NEXT STEP IN THE FEASIBILITY STUDY ORDERED - ECONOMIC AND EFFICIENT BENEFICATION PROCESS WILL BE DECIDED

(NGM:SOSI)

Sotkamo Silver has ordered a pilot-campaign for ore-processing from The Geological Survey of Finland. The objective is to develop a comprehensive process to find out the best and feasible beneficiation-method for Taivaljärvi silver-ore. Pilot test will be a key-factor in the design and plan for the mine and an important part of the Feasibility Study. About 100-150 tons ore will be processed in this pilot-test. Sotkamo Silver will from this pilot-campaign obtain all necessary parameters to be able to plan the Taivaljärvi mill and the processing-plant. The pilot-test will be done during August and September and be reported before year-end 2011.

Sotkamo Silver has also ordered a laboratory test as a first step in the campaign. That test will be finished during April 2011 and reported during Q2. In this test there will be about 150 kg ore processed in a continuous bench-scale ” Locked-cycle” test.

Sotkamo Silver also prepares the application for environmental permit and the necessary information about the properties of the tailings-sand will be provided from the mini test. The application submits during Q2 and the processing is expected to last one year.

(For image see attached file)

Picture: Laser scanning picture in 3D above shows the tunnel into the ore. The excavating of ore sample will be done from this tunnel. Grade of ore varies from 50 – 300 gr Ag / ton and representative ore-sample can be obtained. Samples for the mini bench-scale test was obtained from drill-cores which was produced during the drilling campaign year 2010.

Stockholm, March 16, 2011

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

Subscriptions for shares in Sotkamo Silver AB through Teckningsoption 2 (Warrant: SOSI TO2) can be made from March 1st to March 31st 2011. One share (1) at 0.43 SEK per Teckningsoption 2 (Warrant: SOSI TO2). Last day for trade in Sotkamo warrants (SOSI TO2) is March 28th 2011 on NGM Equity.

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

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