REASONS TO INVEST IN SOTKAMO SILVER
•  LOW TECHNICAL AND GEOLOGICAL RISK
•  PROVEN MANAGEMENT TEAM
•  JORC RESERVES AND ADITIONAL EXPLORATION
POTENTIAL
•  FORECASTED OPERATING CASH FLOWS ARE
STRONG
•  WE DELIVER – EXPERIENCED MANAGEMENT
1
1
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.
2
Q2 2013
•  It is obvious that lower prices changes the circumstances for all
mining projects.
•  However, we can exploit the positive opportunity that our silver
deposit offers, namely to increase the silver content of the mined ore
with lower mining capacity and thus maintain sufficient EBITDA level.
•  These measures may also reduce the need for capital.
•  We intend to increase capacity in the future.
•  Mining is a far forward-looking activity and man starts production in
order to mine decades even if the Company's mineral reserves (ore)
may only show between 8 -10 years production’s time in the
beginning.
3
3
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.”
4
4
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
5
FURTHER POTENTIAL, THE APPLIED CLAIMS
■ Exploration projects covering
over 3,000 hectares in the
Tipasjärvi greenstone belt
■ An extensive kyanite-quartz
mineralization, approx.
■ 1.5 M t grading 12 % kyanite
as estimated to the depth of
50 m. A commercial quality
kyanite concentrate has been
produced by flotation process
■ Additional gold prospects
include projects in Southern
Finland.
6
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
7
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 MSEK 117
■  The Company had SEK 25 million of net cash at
the end of Q2 2013
8
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
9
ATTRACTIVE LOCATION OF THE SILVER MINE
Port of Oulu
Finland
SOTKAMO
Sotkamo
Silver Mine
Helsinki
Main road
Boliden zinc plant, Kokkola
Road
Railway
■  The Silver Mine is located close to the town of Sotkamo in the Kainuu region of
eastern Finland.
■  Adjacent roads, railways and a nearby sea port provide efficient transportation to
both domestic and international customers
■  Electricity connection to the local grid is currently being constructed Supply of
10
process water from a neighbouring lake
SILVER MINE AREA
ALL NECESSARY MINING LICENSES
AND
ENVIRONMENTAL PERMITS RECEIVED
11
SILVER MINE OVERVIEW
■  Extensive exploration has been carried out and Sotkamo
Silver acquired the Silver Mine rights in 2007 and the
land area in 2012.
■  Total amount of drilling is 53,1 km.
■  The BFS was completed on the Project in March 2012 by
Wardell Armstrong International, with a supplementary
mine plan review performed by Outotec.
■  Current JORC classified mineral resources are 5 million
tonnes, including 3 million tonnes of ore reserves at
86.11 g/t Ag amounting to 8.2M oz of silver.
12
RAMP-UP PHASE WILL BENEFIT SIGNIFICANTLY FROM THE EXISTING WORK
Mining plan
■ The mining plan
allows for initial
shallow open-pit
mining with
subsequent
underground mining
to depths of
approximately 450
metres
■ 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)
13
KEY INVESTMENT HIGHLIGHTS
■ Operations are expected to commence in Q4 2014 and
Short
negotiations with potential off-takers are in advanced stages
timeframe to
■ All necessary mining licenses and environmental permits
production
received
Completed
Bankable
Feasibility
Study (BFS)
■ Extensive exploration and technical mine planning completed,
including a BFS prepared by Wardell Armstrong in May 2012
■ Review of the final mining plan completed by Outotec in May
2012
Production
■ Average silver production of 0.8 million oz Ag per annum.
■ Silver : 7,386,148 oz; Gold : 23,166 oz (LOM)
■ Zinc : 17,468 t; Lead : 7,564 t (LOM)
Low capital
expenditure
■ Capital expenditure of approximately € 30.7m required, which
includes construction of a processing plant and infrastructure
■ Contract negotiations are near complete with all suppliers
14
LOW RISK AND SIGNIFICANT GROWTH POTENTIAL
Low risk mining ■ Deposit mineralogy is simple, well understood and easy to process, with
and processing
standard grinding and flotation with recovery above 86%.
Significant
■ Geophysical surveys suggest substantial extension to potential mine life and
growth potential 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 (cut-off grade 30 g/t Ag).
■ Substantial pipeline of promising exploration projects in the surrounding
Silver Mine region.
Mining friendly
jurisdiction
■ Finland is a AAA-rated country and was ranked as the most favourable
mining jurisdiction (Fraser Institute Survey of Mining Companies 2012-2013).
■ The surrounding region has a well-established mining community with readily
available subcontractors and qualified personnel.
Management
team with
proven track
records
■ The management team has wide experience of running mines in Finland.
Both CEO Timo Lindborg and Managing Director Ilkka Tuokko are
experienced mining professionals with a proven track record of exploration
and production.
Environment
■ Equator Principles Assessment received with no significant issues noted.
15
RAMP-UP BENEFITS SIGNIFICANTLY FROM THE EXISTING WORK
■  The mining plan allows for initial shallow open-pit mining with
subsequent underground mining to depths of approximately 450
metres.
■  Annual production is planned at 350,000 tonnes of ore. Total
saleable production is estimated to comprise of approximately
2,000 tonnes of Ag-Au-Pb concentrate, 4,800 tonnes of Zn-Ag
concentrate and 9,000 tonnes of pyrite-Ag concentrate.
Existing underground access
■  The existing mine decline of 2.6 km and ramp access (25 m2) to
the ore, as well as the vertical ventilation shaft extending 350
meters from the surface, are both already in place and ready for
operational use.
16
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]
17