Lappland Goldminers AB Applies for Reconstruction for Subsidiary Owning Pahtavaara Mine

Lappland Goldminers AB announced that in order to secure shareholder value, the Company filed on May 24, 2014 an application for reorganization of the Finnish subsidiary that owns Pahtavaara mine in Finland. The Pahtavaara mine in Finland had a lower gold production than planned during the first quarter of 2013. The Company has therefore initiated mineralogical and technological research and decided on a temporary halt in the primary mining. To get the greatest possible freedom of action with the actions required to resume a profitable mining, the subsidiary Lappland Goldminers Oy applied for reconstruction. Lappland Goldminers Oy's largest creditor has given its consent to the reorganization proceedings. The Company's objective is to resume mining in the old part of the mine in August 2013 by selective mining of approximately 25,000 tons per month. Meanwhile, test drilling is to resume in the western part of the mine to investigate the possibility of mining in early 2014. Lappland Goldminers continues the structured process for Faboliden project and is currently in discussions with several interested parties. The purpose of the process is to sell or seek a partner for the project with the goal of finding an optimal balance between potential economic upside and risk for Lappland Goldminers' shareholders.