Year-end Report, January – December 2023

Financial development

Fourth quarter, 1 October - 31 December 2023

• Sales amounted to SEK 0 million (0)
• Earnings after tax amounted to SEK -3.1 million (-2.7)
• Investments amounted to SEK 0.8 million (0.3) during the period
• Earnings per share before and after dilution amounted to -0.08 SEK (-0.08)

Full-year, 1 January – 31 December 2023

• Sales amounted to SEK 0 million (0)
• Earnings after tax amounted to SEK -12.9 million (-10.5)
• Investments amounted to SEK 2.1 million (45.0) in January - December
• Earnings per share before and after dilution amounted to -0.35 SEK (-0.28)
• Cash and cash equivalents amounted to SEK 0.9 million (2.7) on December 31, 2023.30, 2023.

Significant events during the fourth quarter 2023

• Nordic Iron Ore AB has entered into loan agreements to extend an existing loan facility by SEK 6.0 million from Bengtssons Tidnings AB with family, Ludvika Holding AB and a group of investors including Fredrik Attefall, Johan Flink och Martin Ramqvist, to a total of SEK 32.0 million. At the same time, the term for repayment for the existing outstanding loans of SEK 26.0 million were prolonged until February 28, 2024.
• Nordic Iron Ore is a partner to “Smart Exploration Research Center”. The research center has been granted SEK 60 million by the Swedish Foundation for Strategic Research and is a multidisciplinary center that will do research on exploration and refinement of metals and minerals. The research is led by Uppsala University and is important for the ongoing energy transition and society’s adjustment to the climate.
• Nordic Iron Ore has followed up on this spring’s exploration of rare earth elements (REE) with additional testing at Blötberget. This testing shows even more promising results and that the total share of rare earth elements amounts to 15,285 ppm (1.53 %) at the most.
• Nordic Iron Ore AB has made an application to Bergsstaten for an additional exploration permit in the proximity of Blötberget. The reason for the application is that initial exploration has given signals that the area is very interesting for expanded exploration.
• Nordic Iron Ore AB entered into loan agreements to prolong the term for repayment for existing outstanding loans of SEK 32.0 million until June 30, 2024. The loan agreements have been entered with the company’s three largest shareholders, a former board member, the company’s CEO and a group of investors.

Significant events after the period

• Nordic Iron Ore AB has received an approval from Bergsstaten on its application for an additional exploration permit in the proximity of Blötberget. A successful exploration of the area could potentially increase Nordic Iron Ore’s mineral resources.
• Nordic Iron Ore has entered into an agreement with ABG Sundal Collier (ABGSC) concerning the company’s upcoming capital raise. Nordic Iron Ore will now evaluate options for capital structure together with ABGSC and Cargill Metals.

CEO comments

Dear Shareholder,
During the quarter we continued intensive work to create pre-conditions to realize a modern, electrified mining facility with a uniquely low carbon footprint at Blötberget. The company’s focus is now to secure required initial funding for zoning planning and initial construction work. Through the agreement with Cargill Metals, in which they undertake to purchase 25 Mt of ultra high-grade iron ore concentrate, we are in a better position to secure necessary funding. In addition to the purchase agreement, Cargill Metals has made conditional funding commitments of a total of SEK 307 million during the construction process of the Blötberget-mine, and will initially invest SEK 60 million. However, hard work is still necessary to secure initial funding at acceptable terms. Until we have secured a funding solution we will, as previously, ensure bridge financing through short-term loans. Once a decision on the final structure and time plan for the initial capitalization has been made, an updated time plan for completing Blötberget will be presented. In parallel, the exploration of rare earth elements continues and during the quarter new exploration results were presented, indicating high grades of these metals that are important to the green transition.

We have previously communicated that we aim to complete a directed share issue and a preferential rights issue during the autumn of 2023 in order to finance zoning planning and initial construction work at Blötberget. Even though inflation has come down during the autumn, the investment climate is still impacted by high interest rates and heightened concerns regarding the overall economy. The company therefor concluded that additional time is required to ensure a successful capitalization. After the period, the company has engaged ABG Sundal Collier as financial advisor on the upcoming capitalization process and together with Cargill Metals we are working on a structure and time plan for the capitalization. Once the company has made a decision on the structure and time plan for the capitalization we will present an updated time plan for making Blötberget into an operational mine.

In the third quarter 2023, the company made an application to the Land and environmental court for an extended working time regarding water operations. The Land and environmental court has since then requested supplemental information which the company provided in the fourth quarter, after which the application was registered. After the period, the application was sent on referral and the company has now received all referral replies. The application has been supported by Ludvika municipality and the Geological Survey of Sweden, among others, who argue that the mineral assets and reserves are considered to be of national interest. The County Administrative Court and the Swedish Agency for Marine and Water Management have objected to the company’s application and requested complementary information. The company will now compile a response to referral replies and hand these in to the court. We will then await a decision from the court regarding the continued process. Our hope is to receive a positive verdict during the second or at the latest third quarter this year but application processes for permits are difficult to predicts both in terms of timing and outcome. In case the company does not receive a positive verdict from the court regarding prolonged work time for water operations, the company can apply for a new permit for water operations. In the end I expect that the company will receive all necessary permits but again, it is difficult to predict timing for when these are received and what terms must be met before the process is completed. Smaller changes to the environmental permit do not require treatment by the court and smaller changes that have been completed have been approved by the County Administrative Court and Ludvika municipality.

A lot of the infrastructure is already available through close access to the grid and the railway that will transport the iron ore concentrate to Oxelösunds harbour. These are important reasons for why Nordic Iron Ore will be able to produce ultra high-grade iron ore concentrate with exceptionally low CO2 emissions, corresponding to only a few kilos of carbon dioxide equivalents per tonne iron ore concentrate. As previously communicated, we are hopeful to be able to complement our future product portfolio with a biproduct concentrate that has high grades of phosphorate and rare earth elements (REE). Nordic Iron Ore has followed up on this spring’s exploration of rare earth elements (REE) with additional testing at Blötberget during this quarter. This testing shows even more promising results with high grades of REE and the total share of REE amounts to 15,285 ppm (1.53 %) at the most. Several of the identified metals are used in production of permanent magnets which are used in for instance electric cars and wind turbines. These metals are high on EU’s list of critical raw materials since they are not currently mined within EU. Additional testing will be carried out in order to gain a better understanding of the extent of the REE-mineralization.

As soon as the initial capitalization is completed, the company will accelerate strengthening of its organization, both through recruitments and consultants, and secure agreements with partners and suppliers to complete necessary studies, construction and zoning planning, and provide an updated estimate for production start at Blötberget. I look forward to keeping you posted on our progress and challenges of this exiting journey.

Ronne Hamerslag
CEO
Nordic Iron Ore AB (publ)

For additional information, please contact:
Ronne Hamerslag
Verkställande Direktör, Nordic Iron Ore AB
Telefon: 0240 88 301
E-mail: ronne.hamerslag@nordicironore.se

About Nordic Iron Ore
Nordic Iron Ore Group is a mining company with the ambition to revive and develop the iron ore production in the Ludvika area, with Blötberget being the first phase. The company also intends to expand its mineral resources, and upgrade them to ore reserves, primarily through exploration and other studies of the connecting Väsman field and Håksberg. The company has all the necessary permits in place for the mine in Blötberget and will be able to produce iron ore of very high quality.

For more information, see www.nordicironore.se.

Nordic Iron Ore’s shares and warrants are listed at Nasdaq First North Growth Market. Wildeco is the company’s Certified Adviser.