Nordic Mines AB (publ) Interim Report, Jan-Jun 2012. Increased gold production and finances secured

16. August 2012 Press Release, 16 August 2012 A total of 260 kg of gold were produced at the Laiva mine in Finland in the second quarter. Nordic Mines is maintaining its target of daily production of 5 kg. To strengthen liquidity until sufficient cash flows are generated from gold production, three share issues of a total of MSEK 340 before issue expenses were conducted in the first half-year and July, as is stated in Nordic Mines' Interim Report for the second quarter 2012. "Production increased gradually in the first half-year. It was somewhat lower in June due to a scheduled maintenance stop, but increased again in July, to 85 kg. In individual 24-hour periods, we produced just over 4 kg, and expect to reach 5 kg at the end of August, to then gradually increase production further," commented Michael Nilsson. Sales revenue from gold and silver in the second quarter was MSEK 82.4 (-) net. Operating profit/loss was MSEK -12.6 (MSEK 6.5). Profit/loss after tax was MSEK -18.5 (MSEK 4.7), which corresponds to SEK -0.50 (SEK 0.13) per share. Comprehensive income for the period was MSEK 10.9 (MSEK -23.3), corresponding to SEK 0.30 (SEK -0.67) per share. Cash and cash equivalents at the end of the period were MSEK 23.5 (MSEK 45.6). "Positive comprehensive income was achieved in the second quarter, an increase on the previous quarter. However, production remains significantly below our long-term objective. The operating loss was a result of the expenses for the forward contract the company signed for the period. Excluding forward contracts, the company's operations also produced positive earnings. As gold production increases, our earnings will also improve further," continued Mr. Nilsson. To strengthen liquidity until sufficient cash flows are generated from our gold production, Nordic Mines conducted two private placements in the first half- year, which raised a combined total of MSEK 104 for the company before issue expenses. In early-July, Nordic Mines executed a rights issue, raising the company a further MSEK 236 before issue expenses. This rights issue was fully guaranteed, but because it was oversubscribed, it was not necessary to utilise the guarantee commitments. With the aim of securing a strong trade owner with extensive experience of international mining operations, in June, we reached an agreement with Canadian mining company Eldorado Gold, which makes this company one of Nordic Mines' largest owners. At an EGM yesterday, Eldorado Gold's CEO Paul N Wright was elected a Board member of Nordic Mines.  The complete Report for the period January-June 2012 is at www.nordicmines.se. For more information, please contact: Michael Nilsson,  CEO of Nordic Mines, tel. +46 (0)18 84 345 01 , mille@nordicmines.se. Nordic Mines is a Nordic mining and exploration company. Its goal is to be one of the leading gold producers in Europe as well as a role model in respecting the environment. At the end of 2011, the company began gold production at the Laiva mine in Finland. The gold deposits there are among the biggest in the Nordic region. Exploration is in progress in Finland and Sweden. Nordic Mines has 118 employees and the head office is in Uppsala. The Nordic Mines share is traded on Nasdaq OMX Mid Cap in Stockholm. Fore more info: nordicmines.se This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Nordic Mines AB via Thomson Reuters ONE [HUG#1634304]