SIGNIFICANTLY EXPANDED MEASURED AND INDICATED MINERAL RESOURCES AT TAIVALJÄRVI SILVER MINE - UPDATED FEASIBILITY STUDY WILL BE READY DURING Q1/2012.

Sotkamo Silver is pleased to announce an update of the Mineral Resources at the Taivaljärvi Silver Mine. The updated Mineral-Resources are based on the 2011 completed core-drilling program and have been estimated in accordance with the guidelines of the JORC Code (2004).

Based on these figures an updated Feasibility Study can now be completed during first quarter of 2012.

The amount of Measured and Indicated Mineral Resources have increased by 58%, in terms of tonnage, or 60% in terms of amount of silver-equivalents in these categories, using a cut-off 50g/t AqEq. The deposit is open at depth and the geological formation continues below a depth of 550 m.

Resources estimated and reported herein are based on the Resource model produced by Dr. Parkkinen, but have been audited and reviewed by Wardell Armstrong International (WAI) in the fourth quarter of 2011 and takes into account material extracted at the Taivaljärvi deposit up until 14 December 2011.

Total Mineral Resources as of 14 December 2011 for the Taivaljärvi Silver Mine are shown in the table below at a 50g/t Ageq cut-off grade (COG).

Total Mineral Resources as of 14 December 2011 for the Taivaljärvi Silver Mine are shown in the table below at a 80g/t Ageq cut-off grade.

Modelling of the mineralisation has been carried out based on a silver metal equivalent (Ageq). The parameters used to derive the Ageq are shown in the table below with the equivalent factors derived using the formula:

eq Factor= (metal unit price*(metal recovery/100))/(Ag unit price*(Ag recovery/100))

The actual Ageq values were calculated into the drill hole database and the subsequent block model based on the formula:

Ageq=Ag+(Au*Au factor)+(Pb*Pb factor)+(Zn*Zn factor)

 “I am very pleased with these excellent results. The significant increase in the Measured and Indicated Mineral Resources means that Taivaljärvi Silvermine's Feasibility Study calculations can now be completed and I expect that it will be ready during first quarter of 2012." says Timo Lindborg, CEO of Sotkamo Silver AB.

Note:

The information in the report to which this statement is attached that relates to Mineral Resources is based on information compiled by Mark Owen, who is a European Geologist and a Chartered Geologist with the Geological Society of London which is a ‘Recognised Overseas Professional Organisation’(ROPO) included in a list promulgated by the ASX. Mark Owen is employed full time by Wardell Armstrong International. Mark Owen has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mark Owen consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Wardell Armstrong International has provided the mineral industry with specialised geological, mining, and processing expertise since 1987. Total worldwide staff complement is now in excess of 300. The services of the WAI range from preliminary exploration planning, through reserve estimation, mine design and financial appraisal, to bankable final feasibility study. The combined Wardell Armstrong Group has professionally qualified and experienced specialists in mining geology, mining engineering, processing, rock mechanics and hydrogeology, mineral surveying, computing, financial evaluation, environmental assessments and mineral economics.

The independent consultant Dr. Jyrki Parkkinen, Doctor in Geology, EURGEOn holds Qualified Person status under “The European Federation of Geologists” (EFG) has conducted the mineral resource estimation. Dr.Parkkinen is completely independent from the Company and he does not hold any shares in Sotkamo Silver.

Stockholm, December 28, 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

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

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