Talvivaaran Kaivososakeyhtiö Oyj - Company Announcement

Talvivaara Mining Company Plc - Leakage detected at the gypsum pond

Stock Exchange Release
Talvivaara Mining Company Plc
5 November 2012


 Leakage detected at the gypsum pond - metals production temporarily suspended


A  leakage in the gypsum pond of the  mine site of Talvivaara Mining Company Plc
("Talvivaara" or the "Company") was detected at 7.30 am (Finnish time) on Sunday
4 November  2012. The  levees  of  the  pond  are intact, but water is filtering
through  the  lower  part  of  the  levee  on  the  east  side  of the pond. The
authorities have been informed.

The  root cause and  the extent of  the leakage are  being investigated, and the
immediate  safeguarding  measures  have  been  taken.  The safety dams below the
gypsum pond will be utilized to contain the leakage within the mining concession
area.  The water  in the  gypsum pond  contains more  metals and  sulphates than
Talvivaara's normal purified discharge water.

As  a  precautionary  measure,  the  Company's  metals  recovery  plant has been
temporarily  suspended in  order to  avoid further  pumping of tailings into the
gypsum  pond  while  the  leakage  is  being  repaired.  The Company anticipates
restarting  the metals recovery  plant on Wednesday  7 November 2012. During the
shutdown, the piping installations required for the commissioning of the reverse
osmosis  plants  will  also  be  completed.  The  piping  installation  work was
originally  scheduled for a  later date in  November. The reverse osmosis plants
will  be used to purify the  sulphate-containing discharge waters, and they will
reduce the raw water in-take and improve overall water balance management of the
mine.


Enquiries
Talvivaara Mining Company Plc Tel: +358 20 7129 800
Harri Natunen, Chief Executive Officer
Saila Miettinen-Lähde, Deputy CEO and CFO

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.

[HUG#1654936]

Attachments:

Talvivaara - Leakage detected at the gypsum pond 5.11.2012.pdf