CENTRE FOR ECONOMIC DEVELOPMENT, TRANSPORT AND ENVIRONMENT IN KAINUU GRANTS ADDITIONAL 1 M EURO TO THE TAIVALJÄRVI SILVER MINE PROJECT

The Centre for Economic Development, Transport and Environment in Kainuu, have decided on an additional development-grant of 1 000 100 Euro to the Taivaljärvi Silver Mine project.

The development-grant will be used to machinery and equipment of the mine and concentrating-plant. To be able to receive the grant, a separate application shall be made for expenses incurred and accepted by the decision.

"We are grateful for the support, which also The Centre for Economic Development, Transport and Environment in Kainuu has shown to the Taivaljärvi Silver Mine project. The local support is the most important support that an industrial- and mining project can receive." Says Timo Lindborg, CEO of Sotkamo Silver AB.

Stockholm, 27th July 2012.

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. ISIN-code for Sotkamo Silver warrants is SE0003299718.

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