EXCELLENT SILVER- AND GOLDRECOVERIES IN THE PILOT PLANTTEST OF THE TAIVALJÄRVI SILVER ORE

The Mineral Processing Laboratory of the Geological Survey of Finland (GTK) has conducted a Full-Scale Pilot metallurgical test-work for Sotkamo Silver. A total of 88 tons of Taivaljärvi silver ore was treated in two campaigns during September and October.

When process was optimized total recovery of silver into these three flotation concentrates was 90,5 % and gold 93,7 %. These are excellent results.

The silver-concentrate had a silver-grade of 1,72 % at a recovery of 77,3 %, gold grade 89,4 g/ton at a recovery of 84,5% and lead grade 60,7 % at a recovery of 75,7 %.  Recoveries into zinc-concentrate were zinc 89,7 % at a grade of 54,2 %, silver 9,1 % at a grade of 679 g/ton and gold 6,3 % at a grade of 2,2 g/ton.  Sulfur-grade of pyrite-concentrate was 30,35%, silver grade 238 g/ton at a recovery of 4,1% and gold grade 0,8 g/ton at recovery 2,9 %.

Recoveries of valuable metals were better than expected. Sulfur-content of the process tailing-sand could be lowered from 0,9 % down to 0,13 %. Preparation of pyrite-concentrate removes potentially acid-forming iron sulphides from the process-sand, which will be deposited at site and creates a third silver-containing concentrate. Gravity circuit combined with flotation was also tested; anyhow solely flotation recovery was better than this combination.

The treated ore-samples represent anticipated head-grade in the future production. In the first campaign the amount of ore was 58 tons at a silver grade of 103 g/ton (zinc 0,81 %, lead 0,33 % and gold 0,4 g/ton) and in the second campaign the amount of ore was 30 tons at a silver grade of 90 g/ton (zinc 0,77%, lead 0,35% and gold 0,46 g/ton). In the test three concentrates were prepared, first silver-gold-lead-concentrate, next zinc-concentrate and as third pyrite-concentrate.

GTK is a worldwide leader among mineral and metal-processing laboratories, which provides innovative tailored solutions for a wide variety of customer-needs in the mining industries.

 “I am happily surprised of the results; recovery of silver into silver- and zinc-concentrates was 10 % better (86,4 % v s 76,1 %) than expected on the basis earlier mini pilot and laboratory tests and on top of that we have silver also in pyrite-concentrat, which gives the total silver recovery of 90,5%. The outcome of this pilot-test confirms my view that the development steps we have taken are correct and that these results can be utilized in detailed the flotation-process planning. ” Comments Timo Lindborg, CEO

Stockholm, 1th November 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