Benefits to Invest in

Silver Mine Project

BULLET POINTS

• Effective implementation of the

mining project

• The Entrepreneurial Approach in

Mining

• Sotkamo Silver and how to inform

stakeholders

1

■ 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

OVERVIEW OF SOTKAMO SILVER

2

• 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)

BENEFTS TO INVEST IN SOTKAMO SILVER

2

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.”

Comments Timo Lindborg, CEO 3

4

INCREASED POTENTIAL DOWN TO - 2 000 M

Total Mineral Resource (JORC)

13 Mill.t, Ag 60 g/t

Ore Reserve (JORC) 3 Mill.t, Ag 86 g/t

Exploration Target (JORC)

>20 Mill.t, Ag 60 g/t

Drill Intersections R-110: 27.25 m, Ag 92 g/t

R-106: 23.40 m, Ag 148 g/t

Open Pit Mine Decline Planned Decline

2 Km

500 m

5

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

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

pic

6

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

7

Existing Mine Decline (brown)

Planned extension of the decline (green)

Backfill with waste rock

Open pit

Existing ventilation shaft

Year Colour

2014 Green, Brown

2015 Red

2016 Yellow

2017 Blue

2018 Black

2019 – 2021 Grey

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

8

Top five shareholders

%

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

Total 100% 24.8

REPUTABLE KEY SHAREHOLDERS WITH EXTENSIVE

EXPERIENCE IN MINING SECTOR INVESTMENTS

9

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.

10

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

11

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.

11

12

DEVELOPMENT STAGES

Timo

Lindborg

12

13

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

011

Timo Lindborg 13

14

INNOVATIVE USE OF INFRASTRUCTURE

• 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

011

Timo Lindborg 14

15

WORK HARD TO CREATE ADDED VALUE

Low salaries, long nights, unsafe

future, lost carrier opportunities…

… but lot of hope and fun!

21.11.2

011

Timo Lindborg 15

19 472 m drilling in 172 hole

16

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…..

16

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RULES REDUCE RISKS

• Ni 43 101

• JORC CODE

• SVEMIN

• FINNMIN

• CESR

Committee of

European

Securities Regulators

Timo

Lindborg

17

MINERAL ORE

RESOURCES RESERVES

(IN SITU) (MINEABLE)

Increasing level

of geological

knowledge and

confidence

Consideration of economic,

mining, metallurgical,

marketing, and governmental

factors

PROVEN

MEASURED

PROBABLE

INDICATED

INFERRED

JORC or NI43101 CODE

18

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 (cut-

off 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

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.

LOW RISK AND SIGNIFICANT GROWTH POTENTIAL

19

SILVER MINE AREA

THE NECESSARY MINING LICENSE

AND

ENVIRONMENTAL PERMIT RECEIVED

20

KPMG Corporate Finance contacts

Rama Ayman Mikko Harju Tommi Valento Partner, Global Head Senior Manager, Senior Manager,

Metals & Mining Corporate Finance Corporate Finance Head of Debt Advisory

+44 20 7311 5092 +358 20 760 3288 +358 20 760 3246

Mob. +44 7826 918 994 Mob. +358 50 339 5910 Mob. +358 40 720 8951

rama.ayman@kpmg.co.uk mikko.harju@kpmg.fi tommi.valento@kpmg.fi

PRIMARY CONTACT REGARDING THIS INVESTMENT OPPORTUNITY