STOCK EXCHANGE RELEASE Talvivaara Mining Company Plc 14 December 2010 TALVIVAARA MINING COMPANY PLC'S MANAGEMENT INVESTS IN THE COMPANY'S SHARES The Board of Directors of Talvivaara Mining Company Plc (Talvivaara) has today decided on a new shareholding plan directed to members of the Talvivaara Executive Committee and the key personnel of Talvivaara Mining Company Plc (Participants). The plan enables the Participants to acquire a considerable long-term shareholding in Talvivaara. Through this plan, the Participants personally invest a considerable amount of their own funds in Talvivaara's shares. The Participants finance their investments partly themselves and partly by a loan provided by Talvivaara. The actual owner risk will be carried out personally by the Participants for the part of their personal investment in the plan. For the purpose of the share ownership, the Participants have acquired a limited liability company named Talvivaara Management Oy (Talvivaara Management), whose entire share capital they own. The intention of Talvivaara Management is to acquire an approximate total of 1,100,000 Talvivaara shares. The acquisitions will be financed by equity investments in Talvivaara Management by the Participants, in the maximum total amount of EUR 1,500,000, as well as by a loan provided by Talvivaara to Talvivaara Management, in the maximum amount of EUR 6,000,000. Some of the Participants will finance their equity investments in Talvivaara Management by transferring part or all of the Talvivaara shares that they already own to Talvivaara Management. After the plan has been implemented in full, the Participants will hold approximately 0.4% of the Talvivaara shares through Talvivaara Management. As part of the plan, the Board of Directors of Talvivaara has today decided to grant to Talvivaara Management an interest-bearing loan in the maximum amount of EUR 6,000,000 to finance the acquisition of the Talvivaara shares. The loan will be repaid in full by 31 March 2014, at the latest. Should the plan under the terms of the plan be continued by one year at a time in 2013 or 2014, the term of the loan will be extended correspondingly. Talvivaara Management has the right to repay the loan prematurely at any time, and it has the obligation to repay the loan prematurely by selling Talvivaara shares it holds, in a situation where the quoted price of the Talvivaara share exceeds the average price of the Talvivaara shares acquired for the plan, multiplied by two (2), during a predetermined number of consecutive trading days. The plan will be valid until the publication of Talvivaara's financial statements 2013 after which the plan is intended to be dissolved in a manner to be determined later. The plan may be dissolved, e.g., by merging Talvivaara Management with Talvivaara, or by selling the Talvivaara shares held by Talvivaara Management in another manner. The plan will be continued by one year at a time, in case the Talvivaara share price after the publication of Talvivaara's financial statements 2013 is lower than the average share price which Talvivaara Management paid for its Talvivaara shares. During the validity of the plan, the transfer of the Talvivaara shares held by Talvivaara Management has been restricted. Sotkamo 14 November 2010 TALVIVAARA MINING COMPANY PLC The Board of Directors ENQUIRIES Talvivaara Mining Company Plc Tel: +358 20 7129 800 Pekka Perä, CEO 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. Further information can be found at www.talvivaara.com. [HUG#1472415]
TALVIVAARA MINING COMPANY PLC'S MANAGEMENT INVESTS IN THE COMPANY'S SHARES
| Source: Talvivaaran Kaivososakeyhtiö Oyj