The Li Laiva Mine now commencing production of gold November 3 rd, 2011 Mikael Nilsson & Krister Söderholm
Nordic Mines The company was founded in May 2005 Focusesonexploration on exploration and exploitation of gold deposits in Finland and Sweden The Laiva Gold Mine in Finland is the first mine taken into production Commissioning started in August 2011 Once fully operational, the mine is expected to yield 118,000 ounces or around 3,700 kg of gold per year A consortium consisting of Standard Bank Plc, UniCredit Bank AG and the Finnish state investment bank Finnvera has approved a senior secured loan facility of up to EUR 53 million Fjälltuna 3,700 hkt hektar Guld Vassbo 8,145 hektar Bly, silver Geographical presence Tormua 350 hektar Guld Laiva 845 hektar Guld Oltava 500 hektar Guld 10 November, 2011 2
TheLaiva gold mine Situated in Ostrobothnia, outside Raahe Region with long gold history Discovered by amateur explorers at the beginning of the 1980s and was claimed by Nordic Mines in 2005 The deposit is found near the surface, which means that major parts of it can be mined in an open pit mine, resulting inlower production costs Bankable feasibility study was completed in January 2010 36 per cent of the planned gold production at the mine in Laiva is secured at an average price, after transaction costs, of 1,049 EUR/oz (~1,500 USD/oz 1 ) from the firstquarter 2012 up until the first quarter of 2015 The average cash cost for the Laiva project is estimated at around 320 EUR/oz (approximately 460 USD/oz 1 ) gold the next four years Ore reserves Production Ore reserve (million tonnes): 12.9 Gold reserve (oz): 770,000 Exploration start: August 2005 Planned processed ore annually (tonnes): 2,000,000 Average annual gold production (kg): 3,700 Gold content (gram/tonne): 1.9 Start commissioning of process plant: August 2011 1 Exchange rate EUR/USD of 1.43 10 November, 2011 3
COMPANY DESCRIPTION Ore reserve and mineral resources in Laiva Whittle inputs: Mining i cost 195 / 1,95 / ton Processing cost 5,99 /ton Discount rate 10% Slope angle 55 CSA Global, JORC Code, August, 2011 10 November, 2011 4
Laiva processing plant The crushed ore is collected in a storage facility The ore goes through a leaching process and gold is recovered on carbon (CIL process) 4. 5. 3. The ore from the open pit is crushed 2. The ore is grinded in two stages until all particles are smaller than 0.1 mm Gold is recovered from the loaded carbon and lt later precipitated it t dby electrolysis. Finally, doré bars are casted 1. 10 November, 2011 5
Laiva processing plant 10 November, 2011 6
Ore and mineral resources in Laiva 10 November, 2011 7
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Innovative design minimizes the environmental impact Pre concentration reduces consumption of reagents and energy Fully autogenous and relatively coarse grinding of 95% of the ore minimises the energy consumption Only 5% of the feed will be fine grained and leached in a high grade circuit. Remaining 95% is leached with a minimum amount of reagents needed Tailings from high grade circuit will be deposited in a fully lined pond Waste sand will be deposited as paste 95% of the tailings sand, close to inert material will after dewatered in a paste thickener be deposit as paste Nordic Mines has joined the International Cyanide Management Code (ICMC) Production of doré minimise needs of transport
Laiva COMPANY gold mine DESCRIPTION in charge of drilling and loading, Forcit Oy of explosives and blasting,and Laiva mining TallqvistOyof transports First own production drill rig: Atlas Copco ROC L7 Open pit mining: Selective blasting and selective mining to reduce dilution and maximising gold recovery Drilling and loading will be carried by Nordic Mines Oy own personnel. Atlas Copco is supplying li the drilling equipment, comprising ii three type ROC L7CR drilling rigs Rotator/Hitachi supplies Laiva mine with three 115 tonne excavators model EX1200 6BE Oy Forcit Ab will be delivering explosives and the blasting work for the Laiva mine. Tallqvist Oy will be responsible for all transportation of ore and waste and taking care of the maintenance of roads and waste piles. Contract includes the surface excavations to level 50 (Beginning level around 55). Tallqvist Oy has 70 machines at its disposal, in addition to which the company will be procuring an additional four CAT 777 mining trucks for the operations in Laiva Grade control and process assaying on site in a laboratory, operated by CRS 10 November, 2011 10
COMPANY DESCRIPTION First own Hitachi 1200 EX Laiva mining Open pit mining: Selective blasting and selective mining to reduce dilution and maximising gold recovery Drilling and loading will be carried by Nordic Mines Oy own personnel. Atlas Copco is supplying li the drilling equipment, comprising ii three type ROC L7CR drilling rigs Rotator/Hitachi supplies Laiva mine with three 115 tonne excavators model EX1200 6BE Oy Forcit Ab will be delivering explosives and the blasting work for the Laiva mine. Tallqvist Oy will be responsible for all transportation of ore and waste and taking care of the maintenance of roads and waste piles. Contract includes the surface excavations to level 50 (Beginning level around 55). Tallqvist Oy has 70 machines at its disposal, in addition to which the company will be procuring an additional four CAT 777 mining trucks for the operations in Laiva 10 November, 2011 11
One of Tallqvist Oy s new CAT 777F trucks and Per Jannert, our Mine Manager
Ore reserve and mineral resources in Laiva By CSA Global, JORC Code, August 2011 10 November, 2011 13
Further potential for increased ore reserve 10 November, 2011 14
Furtherpotential for increasedmineral assets close to Laiva mine Further gold mineralization within transport distance from Laiva has been identified Kaukainen area of approximately 6.4 hectares Musuneva area of approximately 15 hectares Oltavaarea of approximately 20 hectares Even if the geological conditions are similar in these areas, it is too early in the process to indicate either contents or volumes of the mineralised area Oltava 7 km 15
Company history Company was founded Mining concessions approved by HIM regarding the Laiva deposit Environmental permit for the Laiva mine granted Laiva project feasibility study signed off Directed share issue among 40 institutional investors of SEK 92 million Price hedging in place of 36% of the planned gold production Q1 2012 Q1 2015 at Laiva May June/July September March November February March July November March August 2005 2008 2009 2010 2011 Rights issue of SEK 103.4 million. Company's shares were listed on NASDAQ OMX Stockholm Mineral resources in Laiva exceed 1,000,000 oz Directed share issue of SEK 180 million (+ rights issue of SEK 60 million) enabled further investments in the Laiva mine and the processing plant Credit facility in place from Standard Bank, UniCredit and Finnvera totalling EUR 53 million regarding the financing of the Laiva mine All the contracts required to start gold mining during the summer 2011 in place Increased Ore reserve Commissioning of processing plant starts..so, despite challenges like strikes, overtime ban etc 10 November, 2011 16
Nordic Mines today Listed on NASDAQ OMX Stockholm, July 2008 Currently developing the Laiva deposit in Finland; total resource including ore reserve more than 1 000 000 oz Estimated annual production of 118 k oz gold at full capacity Market cap 200 M Euro Commencing gold production in the Laiva Gold Mine www.nordicmines.se i