SILVERCONTENT OF THE ORE-RESERVES HAVE INCREASED BY 22%


Sotkamo Silver is pleased to announce an update of the ore-reserves at
the Silver Mine. The update is based on the test-results that have been
made with ore-sorting and its effects on the mining plan.


The mining-plan has been updated and ore-sorter will be inserted into an
ore-preparation process. Feasibility study will be updated during the
year according to these encouraging results.

Ore-reserves in the category Proved and Probable are totally 2.76
million tons with a silver grade of 124 g/t Ag (JORC code 2012).

In comparison with the previous ore-reserve estimate, the average
content of silver in Proven and Probable reserves have increased with 22
%. The amount of ore-reserve tonnage have been reduced by ore-sorting
with 17%, which reduce the treatment cost at the concentrator further
more per produced ounce.

The silver-content in the ore at the first four planned years of
production is between 144-124 g/t silver and gold-content is about 0.45
to 0.40 g/t in fte mill-feed. During the third planned production-year
capacity increase from 350 000 tons to 450 000 tons ore per year.
Planned production with currently known ore-reserves are about 7 years.
 

Chart. Silver mine\'s ore reserves, January 2016



Ore-reserve estimate follows the Australian JORC Code. The calculations
are done with a \"net smelter return cut-off\" at 30 €/ton ore for
underground-mining and 60 €/ton for ore-feed to the mill. A waste-rock
dilution of 15% at underground mining and 10% at open pit hasv beeb
applied.

Jouni Kankkunen MSc (Mining), MAusIMM has conducted the ore-reserve
estimate. Outotec (Finland) Oy has carried out a review of the
ore-reserve estimate and the mine-technical part of the forthcoming
update of the Silver Mine´s Bankable Feasibility Study. The review was
conducted by Pekka Loven, MSc (Mining), MAusIMM (CP) of Outotec
(Finland) Oy. He holds a Qualified Person status, according to JORC,
2012. The updated ore-reserves are based both on information from
test-results and an update of the Bankable Feasibility Study, as well as
information from Sotkamo Silver.

Sotkamo Silver has commissioned an update of the previously prepared
Bankable Feasibiity study from CTS Engtec Oy, where the calculations are
based on this new information, today\'s costs, the new mining-plan and
the latest tenders from suppliers, mining and construction companies.
The results will be published in March 2016.

\"I am very pleased with the increase of the average content of the
sorted ore-reserves and the new mining-plan. These latest results have
once again confirmed that the Silver Mine project and the continued work
are well motivated. I am convinced that these actions and continuous
improvements are the key to our success, which will provide a viable
future, \"says Timo Lindborg, CEO

 

Stockholm February 8th 2016

Sotkamo Silver AB (publ)

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 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.

Attachments

160208_New_reserves_ENG_b8cea.pdf