THE FIRST MILESTONE IN DRAINAGE PROJECT REACHED

(NGM:SOSI)

Sotkamo Silver AB has today reached the first milestone in its draining- and maintenance-projects in Taivaljärvi Silver Mine. A 58-meter-long exploration-tunnel has been located at 150 meters depth. The access tunnel was done by the previous owner to in detail explore the grade and continuity of the underground ore.

A 1 500 ton test-ore sample was mined from this tunnel. The ore has been stored above the ground at the mine and is available for sampling. Sotkamo Silver AB will undertake an additional test-mining operation of 100 to 200 tons during this winter season. Ore samples will be sent to the Mineral Processing Laboratory of the Geological Survey of Finland in Outokumpu for additional pilot-scale beneficiation tests during spring 2011. This pilot test is an important part of the feasibility study. These tests and core-drilling program shall be the basis for the design of the concentrating process.

“I am very pleased that we have reached an important milestone in our preparation work in this project. It is also very gratifying that the tunnel is in excellent condition, no damage or race have been found. It looks very promising for the rest of the draining and other maintenance work. All indications are that the cost of these works have been and will be at the projected level." summarizes Timo Lindborg, CEO of Sotkamo Silver AB.

Stockholm, 6th October 2010

Timo Lindborg, CEO

Sotakamo 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: Timo Lindborg, CEO, tel. +358 40 508 3 507