Talvivaara Mining Company continues to assess all funding options available for a corporate reorganisation

Stock Exchange Release
Talvivaara Mining Company Plc
21 November 2013


  Talvivaara continues to assess all funding options available for a corporate
                                 reorganisation

   Current cash position anticipated to be sufficient clearly into the first
                                quarter of 2014,
although funding commitment from certain stakeholders previously approached was
                                  not obtained


On  15 November  2013, Talvivaara  Mining  Company  Plc  ("Talvivaara")  and its
operating  subsidiary Talvivaara Sotkamo Ltd  (together, the "Talvivaara Group")
both  applied for a  corporate reorganisation pursuant  to the Finnish Corporate
Reorganization  Act by  filing related  applications with  the district court of
Espoo, Finland.

Talvivaara  also  announced  that  the  Talvivaara  Group  expected  to  require
additional  liquidity during the  reorganisation proceedings for  the payment of
costs of the reorganisation proceedings and payment of new indebtedness incurred
after  the  filing  for  reorganisation.  Towards  this  goal, Talvivaara made a
financing proposal to a group of stakeholders for additional funding in the form
of  a €40  million restructuring  facility with  Talvivaara as the guarantor and
Talvivaara   Sotkamo  Ltd  as  the  borrower.  Late  on  20 November  2013, such
stakeholders  informed Talvivaara that they were  unable to offer any additional
funding  to support the reorganisation process. As a result of this information,
Talvivaara is currently assessing all options available to the Talvivaara Group,
including the adequacy for the reorganisation process of its own cash available.

On  15 November 2013, Talvivaara also announced plans for the rationalisation of
its  operations.  These  actions  are  expected  to  increase  productivity and,
together  with a short-term shut-down of  the Talvivaara Group's metals recovery
plant  and discontinuation of  its ore production  for approximately six months,
reduce the Talvivaara Group's operating expenses during the period it expects to
need  to attract  long-term capital  and to  right-size its capital structure as
part  of the corporate  reorganisation process. Talvivaara  estimates that, as a
result  of  these  measures  and  the  filing  for  corporate  reorganisation by
Talvivaara  and Talvivaara Sotkamo Ltd,  the Talvivaara Group's current combined
cash  position  will  be  sufficient  without  additional external funding until
clearly  in the  first quarter  of 2014 and  will thus  facilitate the corporate
reorganisation process.

Talvivaara  continues to believe  that bankruptcy proceedings  of either company
would  have a material value destructing effect  and, therefore, would not be in
the  best interests  of the  Talvivaara Group  and its  stakeholders. Bankruptcy
proceedings  would endanger  the employment  of the  employees of the Talvivaara
Group and of many of its suppliers and contractors. Talvivaara also continues to
believe  that the  environmental impact  of a  bankruptcy would  be difficult to
manage and that corporate reorganisation proceedings and continued production at
the  Sotkamo site would best facilitate  water treatment and other environmental
clean-up  and  would  also  provide  the  best possibility to preserve value for
various stakeholders.

Under  the  circumstances,  there  can  be  no  assurance  that  Talvivaara  and
Talvivaara  Sotkamo Ltd will be admitted to corporate reorganisation proceedings
or  that their corporate reorganisation, if commenced, is ultimately successful.
The corporate reorganisation process can fail for a number of reasons, including
insufficiency  of funds  to complete  the reorganisation proceedings, unforeseen
operational  or environmental issues  facing Talvivaara's production facilities,
changes  in  the  operating  environment  affecting  the  financial viability of
Talvivaara  and various other factors. If  Talvivaara and Talvivaara Sotkamo Ltd
are  not admitted to corporate reorganisation proceedings or, if commenced, such
corporate  reorganisation  proceedings  fail  for  these  or  any other reasons,
Talvivaara  and  Talvivaara  Sotkamo  Ltd  would  expect  to file for bankruptcy
proceedings unless other alternatives have materialised by that time.



Enquiries

Talvivaara Mining Company Plc                Tel +358 20 7129 800

Pekka Perä, CEO
Saila Miettinen-Lähde, Deputy CEO and CFO


Talvivaara Mining Company Plc
Talvivaara Mining Company is an internationally significant base metals producer
with  its  primary  focus  on  nickel  and  zinc  using  a  technology  known as
bioheapleaching  to extract metals out  of ore. Bioheapleaching makes extraction
of  metals  from  low  grade  ore  economically  viable. The Talvivaara deposits
comprise  one of the largest known sulphide  nickel resources in Europe. The ore
body  is  estimated  to  support  anticipated  production  for  several decades.
Talvivaara has secured a 10-year off-take agreement for 100 per cent of its main
output  of nickel and cobalt to Norilsk Nickel and entered into a long-term zinc
streaming  agreement  with  Nyrstar.  Talvivaara  is  listed on the London Stock
Exchange  Main Market and NASDAQ OMX  Helsinki. Further information can be found
at www.talvivaara.com

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