Scoping Level Sensitivity Studies indicate that Fäboliden has a significant value at the current gold prices

- Work to complete the feasibility study continues

Scoping level sensitivity studies carried out by Golder Associates indicate that
at the current gold price of USD 1,400 per ounce, using a discount rate of 8 %
and assuming that all inferred resources can be converted to measured and / or
indicated above the current underground cut-off, Fäboliden has the potential to
yield an NPV of SEK 1.4 billion and an Internal Rate of Return (IRR) of 19.2 %
associated with a possible mineral resource of 1.22 million ounces. The
feasibility study is expected to cost an estimated SEK 26 million to complete.
As previously announced, the full-year forecast for gold production in 2010 was
reached already in November. Combined with the current gold price, this means
that no external financing is deemed necessary to complete the study," says
Kjell Larsson, CEO of Lappland Goldminers.

Background
On behalf of Lappland Goldminers, the international consulting company Golder
Associates has conducted scoping level studies of an open pit, coupled with an
underground mining operation designed to mine the higher grade zones at a
production rate of 1.5 million tonnes per annum. This has provided the basis for
continued work on the feasibility study for the future mine and processing plant
at Fäboliden. The feasibility study is being carried out parallel to the
evaluation of an optimum financing solution for the project and is expected to
be finalized in the second quarter of 2011.

Financial evaluation of the project
To facilitate the assessment of the project, a financial evaluation has been
carried out based on three different gold prices, using an exchange rate of SEK
7.25 per USD and a discount rate of 8%. The peak funding requirement is
estimated at approximately SEK 1.3 billion, including a contingency for
investments of SEK 225 million. The gold recovery in the process plant for the
average grade material has been estimated at 86%. The diagram below illustrates
the sensitivity of the net present value (NPV) of the project assuming the
inferred resources are converted to measured and / or indicated,  at different
gold price levels, before and after tax.

A gold price of USD 1,400/oz provides an NPV before tax of approximately SEK
1,400 million, while USD 1,250/oz provides an NPV of approximately SEK 800
million and USD 1,100/oz an NPV of just over SEK 200 million.

Optimization
On July 5, 2010, Lappland Goldminers published a mineral resource estimate for
Fäboliden. Based on this estimate, an extensive effort has been made with the
purpose of identifying an optimum strategy for mining and processing based on a
gold price of USD 1,000 per ounce. A higher gold price may be used in the final
feasibility study that would improve the profitability of the project. The work
so far has identified a most appropriate configuration of mining and processing
using:

* Selective open pit mining with a cut-off grade of 0.5 grams of gold per
tonne
* Selective underground mining with a cut-off grade of 1.2 grams of gold per
tonne
* Processing plant with an annual capacity of 1.5 million tonnes

Mineral resources
Given the above cut-off grades, the provisional estimates of Measured and
Indicated Mineral Resources for open pit mining amounts to 6.7 million tonnes of
ore with an average grade of 1.44 grams of gold per tonne. Provisional estimates
of the corresponding resources for underground mining are approximately 15.2
million tonnes with an average grade of 1.84 grams of gold per tonne, of which
approximately 5,4 million tonnes consist of Inferred Resources. Further drilling
will be carried out with the aim of converting Inferred Mineral Resource to
Measured or Indicated Resources.

Permits
Lappland Goldminers has a mining concession for the Fäboliden deposit and was
granted an environmental permit by the Supreme Environmental Court in the autumn
of 2008. The facilities in Fäboliden will be built to meet rigorous safety and
environmental requirements.

Mine and processing plant
The scenario currently being evaluated involves an open pit mine being mined for
five years which would provide access to and concurrent development of an
underground mine which would have a life of approximately 13 years. The
processing plant is designed for an annual capacity of 1.5 million tonnes and
the stages of the process consist of crushing, autogenic grinding, flotation,
cyanide leaching and elution.

The reader is advised that this study contains an economic assessment about
ongoing studies that is preliminary in nature and includes inferred mineral
resources that are considered too speculative geologically to have the economic
considerations applied to them that would enable them to be categorised as
mineral reserves, and there is no certainty that the preliminary assessment will
ever be realised, in whole or in part.

Ersmarksberget
It was previously announced that an updated mineral resource estimate for
Ersmarksberget would be published in December. This work has been somewhat
delayed and the estimation will instead be published in January 2011.

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For additional information:
Kjell Larsson, CEO
Tel. 46 70-385 03 57
kjell.larsson@lgold.se

Also visit: www.lapplandgoldminers.com

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Lappland Goldminers AB is a producing mining company with significant
exploration activities. The Company is listed on the market place First North
Premier under the name GOLD, with Mangold Fondkommission AB as Certified
Adviser.

Lappland Goldminers' strategy is to develop mineral deposits into profitable
producing mines. The Company is strategically positioned with the fully
permitted Fäboliden gold project and the Ersmarksberget deposit and processing
plant in northern Sweden. The Pahtavaara gold operation is located in the north
of Finland and the Haveri gold deposit in the south of Finland. Lappland
Goldminers is a member of SveMin, the Swedish association for mines, minerals
and metal producers, and follows SveMin's reporting rules for public mining and
exploration companies.


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Unternehmen: Lappland Goldminers AB - ISIN: SE0000718132