SOTKAMO SILVER AB CONDUCTS A DIRECTED SHARE ISSUE OF SEK 12 MILLION

(NGM:SOSI)

The Board of Directors of Sotkamo Silver AB has decided on a directed share issue of 20,000,000 shares, representing approximately 9,5 percent of the total number of shares in the company after the issue, to approximately twenty investors. The share issue is oversubscribed and the subscription price is set to SEK 0,6 per share. The directed share issue is expected to raise proceeds of approximately SEK 12 million before transaction costs. The share issue is primarily directed to a number of Swedish and Finnish investors.

The Board of Directors has resolved on the directed share issue in accordance with the authorization from the Annual General Meeting held on 1 December, 2010. After the directed share issue, the number of shares will amount to 228,301,985 shares and share capital to SEK 91,320,795 million.

Stockholm Corporate Finance AB is acting as financial advisor to Sotkamo Silver AB in connection with the transaction.

"The aim with the issue is to accelerate the ongoing feasibility study of Taivaljärvi Silver Mine. This means we can now carry out and accomplish the remaining works already in 2011. " says Timo Lindborg, CEO of Sotkamo Silver AB.

Stockholm December 17, 2010

SOTKAMO SILVER AB (publ)

Timo Lindborg, CEO

The information provided in this press release is such that the company is required to disclose pursuant to the Swedish Securities Markets Act and/or the Financial Instruments Trading Act.

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, phone. +358 40 508 3 507