INCREASED POTENTIAL AT SILVER MINE DEPOSIT DOWN TO THE DEPTH OF 2 000 METERS

The volume of the Exploration Target is more than 20 Mt mineral-resources and
the grade 60 g/t Ag at the cut- off grade of 30 g/t Ag, which increase the
target substantially.


Sotkamo Silver has conducted an additional geophysical survey at its Silver
Mine-deposit. The conductive zone, which is an extension of the deposit, can be
defined as an Exploration Target (JORC 2012), because it forms a liable
extension of the Silver Mine-Deposit both as to shape and position and in
accordance with known geological structures. The zone has been penetrated by
six drill-holes which contain the same type of cores as in Silver Mine´s
intersections.

In purpose to find possible deep extensions at the Silver-Deposit, Sotkamo
Silver engaged GTK to perform an EM Sampo (Gefinex 400S) during 2011-2012 under
Geophysicist Matti Niskanen, who also created the first 3D- models to visualise
conductive zones. Both the original models and the complementary work indicate
that the Deposit extends to the depth of more than -1 400 meters and might bend
towards upright and westwards. The model extends to the depth of -2 000 meters,
while the lower part below -1 400 meters should be considered speculative and
theoretical.

An Exploration Target is a statement or estimate of the exploration potential
of a mineral deposit in a defined geological setting where the statement or
estimate, quoted as a range of tonnes and a range of grade (or quality),
relates to mineralisation for which there has been insufficient exploration to
estimate a Mineral Resource.

 “The result of this study shows clearly the great potential, which Silver Mine
deposit has towards depth and strike. This increases the potential of the
Silver Mine projektet and our expectations of the deposit quality. I am certain
that the Silver Mine will have much longer life time than the actual reserves
shows today.” Comments Timo Lindborg, CEO

 

The independent consultant Dr. Jyrki Parkkinen, Doctor in Geology, who holds a
Qualified Person status under “The European Federation of Geologists” (EFG) and
is qualified to make statements according JORC and NI 43 101 rules.

Dr. Parkkinen is independent from the Company and he does not hold any shares
in Sotkamo Silver. He has been involved in the preparation of this press
release.

For more detailed information see our web pages at: www.silver.fi

 

Sotkamo Silver AB

Stockholm, 28th August 2013

Timo Lindborg, CEO

 

Image 1 below: Silver Mine Deposit, mine plan and models for the Exploration
Target. The models extend to the depth of 2 000 m while the lower portion below
-1 400m should be considered speculative.

[Image_Sotk]

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

ISIN-code for Sotkamo Silver shares is SE0001057910 and for warrants
SE0004635290.

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.