Scandinavian Minerals Announces $40 Million Financing With Leading Finnish Inves

The lead investors are Finnish Industry Investment Ltd. and Etera Mutual Pension Insurance Company.

Finnish Industry Investment Ltd., based in Helsinki, Finland, is a company wholly owned by the Finnish Government. Its purpose is to invest in growth companies active in Finnish business, including the mining sector.

Etera, also based in Helsinki, is a major provider of pension insurance services to Finnish business, and, as part of this activity, also manages a number of investment funds.

Other participants in the private placement are a group of Finnish institutions, mutual funds and investors.

The Company plans to use the net proceeds of the private placement to fund advancement of its wholly owned Kevitsa nickel-copper-PGE (platinum group elements) project in Finland and for additional working capital. The Company recently ordered grinding mills for the Company's 100%-owned Kevitsa nickel-copper-PGE project in Finland. The mills had been ordered recently from Outotec Oyj (formerly Outokumpu Technology Oyj).

The private placement is also subject to certain conditions including, but not limited to, the receipt of all regulatory approvals. The common shares will be subject to a 4 month statutory hold period from closing and the placement is scheduled to close on or about 12 December 2007.

United Bankers Group, a respected Finnish private bank providing brokerage, asset management and fund management services in Finland advised Scandinavian on this financing. The Company has agreed to pay a corporate finance fee to United Bankers in respect thereof.

Mr. Peter Walker, President & CEO of Scandinavian Minerals, commented "We are delighted to announce the participation of these key strategic investors in Scandinavian Minerals' development of the Kevitsa project. It has always been the Company's intention to involve Finnish capital in the development of the project and we take particular pleasure in the participation of such respected Finnish institutions and companies in this financing."

About Etera

Mr. Kalevi Hemila, Managing Director of Etera said "We are very pleased to participate with and to be a long term owner in Scandinavian Minerals. This is an important investment opportunity for us. In addition, we are very pleased to be involved in building infrastructure and creating jobs in Northern Finland". At the end of September 2007, the value of Etera's investment portfolio was EUR 6.1 billion. During the first half of 2007 Etera provided pension cover for 248,000 insured persons and paid pensions to 154,527 recipients.

About Finnish Industry Investment Ltd.

Mr Kimmo Viertola, a Director of Finnish Industry Investment Ltd, commented "Investment in Scandinavian Minerals Limited is part of our Exploration and Mining Financing Program and adds an attractive new company to our existing compact portfolio. This investment enables the Kevitsa project to proceed further, and we are excited about the opportunity". Finnish Industry Investment invests, together with private co-investors, in venture capital funds and directly in growth companies. The investments and investment commitments of Finnish Industry Investment currently stand at EUR 417 million.

The Kevitsa project - an overview

Kevitsa, situated in northern Finland, is one of the world's major undeveloped sulphide nickel deposits and one of the largest mineral discoveries in Finland's history. The Kevitsa deposit is easily accessible by road. Water and hydroelectric power are available nearby.

In April 2007 Scandinavian Minerals commenced the Feasibility Study for the Kevitsa project. The Study is being coordinated by St Barbara LLP (formerly St Barbara Consultancy Services) of London, UK. The metallurgical process has been developed by the Mineral Processing Laboratory of the Geological Survey of Finland. Plant engineering and design is being performed by Outotec Oyj. The Feasibility Study is expected to be completed by Q2, 2008.

The Study is based on an open pit operation mining approximately 5 million tons per year of ore, with production of nickel and copper concentrates for sale to local or overseas smelters.

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.