Grängesberg Iron AB

USD 3,5 million financing through a subordinated loan

August 24th, 2010

Grängesberg Iron AB has retained First Securities AS to advice on and effect a private placement with gross proceeds amounting to USD 3,5 million directed towards an institutional investor. The placement was completed through a subordinated loan with the right to receive repayment for the full or partial amount in shares through a set-off new issue. The subscription price in the Set-off Issue shall be equal to the price per share set in a future IPO and/or private placement, less an agreed rebate.

Proceeds of the Loan will be employed for the future development of the Grängesberg iron ore mine, incl. of PFS part of feasibility study, preliminary EIA, application for mining concession, recruitment of key management and for preparations for listing on the Oslo Stock Exchange (Axess).