Talvivaaran Kaivososakeyhtiö Oyj - Company Announcement

Talvivaara Mining Company Plc - Production Update

Stock Exchange Release
Talvivaara Mining Company Plc
19 April 2012


                          Talvivaara Production Update

 First quarter 2012 production impacted by environmental process modifications
            and unscheduled improvement measures in metals recovery

           Full-year guidance maintained at 25,000-30,000t of nickel


Talvivaara  Mining Company Plc ("Talvivaara" or the "Company") announces that it
produced  3,374 tonnes of nickel in the first quarter of 2012. Production output
was  adversely impacted by downtime at the metals recovery plant, resulting from
environmental   investments   and   unscheduled   occupational  safety  -related
improvements.

In  January, Talvivaara commissioned  a new water  recycling system reducing raw
water intake by approximately 65-75%. The system marks another proactive step in
executing  the  Company's  sustainability  strategy,  but  at  the same time the
installation  caused downtime at the metals  recovery plant and thereby impacted
first quarter production volumes. As part of the undertaken process changes, the
Company  has  also  temporarily  maintained  excess water in circulation thereby
somewhat diluting metal grades in solution, which has further impacted output of
the  metals recovery plant.  Solution grades are  expected to develop positively
during  the spring as the mine's water balance improves, solution in circulation
warms up and the new primary heap section 2 is taken into production.

Further  reduction in production followed from the regrettable fatal incident at
the  Sotkamo mine site in mid-March.  Following the incident, Talvivaara lowered
solution flow into metals recovery and also started an unscheduled stoppage with
focus   on   preventative   occupational   safety   -related  modifications  and
improvements.  Occupational safety remains a top priority for Talvivaara and the
Company  is focusing its  efforts on making  the workplace, both technically and
operationally, as safe as possible.

The  first quarter production volumes and  the negative nickel price development
during  the period also had an adverse impact on Talvivaara's financial results.
The  nickel price rallied to above USD 21,000 per tonne at the start of 2012 but
subsequently  retreated  to  USD  17,000-18,000 per  tonne in February and March
primarily  due to prevailing economic conditions.  The Company will consequently
report an operating loss for the quarter.

Talvivaara  maintains its  full-year 2012 production  guidance at 25,000-30,000
tonnes  of nickel. However, following the  first quarter production volumes, the
Company  has less  flexibility within  the guidance  range and expects full-year
production to be closer to the lower end of the range.

Regardless  of the short-term shortage in metals recovery output, the underlying
development  in  the  Company's  operations  has  continued  positively.  Recent
analysis of ore samples taken from heap section 3 indicates nickel recoveries of
up  to  85% in  less  than  two  years  of leaching, which exceeds the Company's
expectations. Run-rate crushing and primary heap reclaiming performance has also
improved allowing the Company to accelerate the stacking of new ore. Progress in
bioheapleaching  and  crushing  puts  Talvivaara  in  the position to offset the
recent  issues  and  to  achieve  the  2012 guidance  and  ramp  up towards full
capacity.


ENQUIRIES

Talvivaara Mining Company Plc. Tel: +358 20 7129 800
Lassi Lammassaari, COO
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#1603948]

Attachments:

Talvivaara Production Update 19.4.2012.pdf