Financial development
Fourth quarter, 1 October – 31 December 2022

• Sales amounted to SEK 0 million (0)
• Earnings after tax amounted to SEK -2.8 million (-2.0)
• Investments amounted to SEK -0.3 million (-1.8)
• Earnings per share before and after dilution amounted to -0.08 SEK (-0.05)

Full year, 1 January – 31 December 2022

• Sales amounted to SEK 0 million (0)
• Earnings after tax amounted to SEK -10.4 million (-8.8)
• Investments amounted to SEK -5.0 million (-3.5)
• Earnings per share before and after dilution amounted to -0.28 SEK (-0.26)
• Cash and cash equivalents amounted to SEK 2.7 million (2.8) on 31 December 2022

Significant events during the fourth quarter 2022

• Outstanding loans of SEK 15.5 million have been prolonged until 31 March 2023.
• Entered agreements for additional loans of SEK 3 million and these mature on 31 March 2023
• The company was granted a new exploration permit at Blötberget
• Entered a Letter of Intent with Hitachi Energy regarding a power station

Significant events after the period

• The company has entered an engineering agreement with VB Elnät
• The repayment of outstanding loans of SEK 18.5 million has been extended until 30 June 2023

CEO comments

We are getting closer
We are continuing our negotiations with Cargill and are optimistic about entering into an agreement shortly. The purpose of the negotiations is to reach acceptable delivery terms in combination with engaging a long-term investor and strategic partner who can contribute to Nordic Iron Ore's development and financing.

After an offtake agreement has been signed, with current schedules and calculations, there is a lead time of approximately three years after the agreement is entered into before the mining operation can be expected to begin in Blötberget. The mine is expected to produce approximately 1.6 million tons of iron ore concentrate per year with an average iron grade close to 69%, one of the highest iron grades on the market. Such an iron ore concentrate is an important component in the reduction of the CO₂ intensity throughout a steel supply chain, at the same time the planned electric mining at Blötberget is expected to have an uniquely low CO₂ intensity per ton of iron ore concentrate.

What is also approaching is the 10th anniversary of the obtained environmental permit and thus the time for some of the specified conditions in the permit for the water activities that need to be ensured that they are handled within the given permit. Analysis of the given conditions and initial dialogue with authorities regarding the fulfillment of these conditions has begun.

Short-term financing
Until we have finalized an agreement with Cargill and a capitalization, Nordic Iron Ore will have limited capital to finance the business. With current operating capital and existing loan facilities we are able to finance the business until the end of the second quarter 2023. The Board works actively with financing as an essential part of the company's strategy. We have now prolonged outstanding shareholder loans and are planning to complement our short-term loans with additional loans to secure bridge financing until an offtake agreement and subsequent capitalization is in place. We are conducting a limited operation with low costs until we start the more investment intensive planning and groundwork at Blötberget.

Secure power supply to the mine
Since both the process plant and the majority of the machines to be used in the mine will consume large amounts of electricity, we need to secure power supply to our mine area. During the quarter we entered into a Letter of Intent with Hitachi Energy for installation and management of a power station with a 50/12kV-power system. In order to secure initial power supply and ensure that the power station can be connected to the grid, we have also entered into an agreement with VB Elnät to review necessary measures to enable the supply of the initial power during the construction period of the power station and the final connection to the grid.

Preparations continue
In addition to negotiations with Cargill we have been contacting potential suppliers to request updated offers and proposals. Finalized agreements with suppliers are important to ensure that we can begin groundwork as soon as long-term financing has been secured and ensure that we have mining production in Blötberget by 2026. An example of an important agreement is the Letter of Intent with Hitachi Energy but we are also in similar discussions with a number of potential equipment suppliers and entrepreneurs which are expected to lead to additional LOI/MOU-agreements for different parts of the mine construction and future mining operations.

Even though we have not initiated a broader recruitment campaign, we are making preparations and early selection processes to strengthen our organization so that the company is ready to move quickly upon entering into an agreement with Cargill.

We also continue to make preparation with Oxelösund’s port and the Swedish Transport Administration so that planned changes in the logistic chain are carried out in time for the planned production start in Blötberget.

Increased exploration activities
During the second half of 2022 we have increased our exploration efforts of our mineral resources in Blötberget which led us to apply for an additional exploration permit, an application which was later granted. The focus for the exploration is to conduct complementing analysis of existing data and adding geological data into models and calculations. We hope that this work will lead to a positive re-classifiction of mineral resources or an addition of mineralization to the mineral resource. Regardless of whether we are successful or not, this work will improve our understanding of the mineralization in Blötberget and form the basis for continued exploration and drilling programs.

Focus going forward
The short-term focus is to conclude the negotiations with Cargill, furthermore to secure the next stage of financing and the schedule for water operations as specified in the environmental permit. In parallel with that work, continue to prepare the organization and carry out contractual discussions with key partners and suppliers. We will also continue the initiated work with analysis of geological data and mineral resources. I look forward to keeping you updated on our continued progress.

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 (info@wildeco.se tel +46-8-545 271 00).