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2016-11-17

Endomines AB: Summary of interim report for January-September 2016

Continued improvement of head-grade and recovery

Selective Mining introduced from early 2016 with reduced activities
focused on high grade areas

HIGHLIGHTS Q3 2016 (Q3 2015)

· Gold production 83.0 kg (153.1)

· Milled ore 36,104 tonnes (90,143) at 2.7 g/t (2.0)
· Cash Cost 1,113 USD/oz (1,112)
· Revenues 27.4 MSEK (30.4)
· EBITDA 0.9 MSEK (-11.6)
· Profit after tax -12.3 MSEK (-18.7)
· Earnings per share -1.17 SEK (-2.95)

HIGHLIGHTS JANUARY - SEPTEMBER 2016

· Gold production 215.2 kg (411.0)
· Milled ore 108,724 tonnes (251,970) at 2.4 g/t (2.0)
· Cash Cost 1,265 USD/oz (1,276)
· Revenues 64.5 MSEK (85.2)
· EBITDA -10.7 MSEK (-48.3)
· Profit after tax -40.6 MSEK (-79.4)
· Earnings per share -4.12 SEK (-12.56)
· 66.6 MSEK raised in an equity issue
· Reverse split 100:1 completed in May 2016
· A new off-take agreement for deliveries of flotation concentrate
signed with Boliden

SUBSEQUENT EVENTS

· No significant events to be reported

PRODUCTION GUIDANCE
During 2016 the Company expects to produce between 300 and 350 kg
gold, unchanged since the beginning of the year.

Revenues, EBITDA, EBIT

+------------------------------------+-----+-----+-----+-----+------+-----+
|Revenues, EBITDA, EBIT - Group | July-September |January-September |
+------------------------------------+-----+-----+-----+-----+------+-----+
|MSEK | 2016| 2015| +/-| 2016| 2015| +/-|
+------------------------------------+-----+-----+-----+-----+------+-----+
|Flotation concentrate | 25,4| 28,2| -2,8| 56,9| 94,1|-37,1|
+------------------------------------+-----+-----+-----+-----+------+-----+
|Gravimetric concentrate | 1,6| 10,4| -8,8| 6,9| 21,2|-14,3|
+------------------------------------+-----+-----+-----+-----+------+-----+
|Total revenues from gold concentrate| 27,0| 38,6|-11,6| 63,8| 115,3|-51,4|
+------------------------------------+-----+-----+-----+-----+------+-----+
|Realised gold price hedge | 0,0| -8,3| 8,3| 0,0| -30,5| 30,5|
+------------------------------------+-----+-----+-----+-----+------+-----+
|Total sales | 27,0| 30,3| -3,3| 63,8| 84,8|-20,9|
+------------------------------------+-----+-----+-----+-----+------+-----+
|Other revenues | 0,3| 0,1| 0,2| 0,7| 0,5| 0,2|
+------------------------------------+-----+-----+-----+-----+------+-----+
|Total revenues | 27,4| 30,4| -3,1| 64,5| 85,2|-20,7|
+------------------------------------+-----+-----+-----+-----+------+-----+
|Total cost |-26,4|-42,0| 15,6|-75,2|-133,5| 58,3|
+------------------------------------+-----+-----+-----+-----+------+-----+
|EBITDA | 0,9|-11,6| 12,5|-10,7| -48,3| 37,6|
+------------------------------------+-----+-----+-----+-----+------+-----+
|Unrealised result on derivatives | 0,4| 3,1| -2,8| 1,3| -1,4| 2,7|
+------------------------------------+-----+-----+-----+-----+------+-----+
|Depreciation |-13,7|-14,9| 1,2|-31,2| -44,7| 13,5|
+------------------------------------+-----+-----+-----+-----+------+-----+
|EBIT |-12,4|-23,4| 11,0|-40,6| -94,4| 53,9|
+------------------------------------+-----+-----+-----+-----+------+-----+

Decimals are indicated by a comma

Comments to operations

Selective Mining from beginning of 2016
The production is, since the beginning of 2016, based on the Selective
Mining principle. Mining takes place during weekdays only, while
processing takes place bi-weekly. The reduced mining is focused on
previously known as well as in 2015 and 2016 discovered high grade
areas.

+-------------------------------+------+------+-------+-------+-------+--------+
|Key production figures | July-September | January-September |
+-------------------------------+------+------+-------+-------+-------+--------+
| | 2016| 2015| +/-| 2016| 2015| +/-|
+-------------------------------+------+------+-------+-------+-------+--------+
|Milled ore (tonnes) |36 104|90 143|-54 039|108 724|251 970|-143 246|
+-------------------------------+------+------+-------+-------+-------+--------+
|Head grade (Au gram/tonne) | 2,7| 2,0| 0,7| 2,4| 2,0| 0,4|
+-------------------------------+------+------+-------+-------+-------+--------+
|Gold recovery (%) | 85,3| 82,7| 2,6| 82,8| 83,5| -0,7|
+-------------------------------+------+------+-------+-------+-------+--------+
|Hourly utilization (%) | 34,0| 93,3| -59,3| 35,7| 89,2| -53,5|
+-------------------------------+------+------+-------+-------+-------+--------+
|Gold production (kg) | 83,0| 153,1| -70,1| 215,2| 411,0| -195,8|
+-------------------------------+------+------+-------+-------+-------+--------+
|Gold production (oz) | 2 669| 4 922| -2 253| 6 920| 13 212| -6 292|
+-------------------------------+------+------+-------+-------+-------+--------+
|Cost per milled ore tonne (EUR)| 66| 50| 16| 65| 53| 12|
+-------------------------------+------+------+-------+-------+-------+--------+
|Cost per milled ore tonne (SEK)| 624| 468| 156| 608| 495| 113|
+-------------------------------+------+------+-------+-------+-------+--------+
|Cash Cost (USD/oz) | 1 113| 1 112| 1| 1 265| 1 276| -11|
+-------------------------------+------+------+-------+-------+-------+--------+

Decimals are indicated by a comma and thousands are separated by a
space

Gold production during Q3 2016 amounted to 83.0 kg (153.1)
During the reporting period the overall head-grade and as a function
of the same the recovery continued to improve. As compared to the
previous quarter (Q2-2016) the head grade improved by 0.3 g/t to 2.7
g/t (2.4). Gold recovery improved by 2.5 %-points to 85.3 % (82.8).

Milled ore tonnage was 36,104. Cost per tonne was slightly lower in
Q3-2016 as compared to the previous quarter Q2-2016. The positive
development of Cash Cost since Q2-2016, reduced to 1,113 USD/oz, was
mainly due to the increased gold production as a result of and in
combination with an increased run of mine grade and metal recovery.

Gold production during January-September 2016 amounted to 215.2 kg
(411.0).

Milled ore amounted to 108,724 tonnes (251,970) or 43 % of last year
being in line with the reduced activities. The capacity utilization
hours decreased according to the production strategy by 40% to 35.7 %
(89.2). The head grade improved from 2.0 g/t to 2.4. Cost per milled
ore tonne was 65 EUR/t (53) or 23 % higher than last year mainly due
to increased fixed unit costs as a result of the reduced throughput.

Table: Quarterly key production figures 2015-2016

+-----------------+------+------+------+------+------+------+------+
|Key production | Q1| Q2| Q3| Q4| Q1| Q2| Q3|
|figures by Q | | | | | | | |
+-----------------+------+------+------+------+------+------+------+
| | 2015| 2015| 2015| 2015| 2016| 2016| 2016|
+-----------------+------+------+------+------+------+------+------+
|Milled ore |76 089|85 738|90 143|83 926|35 317|37 303|36 104|
|(tonnes) | | | | | | | |
+-----------------+------+------+------+------+------+------+------+
|Head grade (Au | 2,1| 1,8| 2,0| 1,7| 2,1| 2,4| 2,7|
|gram/tonne) | | | | | | | |
+-----------------+------+------+------+------+------+------+------+
|Gold recovery (%)| 83,8| 84,1| 82,7| 81,4| 80,2| 82,8| 85,3|
+-----------------+------+------+------+------+------+------+------+
|Hourly | 82,8| 91,5| 93,3| 80,2| 35,3| 37,7| 34,0|
|utilization (%) | | | | | | | |
+-----------------+------+------+------+------+------+------+------+
|Gold production | 131,3| 126,6| 153,1| 118,5| 58,5| 73,7| 83,0|
|(kg) | | | | | | | |
+-----------------+------+------+------+------+------+------+------+
|Gold production | 4 221| 4 069| 4 922| 3 810| 1 881| 2 370| 2 669|
|(oz) | | | | | | | |
+-----------------+------+------+------+------+------+------+------+
|Cost per milled | 59| 50| 50| 45| 58| 71| 66|
|ore tonne (EUR) | | | | | | | |
+-----------------+------+------+------+------+------+------+------+
|Cost per milled | 555| 469| 468| 420| 541| 656| 624|
|ore tonne (SEK) | | | | | | | |
+-----------------+------+------+------+------+------+------+------+
|Cash Cost | 1 394| 1 365| 1 112| 1 202| 1 312| 1 396| 1 113|
|(USD/oz) | | | | | | | |
+-----------------+------+------+------+------+------+------+------+
|Average gold | 1 220| 1 193| 1 125| 1 105| 1 179| 1 258| 1 335|
|price (USD/oz) | | | | | | | |
+-----------------+------+------+------+------+------+------+------+
|LTIFR on a | 25| 10| 9| 4| 5| 6| 6|
|rolling 12 months| | | | | | | |
|basis | | | | | | | |
+-----------------+------+------+------+------+------+------+------+

· Production figures for the last quarter are based on company
in-house assaying and not confirmed by any external laboratory.
Figures are individually rounded off

· LTIFR = The Lost Time Injury Frequency Rate is based on reported
lost time injuries on a rolling 12-month bases resulting in one
day/shift or more off work per 1 million hours worked. LTIFR has been
calculated for the whole company including contractors

· Cash cost and other Alternative Performance Measures have been
defined at the end of the complete quarterly report (in Swedish only)

· Decimals are indicated by a comma and thousands are separated by a
space

Underground development and exploration since early 2016
Underground development and exploration at the Pampalo Deeps area was
commenced and is ongoing. Currently the decline has advanced about
600 metres and as such the decline has progressed from the level +655
to the +720 level. In addition about 150 m of the exploration tunnel
at +655 level and 20 meters at +682 level has been completed.

During 2016 260 drill holes with a total length of 16,533 metres have
been drilled. Assaying is ongoing and results will be utilized in the
resource and reserve statements to be updated at the year end.
...

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