SUMMARY OF INTERIM REPORT JANUARY - JUNE 2011

(For complete interim report in Swedish see attached file)

• For the period January - June 2011 the Group sale was 71 KSEK, net income -2 655 KSEK and an earnings per share was -0,01 SEK.
• Liquid funds was 21 312 KSEK at June 30th 2011.
• Funds spent during January - June 2011 was 10 944 KSEK.
• The first major development stage was carried out at Taivaljärvi mine site.
• Mineral resources expanded significantly at Taivaljärvi Silver Mine
• Next step in the feasibility study ordered – where a financial and efficient benefit process will be decided.
• TEKES grants a 514 000 EUR loan to Sotkamo Silver
• Finnvera grants a 1 000 000 EUR loan to Sotkamo Silver
• 99 per cent of the warrants were exercised for subscription of shares.
• Mining concession was granted for Taivaljärvi mine.
• High silver and gold contents with significant widths found in underground drilling- program.
• The application for environmental permit submitted for Taivaljärvi Silver Mine.

Summary of significant events after the balance

• Sotkamo Silver appointed Mr. lkka Tuokko as new managing director for its Finnish subsidiary from August 1st.
• Test mining of ore for the pilot-plant test successfully completed.
• The Taivaljärvi Silver deposit continues to deliver high grades of silver and gold.
• Sotkamo Silver has commissioned their main consultant-companies to carry out a feasibility study.  

The Group Result

The Group result during January-June 2011 was 2 655 (19 883) KSEK before tax. The Group result is burdened with depreciation with -63 (-2) KSEK.

The Parent Company Result

The result of the parent company during January - June 2011 was 184 (-1 574) KSEK before tax. The Group result was burdened by depreciation with 135 (2) KSEK.

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

Stockholm, 25th August 2011

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. 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