Scandinavian Minerals announces positive Pilot Plant results

KODE PPC ANDA

Scandinavian Minerals Limited (TSX: SGL) today announced
positive results of Pilot Plant testing for its 100%-owned Kevitsa
nickel-copper-PGE property in Finland. The Pilot Plant program has
confirmed that good quality, smelter-grade nickel and copper concentrates
can be produced from Kevitsa ore by conventional flotation methods.

Peter Walker, President and CEO of Scandinavian Minerals commented 'The
Pilot Plant results clearly show that good quality, smelter-grade
concentrates can be produced from the Kevitsa ore at commercially
acceptable levels of recovery. The attaining of very low levels of magnesia
in the nickel concentrate and the elimination of TETA from the flotation
process represent two additional important achievements.'

The Pilot Plant tests were undertaken at the Mineral Processing Laboratory
of the Geological Survey of Finland (GTK MinProc). A bulk sample totalling
575 tonnes of ore was processed in three phases from September 2006 to
February 2007, the first two phases consisting of process optimisation, the
third phase incorporating improvements made in the previous phases.

The bulk sample consisted of the nickel-copper-PGE ore type that forms the
main orebody at Kevitsa and was mined in summer 2006. The average grade of
the ore processed in phase 3 was 0.448 % copper, 0.360% nickel, 1.85 %
sulphur, 0.329 g/t platinum, 0.336 g/t palladium and 0.186 g/t gold, with
0.06 % nickel being contained in silicate minerals.

Nickel flotation
Nickel flotation yielded a range of smelter-grade concentrates averaging
12.2% nickel, within a range varying from 9.4% to 17.3% nickel. Sulphide
nickel recovery ranged from 77.4% to 80.5% and averaged 78.8%. Recoveries
with respect to total nickel (sulphide nickel plus silicate nickel) ranged
from 64% to 67% and averaged 65.3%. The nickel concentrate also contained
an average 10 grams/ton platinum at 55% recovery, 7.7 grams/ton palladium
at 38% recovery and 1.6 grams/ton gold at 10% recovery.

GTK MinProc estimates that total nickel recovery for the average ore at
Kevitsa will be between 70% and 72%. The level of non-recoverable
(silicate-bound) nickel in the bulk sample was higher than the calculated
orebody average: the phase 3 bulk sample contained 605 ppm (parts per
million) silicate nickel, equivalent to 17% of total nickel. This compares
with an average, supported by extensive drill core analyses, of 275 ppm
silicate nickel for the main orebody as a whole, or 9% of total nickel

recovery: sulphide nickel recovery: total nickel
pilot plant, average 78.8% 65.3%
projected, average 78.8% 70% – 72%

A further objective of the test work was to maintain a high iron to
magnesia (Fe:MgO) ratio in order to maximise the attraction of the
concentrate to smelters. In this regard, the test work produced
outstanding results, with an average Fe:MgO ratio of 17.9, well above the
targeted minimum of 4.5. This very high ratio will help to ensure that the
Kevitsa nickel concentrate is especially attractive to nickel smelters.

Another notable achievement of the program was the elimination from the
flotation process of several reagents, especially TETA (triethylene
tetramine). In previous work TETA was used to suppress the flotation of
pyrrhotite (iron sulphide) in the nickel circuit. The Pilot Plant work
demonstrated that by adjusting flotation conditions, the use of TETA can be
avoided. The elimination of TETA enhances the stability of the flotation
process and represents an important cost saving.

Copper flotation
Copper flotation yielded high-grade concentrates averaging 28.55% copper,
at an average recovery of 78%. This represents a significant improvement on
earlier mini-pilot results. A further 11% of the copper reported to nickel
concentrate, bringing total copper recovery to 89%. The tests further
demonstrated that nickel in the copper concentrate, could be maintained at
a commercially acceptable level averaging 0.67%, below the typical penalty
threshold of 0.8%. Nickel is considered a deleterious element in copper
concentrate. The copper concentrate also contained around 4 grams/ton gold
at 24% recovery.

copper recovery to copper recovery to total copper
copper concentrate nickel concentrate recovery
pilot plant,
average 78% 11% 89%

Ongoing Work
The Pilot Plant results will be incorporated into the ongoing Feasibility
Study for Kevitsa. This Study was commenced in April 2007 and is being
coordinated by St Barbara LLP (formerly St Barbara Consultancy Services) of
London, UK. The metallurgical process has been developed by GTK MinProc.
Plant engineering and design is being performed by Outotec Oyj. The
Feasibility Study is expected to take approximately 12 months to complete.

Mr. John Pedersen, M.Sc., P.Geo., a director of the Company, acts as the
Company’s Qualified Person under Canadian National Instrument 43-101 and
has approved the issue of this press release.

About Scandinavian Minerals
Scandinavian Minerals Limited is a Canadian public company listed on the
Toronto Stock Exchange under the symbol 'SGL' and on the Frankfurt
Freiverkehr market under the symbol W3M. The Company’s current focus is
the development of its 100%-owned Kevitsa nickel-copper-PGE project in
northern Finland.

Forward-Looking Statements
Some of the statements contained herein may be forward-looking statements
which involve known and unknown risks and uncertainties. Without
limitation, statements regarding potential mineralization and resources,
exploration results, and future plans and objectives of the Company are
forward looking statements that involve various degrees of risk. The
following are important factors that could cause the Company's actual
results to differ materially from those expressed or implied by such
forward looking statements: changes in the world wide price of mineral
commodities, general market conditions, risks inherent in mineral
exploration, risks associated with development, construction and mining
operations, the uncertainty of future profitability and the uncertainty of
access to additional capital.

KODE PPC ANDA