SUMMARY OF INTERIM REPORT JANUARY - DECEMBER 2011

• For the period January – December 2011 the Group sale was 110 KSEK, net income – 6 895 KSEK and an earnings per share was - 0,03 SEK.
• Liquid funds was 15 077 KSEK as at December 31st 2011.
• Funds spent during January - December 2011 was 25 132 KSEK.
• A pilot-test was successfully completed that gave an excellent recovery of both silver and gold for the Taival ore.
• The Finnish development authorities, Finnvera and Tekes granted Sotkamo Silver two loans of total at 1 514 KEUR.
• 99 per cent of the warrants were exercised for subscription of new shares.
• Environment permit application filed for Taivaljärvi Silver Mine and several applications for exploration-claims in Tipasjärvi greenstone belt and Tampere gold district.
• Mining concession was granted and an important authority decision: environmental impact assessment for the Taivaljärvi mining project is not required.
• Sotkamo Silver appointed Ilkka Tuokko as a new Managing Director for the Finnish subsidiary.
• Sotkamo Silver has commissioned their main consultant companies to carry out a feasibility study
• Sotkamo Silver has acquired 427 ha land at Taivaljärvi Silver Mine.
• Significantly increased measured and indicated mineral resources was identified at Taivaljärvi Silver Mine

Summary of significant events after the balance

• Taiväljärvi Silver Deposit continues to at least the depth of 1 000 meters with at least triple lenght.

The Group Result

The Group result during January- September 2011 was – 6 895 (17 097) KSEK before tax.

The Group result is burdened with depreciation with 276 (95) KSEK.

The Parent Company Result

The result of the parent company during January - September 2011 was 535  (- 79 682) KSEK before tax.

The number of shares and votes in Sotkamo Silver AB are 259 481 934 and share capital is SEK 103 792 774.

Stockholm, 16th February 2012

Timo Lindborg CEO

(For full report in swedish, see attached file)

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. 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