Talvivaaran Kaivososakeyhtiö Oyj - Company Announcement

Nyrstar has assigned its receivables from Talvivaara to Terrafame Group

Stock Exchange Release

Talvivaara Mining Company Plc

7 December 2015







    Nyrstar has assigned its receivables from Talvivaara to Terrafame Group



Talvivaara  Mining Company Plc ("Talvivaara" or  "Company") has been informed by
Nyrstar  Sales  &  Marketing  AG  ("Nyrstar")  that Nyrstar has assigned all its
rights,  title,  benefit  and  interest  under  the Zinc in Concentrate Purchase
Agreement  ("Streaming Agreement") and the  Loan and Streaming Holiday Agreement
("Streaming  Holiday  Agreement")  to  Winttal  Oy,  a  company  fully  owned by
Terrafame  Group Ltd  ("Terrafame Group"),  under an  assignment deed  dated 30
November  2015. Terrafame Group is a special-purpose company wholly owned by the
State of Finland. It manages the state ownership and exercises the owner's power
at  Terrafame Ltd. Terrafame Ltd acquired  the business operations and assets of
Talvivaara  Sotkamo  Ltd  ("Talvivaara  Sotkamo")  from its bankruptcy estate in
August 2015 and is operating the Sotkamo mine.

The  liability of  the Company  under the  Streaming Agreement  is based  on the
guarantee  issued by the  Company for the  due payment by  its former subsidiary
Talvivaara  Sotkamo of  the termination  sum amounting  to EUR 203.4 million and
payable  upon premature termination of the  Streaming Agreement. However, due to
inter-creditor arrangements, the view of Talvivaara and the administrator of the
corporate  reorganisation proceedings of  Talvivaara is that  the Company cannot
make  any payments in  relation to the  termination sum if  full payment has not
been  made  to  the  Company's  lenders  having receivables with a higher ranked
priority.

Furthermore,  upon  the  bankruptcy  of  Talvivaara  Sotkamo,  Nyrstar  has been
entitled  to declare that all  or part of the  loans drawn by Talvivaara Sotkamo
from  Nyrstar  under  the  Streaming  Holiday  Agreement (in total ca. EUR 12.8
million)  shall  be  payable  on  demand  by  Talvivaara  in its capacity as the
guarantor.  If  the  new  holder  of  the receivable under the Streaming Holiday
Agreement  was to  demand immediate  repayment of  such loans  guaranteed by the
Company, the Company would not currently have sufficient cash reserves or access
to additional liquidity to make the required payment.

Currently  Talvivaara finances  its operations  by providing  administrative and
technical  services and  by leasing  machinery and  equipment to  Terrafame Ltd.
Talvivaara  continues  its  negotiations  with  Terrafame  Group and prospective
investors with a target of being able to invest in the Sotkamo mining operations
or to secure a different financial and/or operative arrangement that will enable
the  continuance of the  Company's viable business.  The Company will update the
market about the outcome of such discussions in due course.

The  change of  creditor of  the above-referenced  receivables does  not have an
immediate impact on the Company or its corporate reorganisation proceedings.


Enquiries



Talvivaara Mining Company Plc Tel +358 20 7129 800

Pekka Perä, CEO

Pekka Erkinheimo, Deputy CEO



[HUG#1971706]

Attachments:

Nyrstar has assigned its receivables from Talvivaara to Terrafame.pdf