TAIVALJÄRVI SILVER DEPOSIT CONTINUES TO DELIVER HIGH GRADES OF SILVER AND GOLD

Sotkamo Silver announces further excellent drilling results from Taivaljärvi. The company has received assay results from additional six cores from this year's underground drilling-program. Currently 23 of 28 drillholes have been assayed. These drillholes and assay results were not included in the recent resource upgrade.

The assay results from the drill-holes show high silver and gold contents.

• 734 gram/ton silver and 0,7 gram/ton gold (5 metres in core from hole TU-39)
• 562 gram/ton silver and 3,9 gram/ton gold (2 metres in core from hole TU-39
• 190 gram/ton silver and 0,3 gram/ton gold (9 metres in core from hole TU-39)
• 246 gram/ton silver and 16,7 gram/ton gold (1 metres in core from hole TU-38)
• 108 gram/ton silver and 1,4 gram/ton gold (1 metres in core from hole TU-38)
• 192 gram/ton silver and 0,3 gram/ton gold (2 metres in core from hole TU-31)
• 282 gram/ton silver and 1,1 gram/ton gold (2 metres in core from hole TU-31)
• 202 gram/ton silver and 0,2 gram/ton gold (3 metres in core from hole TU-37)
• 256 gram/ton silver and 0,9 gram/ton gold (2 metres in core from hole TU-55)

The purpose of the drilling program has primarily been to increase the indicated mineralresources that will serve as base for the Feasibility study.

For calculation of the silver and gold equivalents we have used a silver price of 22 USD/ounce, gold price of 1,200 USD/ounce, zinc price of 2,100 USD/t, and lead price of 2,000 USD/t. In addition, we have used the 70 % recovery and payment-reduction for zinc and lead price, but no reduction for gold and silver.

Core drilling was carried out from the mine decline. The distances between the drill sections are about 15-20 meters. Mineralised sections were found in every hole.

(For full report, see attached file)

The information in this press release is based on the assay-results from the independent accredited laboratory Labtium Oy. Sotkamo Silver’s Chief Technical Officer Jouko Jylänki has compiled the tables and the information in this press release. Mr Jylänki owns shares in Sotkamo Silver AB. Independent consultant Jyrki Parkkinen, doctor in geology, EURGEO. Qualified Person status by The European Federation of Geologists (EFG), has supervised the drilling and the reporting of this press release. He is not employed by Sotkamo Silver or its affiliates and he doesn’t own any shares in the Company.

Stockholm, August 8, 2011

SOTKAMO SILVER AB (publ.)

Timo Lindborg, CEO

About Sotkamo Silver AB:

Sotkamo Silver AB´s business concept is to exploit mineral deposits in the Nordic countries with regard to human society and environment. Sotkamo Silver owns, through its subsidiary mineral deposits, which contains silver and gold in Finland. The Company’s main development project is the Taivaljärvi Silver Mine.

Sotkamo Silver applies SveMin’s & FinnMin’s respective rules of reporting for public mining & exploration companies. Sotkamo Silver has chosen to report mineral resources and ore reserves according to the internationally accepted JORC or NI 43-101-code. The company applies International Financial Reporting Standards (IFRS) as approved by the European Union.

The shares are traded at the Burgundy market place and NGM Equity in Stockholm.

The ticker symbol is SOSI. ISIN-code for Sotkamo Silver shares is SE0001057910.

Read more about Sotkamo Silver on www.sotkamosilver.com or www.silver.fi

For further information: Dr. Timo Lindborg, CEO, phone: +46-8-30 49 20