Talvivaaran Kaivososakeyhtiö Oyj - Company Announcement

Talvivaara's Auditors Report for the period 1 January - 30 June 2016

Stock Exchange Release

Talvivaara Mining Company Plc

22 September 2016




      Talvivaara's Auditors Report for the period 1 January - 30 June 2016


The  Auditor's report for  the period 1 January  - 30 June 2016 to  the Board of
Directors of Talvivaara Mining Company Plc is the following:

The  following  document  is  an  English  translation  of the Finnish auditor's
report.

Auditor's Report

To the Board of Directors of Talvivaara Mining Company Plc

We  have audited the  accounting records, the  interim financial statements, the
report  of the  Board of  Directors and  the administration of Talvivaara Mining
Company  Plc for  the period  1 January to  30 June 2016. The  interim financial
statements comprise the balance sheet, income statement, statement of changes in
equity, statement of cash flows and notes to the interim financial statements.

Responsibility of the Board of Directors and the Managing Director

The  Board  of  Directors  and  the  Managing  Director  are responsible for the
preparation  of interim financial statements  that give a true  and fair view in
accordance with International Financial Reporting Standards (IFRS) as adopted by
the  EU, as well as for the preparation  of the report of the Board of Directors
in  accordance with  the laws  and regulations  governing the preparation of the
report  of  the  Board  of  Directors  in  Finland.  The  Board  of Directors is
responsible  for the  appropriate arrangement  of the  control of  the company's
accounts  and  finances,  and  the  Managing  Director  shall see to it that the
accounts  of the company are  in compliance with the  law and that its financial
affairs have been arranged in a reliable manner.

Auditor's Responsibility

Our  responsibility is to express an opinion on the interim financial statements
and on the report of the Board of Directors based on our audit. The Auditing Act
requires  that  we  comply  with  the  requirements  of  professional ethics. We
conducted  our audit in accordance with  good auditing practice in Finland. Good
auditing  practice  requires  that  we  plan  and  perform  the  audit to obtain
reasonable  assurance  about  whether  the  interim financial statements and the
report  of  the  Board  of  Directors  are  free from material misstatement, and
whether  the members  of the  Board of  Directors or  the Managing  Director are
guilty  of an act or negligence which may result in liability in damages towards
the company or whether they have violated the Limited Liability Companies Act or
the articles of association of the company.

An  audit  involves  performing  procedures  to  obtain audit evidence about the
amounts  and disclosures in  the interim financial  statements and the report of
the  Board  of  Directors.  The  procedures  selected  depend  on  the auditor's
judgment,  including  the  assessment  of  the  risks  of material misstatement,
whether  due to fraud  or error. In  making those risk  assessments, the auditor
considers  internal  control  relevant  to  the  entity's preparation of interim
financial  statements and report of the Board  of Directors that give a true and
fair  view  in  order  to  design  audit  procedures that are appropriate in the
circumstances,  but  not  for  the  purpose  of  expressing  an  opinion  on the
effectiveness  of  the  company's  internal  control.  An  audit  also  includes
evaluating   the   appropriateness   of   accounting   policies   used  and  the
reasonableness of accounting estimates made by management, as well as evaluating
the  overall presentation of the interim  financial statements and the report of
the Board of Directors.

We  believe  that  the  audit  evidence  we  have  obtained  is  sufficient  and
appropriate to provide a basis for our audit opinion.

Opinion

In our opinion,
  * the interim financial statements and the report of the Board of Directors
    give a true and fair view of the financial position, financial performance,
    and cash flows of the company in accordance with International Financial
    Reporting Standards (IFRS) as adopted by the EU
  * the information in the report of the Board of Directors is consistent with
    the information in the interim financial statements.


Emphasis of Matter

We  draw  attention  to  the  note  2 of  the interim financial statements which
describes the basis of preparation of the interim financial statements on a non-
going  concern basis,  as well  as the  uncertainties relating  to the Company's
ability  to  revise  its  reporting  basis  and  to regain its status as a going
concern.  We  also  draw  attention  to  the disclosure "Risk management and key
risks"  in the report of  the Board of Directors,  which describes the Company's
near  term risk factors that relate to the continuance of the Company's business
operations.

Our opinion is not qualified in respect of this matter.

Helsinki, 22 September 2016

PricewaterhouseCoopers Oy
Authorised Public Accountants

Juha Wahlroos
Authorised Public Accountant (KHT)


Lisätietoja

Talvivaaran Kaivososakeyhtiö Oyj Puh. 020 7129 800

Pekka Perä, toimitusjohtaja
Pekka Erkinheimo, varatoimitusjohtaja


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Attachments:

Talvivaara Mining Company Plc - Auditor s Report 30.6.2016.pdf