UPPDATED ORE RESERVES FOR TAIVALJÄRVI SILVER MINE

Sotkamo Silver is pleased to announce a review and update of the Ore Reserves at the Taivaljärvi Silver Mine.

Outotec (Finland) Oy was commissioned by Sotkamo Silver Oy to review the mining section of the Taivaljärvi Mine Bankable Feasibility Study prepared by Wardell Armstrong International (WAI), Marsh 2012.

The review work was done by Pekka Lovén, MSc(Mining), MAusIMM(CP) of Outotec (Finland) Oy, a Competent Person as defined by Joint Ore Reserves Committee (JORC, 2004). The updated ore-reserves are based on the information from March 2012 completed Bankable Feasibility Study and from the information provided by Sotkamo Silver.

According to the mining schedule the production starts from the open pit and from the 140 level in the underground mine simultaneously. By doing this the head grade is higher and the total haulage cost and thus the total mine operating cost is lower compared to previous mining plan. Total amounts of silver in proven and probable ore-reserves have increased by 11,6 % to 8 228 494 Oz Ag and silver grade in the ore has increased 15,8 % to 86,1 g/t Ag. (2,97 Mt ore reserves: 86,1 g/t silver; 0,25 g/t gold; by 0,32 % lead and 0,65 % zinc).

According to Outotec: “As a whole the mining plan together with the production schedule of Sotkamo Silver Oy is well in line with the experience of the author from similar type of deposits, fulfils the requirements of the JORC code and is suitable for economic and financial calculations.”

The company will now develop and update economic forecast with calculations based on information from the new ore-reserves, costs and new mining-plan.

The company has from consulting and auditing-company KPMG Oy Ab, ordered an updated economic forecast where the calculations are based on the new information.

(For table, see attached file)

The Ore Reserve shown in the Table above has a mining recovery of 90% (95%, from the open pit) and waste rock dilution of 10% (5%, in the open pit). The silver-concentration in the diluting mineralisation has been estimated to be 31 ppm Ag.

“I am very pleased that Outotec have used their experience and expertise to review and improve our mining-method and mining-schedule. This improvement is a step in our effort to continuously improve the business as a "Junior Mining" company, about to take a big step to a producing mining company. I am confident that these measures and continuous improvements is a key to our success, which will provide an economically viable future”. Says Timo Lindborg, CEO.

Stockholm, April 24, 2012

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.

ISIN-code for Sotkamo Silver shares is SE0001057910. The ticker symbol is SOSI. ISIN-code for Sotkamo Silver warrants is SE0003299718. The ticker symbol is SOSI. TO2

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

For further information contact: Mr. Timo Lindborg, CEO, phone: +358 40 508 35 07