Scandinavian Minerals Announces Quarterly Results and Update on Keivitsa Pre-Feasibility Study

Scandinavian Minerals Limited (TSX: SGL) today reported results for the three months and nine months periods ended May 31, 2006, as well as an update on the pre-feasibility study for the Company’s 100%-owned Keivitsa, Finland, nickel-copper-PGE property.

Quarterly Results

The Company’s consolidated net loss for the three months ended May 31, 2006 was $165,000 or $0.01 per share compared to a net loss of $120,000 or $0.01 per share for the same period ended May 31, 2005. The increase in the current period’s loss is due to increases in general exploration, management compensation, directors’ fees and investor relations activities as well as a $12,000 expense for stock based compensation. In the 2005 period, a mineral property was abandoned and related expenses of $15,000 were written off.

The Company’s consolidated net loss for the nine months ended May 31, 2006 was $684,000 or $0.05 per share compared to a net loss of $654,000 or $0.06 per share for the same period ended May 31, 2005. The current period’s loss differed from the prior period due to increases in management compensation, directors’ fees and investor relations activities, and stock based compensation expense was $214,000 compared to $113,000. In the 2005 period, two mineral properties were abandoned and related expenses of $71,000 were written off.

During the year to date, the Company completed two private placement financings totalling 2,800,000 common shares for gross proceeds of $8.2 million and 825,999 warrants were exercised for proceeds of almost $1,239,000. The Company’s cash position at May 31, 2006 was approximately $8.8 million, which will enable the Company to significantly advance the Keivitsa project.

Keivitsa: pre-feasibility update

Keivitsa is a large nickel-copper-PGE deposit situated in northern Finland and is the Company’s flagship project. Scandinavian Minerals owns 100% of the project. In the first quarter of fiscal 2006, a pre-feasibility study for Keivitsa was started and it is now expected to be completed in July. This follows the metallurgical breakthrough announced last September, which confirmed that smelter-grade nickel and copper concentrates could be produced from the Keivitsa ore.

The pre-feasibility study is based on an open pit mining operation producing approximately 4 million tons ore per year, with production of separate nickel and copper concentrates for sale to smelters in Finland or abroad. The study is being undertaken by St. Barbara Consultancy Services of London, England in association with a specialist engineering department at the Geological Survey of Finland. The resource/reserve estimate and open pit model is being prepared by CSA International. If positive, the pre-feasibility study will be followed, subject to financing, by a full bankable feasibility study.

The Company also expects to apply for the mining and environmental permits for Keivitsa in the third quarter of calendar 2006.

Mr. John Pedersen, M.Sc, P.Geo, the Company’s consulting geologist and a director, is responsible for the exploration programs and is the Company’s internal Qualified Person as defined by NI 43-101.

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 Keivitsa nickel-copper-PGE project. Scandinavian Minerals believes that the Nordic region 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. The Company’s common shares trade on the Toronto Stock Exchange under the symbol SGL.

Contacts: Scandinavian Minerals Limited Peter Walker President & CEO

011-44-7717-223909

Scandinavian Minerals Limited Roderick Chisholm CFO (416) 203-6128 info@scanmin.com

www.scandinavianminerals.com

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