Talvivaaran Kaivososakeyhtiö Oyj - Company Announcement

Talvivaara Share Subscriptions Based on Conversion of the Convertible Bonds and Stock Options

Talvivaara Share Subscriptions Based on Conversion of the Convertible Bonds and 
Stock Options 2007A                                                             


Stock Exchange Release                                                          
Talvivaara Mining Company Plc.                                                  
11 May 2011                                                                     
                                                                                
Share Subscriptions Based on Conversion of the Convertible Bonds and Stock      
Options 2007A                                                                   
                                                                                
                                                                                
On 16 December 2010, Talvivaara Mining Company Plc. ("Talvivaara") issued EUR   
225 million in senior unsecured convertible bonds due 2015 (the "Bonds"). The   
extraordinary general meeting of shareholders of Talvivaara held on 27 January  
2011 approved the issue of special rights in respect of the Bonds.              
                                                                                
In March 2011, Talvivaara received a conversion notice pursuant to which Bonds  
amounting to EUR 1,800,000 are converted to a total of 215,736 new Talvivaara   
shares (the "Conversion Shares"). As a result of the conversion of the Bonds,   
the number of Talvivaara shares will increase to 245,579,832. The Conversion    
Shares were registered in the Trade Register on 11 May 2011, as of which date   
the Conversion Shares will carry shareholder rights. Trading in the Conversion  
Shares will begin on NASDAQ OMX Helsinki Ltd [(the "Helsinki Stock Exchange")]  
on 12 May 2011.                                                                 
                                                                                
In addition to the Conversion Shares, a total of 187,378 shares have been       
subscribed for under Talvivaara's stock option rights 2007A (the "Stock Option  
Shares"). The Stock Option Shares have already been admitted to trading on the  
Helsinki Stock Exchange. Talvivaara will now apply for admission of the         
Conversion Shares and the Stock Option Shares to listing on the official list of
the United Kingdom's Financial Services Authority and to trading on the main    
market of the London Stock Exchange (the "Admission"). It is expected that the  
Admission will take place and that trading will commence on or about 16 May     
2011.                                                                           
                                                                                
                                                                                
ENQUIRIES                                                                       
                                                                                
Talvivaara Mining Company Plc. Tel: +358 20 7129 800                            
Pekka Erkinheimo, Chief Commercial Officer                                      
Saila Miettinen-Lähde, Chief Financial Officer                                  
                                                                                
                                                                                
                                                                                
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 estimated to support anticipated production for several decades.        
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.

Attachments:

share subscriptions release 11.5.2011.pdf