THE SILVER MINE’S ENVIRONMENTAL PERMIT HAS NOW BECOME LEGALLY VALID

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| Source: Sotkamo Silver AB
multilang-release
The Regional State Administrative Agency of Northern Finland granted an
environmental permit for the Silver Mine on April 16th 2013. The permit was
appealed at Vaasa Administrative Court. The Court announced its decision on
them on 13th of June 2014. That decision was not appealed within the appealing
period. This is now confirmed from Supreme Administrative Court that the Silver
Mine’s environmental-permit is legally valid.


The final environmental-permit allows construction and operation of the Silver
Mine in Sotkamo. The permit consists of 108 detailed regulations, terms and
provisions to secure an environmental-friendly and sustainable operation.

According to cash flow forecast of feasibility study, which is based on an
average silver-price of $ 21.5 / Oz between the years 2016-2025, the Mine´s
project IRR is estimated to 35%. Pay-back period from production-start is
estimated to about 3 years. Life of mine capex is 32 million euro. It is
projected to mill an average of 350,000 - 450,000 ton silver-ore to produce
about 1,200,000 - 1,300,000 ounces silver and about 3,000 - 3,200 ounces gold
in concentrates per year.

In addition to have the target of near-term silver-gold concentrate production,
exploration and ore-development continues. By geophysics demonstrated
significant exploration potential below the ore reserves is the first target
for additional core-drilling to increase the resources. Technological tests and
planning for pre-concentrating of lower grade mineralized resources will
increase economically mineable amounts of silver and life-time of the mine. The
high-grade nature of this mineralization and a large demonstrated
exploration-potential means that the resource-tonnage could increase
significant.

“Although the Management believe this is an ideal environment to build a Silver
Mine due the good deposit, abundance of skilled labour and supplies, any final
decision to proceed is not yet resolved. It would be based on secured financing
on attractive terms. Several financing alternatives are currently reviewed. I
believe that the received final environmental permit will help to facilitate
this process.” Comments Dr. Timo Lindborg, CEO.

 

The official Stock Exchange Release is given in Swedish and there may be slight
differences in the translated versions.

 

Stockholm, 28th July 2014.

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 Silver Mine project
in the municipality of Sotkamo.

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 ticker symbol is SOSI in NGM Equity in Stockholm and SOSI1 in NASDAQ OMX
Helsinki. 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

The official Stock Exchange Release is given in Swedish and there may be slight
differences in the translated versions.