Talvivaara Mining Company Plc. 2011 Capital Markets Day Financial and operational update

STOCK EXCHANGE RELEASE
Talvivaara Mining Company Plc
17 November 2011


2011 Capital Markets Day
Financial and operational update

Talvivaara Mining Company Plc ("Talvivaara" or the "Company") is holding its
2011 Capital Markets Day for analysts and investors at Intercontinental Hotel
Park Lane, London, today. The Capital Markets Day presentations will include an
update on strategy, operations and environmental sustainability, as well as
guidance on 2012 full year production and planned capital and operating
expenditure.

Highlights

* Production remains on track to meet previously given 2011 guidance of
16,000t of nickel
* 2012 full year production guidance: 25,000-30,000t of nickel and
50,000-60,000t of zinc
* 2012 full year capital expenditure estimated at EUR 40-50 million (excluding
uranium)
* 2012 full year operating expenditure estimated at approximately EUR 250
million


Q4 2011 operational update

Operations at the Sotkamo mine have progressed according to plan during the
fourth quarter. Full year 2011 ore production is estimated at approximately
11Mt and waste mining at 18Mt. Materials handling operations are also
progressing well, with the entire process now operating at a satisfactory level.
In bioheapleaching, the newly constructed primary heap section 1 and secondary
heap have been taken into production, enabling a further improvement and better
control of metal grades in solution.

In metals recovery, both of Talvivaara's production lines have been on stream
since mid-October, and the entire metals recovery process has operated in a
stable and predictable manner. The average PLS feed to metals recovery has been
approximately 1,100 m(3)/h during the fourth quarter, and is currently stable at
approximately 1,500 m(3)/h. As a result, daily nickel precipitation since mid-
October has been 60-70t. Based on current daily production volumes and foreseen
overall availability of the metals recovery plant, Talvivaara expects to achieve
the previously stated full year 2011 production guidance of 16,000t of nickel.

Production guidance

Talvivaara anticipates full year 2012 production to amount to 25,000-30,000t of
nickel, 50,000-60,000t of zinc and 500-600t of cobalt. Copper is expected to be
produced from the first half of 2012 onwards, and subject to receiving all the
necessary permits, minor amounts of uranium intermediate (yellow cake) may also
be recovered during the fourth quarter of 2012. The production guidance is based
on a PLS flow to metals recovery of approximately 1,200-1,500 m(3)/h during the
year, and an average nickel grade in solution of approximately 2.5 g/l, implying
average daily nickel precipitation of 70-90t during the year. The mining
department is expected to produce approximately 18Mt of ore and 12Mt of waste.
Talvivaara also reiterates 50,000tpa of nickel as the full capacity target.
While all individual processes have been proven to be capable of operating at
the full capacity level, further improvements are required such that all
processes operate at the required level on a continuous basis.

Capital and operating expenditure guidance

Talvivaara anticipates full year 2012 operating expenditure to be approximately
EUR 250 million, including financial leasing costs of EUR 15-20 million.
Depreciation and amortization for the year is anticipated at EUR 40-45 million.
The cash cost of production, net of by-product credits, on nickel in concentrate
is estimated at EUR 6,000-6,500/t for 2012 and EUR 4,500-5,000/t for 2013. The
cash cost on refined nickel metal, incorporating the treatment charge for
nickel, is estimated at EUR 8,000-8,500/t for 2012 and EUR 6,500-7,000/t for
2013, net of by-product credits.

Full year 2012 capital expenditure is expected at EUR 40-50 million, excluding
the construction costs of the uranium extraction circuit, which are estimated at
approximately EUR 40 million for 2012. Under the uranium off-take agreement with
Cameco Corporation, up to USD 60 million of the construction costs are
reimbursed to Talvivaara by Cameco. Additionally, Talvivaara remains committed
to carrying out required environmental investments.

Environmental update

Talvivaara is also providing an update in connection with recent media coverage
on water discharges from its Sotkamo operations. When the Company discovered the
higher than anticipated level of water discharges in the autumn of 2010, it
commenced action in co-operation with the Kainuu Centre for Economic
Development, Transport and the Environment ("ELY Centre") to systematically take
corrective measures. These have included improved precipitation of manganese
from process waters and removal of sulphates through increased recycling of
process waters. As a result of the measures taken, sulphate discharges have
reduced by approximately 50% and manganese discharges by 80% since 2010.
Additional measures are planned, including further increasing the recycling of
process waters, catalytic scrubbing of hydrogen sulphide gases, and application
of new water purification techniques, that are currently being evaluated. A
total reduction in sulphate emissions of 85% is targeted by 2015. Sustainability
is a key component of Talvivaara's strategy, and the Company will continue to
minimise environmental emissions through process improvements and environmental
investments.

The police have been notified of Talvivaara's sulphate and manganese discharges
on the grounds of the environmental protection legislation. While the police
investigation is still ongoing, the Company continues to hold the view that no
crime has occurred.



The live webcast and presentations of the Capital Markets Day starting at 12:30
UK / 14:30 Finland are available on:
http://www1.axisto.co.uk/webcasting/investis/talvivaara/capital-markets-day-
2011/

.

Enquiries:

Talvivaara Mining Company Plc.  Tel. 358 20 712 9800
Pekka Perä, CEO
Saila Miettinen-Lähde, CFO

Merlin PR Tel. 44 20 726 8400
David Simonson
Anca Spiridon

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 sufficient to support anticipated production for at least 46 years.
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 the London Stock
Exchange Main Market and NASDAQ OMX Helsinki and is included in the FTSE 250
Index and the OMXH 25 Index. Further information can be found at
www.talvivaara.com.



Talvivaara Capital Markets Day 17112011:
http://hugin.info/136227/R/1564673/485392.pdf




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Source: Talvivaaran Kaivososakeyhtiö Oyj via Thomson Reuters ONE

[HUG#1564673]


Unternehmen: Talvivaaran Kaivososakeyhtiö Oyj - ISIN: FI0009014716