Scandinavian Minerals Limited

Scandinavian Minerals Limited

February 28, 2005 06:00 ET

Scandinavian Gold Intercepts 184 Metres of Nickel-Copper-PGE Mineralisation at Keivitsa


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: SCANDINAVIAN GOLD LIMITED

TSX SYMBOL: SGL

FEBRUARY 28, 2005 - 06:00 ET

Scandinavian Gold Intercepts 184 Metres of
Nickel-Copper-PGE Mineralisation at Keivitsa

TORONTO, ONTARIO--(CCNMatthews - Feb. 28, 2005) -

Grades up to 0.81 % nickel, 1.47 g/t platinum and 1.33 g/t palladium
over 12 metres

Scandinavian Gold Limited (TSX:SGL) is pleased to announce positive
results from the first hole of a seven-hole, 1,854-metre diamond drill
program, completed on February 1st, at its 100%-owned Keivitsa, Finland
nickel-copper-PGE property. The program was undertaken in order to
estimate the indicated and inferred resource hosted by the higher-grade
nickel-PGE pipes situated at the centre of the deposit. A further aim of
the program was to obtain additional drill data for the higher-grade
portion of the main orebody. The main orebody hosts a probable reserve
of 120 million tonnes within an indicated resource of 150 million
tonnes, together with a further 315 million tonnes inferred resource.

Hole KV-15 was drilled at an angle of 45 degrees to the west. The hole
is 210.7 metres long and was mineralised from the beginning of hole at 7
metres to 191 metres, a total length of 184 metres. The average assay
for the hole over this length was 0.39 % Ni (nickel), 0.46 % Cu (copper)
and 0.94 g/t PGE+Au (platinum+palladium+gold).

The hole initially intersected the higher-grade portion of the main
(copper-nickel) orebody and subsequently the higher-grade nickel-PGE
pipes. Intercepts are as follows:



Total length
---------------------------------------------------------------------
From interval Ni Cu Co Pt Pd Au S Pt:Pd
metres metres % % % g/t g/t g/t % ratio
---------------------------------------------------------------------
7 to 191 184 0.39 0.46 0.015 0.43 0.32 0.19 1.85 1.34
---------------------------------------------------------------------

main orebody
---------------------------------------------------------------------
From interval Ni Cu Co Pt Pd Au S Pt:Pd
metres metres % % % g/t g/t g/t % ratio
---------------------------------------------------------------------
63 to 135 72 0.37 0.59 0.017 0.34 0.24 0.23 2.31 1.42
---------------------------------------------------------------------

nickel-PGE pipes
---------------------------------------------------------------------
From interval Ni Cu Co Pt Pd Au S Pt:Pd
metres metres % % % g/t g/t g/t % ratio
---------------------------------------------------------------------
143 to 191 48 0.63 0.33 0.014 0.81 0.65 0.2 1.61 1.25
---------------------------------------------------------------------
including:
---------------------------------------------------------------------
179 to 191 12 0.81 0.18 0.014 1.47 1.33 0.17 1.51 1.11
---------------------------------------------------------------------


Assays of the remaining six holes are pending and are expected to become
available over the next 6 - 8 weeks.

Previous drilling on the nickel-PGE pipes has returned intercepts of up
to 1.01% nickel, 1.49 g/t platinum and 1.39 g/t palladium over 29 metres
and 0.73% nickel, 1.81 g/t platinum and 1.23 g/t palladium over 36
metres.

Scandinavian Gold is currently pursuing 2 scenarios for the Keivitsa
property. The first involves a smaller-scale (approximately 300,000
tonnes/year) start-up operation based on the higher-grade nickel-PGE
pipes. Metallurgical testing in 2004 demonstrated that a high-grade
nickel-PGE concentrate can be produced from this ore type by
conventional flotation methods; such a concentrate would be suitable for
sale to a smelter. This operation would initially be open pit,
subsequently progressing to underground. This scenario offers the
possibility of a faster timescale to production at a lower capital cost.

The second scenario involves a large-scale (several million
tonnes/year), open pit mining operation either (a) feeding a bulk
concentrate to a pressure acid leach process or (b) producing smeltable
nickel and copper concentrates. Further metallurgical work on this
scenario is ongoing (see press release of February 23, 2005).

"We're very pleased with these initial results, which confirm the high
grades encountered in previous drilling," said Peter Walker, President
and CEO. "We intend that this drill program will enable us to calculate
a resource figure for the nickel-PGE pipes which we can then feed into a
Pre-Feasibility Study. These initial results also confirm the existence
of higher grades in the main copper-nickel orebody on the eastern side
of the pipes."

Keivitsa is one of the largest mineral discoveries in Finland's history
and one of the largest undeveloped sulphide nickel deposits in the
world. It hosts a probable reserve of 120 million tonnes within an
indicated resource of 150 million tonnes and an inferred resource of 315
million tonnes. SRK Consulting has completed a positive pre-feasibility
study on a 15 million tonne per year open pit mining operation feeding a
bulk sulphide concentrate to a pressure acid leach process. While
pursuing further metallurgical testing of the main orebody, Scandinavian
Gold is also committed to evaluating a smaller scale mining operation
based on the nickel-PGE pipes, with lower capital costs and a shorter
time line to production.

Analyses were determined by the laboratory of the GTK (Geological Survey
of Finland) in Rovaniemi. Base metals were determined by ICP-AES after
hot aqua regia extraction. Precious metals were determined by lead fire
assay with ICP-AES finish. Mr. John Pedersen, M.Sc., P.Geo., acts as the
Company's Qualified Person.

About Scandinavian Gold

Scandinavian Gold is a Canadian company exploring for precious and base
metals in Scandinavia, with emphasis on Finland. The Company is
currently developing one of Finland's largest mineral discoveries to
date, the 100%-owned Keivitsa nickel-copper-PGE project. The Company
believes that Finland offers excellent potential for large-scale
discoveries in under-explored terrain, combined with a favourable,
well-administered mining law, clear security of title and
long-established political and economic stability. Scandinavian Gold's
11.3 million common shares trade on the Toronto Stock Exchange under the
symbol SGL.

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