Talvivaara Mining Company Plc: No solution reached in short term financing negotiations

Stock Exchange Release
Talvivaara Mining Company Plc
6 November 2014


            No solution reached in short term financing negotiations

                 Talvivaara Sotkamo Ltd to apply for bankruptcy



As  previously  announced,  Talvivaara  Mining  Company Plc ("Talvivaara" or the
"Company")  has been  seeking a  solution to  its short  and long term financing
requirements.   In   its   H1  2014 interim  report,  the  Company  stated  that
implementation  of the proposed restructuring  programmes for Talvivaara and its
operating  subsidiary  Talvivaara  Sotkamo  Ltd  ("Talvivaara  Sotkamo") remains
subject  to sufficient creditor support and  an adequate financing solution, and
that  the Company continues to explore all possible sources of finance. Further,
the  Company stated that whilst it  considered an adequate financing solution to
be  achievable, it acknowledged that reaching  a positive outcome is not certain
and  that the  Company can  give no  assurance that  the submitted restructuring
programmes  are approved or  that the reorganisation  process will ultimately be
successful.

The financing discussions with the key stakeholders, potential new investors and
the Republic of Finland have continued intensely throughout the past months, and
as  of the date of this announcement,  negotiations for a long term solution are
already  far advanced.  However, Talvivaara  has today  been informed that short
term financing to meet the Company's immediate working capital needs will not be
available  in  the  required  timeframe,  which  makes  concluding the long term
solution unachievable.

The   management  of  Talvivaara  believes  that,  with  appropriate  additional
financing,  the recent  operational progress  and improvements  in environmental
risk  management  would  have  provided  a  good  basis  for  future  success of
Talvivaara  following  implementation  of  the  proposed corporate restructuring
programme  and  the  new  corporate  structure.  However,  in the absence of any
additional  financing, Talvivaara has been informed  that the Board of Directors
of   Talvivaara  Sotkamo  have  decided  to  apply  Talvivaara  Sotkamo  into  a
bankruptcy,   and   that  the  Administrator  of  the  corporate  reorganisation
proceedings has given his consent to this decision.

The  listed parent company Talvivaara Mining  Company Plc. will provide services
for  the bankruptcy estate of Talvivaara Sotkamo and continue its operations for
the  time being with the target of  securing sufficient financing to acquire the
mining operations and associated assets and rights from the bankruptcy estate of
Talvivaara Sotkamo.

Talvivaara  expects that  the application  for bankruptcy  by Talvivaara Sotkamo
will be filed with the district court of Espoo, Finland, during today.



Enquiries

Talvivaara Mining Company Plc Tel +358 20 7129 800

Pekka Perä, CEO

Pekka Erkinheimo, Deputy CEO and Chief Commercial Officer



Pekka Jaatinen, Administrator,

Attorney-at-Law, Castrén & Snellman Attorneys Ltd Tel +358 20 7765 765





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  NV. Talvivaara is  listed on NASDAQ Helsinki.
Further information can be found at www.talvivaara.com.

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