Talvivaaran Kaivososakeyhtiö Oyj - Decisions of extraordinary general meeting

Talvivaara's Extraordinary General Meeting approved the sale of mining related assets to Terrafame

Stock Exchange Release

Talvivaara Mining Company Plc

11 August 2016





 Talvivaara's Extraordinary General Meeting approved thesale of mining related
                              assets to Terrafame



Talvivaara  Mining Company  Plc ("Talvivaara"  or the  "Company") is  pleased to
announce that, at the Extraordinary General Meeting of the Company held today on
11 August  2016 at 11:00 am (Finnish time), the resolution proposed by the Board
of  Directors set out in the notice  of the meeting dated 8 July 2016 concerning
the sale by Talvivaara of its assets related to the Sotkamo mining operations to
Terrafame Ltd ("Terrafame") was duly passed.

On 30 June 2016 Talvivaara and Terrafame signed agreements, in which the parties
agreed  on  the  sale  of  Talvivaara's  assets  related  to  the Sotkamo mining
operations  and settlement of Talvivaara's  guarantee liabilities under the Loan
and Streaming Holiday Agreement ("Holiday Agreement"), with the principal amount
of  approximately EUR 14 million (including interest up until 30 June 2016), and
the Zinc in Concentrate Purchase Agreement ("Streaming Agreement"), amounting to
approximately EUR 203.4 million. The purchase price for the assets sold consists
of  two components: (i) a full and final settlement of the guarantee liabilities
of the Company under the Holiday Agreement and the Streaming Agreement, and (ii)
a cash component of EUR 1.4 million payable by Terrafame, which has been paid to
the  Company at closing. The  assets sold include, among  others, the lime plant
needed  for  the  Sotkamo  operations,  laboratory,  as  well  as  rights to the
geological,  laboratory and production related  data associated with the Sotkamo
mine.  The agreements  included a  cancellation clause  whereby the transactions
contemplated  by the agreements would have become null and void in the event the
Extraordinary  General  Meeting  of  shareholders  of  Talvivaara would not have
approved the transactions under the agreements.

Enquiries

Talvivaara Mining Company Plc Tel +358 20 7129 800

Pekka Perä, CEO

Pekka Erkinheimo, Deputy CEO






[HUG#2034568]

Attachments:

Talvivaara's EGM approved sale of mining related assets to Terrafame.pdf