Endomines takes advantage of recent strong gold price development and implements a fixed gold price hedge

Wednesday, 02. December 2009 14:29
The press release can be downloaded from the following link:
Press Release PDF

Endomines AB's wholly owned subsidiary Endomines Oy has implemented a
fixed gold price hedge, covering a total of 84 400 ounces of gold.
This represents 50% of the planned production from the Pampalo Gold
Project for the period of Q3/2011-Q4/2015. The hedge is executed in
accordance with the loan agreement concluded between Endomines and
Nordea Bank on October 9, 2009.

The hedge was done using a cash settled metal swap at a fixed price
of 843 EUR/ounce (or 5 % above the spot price) throughout the hedging
period Q3/2011-Q4/2015 (corresponding to 1271 USD/ounce at current
exchange rate). In addition, this cash flow hedge was fixed in EUR in
order to provide the company with exchange rate risk protection (USD
vs. EUR) as well.

"The recent record high gold prices provide a unique opportunity for
gold producers like Endomines to use gold hedging as a way of
securing a significant part of the Pampalo Gold Project cash flow.
The unhedged portion will provide Endomines' shareholders an upside
potential if the gold price continues to rise", Markus Ekberg, CEO of
Endomines commented.

For further information, please contact:
Markus Ekberg, CEO of Endomines, +358 40 706 4850

During 2009, Endomines has completed several important steps to
develop the business from exploration to full-scale gold production.
By the end of 2010, the company will commence production at the
Pampalo Gold Mine, with a projected output of 900-1 000 kg of gold
per annum. Further deposits along the Karelian Gold Line will be
exploited subsequently. Endomines has additional claims and mining
concessions in Finnish Lappland (gold), Ostrobothnia (ilmenite) and
Southern Finland (limestone/wollastonite).

Endomines applies SveMin's & FinnMin's respective rules for reporting
(public mining & exploration companies). Endomines has chosen to
report mineral resources and ore reserves according to JORC- or NI
43-101-code, which are internationally accepted. Endomines applies
International Financial Reporting Standards (IFRS), as approved by
the European Union.

The shares of Endomines AB are quoted on First North Premier segment
in Stockholm under ticker ENDO.ST. Erik Penser Bankaktiebolag acts
as Certified Adviser and Liquidity Provider.

Read more about Endomines on www.endomines.com


This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.

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