LKAB reports the largest ever increase of company Mineral Resources

1. LKAB reports the largest ever increase of company Mineral Resources

After exploration in 2023 LKAB has added significantly to the Mineral Resources of the company whilst maintaining the Mineral Reserves, reaching a combined total of 5,7 billion tonnes.n"These great results build upon the teams' dedication and successes of recent years" says Ian Cope, Vice President Exploration at LKAB.nCompared to 2022, the Mineral Resources have increased by 43 percent. The Per Geijer deposit in Kiruna is now approaching 1 billion tonnes of total Mineral Resources, including 1,7 million tonnes of in situ REE oxides, making it the largest REE deposit reported in Europe.

At the end of 2023, LKAB had identified Mineral Reserves of more than 1.1 billion tonnes and Mineral Resources of some 4.6 billion tonnes in Svappavaara, Malmberget and Kiruna (including Per Geijer). Since the start in 1890, LKAB has mined a total of more than 2 billion tonnes. In addition to iron ore, all of LKAB's ores contain minerals from which the critical materials of phosphorous and rare earth elements may be obtained.

"These significant mineral assets reflect the strong exploration work of LKAB in recent years. The potential is clear to underwrite Sweden's iron ore supply, and possibly that of phosphorous and rare earth material, for many decades to come," says Ian Cope.

"Access to critical raw materials will be decisive for the green transition. Europe today lacks mining of rare earth elements at the same time as demand increases in step with the electrification of our societies. Here, LKAB can seriously participate and contribute while increasing the self-sufficiency of REE within the EU. However, it is dependent on efficient permit processes and also the railway's capacity being increased to secure our revenue for the investments needed, and to be able to deliver the products to our customers," says Jan Moström, President and CEO of LKAB.

The iron ore Mineral Reserves in Kiruna have decreased in line with mine production, whereas the Mineral Reserves at the Malmberget mine have overall increased by 11% due to an upgrade of existing Resources. Mineral Reserves in the Leveäniemi mine in Svappavaara have decreased by about 6% to 91 million tonnes. Mineral Resources in Kiruna have increased marginally to 815 million tonnes, whereas the Malmberget mine reports a significant 49% increase to almost 1.8 billion tonnes. In Svappavaara, the Mineral Resources at Gruvberget have more than doubled to 836 million tonnes.

Exploration at Per Geijer has continued to increase the Mineral Resources, now to 956 million tonnes of iron ore and phosphorous. This same increased tonnage also contains an Inferred Mineral Resource of rare earth oxides, at grades much richer than those found in LKAB's other deposits.

For further information on LKAB's Mineral Reserves and Mineral Resources, the reader is guided to the LKAB website by this link.

Here may be found the Summary Technical Reports for each of LKAB's mineral deposits and how the Mineral Resource estimations have been made. The Mineral Reserves and Mineral Resources reported in the Summary Technical Reports are the same as those reported in LKAB's Annual and Sustainability Report for 2023.

Facts about Mineral Resources and Mineral Reserves

• An estimation of the mineralisation in a deposit may be declared as a Mineral Resource if, under assumed and justifiable conditions, it may be considered to become economically mineable in the future. When the Measured and/or Indicated part of the Mineral Resource has been shown to be economically mineable, by a study to a Pre-Feasibility or Feasibility level, then the deposit may be reclassified as a Mineral Reserve.
• Mineral Resources and Mineral Reserves are the basis of a mining company's operations and their determination requires successful and continuous exploration. LKAB reports its Mineral Resources and Mineral Reserves in accordance with the PERC (2021) reporting standard.

Facts about LKAB's planned extraction of critical minerals

• LKAB aims to increase resource efficiency and value creation by producing critical raw materials from what today is mining waste. The EU classifies raw materials as critical due to high import dependence and great importance for our economy and the green transformation; this includes phosphorus and rare earth elements found in LKAB's ores. Phosphorus is primarily used for the production of mineral fertilizers, which today enables half of the world's food production, but also has other uses such as food, feed and batteries. Europe is 90 percent dependent on imports. China, Morocco and Russia are major producers. Rare earth metals are mainly used in permanent magnets in motors for electric cars and generators for wind turbines. China dominates the rare earth value chain, Europe has no extraction at all and modest processing.

Pan-European Reserves & Resources Reporting Committee (PERC) Reporting Standard

LKAB compiles its Mineral Resources and Mineral Reserves annually. LKAB's reporting method follows the PERC Reporting Standard 2021 aimed at a balanced assessment of the value of LKAB's mines and deposits. The 2021 edition of the PERC Reporting Standard is aligned with the November 2019 version of the CRIRSCO International Reporting Template (Committee for Mineral Reserves International Reporting Standards). This report covers the reporting period from 1 January 2023 to 31 December 2023.

The Mineral Resource estimates were prepared under the supervision of Howard Baker FAusIMM(CP), Managing Director and Resource Geologist, Baker Geological Services Ltd (BGS) who is a "Competent Person" as defined in the PERC Reporting Standard 2021. Mr Baker has reviewed and approved the scientific and technical information in this report and has confirmed that: "At the effective date of the Public Report, to the best of my knowledge, information and belief, the Public Report contains all scientific and technical information required to be disclosed in order to make the Public Report not misleading".

The Mineral Reserves estimates were prepared under the supervision of Tim McGurk CEng FIMMM(QMR), Corporate Consultant (Mining Engineering) with SRK Consulting (UK) Ltd who is a "Competent Person" as defined in the PERC Reporting Standard 2021. Mr McGurk has reviewed and approved the scientific and technical information in this news release and has confirmed that: "At the effective date of the Public Report, to the best of my knowledge, information and belief, the Public Report contains all scientific and technical information required to be disclosed in order to make the Public Report not misleading".

Contact: Anders Lindberg, Group Media Relations Manager at LKAB, Tel: 46 (0)980 783 55. E-mail:[email protected]

LKAB is an international mining and minerals group that offers sustainable iron ore, minerals and special products. We are committed to developing carbon-free processes and products by 2045, leading the transformation of the iron and steel industry. Since 1890 we have developed through unique innovations and technological solutions and are driven forward by more than 4,500 employees in 12 countries. lkab.com

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