THE FIRST MAJOR DEVELOPMENT WORK IS FINISHED AT TAIVALJÄRVI MINE SITE

(NGM:SOSI)

Dewatering and maintenance of the mine-decline at Taivaljärvi mine-site has been completed. This is the major development work accomplished by Sotkamo Silver so far. Sotkamo Silver contracted Jasimo Oy during summer 2010 to do the dewatering and maintenance work. The mine decline is 2 569 meter long and extends approximately down to 350 meter below the surface. Taivaljärvi mine decline is in excellent condition, even though it has been under water for 20 years.

(For complete pressrelease including images see attached file)

Jasimo Oy has performed maintenance work in the mine decline during the dewatering operation. This maintenance work focused on safety issues and also on installation of necessary equipment to keep the tunnel free of water. Eltel Networks Oy and Jasimo Oy have during the pumping operation installed four electrical centers in the main levels of the mine decline. One more electrical center will be installed at the bottom level within one or two weeks. The main ventilation fan has also been installed on the top of the ventilation-shaft. This fan will provide the mine with fresh air during the various operations that will be performed later this year.

The mine decline of Taivaljärvi Silver Mine will now be kept dry until the end of the mining operation. Totally 10 pumps and 1 100 meters water pipes have been installed in the tunnel for maintenance-pumping. Further maintenance and surveillance work will be done, either directly by Sotkamo Silver employees or a contractor.

”I am pleased that we have been able to fulfil this first development work in the mine decline within time. We found out that the decline was in a very good shape down to the very bottom. This saved planned maintenance expenses and the money can be used for other work and drilling instead” says Dr Lindborg

Stockholm, January 19, 2011

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 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.

ISIN-code for Sotkamo Silver warrants is SE0003299718.

Read more about Sotkamo Silver on www.sotkamosilver.com or www.silver.fi

For further information: Mr. Timo Lindborg, CEO, phone: +358 40 508 35 07