A 9.4 M€ FINANCING OFFERED FROM TEKES AS A DEVELOPMENT LOAN

TEKES - the Finnish Funding Agency for Innovation, has granted Sotkamo Silver a possibility to additional financing with a development loan of 9,400,000 EUR.

The loan shall be used to develop an eco-friendly mine based on Best Available Technology (BAT) and Industry Internet in module-based process-units. One of the main aims is to take advantage of an ore-sorter to increase material and energy efficiency.

The reservation for the loan is that Sotkamo Silver has secured full financing for the Silver Mine project before October 31st 2015. The loan-amount may not exceed 70% of by TEKES approved expenses.

The project will be executed in co-operation with technology providers Outotec, ABB, Oulu Mining School at the Oulu University and Kajaani University of Applied Sciences. The target for Sotkamo Silver is to become the leading Nordic ”Junior Mining” company, which use Best Available Technology and Industry Internet in production. With this project the Company will assimilate the modern remote-control technic for process-steering and maintenance. Consequently, the production will give remarkable raw-material and energy-savings plus carbon footprint reduction.

The interest-rate for the loan is one percent under a base-rate, but not less than 1.0 %. The loan period is ten years, whereof the first five years are grace period. Maximum 4,206,000 euro of the loan can be written off, if the project does not show expected result.

The project belongs to TEKES - Green Mining Programme for intelligent and minimum-impact mines. The main objective of the Green Mining Programme is to make Finland a global leader of sustainable mineral industry by 2020. The programme aims to achieve a world leading spirit position in research areas such as 1) Intelligent and minimum-impact mines and 2) New mineral resources.

TEKES is the most important publicly funded expert organisation for financing research, development and innovation in Finland. TEKES boosts a wide range of innovation activities in research communities, industry and service sectors.

"The technology to be developed in the Sotkamo Silver project, as well as, for example, the production methods to be piloted and the implementation concept based on the Internet of Things are a major step towards the mine of the future. The piloting environments to be developed during the project will also help in achieving the main aims of the Green Mining programme, " says Executive Director Teija Lahti-Nuuttila from TEKES.

"I am very pleased that we have been granted this loan possibility by TEKES. The loan strengthens the company’s possibility to fund the Silver Mine project. We even believe that the ore-sorter will improve the project's profitability significantly, when it will be introduced in the production after a ramp-up period”, says CEO Timo Lindborg

Stockholm, 4th August 2015

Sotkamo Silver AB

Timo Lindborg, CEO

Sotkamo Silver AB discloses the information provided herein pursuant to the Swedish Securities Markets Act and/or the Swedish Financial Instruments Trading Act

The official Stock Exchange Releases are given in Swedish and there may be slight differences in the translated versions.

The Company's press releases and financial reports are distributed via NGM and are available on www.silver.fi .  For further information please contact Timo Lindborg, CEO on +46-8-304920.

www.silver.fi

About Sotkamo Silver AB:

Sotkamo Silver AB´s business concept is to exploit mineral deposits in the Nordic countries with regards 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 Silver Mine project in the municipality of Sotkamo.

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 ticker symbol is SOSI in NGM Equity in Stockholm and SOSI1 in NASDAQ OMX Helsinki. ISIN-code for Sotkamo Silver shares is SE0001057910.

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

For further information: Timo Lindborg, CEO, tel. +358 40 508 3 507