Endomines Finland Plc – Insider Information – 13/1/2025, at 13:30 EET

Insider Information: Endomines Finland Plc begins the preparation of a financing package of around 10 million euros to speed up the development of the Karelian Gold Line

During 2025, Endomines Finland Plc will update its strategy, where the focus of operations will be on implementing new projects to raise the production level and growing the company to a larger size category. In order to finance the growth, the board of Endomines Finland Plc has decided to start the preparation of a financing package of around 10 million euros. The financing package may include equity and debt financing.

The board of Endomines Finland Plc (“Endomines”) has today decided to start the preparation of a financing package of around 10 million euros. About EUR 2.1–2.5 million of the financing package is to be implemented with convertible loans with the company's largest owners. More extensive funding of around 8 million euros will be implemented in the spring of 2025.

The purpose of the planned financing package is to enable growth-oriented activities in 2025–2026. Endomines renewed its strategy in the summer of 2022. After updating the strategy, the company has achieved a significant change in its operations: The production level has increased by more than 66% since 2022, the gold reserves owned by the company increased by 72% in the previous reserve update compared to the previous year, and the company's responsibility program has developed the company's operations as a whole. The company has not yet found a suitable solution for the operations in the United States, but the company invests significantly in the negotiations. As a whole, the renewed strategy in 2022 has created a strong foundation for achieving the company's long-term goals.

Endomines now sees itself moving into the second phase of its operations, where the focus of operations is on implementing new projects to raise the production level and grow the company to a larger size category. This means the technical and financial planning of the new production facility, procedures required for permit processes, and active ore exploration to further increase the gold reserves. In addition, the company will examine the recovery of tungsten and molybdenum, as well as apply for the status of producer of critical minerals.

The company's long-term key goal is to increase annual gold production from the current more than 14,300 ounces to 70,000–100,000 ounces by 2030. At today’s market price, this could mean an annual turnover of around EUR 160–230 million. In order to achieve this goal, the company is actively searching for ore, and has started licensing the Southern Gold Line for production at the beginning of 2024. In addition to significant gold discoveries, elevated tungsten and molybdenum concentrations outside the gold-bearing zone have been observed in the area of ​​the Southern Gold Line. Tungsten is listed as a critical raw material in the European Union, so Endomines has the opportunity to apply for the status of producer of critical minerals in the EU. Mining projects involving critical minerals are entitled to an accelerated two-year permit process, which would speed up the start of production on the Southern Gold Line.

The company sees that rapid development measures are needed at the same time also in the northern parts of the Karelia gold line. In 2024, Endomines announced very promising ore exploration results from Kartitsa, the Northern Gold Line, so the company wants to advance quickly in ore exploration in this area as well and will take the area's great potential into account in the ongoing planning.

The new phase in Endomines' operations starting now will mean updating the strategy. Endomines will present a renewed strategy and a more precise schedule for the projects in the spring 2025. Convertible bonds are offered on a fast schedule to the company's largest owners, so that the company can start implementing the new strategy as soon as possible.

"During the last two years, we have brought about a significant change in the company's operations, and I am very proud of our team's achievements. Now it's time to move to phase two, where we plan the future production plant and specify the financial potential of the development projects. We have achieved excellent results in ore exploration on both the Southern and Northern gold lines, and we will continue active ore exploration in the future as well. The growing gold reserves form the basis for taking the company to a larger size category", says the company's CEO Kari Vyhtinen.

Further Information:

Kari Vyhtinen
CEO
Endomines Finland Plc
kari.vyhtinen@endomines.com
+358 40 585 0050

Minni Lempinen
CFO
Endomines Finland Plc
minni.lempinen@endomines.com
+358 40 769 3483

Endomines Finland Plc is a Finnish forerunner in sustainable mining. Our operations are focused on gold production and exploration in the Karelian Gold Line in Eastern Finland. We also own the rights to seven gold deposits in the United States. We produce gold for the jewellery and electronics industries and create value by turning natural resources into wealth; an investment that can withstand global political instability. Our vision is to develop the Karelian gold line into one of the most important and sustainable gold producing regions in the world. Endomines is listed on the OMX Helsinki (PAMPALO). www.endomines.com.