THE LATEST DRILLING RESULTS SUPPORT THE START-UP PLANS OF THE TAIVALJÄRVI SILVER MINE.

Sotkamo Silver has received additional assay-results from this year's drilling program and is pleased to announce results from the resource delineation drilling at its Taivaljärvi Silver Mine project in Finland. The assay-results from the last holes show further high silver- contents. The purpose of the drilling-program has primarily been to increase the indicated mineral-resources that will serve as a base for the Feasibility study.

The previously assayed and published holes also showed high silver- and goldgrades in significant widths. The results support the production start-up schedule with planned start up late 2013. A new resource statement will be issued in Q4 2011.

The assay results from the latest drillholes:

• 310 gram/ton silver and 0,6 gram/ton gold, 1,1 %/ton lead (1 metre, hole TU-32)
• 238 gram/ton silver and 0,2 gram/ton gold, 1,4 %/ton zinc (5,5 metres, hole T-42)
• 184 gram/ton silver and 0,8 gram/ton gold, 1,3 %/ton zinc (5 metres, hole TU-36)
• 221 gram/ton silver and 0,7 gram/ton gold, 2,4 %/ton zinc (1 metre, hole T-31)
• 214 gram/ton silver and 0,9 gram/ton gold, 0,8 %/ton lead (4 metres, hole TU-52)
• 106 gram/ton silver and 0,2 gram/ton gold, 0,9 %/ton zinc (8 metres, hole T-26)
• 108 gram/ton silver and 1,7 gram/ton gold, 0,8 %/ton zinc (2 metres, hole T-26)
• 128 gram/ton silver and 0,3 gram/ton gold, 0,5 %/ton zinc (5 metres, hole TU-49)
• 130 gram/ton silver and 0,3 gram/ton gold, 1,2 %/ton zinc (4 metres, hole T-37)

” I am very pleased with the results from this 2011 drilling-program in Taivaljärvi. The results support the start-up of the Taivaljärvi Silver Mine. The assay results of the underground- and surfacedrilling show that there are more high silvercontents in both parts of the deposit. The drilling confirms the gold-content in the deposit, too. I am certain that these results will increase that part of our mineral-resources which can be transformed to ore reserves when the estimate will be carried out during Q4.” comments Timo Lindborg, CEO of Sotkamo Silver AB.

Table 1 shows a summary of the best results from this drilling- program phase.

(For table, see attached file)

Table 2 shows the best assay results for the whole latest drilling program

(For table, see attached file)

For calculation of the silver and gold equivalents we have used a silver price of 22 USD/ounce, gold price of 1,200 USD/ounce, zinc price of 2,100 USD/t, and lead price of 2,000 USD/t. In addition, we have used the 70% recovery and payment reduction for zinc and lead price, but no reduction for gold and silver. Equivalents cannot be aggregated and should be considered separately.

The program has being performed with dimension of T-76, 62 mm core diameter and T-66, 50,5 core diameter for surface drilling. Core drilling was carried out from the mine decline and on the surface. The distance between drill sections are about 15-20 meters. Mineralised sections were found in every hole except two. In some holes the mineralised core-sections have significant widths and silver grades. Labtium Oy, which has made assaying, is a FINAS-accredited testing laboratory T025 and T60, meeting the requirements of standard SFS-EN ISO/IEC 17025:2005.

The information in this press release is based on the assay-results from the independent accredited laboratory Labtium Oy. Sotkamo Silver’s Chief Technical Officer Mr. Jouko Jylänki has compiled the tables and the information in this press release. Mr. Jylänki owns shares in Sotkamo Silver AB. Independent consultant Mr. Jyrki Parkkinen, doctor in geology, EURGEO. Qualified Person status by The European Federation of Geologists (EFG), has supervised the drilling and the reporting of this press release. He is not employed by Sotkamo Silver or its affiliates and he doesn’t own any shares in the Company.

Stockholm, 11th October 2011

Timo Lindborg, CEO

About Sotkamo Silver AB:

Sotkamo Silver AB´s business concept is to exploit mineral deposits in the Nordic countries with regards 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