Talvivaaran Kaivososakeyhtiö Oyj - Company Announcement

Talvivaara Mining Company Plc has located the gypsum pond leakage and the flow is being successfully stemmed

Stock Exchange Release
Talvivaara Mining Company Plc
7 November 2012

      Talvivaara has located the gypsum pond leakage and the flow is being
                              successfully stemmed
        Preparations for re-start of metals recovery plant are underway

Talvivaara  Mining Company Plc  ("Talvivaara" or the  "Company") has located the
gypsum  pond leakage detected on Sunday  morning 4 November 2012 near the center
of the approximately 60-hectare pond. The process of plugging has been initiated
and as a result, the flow has already substantially diminished.

As  a  result  of  the  leakage,  some  elevated nickel concentrations have been
detected  in the  northerly direction  in the  vicinity of the mining concession
area.  No leakage  waters have  been discharged  from the mining concession area
towards south as a consequence of the emergency dams and the measures taken.

Preparations  for the  re-start of  the metals  recovery plant are being carried
out.  Kainuu ELY Centre  (Kainuu Centre for  Economic Development, Transport and
the  Environment) has  requested certain  additional information from Talvivaara
prior  to re-start, which the Company will provide during the course of the next
24 hours.  The  Company  anticipates  starting  the  metals  production  by this
weekend.

During  the shutdown, Talvivaara has reconfigured the process flows enabling the
isolation of the damaged gypsum pond from the solution circulation. In addition,
the  new reverse osmosis plant connections  have been completed. The re-start of
production  at the plant will not cause  additional strain on the damaged gypsum
pond, or impact the measures or timing of repairing the pond.

Talvivaara  believes that the re-start of the  plant is an important step in the
overall  environmental  risk  management  of  the  mine,  as the bioheapleaching
process  is a continuous process that cannot be stopped over the short term. The
recovery  of metals leached into solution  is important and justified as opposed
to the accumulation metal-in-solution in the process ponds.

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#1655904]

Attachments:

Talvivaara - Gypsum pond leakage and metals plant re-start 7.11.2012.pdf