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Stockholm February 25, 2022

Year-end report for the full year 2021

The Board of Directors of Arctic Minerals AB (publ) ("Arctic Minerals", the "Company" or the "Parent company" and together with its subsidiaries the "Group") (the "Board") hereby submits year-end report for the full year January - December 2021.

Second half year (July - December) 2021

  • Arctic Minerals updated the mineral resource estimate for its gold-copper project Bidjovagge in Norway increasing the mineral resource classified as indicated to 3.3 million tons compared with 2.3 million tons in the 2012 estimate.
  • Arctic Minerals' partner at the copper joint venture project Peräpohja in Finland, the Rio Tinto Group, carried out further diamond drilling at several locations in the Peräpohja district.
  • Capitalised exploration costs for the period amounted to MSEK 0.0 (0.1).
  • Profit after tax for the period was MSEK -9.6(-15.5).
  • Earnings per share for the period amounted to SEK -0.07(-0.17).
  • Cash and bank position amounted to MSEK 18.1 (2.2) at end of period.

Full year (January - December) 2021

  • Capitalized exploration costs for the period amounted to MSEK 0.0 (4.3).
  • Profit after tax for the period was MSEK -15.9(-21.0).
  • Earnings per share for the period amounted to SEK -0.11(-0.23).

Significant events during the second half of 2021

  • On August 6, 2021 Arctic Minerals applied for prolongation of extraction permits for the Company's gold-copper project Bidjovagge in Norway. See section Gold-copperproject Bidjovagge (Norway).
  • On October 1, 2021 Arctic Minerals announced that the Company had been granted prolongation of extraction permits for the Company's gold- copper project Bidjovagge in Norway. See section Gold-copperproject Bidjovagge (Norway).

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  • On November 29, 2021 Arctic Minerals announced that diamond drilling had been carried out at its joint venture project in Finland. See section Copper joint-ventureproject Peräpohja (Finland).
  • On December 15, 2021 Arctic Minerals presented an updated mineral resource estimate for it's gold-copper project Bidjovagge in Norway. See section Gold-copperproject Bidjovagge (Norway).

Significant events after the period ending

  • On January 17, 2022 Arctic Minerals announced that the Company has identified cobalt and tellurium potential on its brownfield gold-copper project Bidjovagge in Norway. See the section Gold-copperproject Bidjovagge (Norway).

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Message from the CEO

Arctic Minerals continued to advance our exploration projects in 2021, focusing on our brown field gold-copper project Bidjovagge in Norway as well as our wholly-owned and joint venture green-field projects in Finland.

Gold-copper project Bidjovagge in Norway

In 2021, we have refocused on the Company's Norwegian gold-copper project Bidjovagge. During the second half of 2021, we applied for and received extension of our five oldest extraction permits Bidjovagge 1-5. In 2021, we also applied for, and were granted, five new exploration permits Buljovarri 1-5 covering the likely northward extension of the ore-bearing zone in Bidjovagge. We have also applied for, and have been granted, the new exploration permit Laemssejohka 32, covering a parallel ore zone. We believe that these new exploration permits have excellent potential for further discoveries.

In December 2021, Arctic Minerals presented an updated mineral resource estimate, prepared by external consultant, for gold and copper at the Bidjovagge project. The mineral resource classified as indicated has now increased to 3.3 million tons compared with 2.3 million tons in the 2012 estimate. The grade in the indicated resource was 1.27 gram per ton gold and 0.97 percent copper.

Following a recent study of drill cores dating from the period 2007 to 2012 Arctic Minerals reported in early 2022 that cobalt and tellurium potential also have been identified in Bidjovagge.

Altogether this gives us a solid base for the future development of the gold- copper project in Bidjovagge.

Copper joint venture project Peräpohja in Finland

Arctic Minerals' partner at the Peräpohja project, the Rio Tinto Group, has carried out further diamond drilling at several locations in the Peräpohja district. Further diamond drilling may also be carried out in 2022.

The joint venture between Arctic Minerals and the Rio Tinto is now into its third year with a potential extension for additional two years.

Wholly-owned projects in Finland

On our gold project Nutukka, we have in 2020 and 2021 carried out sampling for alluvial gold to identify areas with potential for bedrock gold mineralisation. With the exploration permit now in place an excavating program will commence in 2022 with a potential follow up of Base-of-Till drilling.

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In August 2021 the Finnish mining authority, Tukes, granted the exploration permit for the Martimo area of our battery metal project Kiiminki. Due to appeals, the issuing of the permit will now be dealt with by the Primary Court in Finland. The exploration permit, once issued to Arctic Minerals, will allow more detailed exploration, in particular Base-of-Till drilling.

We believe that the Lohi area has potential for the discovery of copper-nickel- PGE (platinum group elements) mineralisation similar to Anglo American's Sakatti deposit in Sodankylä. We are currently carrying out a detailed review of available geological, geochemical and geophysical data to determine the work to be carried out in 2022.

Northeast of Inari centre, in the Nellim area, previous exploration work by GTK (Geological Survey of Finland) discovered a number of copper- and nickel-rich boulders (up to 0.48% copper and 2.03% nickel respectively), coincident with magnetic and gravity anomalies. The geology of the area is similar to that on the Russian side of the border, which has hosted a number of nickel-copper mines. For the Nellim area, we are also currently carrying out a review of available data to decide upon the field program for 2022.

To the Southeast of Inari centre, we hold the Liljarova 2 reservation. The area has seen widespread gold panning to date, but little significant bedrock mineralisation has been found. We have carried out a review of available data and has identified one particular area for fieldwork in 2022, near to a GTK exploration permit where gold has been found in bedrock in an area with a conspicuous linear magnetic anomaly.

Financing

The copper project in Peräpohja is financed through the joint venture where Rio Tinto, through an earn-in principle, first has the right to acquire 51 percent of the project by spending four million US dollars on exploration and later has the option to acquire up to 75 percent of the project, by spending an additional five million US dollars on exploration.

For our gold-copper project Bidjovagge in Norway, Arctic Minerals in 2021 commenced a process to seek a partner to the project in order to further develop the project.

The Company's current financial resources will for 2022 mainly be focused on the Company's wholly-owned projects in Finland.

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Well positioned

In total, Arctic Minerals is now well positioned, with a well-diversified and attractive exploration portfolio. We have projects in both Norway and Finland, brown-field and green-field,wholly-owned mineral projects but also a joint venture with the world-leading mining group Rio Tinto.

With the Company's current exploration portfolio, we intend to provide a good return on invested capital for all our shareholders in the years to come.

Stockholm, February 25, 2022

Jonatan Forsberg

CEO Arctic Minerals AB (publ)

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Arctic Minerals AB published this content on 25 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 February 2022 08:11:01 UTC.