oulu District Court decided that the reorganisation proceedings in the Finnish subsidiary would continue until 30 May 2014.
·         On 12 March, the company announced that the Finnish subsidiary, Nordic Mines Oy, was starting collaboration negotiations with the union representatives to plan a temporary stop in production at the Laiva mine to realise additional cost savings.
·         On 13 March the company announced that Jonatan Forsberg was taking over the role as interim CFO since Susanne Andersson had decided to leave the company.
·         On 26 March a notification for an extraordinary general meeting on 28 April 2014 was announced. The purpose of the meeting is to decide on the Board's decision to conduct a new share issue, proposals for issue authorisation and related proposals aiming to create flexibility in the management of the company's capitalisation and reorganisation.

Post balance sheet events

• On 17 April 2014 the Uppsala District Court decided that the organisation proceedings in the Swedish companies would continue for another three months until 8 July 2014. As of 8 July 2014, the Swedish companies will have been undergoing a reorganisation for 12 months. According to Swedish law, it is not possible to extend a reorganisation beyond 12 months unless there are special grounds for doing so. If a solution is not in place by 8 July 2014, the company runs the risk of bankruptcy.