SOTKAMO SILVER AB HAS COMPLETED PREFERENTIAL AND DIRECTED SHARE ISSUE OF 49.1 MILLION SEK

In the recently concluded rights issue was 64 363 001 shares and in the non-preferential rights issue 30 000 000, a total of 94 363 001 shares, which provides the Company with about 49.1 million before issue costs. The subscribed amount is about 30 % of the total offer. By the issuances, the number of shares increased to 353 844 935 and the share capital increased by SEK 37 745 200 to SEK 141 537, or with Euro 4,2 million to.

Based on the new shares under the offer, investors have received a total of 943 630 Warrants 2012/13, each of which entitles the holder to subscribe for 25 shares of SEK 0.70 per share latest in November 2013.

Number of issued shares represent 26,7 % of the total number after issuance. The number of shares to be subscribed with warrants represents about 6,3 % if  the total number of warrants is subscribed for in full.

In accordance with the resolution of the Extra ordinary Shareholder Meeting a consolidation of shares will take place so that 25 shares will be 1 in early July, after all new shares have been registered with the Companies Registration Office. New number of shares, is preliminary 14 153 797. After the consolidation one warrant entitles to subscribe for one share at SEK 17.50 per share, a total of 943 630 shares.

The reason for the proposed issuance was to secure about half the capital that the Company needs for development and completion of Sotkamo Silver´s deposit in Taivaljärvi pre-production and to obtain new Finnish investors before the parallel listing on NASDAQ OMX Helsinki Stock Exchange.

The lesser amount of issued shares and warrants than planned affects the ability to execute the investments in the Taivaljärvi Silver Mine. The board and the management group are reviewing the conditions to carry out parts of the key investments in the investment plan. The initial investment plan remains until further notice

The accomplished share issues still allow us to develop the project further and the board and management continues to look for further financing possibilities, work with the environmental license and construction permit. The company is negotiating with the equipment suppliers and plans to choose of equipment supplier during 2012..

“As a result of the listing at the Helsinki Stock Exchange, investing in our shares will become much easier for Finnish investors. We expect that by doing this parallel listing we can increase the interest in our Company significantly. This gives the possibility for present Finnish shareholders to move their shares to the Helsinki Stock Exchange.” Comments Timo Lindborg CEO.

Financial advisors in those issues have been Stockholm Corporate Finance and E. Öhman J:or Securities Finland. Legal advisers have been Setterwalls in Stockholm and Peltonen LMR in Helsinki

Stockholm, 21th June 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.

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