SUMMARY OF INTERIM REPORT JANUARY - MARCH 2011

• For the period January - March 2011 the Group sale was 65 KSEK, net income - 1 376 KSEK and an earnings per share was -0,01 SEK.
• Liquid funds on 2010-03-31 was 15 444KSEK.
• Funds spent during January - March 2011 was 4 466 KSEK.
• The first major development stage carried out at Taivaljärvi mine site.
• Sotkamo Silver started an additional underground drilling-program in the middle of February at Taivaljärvi.
• Subscription of shares through warrants in Sotkamo Silver. 99 per cent of the warrants were exercised for subscription.
• Mineral resources significantly expanded at Taivaljärvi Silver Mine.
• Next step in the feasibility study ordered - financial and efficient benefit process will be decided.
• Additional funding secured by development loan.

Summary of significant events after the balance

• The mining concession granted for Taivaljärvi mine.
• High silver and gold contents with significant widths in underground drilling program.
• The Taivaljärvi silver-ore is simple to be concentrated.

The Group Result

The result of the Group during January-March 2011 amounted to -1 376 (-1 510) KSEK before tax. The result of the group is burdened with depreciation on equipment in Sotkamo Silver Oy by -63 (-2) KSEK.

The Parent Company Result

The result of the parent company during January - March 2011 was – 281 (-1 322) 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 million.

Stockholm, 12th May 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 mineraldeposits, 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, tel. +358 40 508 3 507