lappland goldminers ab (GOLD) Snapshot

Lappland Goldminers AB, Q1 2013 Earnings Call, May 30, 2013

Lappland Goldminers AB announced that due to the ongoing extensive measures taking place at the Pahtavaara mine in Finland, which were announced on April 16, 2013, the company has decided to postpone the interim report regarding the first quarter of 2013. In the decision to postpone the interim report, the company has also considered the following. As stated in the year end report as of February 21, 2013 and in the press release concerning the Fäboliden Definitive Feasibility Study as of December 19, 2012 Lappland Goldminers is currently in an ongoing structured process with the object to sell the Fäboliden project or to find a partner for the project. The company's ultimate aim is that the Fäboliden project in a timely manner develops into a producing goldmine with an attractive risk-reward balance for all Lappland Goldminers' shareholders. As further stated in the year end report, the company's aim in 2013 is to find a long-term solution in order to secure funding for the group and its subsidiaries when the company's convertible loan of SEK 119 million is due on December 31, 2013. This work is ongoing. The interim report regarding the first quarter of 2013 is to be released at latest on May 31, 2013. In addition, the company's annual report of 2012 is also postponed due to the reasons stated above.

Lappland Goldminers AB reported a lower than expected gold production in the Pahtavaara goldmine in Finland. During the first quarter of 2013, drifting and exploration has been aimed at the Karolina area, westwards of the existing mine. Waste rock dilution in the initial mining in the area has been higher than expected resulting in an increased share of B-ore, which has affected the production negatively. The mined ore has shown a slightly different mineral composition compared to ore previously mined. Further, the ore has shown to be more hard grinded and energy consuming to process compared to the ore previously processed in the plant. As a consequence, the milling process has not been optimal during the first quarter and the recovery rate has been lower than anticipated. In January the production amounted to 31 kgs, in February to approximately 21 kgs and in March to approximately 36 kgs. Lappland Goldminers is currently conducting milling process tests in order to analyse and adjust the mining process so that an optimal production can be reached for ore with a different mineral composition and characteristic than for ore previously mined.