AN IMPORTANT AUTHORITY DECISION: ENVIRONMENTAL IMPACT ASSESSMENT FOR THE TAIVALJÄRVI MINING PROJECT IS NOT REQUIRED

The Centre of Economic Development, Transport and Environment of Kainuu has made a decision on Sotkamo Silver’s Taivaljärvi mine project. According to the decision the project don´t need to conduct an environmental impact assessment. The mining project is not considered to cause any significant environmental impacts. All environmental impacts can be handled in the environmental permit-processes, also sufficient participation of local people into permit process will be ensured.

"This decision is important in the mine construction process. It confirms the company's strategy with work of high environmental awareness. The decision means that no delays because of environmental permission-process is expected, so we can continue to follow the scheduled time-table ", says Timo Lindborg, CEO

Stockholm, 22th December 2011

Timo Lindborg, CEO

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