127 June 2014

Company Update

Capital Market Presentation, Stockholm 2014-10-21

227 June 2014

Nordic Mines – a snapshot

Work underway to restart

operations at Laiva

Targeting positive EBITDA

from Laiva within

6-12m from restart

– at today’s gold prices

Opportunity for

further exploration

Significantly strengthened

finances following recent SEK

152m rights issue

Operational adjustments

reflect a more conservative

approach

To date Short-term target Long-term targetNow

Optimise production

and operations

– focus on cash flow

generation

327 June 2014

Tom Söderman

General manager,

Laiva mine

Jonatan Forsberg

CFO

Peter Finnäs

Exploration manager

Peter Kuiper

Development

manager

Nordic Mines management

Thomas Cederborg

CEO

427 June 2014

Owners of a gold mine in Laiva, Finland

• The Nordics especially advantageous for mining

companies

Politically

Logistically

Industrially – Atlas Copco, Sandvik, Metso, Outotec…

Finnish mining conditions ranked #1 (The Fraser Institute)

• Strong mining/metallurgical cluster around Laiva

E.g. Rautaruukki in Brahestad

• Total capex to date: SEK 941m

Processing plant: SEK 724.1m

Exploration: SEK 216.9m

Total capital raised: approx SEK 2 064m

Laiva

527 June 2014

Mineral resources at Laiva

• The new mineral resource classification is restricted to Indicated (green) and Inferred (brown)

South Pit

North Pit

Classification Tonnes Grade (Gold g/t) Gold kg Troy ounce gold

Indicated 15.420.000 1.49 23.017 740.000

Inferred 3.156.000 2.28 7.154 230.000

627 June 2014

2010 2014201320122011

History of the Laiva project

1980

1980:

Amateur geologist

Pentti Jämbäck

discovers Laiva

Spring 2010:

Nordic Mines

initiates

constructionNov 2011:

Production

starts

Feb 2012:

First gold

delivered

Jul 2013:

Reorganisation

initiatedSummer

2013:

Mining

stopped

Apr 2014:

Production

stopped

Oct 2014:

Work initiated

to resume

production

727 June 2014

What went wrong?

Construction

• Delays

• Cost overruns

Mine

• Complex mineralisation

• Lower-than-expected grade

Targeted 1.6 g/tonne, reached 1.0-1.1 g/tonne

Processing plant

• Failure to reach adequate throughput

Design capacity at 250 tonnes/h

Financials

• Financial plan was not sustainable – led to

reorganisation in July 2013

827 June 2014

Today – significantly improved finances enable restart of Laiva

• Rights issue of SEK 152m successfully closed

in September 2014

• Net proceeds of 127m – rights issue aiming at funding

the Laiva restart

• Agreement with creditors

Debt write-down from EUR 45.1m to 12.5m

• Agreements with non-secured creditors (suppliers)

Finland: 90% haircut

Sweden: 90% haircut

• All conditions associated with the reorganisation have

been fulfilled

Financial effects:

• Debt write-down by approx 70-75%

• Balance sheet strengthened by approx SEK 565m

• Liquidity to restart operations at Laiva

927 June 2014

Adjusted strategy based on more conservative approach

Construction

• Bulk of capex already completed – only minor items remain

Mine

• Adjusted mining plan

• Updated mineral resource and preliminary economic

assessment by SRK Consulting

• Adaptations to the complex mineralisation

Different and improved mining technique developed with SRK

Processing plant

• Efficiency improvements to availability and throughput

Finances

• Updated financial plan

1027 June 2014

Key assumptions:

• Gold price and FX rates at current levels

• Production rate of 1.8m tonnes per year

• Average grade of 1.3 g/tonne

Significant reductions in cost structure expected

• Historical high cost levels due to disruptions

associated with ”starting from scratch”

Delays and disruptions in construction process

Consultant fees to address ramp-up issues

• Different and improved mining technique leads to

increased output

Positive EBITDA for Laiva expected

within 6-12 months of restart

1127 June 2014

Milestones to restarting Laiva and reaching profitability

• Key re-staffing and recruitments

• Board decision on focused investments to

optimise processing plant

• Key equipment orders

• Updated mining plan and financial calculations

• Board decision to resume operations

• Restart of mine

• Recruitments to complete re-staffing

• Restart of process plant

• Ramp-up

According to plan, restart of Laiva in

winter/spring 2015

1227 June 2014

Risks associated with restart and ramp-up

Operational

• Reaching design capacity

• Key recruitments

• Disruptions in mining or process plant

Financial

• Cost overruns

• Liquidity

• Gold price

• FX rates

• [Sensitivity analysis]Risks lower today than at initial ramp-up

1327 June 2014

The Nordic Mines share

Share price (SEK) 0.027

No. of shares (m) – excl. dilution 5,403

Market Nasdaq OMX Stockholm, Small Cap

Ticker NOMI

ISIN SE0001672809

At the close of October 15th 2014

* Does not take into account subsequent changes including SEK 152m rights

issue or SEK 440m debt write-down

Equity 159.4

Net interest bearing debt 419.1

Total assets 820.4

Balance sheet items as of June 30th (SEKm)*

No. of shares – incl. dilution 6,140

Market cap (SEKm) – incl. dilution 165.8

1427 June 2014

Key focus areas

Now:

• Reaching milestones to restart Laiva in winter/spring 2015

• Implementing adjusted, conservative strategy

• Ramping up to positive EBITDA from Laiva in 6-12 months

Mid-term:

• Cash flow generation

• Optimising operations and production

Long-term:

• Cash flow generation

• Possibility for additional exploration when stable, profitable

production reached

1527 June 2014

Thank you!

1627 June 2014

Appendix

1727 June 2014

Lenders

• Final agreement

– Debt write down from EUR 45.1m to EUR 12.5m

– One-off cost of EUR 2.5m to pay accrued interest and other costs related to current debt

– Issue of warrants in Nordic Mines to lenders (corresponding to the higher of 12% of outstanding shares or EUR 2.5m)

– Remaining debt of EUR 12.5m with maturity of five years

Suppliers

• Composition plan

– full cash payment of receivables up to EUR 1 000 and 90% hair cut on excess claims

Funding

• SEK 152m rights issue

Terms of the finalised reorganisation

Significant support from all stakeholders received

1827 June 2014

Gold price development

0

200

400

600

800

1000

1200

1400

1600

1800

2000

16/10/2009 16/10/2010 16/10/2011 16/10/2012 16/10/2013 16/10/2014

Gold, USD Gold, EUR

Start End High Low

5 year

change

5 year

CAGR

∆ from

peak

∆ in

2013

∆ in

2014

USD 1051 1241 1889 1030 18% 3% -34% -28% 3%

EUR 706 971 1382 697 37% 7% -30% -31% 11%

1927 June 2014

Efficiency improvements in processing plant

• Improved throughput

– Pre-crushing optimised

– Reduced bottle necks

– Optimized mill utilisation

• Improved availability

– Improved preventive maintenance

– Training of personnel

– More spare parts in stock

• Design capacity of 2m tonnes per year within reach

2027 June 2014

Summary of revised business plan

• New preliminary business plan prepared during

autumn 2013

– SRK and KPMG assisted

• Current life of mine of 5-6 years

Modification Factors (Convert Resources to Run-of-Mine)

North South

Operating Cut-off Grade 0.6 g/t 0.6 g/t

Geology / Mining Ore Loss 15% 20%

Dilution 20% 25%

Diluting Grade 0.3 g/t 0 g/t

Engineered Pits – RoM - Diluted

Tonnage Mt Grade g/t Strip t:t

North Ore 5.60 1.27 2.72

South Ore 4.99 1.29 4.14

Total 10.59 1.28 3.39

New mining approach