Talvivaaran Kaivososakeyhtiö Oyj - Company Announcement

New agreement with Nyrstar to improve Talvivaara's financial position

Stock Exchange Release
Talvivaara Mining Company Plc
1 April 2014



     New agreement with Nyrstar to improve Talvivaara's financial position


Talvivaara Mining Company Plc ("Talvivaara" or the "Company"') announces that it
and  its operating subsidiary Talvivaara Sotkamo Ltd ("Talvivaara Sotkamo") have
today entered into a loan and streaming holiday agreement ('the Agreement') with
Nyrstar Sales and Marketing AG ("Nyrstar").

Nyrstar will make available to Talvivaara a loan facility up to a maximum amount
of EUR 20 million. Nyrstar shall make the facility available in several tranches
with  the amount  of each  advance calculated  with reference to a corresponding
delivery  by Talvivaara Sotkamo of zinc  in concentrate under the zinc streaming
agreement.  Whilst the loan  addresses Talvivaara's current  financing needs and
reduces  the overall  funding gap  of the  Company prior to reaching sustainable
positive  cash  flow,  the  Agreement  also demonstrates continued commitment by
Nyrstar and Talvivaara to co-operation under the zinc streaming agreement.

In  the short term,  the Agreement enables  the continuation of  the Company and
Talvivaara   Sotkamo's   corporate   reorganization  and  the  process,  whereby
Talvivaara   explores  the  options  of  identifying  potential  investor(s)  to
participate  in a long-term, overall financial  solution for the group. With the
available  funds,  Talvivaara  also  continues  to  focus on improving its water
balance situation and reaching the sustainability targets of its operations.

Subject  to Talvivaara securing the overall financial solution, the Company also
has  an option to enter  into a streaming holiday  for delivery volumes of up to
80,000 tonnes  of  zinc  in  concentrate.  During the streaming holiday, Nyrstar
commits,  outside the  framework of  the original  contract of February 2010, to
purchase  zinc concentrate from Talvivaara at market terms. In return, the value
sharing  mechanism of the  original zinc streaming  agreement will be amended to
reduce on a pro rata basis such that, if the full holiday period is elected, the
value  sharing mechanism thereafter becomes nil. When applied, the value sharing
mechanism  allows Talvivaara to receive a cash consideration that is higher than
the extraction and processing fee determined in the zinc streaming agreement.

Nyrstar's  obligation to extend financing under  the loan facility will cease at
the  earlier  of  the  aggregate  amount  outstanding including accrued interest
exceeding  EUR 20 million or  the commencement of  a streaming holiday. The zinc
concentrate  deliveries  entitling  Talvivaara  to  the  full  loan  amount  are
estimated to be made during the remainder of 2014.

Having  entered into the  Loan and Streaming  Holiday Agreement, Talvivaara will
immediately  deliver Nyrstar approximately 10,000 tonnes  of zinc in concentrate
and receive the first loan advancement of approximately EUR 5 million.

The   Administrator   to   Talvivaara   and   Talvivaara   Sotkamo's   corporate
reorganisation processes supports the Agreement.


Enquiries

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


Pekka Jaatinen, Attorney-at-Law
Castrén & Snellman Attorneys Ltd Tel. +358 20 7765 765


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.  Talvivaara  is  listed on the London Stock
Exchange  Main Market and NASDAQ OMX  Helsinki. Further information can be found
at www.talvivaara.com.

[HUG#1773233]

Attachments:

New agreement with Nyrstar to improve Talvivaara's financial position.pdf