Headquarter is in Stockholm, Sweden. The Company also has an

OVERVIEW OF SOTKAMO SILVER
■  Headquarter is in Stockholm, Sweden. The
Company also has an operations office in Oulu
and a field office in Sotkamo, Finland
■  The primary listing is on the NGM Equity stock
exchange in Stockholm with secondary listing on
the Nasdaq OMX Helsinki
■  Current market capitalization is about € 20 million
■  The Company had € 2.9 million of net cash at the
end of Q2 2013
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BENEFTS TO INVEST IN SOTKAMO SILVER
•  EXPERIENCED MANAGEMENT - WE DELIVER
•  LOW TECHNICAL AND GEOLOGICAL RISK
•  PROVEN MANAGEMENT TEAM
•  FORECASTED OPERATING CASH FLOWS ARE STRONG
•  JORC RESERVES AND RESOURCES
•  ADITIONAL EXPLORATION TARGET AND POTENTIAL (JORC)
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PRESS RELEASE 130828
•  THE VOLUME OF THE EXPLORATION TARGET IS
MORE THAN 20 M TON MINERAL RESOURCES
•  TOTAL 33 M TON (resources + potential)
•  THIS INCREASE THE TARGET SUBSTANTIALLY
“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.”
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Comments Timo Lindborg, CEO
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INCREASED POTENTIAL DOWN TO - 2 000 M
Open Pit
Mine Decline
Planned Decline
Total Mineral Resource (JORC)
13 Mill.t, Ag 60 g/t
Ore Reserve (JORC) 3 Mill.t, Ag 86 g/t
500 m
Drill Intersections
R-110: 27.25 m, Ag 92 g/t
R-106: 23.40 m, Ag 148 g/t
Exploration Target (JORC)
>20 Mill.t, Ag 60 g/t
2 Km
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SENIOR MANAGEMENT HAVE EXTENSIVE MINING
EXPERIENCE IN THE NORDIC REGION
Timo Lindborg – President &
CEO
■ Doctor of Technology, MSc
( Civil Engineering) and BSc
(Geology). Professor at Oulu
University
■ 35 years experience with
mining projects and Nordic
companies
■ Former Chief Executive Officer
of Endomines AB, Endomines
Oy and Kalvinit Oy
■ Extensive experience in silver
and gold mining projects
■ Born 1955
pic
Ilkka Tuokko – Managing
Director Sotkamo Silver Oy
■ MSc in Geology and
mineralogy from Oulu
University
■ More than 30 years
experience in mining projects,
precious metals and
international mining
companies
■ ”Competent Person” status,
according to Australian JORC
and Swedish SveMin
■ Former Group Geology &
Mining Manager of Mondo
Minerals B.V.
■ Born 1950
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BOARD OF DIRECTORS HAVE EXTENSIVE MINING
EXPERIENCE IN THE NORDIC REGION
Mauri Visuri – Chairman of the Board (since
2011)
■  MSc in Economics from the University Of
Vaasa
■  Bachelor of Science in Machinery
Engineering from Vaasa Polytechnic
■  Extensive experience in mining and process
industry
■  Mr. Visuri is also Managing Director of
Teknoventure Oy
■  Born 1957
Teuvo Jurvansuu – Board member
(since 2010)
■  35 years experience in the mining
industry
■  Worked in various mines in Finland
during that period including Vihanti,
Keretti, Enonkoski and Pyhäsalmi
mines
■  In 2001 he entered the position of
Managing Director of Pyhäsalmi Mine
Oy and at the same time, Inmet
Finland Oy (retired in 2009)
■  Born 1948
Joanna Kuntonen-van ‘t Riet – Board
member (since 2012)
■  MSc in Environmental Sciences from the
University of Helsinki
■  Over 13 years experience in
environmental and safety management
in the mining industry
■  Presently Environmental and Safety
Manager at Northland Resources
■  Born 1974
Jarmo Vesanto – Board member
(since March 2013)
■  MSc (Geology and Mineralogy)
■  Member of the Australian Institute of
Mining and Metallurgy
■  More than 30 years experience in
mining and exploration including 10
years in Australia and Canada with
Outokumpu Oyj
■  Currently General Manager - Finland
at Altona Mining Ltd
■  Born 1954
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RAMP-UP PHASE WILL BENEFIT SIGNIFICANTLY FROM THE EXISTING WORK
Mining plan
■ The existing mine
decline of 2.6 km
and ramp access
(25 m2) , as well as
the vertical
ventilation shaft
extending 350
meters from the
surface, are both
already in place and
ready for
operational use.
■ The projected mine
life is 9 to 10 years
based on current
estimated mineable
ore reserves of
approximately 3.0Mt
Open pit
Existing ventilation shaft
Existing Mine Decline (brown)
Backfill with waste rock
Year Colour
2014 Green, Brown
2015 Red
2016 Yellow
2017 Blue
2018 Black
2019 – 2021 Grey
Planned extension of the decline (green)
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REPUTABLE KEY SHAREHOLDERS WITH EXTENSIVE
EXPERIENCE IN MINING SECTOR INVESTMENTS
%
ownership
Market value
(EUR’m)
Teknoventure Oy
14.2
3.5
Finnish Industry Investments Ltd
14.2
3.5
Timo Lindborg (through a company)
10.2
2.5
Jouko Jylänki
8.9
2.2
Ilmarinen Mutual Pension Insurance
Company
8.5
2.1
Total top five shareholders
56.0
13.9
Other shareholders
44.0
10.9
100%
24.8
Top five shareholders
Total
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ORE RESERVES AND MINE ECONOMICS
KEY PROJECT SUMMARY
Ore reserves
Ore
tonnage
Ag Grade
Ag
Proven
1.19 Mt
90.18 g/t
3 442 141 oz
Probable
1.78 Mt
83.40 g/t
4 786 353 oz
Proven and probable ore reserves
2.97 Mt
86.11 g/t
8 228 494 oz
MINE ECONOMICS
Production of payable silver
0.8 million oz Ag per annum and 7.4
million oz Ag over LOM
Operations commencement date
Q4 2014
Average operating cash costs
€ 10.5 / oz Ag over LOM (US$ 13.7)
Required capital expenditure (including
infrastructure)
€ 30.7 million
Required net financing (including contingency,
working capital and guarantees)
€ 40 million
KPMG Corporate Finance (“KPMG”) has been retained by Sotkamo Silver as exclusive Financial and Strategic adviser
in connection with the Project.
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FURTHER EXPLORATION POTENTIAL
■  Exploration projects ongoing in
the surrounding Silver Mine
region, with claims made on
plots covering over 3,000
hectares in the Tipasjärvi
greenstone belt
■  The map illustrates locations of
the applied claims (previous
Mining Act) and ore exploration
permit applications
■  Additional prospects include
Hopeavuori (Vammala Migmatite
Zone) in Southern Finland.
Management believe there is significant
potential in these zones
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Effective implementation of the mining project
There are key points in the mining (development project) process
where the resource model is critical to mining decisions, since the
resource estimate controls financial expectations at each stage.
•  Back to basics – There are no guarantees with new technology.
•  Conceptual study
•  Pre-feasibility study stage
•  Feasibility study stage
•  Planning for the unforeseeable – do you have plan B or C
•  Mining is cyclical - Volatility is the new stability.
•  The licence to operate demands better technology and
sustainability.
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DEVELOPMENT STAGES
Timo
Lindborg
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ENTREPRENEURIAL APPROACH
•  Use infrastructure by innovative and effective way.
•  Acquire knowledge and experience.
•  Lack of capital – low cost approach and good cost
control.
•  Work hard to create added value.
•  Innovations comes from people with expertise and
experience.
21.11.2
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Timo Lindborg
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INNOVATIVE USE OF INFRASTRUCTURE
• 
• 
• 
• 
• 
• 
• 
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Geological Survey of Finland
TEKES - National Technology Agency of Finland
Subsidies
Ministry of Employment and the Economy
Municipalities
Potential customers
Financiers
Good project portfolio
21.11.2
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Timo Lindborg
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WORK HARD TO CREATE ADDED VALUE
Low salaries, long nights, unsafe
future, lost carrier opportunities…
… but lot of hope and fun!
19 472 m drilling in 172 hole
21.11.2
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Timo Lindborg
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INFORM PROPERLY YOUR STAKEHOLDERS
ETHICS – HONESTY
- The level of the ethics of the Company comes from the entrepreneurs,
owners, management and board.
COMPANY'S GOVERNANCE
- The stock exchange rules and legislation obliges.
- Mining Industry Association’s recommendations
INFORMATION AND COMMINUCATION
- Adequate transparency + credibility
- NI 43 101; JORC; FINNMIN; SVEMIN; CIM; NI 43 101
World bank; EQUDOR PRINCPLES; etc…..
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RULES REDUCE RISKS
• Ni 43 101
• JORC CODE
• SVEMIN
• FINNMIN
• CESR
JORC or NI43101 CODE
MINERAL
RESOURCES
ORE
RESERVES
(IN SITU)
(MINEABLE)
Increasing level
of geological
knowledge and
confidence
Consideration of economic,
mining, metallurgical,
marketing, and governmental
factors
PROVEN
Committee of
European
Securities Regulators
MEASURED
PROBABLE
INDICATED
INFERRED
Timo
Lindborg
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LOW RISK AND SIGNIFICANT GROWTH POTENTIAL
Low risk
mining and
processing
■ Deposit mineralogy is simple, well understood and easy to
process, with standard grinding and flotation with recovery above
86%.
Significant
growth
potential
■ Geophysical surveys suggest substantial extension to potential
mine life and resource mineralization.
■ Exploration mineral resource estimate in the inferred category (NI
43-101 compliant) is 13 Mt of ore for 26 Moz silver at 65g/t (cutoff grade 30 g/t Ag) + the Exploration target is 20 Mt at 60g/t.
■ Substantial pipeline of promising exploration projects in the
surrounding Silver Mine region.
Management ■ The management team has wide experience of running mines in
team with
Finland. Both CEO Timo Lindborg and Managing Director Ilkka
proven track
Tuokko are experienced mining professionals with a proven track
records
record of exploration and production.
Environment ■ Equator Principles Assessment received with no significant
issues noted.
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SILVER MINE AREA
THE NECESSARY MINING LICENSE
AND
ENVIRONMENTAL PERMIT RECEIVED
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PRIMARY CONTACT REGARDING THIS INVESTMENT OPPORTUNITY
KPMG Corporate Finance contacts
Rama Ayman
Mikko Harju
Tommi Valento
Partner, Global Head
Metals & Mining Corporate Finance
+44 20 7311 5092
Mob. +44 7826 918 994
[email protected]
Senior Manager,
Corporate Finance
+358 20 760 3288
Mob. +358 50 339 5910
[email protected]
Senior Manager,
Head of Debt Advisory
+358 20 760 3246
Mob. +358 40 720 8951
[email protected]
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