Talvivaaran Kaivososakeyhtiö Oyj - Company Announcement

Talvivaara Mining Co Plc. Capital Markets Day -Financial and operational update

STOCK EXCHANGE RELEASE
Talvivaara Mining Company Plc
1 December 2010

                              Capital Markets Day
                        Financial and operational update


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

Highlights

   ·         2010 production guidance reiterated at 11,000-13,000t nickel and
28,000-30,000t zinc
   ·         2011 full year production guidance: 30,000-35,000t nickel;
65,000-70,000t zinc; 650-750t cobalt,
and minor amounts of copper
   ·         2011 full year capital expenditure estimated at EUR 70-80 million
   ·         2011 full year operating expenditure estimated at EUR 240-260
million including financial leasing
   ·         Estimated cash cost of production EUR 2.3/lb nickel in 2011; EUR
1.6/lb nickel in 2012


Operational update

All  processes at the Talvivaara mine  are currently operating well. The primary
heap  reclaiming  and  secondary  heap  stacking  systems  are  being  put  into
operational  use  during  the  current  week,  and leach solution from secondary
leaching  is expected to  be available for  metals recovery during  the month of
December.

Production guidance

Talvivaara  anticipates its full year 2011 nickel  and zinc production to amount
to   30,000-35,000t and   65,000-70,000t, respectively.   Cobalt  production  is
expected  to amount to 650-750t, while copper output  is likely to be limited to
relatively minor amounts during the second half of 2011.

The  Company continues  to expect  the annualized  production rate  of nickel to
reach  30,000t before the year end 2010 and  the full scale production target of
50,000t nickel per annum to be achievable in 2012.

Capital and operational expenditure guidance

Due  to  cost  overruns  in  earth  works  relating  to  the construction of the
secondary  heap foundations, the guidance for 2010 capital expenditure is raised
from approximately EUR 100 million to EUR 120-130 million.

Full  year  capital  expenditure  for  2011 is  estimated  at EUR 70-80 million,
relating  mainly to the  construction of secondary  heap foundations, waste rock
areas  and a gypsum pond, and purchase of capital spare parts. The estimated EUR
40-50 million cost of the planned uranium extraction facility is not included in
the anticipated capital expenditure, as investment decision on the uranium plant
is still pending progress in permitting and a partnering agreement.

Full  year  2011 operational  expenditure  is  estimated  at EUR 240-260 million
including  an estimated EUR  15 million in financial  leasing costs. The largest
cost  items include  chemicals (36%),  contracting (15%),  maintenance (12%) and
electricity (10%).


The live webcast and presentations of the Capital Markets Day starting at
09:30am UK/ 11:30 Finland are available on
www.axisto.com/webcasting/investis/talvivaara/capital-markets-day-
2010/index.htm.



ENQUIRIES

Talvivaara Mining Company Plc Tel: +358 20 7129 800
Pekka Perä, CEO
Saila Miettinen-Lähde, CFO

Merlin PR Tel: +44 207 726 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. Further information can be found at www.talvivaara.com.




[HUG#1467351]

Attachments:

Talvivaara Capital Markets Day 01.12.2010.pdf