Increased mineral resources in Ersmarksberget and extended life expectancy in Pahtavaara

 - Lappland Goldminers report uppdated ore reserves and mineral resources at the
Pahtavaara gold mine as well as updated mineral resources for gold
mineralization at Ersmarksberget


      - The mineral resources and ore reserve at Pahtavaara strengthen our
understanding that it is possible to find new mineralisations near the mine
infrastructure and also towards depth. Thereby we estimate to continue the
production next two years at present production rate and simultaneously increase
the ore reserves. The increase of the mineral resources at Ersmarksberget
enables us to, together with some more diamond drilling, do a feasibility study.
Depending on the result of the study a decision on production start-up at
Ersmarksberget can be taken during 2011, says Kjell Larsson, CEO Lappland
Goldminers.


Pahtavaara
The proven and probable ore reserves as off January 1(st), 2011 total 577
Ktonnes with 2,64 grammes of gold per tonne (678 Ktonnes with 2,79 grammes of
gold per tonne January 1(st) 2010*). Under 2010 approx. 26 000 m core was
drilled, both underground and on surface. The estimation of the mineral
resources on, which the ore reserves are based, are carried out with variable
cut-off depending on the continuity, geometry and localization of the orebodies.
The DB- and C-ores are estimated with a cut-off set at 1,5 gramme/tonne Au and
others with a cut-off 2,0 gramme/tonne Au. The Länsi mineralization is included
in the mineral resources with the tonnage and grade as reported in news release
5(th) July, 2010. The total measured and indicated mineral resources are 574
Ktonnes with 3,30 grammes of gold per tonne (738 Ktonnes with 3,37 grammes of
gold per tonne 1(st) January 2010*). In addition there is an inferred mineral
resource of 88 Ktonnes with 7,14 grammes of gold per tonne (no inferred mineral
resource reported 1(st) January 2010*). After conversion of mineral resources to
ore reserves a measured and indicated mineral resource of 89 Ktonnes and an
inferred mineral resource of 88 Ktonnes remain to convert to ore reserve. The
amount of gold of 1580 kg based on the ore reserve corresponds roughly to two
years production at present production rate. The gold grades in the production
get lower because of the relatively short life expectancy of the present ore
reserves that force us to mine more low-grade ore to be able to maintain
continuous production. During 2010 the average grade of the mined ore was 1,81
grammes of gold per tonne.

The estimation is done by Åsa Corin, geologist at Lappland Goldminers Oy, under
supervision of Thomas Lindholm, GeoVista AB, independent consultant and by
SveMin and FinMin registered as a Qualified Person, QP. The estimation is
carried out according to the rules of SveMin and FinMin which are in compliance
with the Canadian NI 43-101 reporting and disclosure. The evaluation is done by
Ordinary Krieging.

Mineral Resource and Ore Reserve at Pahtavaara_20110101.pdf

Ersmarksberget
The measured and indicated mineral resources for the Central and South 1
mineralizations total 519 Kton with 3,25 grammes of gold per tonne (447 Ktonnes
with 2,86 grammes of gold per tonne October 2009*). In addition there is an
inferred mineral resource of 143 Kton with 4,24 grammes of gold per tonne (46
Ktonnes with 3,38 grammes of gold per tonne October 2009*). The increase of the
mineral resource is based on approx. 6000 m of core that has been drilled during
2010.



The mineral resource is estimated by Thomas Lindholm, independent consultant and
by SveMin and FinMin registered Qualified Person, QP. The estimation is carried
out according to the rules of SveMin and FinMin which are in compliance with the
Canadian NI43-101 reporting and disclosure. The evaluation is done by Inverse
Distance Squared.

Mineral Resource at Ersmarksberget Centrala and South 1_January 2011.pdf




* For differencies between the estimations see the respective news release.



The technical content in this news release has been controlled and approved by
Risto Virkkunen, Chief Geologist at Lappland Goldminers and by SveMin and FinMin
approved Qualified Person, QP.



For a complete report regarding the estimates of the ore reserves and mineral
resources please see the attached documents to this news release.



For further information:
Kjell Larsson, CEO

Tel. 0950-275 06, 070-385 03 57

kjell.larsson@lgold.se





Besök även: www.lapplandgoldminers.com

Om Mangold Fondkommission: www.mangold.se



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 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.




Press release PDF:
http://hugin.info/134992/R/1483195/418430.pdf




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Source: Lappland Goldminers AB via Thomson Reuters ONE

[HUG#1483195]


Unternehmen: Lappland Goldminers AB - ISIN: SE0000718132