Talvivaaran Kaivososakeyhtiö Oyj - Company Announcement

Talvivaara Uranium Permitting Update: licence granted by Finnish Government to extract Uranium as a by-product

Stock exchange release
Talvivaara Mining Company Plc.
1 March 2012


                           Uranium Permitting Update
 Talvivaara granted licence from the Finnish Government to extract Uranium as a
                                   by-product


Talvivaara  Mining Company  Plc ("Talvivaara"  or the  "Company") is  pleased to
announce  that it was granted  licence today to extract  uranium as a by-product
from  its existing operations following the  decision of the Finnish Government,
issued  on  1.3.2012 pursuant  to  the  Nuclear  Energy Act. The permit is valid
throughout the life of the mine, however, no longer than until the end of 2054.

Talvivaara's aim is to start uranium recovery in 2012, as soon as it has all the
necessary  permits. The start of uranium production is further subject to, among
others,   Environmental   Permit   approval  and  chemical  authorisation.   The
Environmental  Permit application  for uranium  extraction was  submitted to the
Regional  Environmental Permitting Agency in March  2011 and the decision on the
permit  is  expected  during  Q2  2012. The  construction  permit for building a
recovery  plant  was  already  granted  to  the  Company  last year. The Finnish
Government  decision follows European Commission  approval for Talvivaara's off-
take  agreement with Cameco in November  2011 and confirmation from the European
Commission under the terms of the Euratom Treaty in January 2012.

Pekka  Perä, CEO  of Talvivaara,  commented: "We  are very  pleased to have been
granted  this  licence,  which  is  not  only  a  further  step  towards uranium
production  at Talvivaara,  but also  a confirmation  that our  recovery process
meets the highest safety and environmental standards. These standards were a key
consideration  for us at every step of the planning process and will continue to
be  so when production  is under way.  We look forward  to the next stage in our
strategy of maximising value from the Talvivaara ore."

About Talvivaara's Uranium Recovery Process

Uranium  occurs naturally in small concentrations in the Talvivaara area. During
Talvivaara's main production process, uranium leaches into the process solution.
The  recovery  of  uranium  can  be  adapted to Talvivaara's existing production
process  by adding  a safe  and simple  solvent extraction  process to allow the
recovery of the intermediate uranium oxide, also known as Yellow Cake.

Talvivaara estimates that it will produce 300-350tpa of uranium. Safety has been
paramount  in planning the simple, closed  and automated recovery process, which
will take place indoors and at low temperatures. The process will be linked to a
multiple  warning and alert system; in addition, detailed contingency plans will
be  drawn up for any  emergency situations and accidents.  No pollutants will be
discharged  into waters during the recovery  process. The uranium will be stored
in  airtight and  durable steel  containers and  transported abroad  for further
processing, subject to appropriate supervision. The uranium will be purchased by
the  Canadian company Cameco Corporation, which will process the uranium further
into nuclear fuel to be used in nuclear power plants.

Talvivaara  will invest EUR  45-50 million in the  recovery of uranium, of which
Cameco  will cover a maximum of USD  60 million in the form of advance payments.
The  construction phase will  create several hundred  jobs, and after completion
the  recovery  plant  will  employ  20 people  directly  and  an  additional 50
indirectly.

Several  Finnish and international authorities and organisations who oversee the
safe  and  peaceful  exploitation  of  nuclear  power  were involved in granting
Talvivaara's  uranium recovery  permit. Talvivaara's  process complies  with the
regulations concerning the safety and related monitoring of operations issued by
the  Radiation and Nuclear  Safety Authority of  Finland (STUK), and the Finnish
Safety  and Chemicals  Agency (Tukes),  as well  as state  health and safety and
environmental  authorities. In addition, the operations will be monitored by the
European  Atomic Energy Community (EURATOM)  and the International Atomic Energy
Agency (IAEA).

The  organisations involved in the permitting were supportive of the recovery of
uranium.  It is the view of the Finnish Government that environmental protection
was  fully taken into account in planning the extraction plant and that recovery
will be at least as safe as allowing the uranium to remain in the mine tailings.
According  to Tukes, the safe recovery of  uranium may even increase the overall
safety  of operations, since there is less  uranium directed to the mine's waste
and  products. In the opinion of  the Centre for Economic Development, Transport
and  the  Environment  for  the  Kainuu  region,  it  can  be  assumed  that the
environmental  effects  arising  from  uranium  in  the  target  area  are  less
significant than those resulting from not pursuing the undertaking. The European
Commission  estimates  that  Talvivaara's  uranium  production  may increase the
security of the EU nuclear fuel supply.

Uranium  recovery  will  enable  more  efficient  use of the Talvivaara deposit,
through  a responsible process  which is fully  compliant with the  terms of the
Finnish  Mining Act. If uranium  was not recovered from  the process solution at
Talvivaara,  it would end up in the  end-products or in waste. Uranium will only
be  a by-product of the Talvivaara mine, whose main products will continue to be
nickel  and zinc.  Talvivaara will  not excavate  any ore for uranium production
only or become a uranium mine.



ENQUIRIES
Talvivaara Mining Company Plc Tel. +358 20 7129 800
Eeva Ruokonen, Chief Sustainability Officer
Kari Vyhtinen, Chief Investment Officer
Lassi Lammassaari, Chief Operations Officer


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  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#1590486]

Attachments:

Talvivaara granted licence by Finnish Government to extract Uranium.pdf