Talvivaaran Kaivososakeyhtiö Oyj - Company Announcement

Talvivaara signs uranium off-take agreement with Cameco Corporation

STOCK EXCHANGE RELEASE
Talvivaara Mining Company Plc
8 February 2011


      Talvivaara signs uranium off-take agreement with Cameco Corporation


Talvivaara  Mining Company Plc ("Talvivaara" or the "Company") announces that it
has  signed an agreement  with Cameco Corporation  ("Cameco"), the international
uranium  producer, for the off-take  of uranium obtained as  a by-product at the
Talvivaara mine.

Highlights
·          Cameco is to provide an upfront  investment of up to USD 60m to cover
the construction costs of the uranium extraction circuit
·          Talvivaara will  repay the  investment through  deliveries of uranium
concentrate  during the initial years of the agreement; once the capital sum has
been  repaid all uranium concentrate produced thereafter until 31 December 2027
will  be bought  by Cameco  at a  price based  on market  prices at  the time of
delivery
·          Annual uranium production is estimated at 350tU (ca. 770,000 pounds),
corresponding to approximately 410t (900,000 pounds) of yellow cake (UO(4))

Cameco  is already a supplier of uranium  fuel to generate clean electricity for
Finnish utilities and their customers. Cameco will continue to provide technical
assistance   to  Talvivaara  in  the  design,  construction,  commissioning  and
operation  of the  uranium extraction  circuit to  be constructed at the Sotkamo
mine.  Talvivaara plans to start construction  of the uranium extraction circuit
in the coming months and complete it in 2012.

Under  the terms of the off-take  agreement with Talvivaara, Cameco will provide
an  up-front investment, to a maximum of  $60 million, to cover the construction
cost  of the uranium  extraction circuit. Cameco's  capital contribution will be
repaid  through deliveries  of uranium  concentrate in  the initial years of the
agreement.

Once  the  capital  is  repaid,  Cameco  will  purchase  the uranium concentrate
produced  at Sotkamo through a supply agreement that will be in effect until 31
December  2027. This  agreement  will  provide  Talvivaara  with payment for the
uranium,  based  on  a  formula  that  references  market  prices at the time of
delivery.

Cameco  will take ownership of the uranium at the Sotkamo site and will have the
sole right to market the product to its customers.

The  agreements between Talvivaara and Cameco are subject to ratification by the
Euratom  Supply Agency and  the approval of  the European Commission pursuant to
the  Euratom Treaty,  as well  as to  the permits  from the  appropriate Finnish
authorities.  Talvivaara and  Cameco expect  the Euratom  approval within  a few
months.  Talvivaara  applied  in  April  2010 to  the Ministry of Employment and
Economy  for a permit to extract uranium as a by-product, in accordance with the
Nuclear  Energy Act. The Environmental Impact  Assessment Process as well as the
preparations  for  submitting  the  application  for  the  Environmental  Permit
relating to the uranium extraction process are ongoing at the site.

Talvivaara  expects steady state production of uranium at the Sotkamo mine to be
approximately  350tU (770,000  pounds),  corresponding  to  ca. 410t or 900,000
pounds  per annum of yellow cake  (UO(4 )equivalent). Ultimately, the production
capacity  for uranium  extraction at  the Sotkamo  mine could  be increased with
Talvivaara's stated intention to increase production of nickel and zinc products
at the mine through use of its unique bioheapleaching process.
Commenting  on the  announcement, Pekka  Perä, CEO  of Talvivaara,  said:"We are
pleased  to  be  partnering  with  Cameco  in  developing  uranium production at
Sotkamo.  The uranium found locally is naturally occurring and it makes sense to
extract  it in the same way as we  do with our other metals. Our primary concern
in  investigating  this  initiative  has  been  to  ensure that we could achieve
production  safely  and  securely,  and  to  act in an environmentally sensitive
manner.  Cameco has the  long-standing international experience  to assist us in
ensuring these conditions.""This agreement with Cameco provides the upfront funding for the construction of
the  uranium extraction circuit, whilst not diluting Talvivaara's strong balance
sheet.  Once the  initial capital  investment has  been paid off Talvivaara will
benefit  from market prices  for uranium, and  the Board is  confident that with
rising  demand for uranium around the world  the project economics provide for a
solid additional revenue stream for the Company."



ENQUIRIES

Talvivaara Mining Company Plc          Tel: +358 20 7129 800
Pekka Erkinheimo, Chief Commercial Officer
Kari Vyhtinen, General Manager Expansion


Uranium production
Natural  uranium is found in  low concentrations in the  Sotkamo mine area. This
naturally  occurring uranium does  not radiate significantly;  in surveys by the
Geological  Survey of Finland in 2009 all measured gamma radiation levels in the
area  were  within  the  range  classified  by  the Radiation and Nuclear Safety
Authority  of Finland  as normal  background radiation  in Finland.  The uranium
grade in the bedrock ore at Sotkamo is on average 0.0015-0.0020%.

Uranium  leaches, along with  Talvivaara's other products  (nickel, zinc, copper
and  cobalt), under  controlled conditions  into the  solution obtained from the
mine's  bioheapleaching process. Uranium  will be recovered  as an intermediate,
yellow  cake, through a safe and  technically simple solvent extraction process.
This  production will be strictly monitored  by the Radiation and Nuclear Safety
Authority of Finland and International Atomic Energy Agency (IAEA).

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 sufficient  to support  anticipated production  for at  least 46 years.
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.

Cameco Corporation
Cameco,  with its head office in Saskatoon,  Saskatchewan, is one of the world's
largest  uranium producers. The company's uranium  products are used to generate
electricity  in nuclear  energy plants  around the  world, providing  one of the
cleanest sources of energy available today. Cameco's shares trade on the Toronto
and New York stock exchanges.

[HUG#1486210]

Attachments:

Talvivaara_Cameco Agreement 08 02 2011 En.pdf