Please find enclosed Nordic Mining's interim report and company presentation for the fourth quarter of 2023. The interim report and company update will be presented digitally today, Tuesday 6 February 2024 at 10.00 (CET). The presentation and Q&A session will be held in English and transferred via webcast. You will have the opportunity to post questions online throughout the webcast session. The webcast will be available on: https://channel.royalcast.com/landingpage/hegnarmedia/20240206_5/

Summary of important events in the fourth quarter of 2023 and year to date:

  • The Company reported NOK 322.1 million in capitalized costs related to the construction of the Engebø Project in the fourth quarter, compared to NOK 266.1 million in the third quarter. For the full year 2023, the total capitalized costs related to Mine under construction ended at NOK 1.1 billion. The Company's consolidated carrying amount for Mine under construction was NOK 1.4 billion as of 31 December 2023
  • In November the Company completed drawdown of the USD 50 million non-dilutive royalty instrument from OMFR (Zr) LLC, which is managed by the Orion Resource Partners Group. Subsequently the instrument was measured at amortized cost, reflected as a liability of NOK 517.6 million at year-end 2023.
  • The Company continued construction of the Project in the fourth quarter with focus on concrete foundations for the underground crushing chamber and process plant buildings, and startup of mechanical installation for primary crushing and processing.
  • No lost time injuries (LTI) have been registered at the Engebø Project site in the 4th quarter, ending the year 2023 and project to date with zero lost time injuries.
  • The Engebø project cost has been impacted by contract and scope changes, inflation, salary increases, and the weak NOK compared to important currencies such as EUR and USD. Most project expenses are paid in NOK with all four EPC contracts denominated in NOK and owners' expenses in NOK. The weak NOK during 2023 has contributed to increased project costs compared to the initial estimates, while the USD 50 million royalty financing was drawn at a time when the NOK was weak compared to the USD and the Company was able to exchange at favorable exchange rates. Similarly, after the project starts deliveries to customers it will generate revenue in USD while most operating costs will be in NOK. The Company is continuously considering opportunities to hedge the currency exposure.
  • The Company has historically presented the project economy in USD and the terms of the financing agreements are based on the project economy denominated in USD. The estimated project contingency and estimated project reserve are therefore dependent on the USDNOK exchange rate and will fluctuate with the USDNOK exchange rate. As of the date of this report, the project contingency is fully committed and the Company expects the Engebø project to require approximately USD 5 million of the project reserve of USD 30 million. The Company further expects to allocate the remaining project reserve to Engebø Rutile and Garnet AS ("ERG") to ensure its robustness and to meet the minimum liquidity requirement of USD 15 million as per the bond agreement.
  • The Company entered into a Memorandum of Understanding ("MoU") with a multinational minerals and metals company for a joint cooperation for exploration and development of a quartz deposit in the Kvinnherad municipality in Norway.
  • During the year the Company completed the financing required to fully fund the Engebø Project, consisting of share issues with gross proceeds of NOK 1.0 billion and a USD 100 million 5-year secured bond (on Nordic ABM, ticker: ERUGA01 PRO) and a USD 50 million royalty financing agreement. The Company is focused on finalizing the remaining conditions precedent for the first bond escrow drawdown of USD 30 million during Q1 2024.

Oslo, 6 February 2024
Nordic Mining ASA

Nordic Mining ASA ("Nordic Mining" or the "Company") (www.nordicmining.com) is a resource company with focus on high-end industrial minerals and metals. The Company's project portfolio is of high international standard and holds significant economic potential. The Company's assets are in the Nordic region.

Nordic Mining is undertaking a large-scale construction project at Engebø on the west coast of Norway where the Company has rights and permits to a substantial eclogite deposit with rutile and garnet. In addition, Nordic Mining holds interests in other initiatives at various stages of development. This includes patented rights for a new technology for production of alumina and exploration of high purity quartz.

Nordic Mining is listed on Euronext Expand with ticker symbol "NOM".

https://news.cision.com/nordic-mining-asa/r/nordic-mining-asa--en-expand-nom--interim-report-per-31-december-2023,c3922406

https://mb.cision.com/Main/1583/3922406/2583869.pdf

https://mb.cision.com/Public/1583/3922406/8b74816234b0e56d.pdf

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