Scandinavian Gold Limited 'Scandinavian Minerals Limited': Change of Name; Exercise of Warrants.

TORONTO -- Scandinavian Gold Limited (TSX:SGL) -

- Name changed to Scandinavian Minerals Limited

- Warrants exercised for gross proceeds of $1,239,000

Scandinavian Gold Limited (TSX:SGL) today announced that shareholders have approved a change of name to Scandinavian Minerals Limited. The symbol will remain unchanged (TSX:SGL). Management considers that the new name better reflects the activities of the company, whose main focus is the development of its 100%-owned Keivitsa nickel-copper-PGE (platinum group elements) property in Finland.

At the same time, the Company is pleased to announce that all of the 825,999 Series A warrants, which were due to expire on January 26, 2006, were exercised for gross proceeds of $1,238,999. These proceeds will be used for the further development of the Keivitsa project.

On January 25, 2006, the Company announced a new resource estimate for the Keivitsa deposit. To a depth of 300 metres and at a 0.2% nickel cutoff, the deposit hosts a measured and indicated resource of 70 million tonnes grading 0.31% nickel, 0.43% copper, 0.01% cobalt and 0.71 grams/tonne PGE + gold. This is equivalent to contained metal of 216,000 tonnes nickel, 300,000 tonnes copper, 7,000 tonnes cobalt and 1.6 million ounces PGE + gold. The above resource estimate was prepared by Mr. Dexter Ferreira, BSc (Geology), BEng (Mining), MBA, Pri.Sci.Nat., of Lower Quarter Solutions, South Africa. Mr. Ferreira is an independent Qualified Person under National Instrument 43-101 of the Canadian Securities Regulators.

This resource is currently the subject of a pre-feasibility study expected to be completed in March 2006. The study is based on an open pit mining operation producing approximately 3.5 million tonnes of ore per year, with production of smelter-grade nickel and copper concentrates. If the results of the study are positive, the Company plans to proceed immediately with a full bankable feasibility study, expected to take 10-12 months to complete.

The Keivitsa project - an overview

Keivitsa, 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 Keivitsa deposit is easily accessible by road. Water and hydroelectric power are available nearby.

In September 2005, the Company announced a major break-through in metallurgy: mini-pilot tests had confirmed the results of earlier bench testing to demonstrate that, with the application of new flotation reagents, smelter-grade concentrates can be successfully produced by conventional flotation methods. The current pre-feasibility study therefore envisages the production and sale of separate nickel and copper concentrates to smelters in Finland or abroad.

Environmental studies for the Keivitsa project are largely complete and it is expected that the applications for the environmental and mining permits will be submitted in March 2006.

Further details regarding the Keivitsa project can be found in the report entitled "Independent Technical Report on the Keivitsa Ni-Cu-Co-PGE Deposit, Finland" prepared by SRK Consulting, as well as in previous press releases of the Company, all available at www.sedar.com.

About Scandinavian Minerals Limited

Scandinavian Minerals 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, the 100%-owned Keivitsa nickel-copper-PGE project. Scandinavian Gold 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. The Company's 13.7 million common shares trade on the Toronto Stock Exchange under the symbol SGL.

For further information, please visit our website at www.scandinavianminerals.com.

Scandinavian Gold Limited (TSX:SGL)