Scandinavian Minerals Applies for Mining Permit for Kevitsa, Finland Nickel-Copper-PGE Property

Scandinavian Minerals Limited is pleased to announce that it has applied for the mining permit for its 100%-owned Kevitsa nickel-copper-PGE property in Finland. The permit has been submitted to the Finnish Ministry of Trade & Industry, which is the responsible authority for mine permitting in Finland.

In the meantime, following the submission of its Environmental Impact Assessment in the summer of 2006, the Company is finalising its application for the environmental permit for the property. The Company expects to file this application with the Environmental Permitting Authority for Northern Finland in the second quarter of 2007.

The mining and the environmental permits comprise the two permits required under Finnish law for the construction of a mine. Both permits are expected to take approximately one year to be granted.

The permit applications are based on an open pit mining operation, mining approximately 4.5 million tons of ore per year, with production of nickel and copper concentrates containing 18 million pounds of nickel and 24 million pounds of copper per year. Both permit applications make provision for a possible higher level of production, subject to the conclusions of the planned bankable feasibility study.

Mr. Peter Walker, President and Chief Executive Officer of Scandinavian Minerals, commented “The filing of the mining permit application represents an important step towards production at Kevitsa. We are also advancing other aspects of development in parallel, in order to bring the project into production at the earliest possible date.”

Infrastructure planning

At the same time, detailed planning is under way for power and water supply to the project. Power will be sourced from a 21 MW hydroelectric dam on the Kitinen River, 6 kilometres to the west of Kevitsa. This facility is owned by the Finnish power company Kemijoki Oy. The water supply will also be drawn from the Kitinen River.

Planning is also in progress for the upgrading of the present forest road. The road will connect with the E75 highway, which is the main north-south highway in northern Finland, located just 7 kilometres west of Kevitsa. The road planning also envisages the construction of a new bridge, approximately 100 metres long, across the Kitinen River.

Pilot Plant and Infill Drilling Programs

The Company is also currently engaged in a metallurgical pilot plant program to optimize grades and recoveries for production of smelter-grade nickel and copper concentrates from the project. The work is being conducted at the Mineral Processing Laboratory of the Geological Survey of Finland, located in the town of Outokumpu, Eastern Finland. The program is expected to be completed in April 2007.

Interim results from this year’s 11,450-metre infill drilling program were announced in November 2006 and final results are expected in January 2007. The results from the infill drilling and metallurgical programs will be incorporated into a full bankable feasibility study, planned to start in the second quarter of 2007.

About Scandinavian Minerals

Scandinavian Minerals Limited is a Canadian company exploring for precious and base metals in Scandinavia and Finland. The Company is currently developing one of Finland’s largest mineral discoveries, the 100%-owned Kevitsa nickel-copper-PGE project.

On 18 July 2006, Scandinavian Minerals announced the results of a positive pre-feasibility study for the Kevitsa project. The study was based on an open pit mining operation producing 4.5 million tons ore per year from an open pit reserve of 66.8 million tons to a depth of 400 metres. Nickel and copper concentrates would be produced for sale to smelters in Finland or abroad. The study showed attractive economics at conservative long-term metal prices.

Scandinavian Minerals believes that the Nordic region offers excellent potential for large-scale discoveries in under-explored terrain, combined with a favourable mining law, clear security of title and long-established political and economic stability. The Company’s 17.7 million outstanding common shares trade on the Toronto Stock Exchange under the symbol SGL and on the Frankfurt Vreiverkehr market under the symbol W3M.

Contacts: Scandinavian Minerals Limited Peter Walker President & CEO

011-44-7717-223909

Scandinavian Minerals Limited Roderick Chisholm CFO

(416) 203-6128

Scandinavian Minerals Limited John Kearney Chairman (416) 362-6686 Email: info@scanmin.com

Website: www.scandinavianminerals.com

Harbour Financial Inc. Brian Barbour

(403) 813-5832

Harbour Financial Inc. Tom Hart

(403) 701-4278

Studer Consulting AG Marlies Studer

(+41) 44 215 2803