Talvivaaran Kaivososakeyhtiö Oyj - Company Announcement

Talvivaara has signed an agreement on the acquisition of energy saving technology

Stock Exchange Release

Talvivaara Mining Company Plc

4 October 2016




     Talvivaara has signed an agreement on the acquisition of energy saving
                                   technology

Talvivaara  Mining Company Plc ("Company" or "Talvivaara") announces that it has
today  signed an agreement on the acquisition of technology that aims to enhance
the  energy efficiency of the basic industry. The object of sale consists of the
rights  to the control system on which  the technology is based and the existing
test  use equipment utilizing the  technology. The assets will  be acquired by a
wholly-owned subsidiary of the Company set up for this purpose.

The  purchase price of the  technology is five percent  of the EBIT generated by
the  technology in the future.  However, the Company has  the right to terminate
the EBIT based earn-out arrangement by paying a lump sum of EUR 2 million to the
seller  of the technology. In addition, the  Company pays a compensation for the
equipment  reflecting their reasonable development  and manufacturing costs, EUR
160,000. The  closing of the agreement remains conditional, among others, on the
approval of the Company's Board of Directors.

Even  though the Company considers that the  business based on the energy saving
technology  is potentially viable, the  commercialization of the technology will
require  further development  of the  underlying business  model and the control
system.   As part of the arrangement published  today, the Company has agreed to
recruit  one of the original developers of  the technology, in addition to which
the  Company  is  preparing  to  strengthen  its organization with several other
experts  needed  for  the  development  of  the  technology  and thereto related
business.

In  addition  to  the  transaction  published  today,  the  Company continues to
investigate  and develop its  other selected projects.  At this point  it is too
early  for the Company to take a view on the likelihood of any of these projects
to be successfully realized.


Enquiries

Talvivaara Mining Company Plc Tel +358 20 7129 800

Pekka Perä, CEO

Pekka Erkinheimo, Deputy CEO




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Viðhengi:

Talvivaara signs agreement on acquisition of energy saving technology.pdf