Talvivaaran Kaivososakeyhtiö Oyj - Inside information

Talvivaara adjusts its business operations due to delays in having its debt restructuring programme confirmed

Stock Exchange Release
Talvivaara Mining Company Plc
17 May 2017




     Talvivaara adjusts its business operations due to delays in having its

                     debt restructuring programme confirmed



Talvivaara  Mining Company Plc ("Talvivaara"  or "Company") adjusts its business
operations  with the aim of securing sufficient cash reserves for initiating its
new  businesses and for obtaining the  funding required in connection therewith.
The  need for the adjustment  stems from the delays  in having Talvivaara's debt
restructuring  programme confirmed due to reasons outside the Company's control.
This has materially impeded the Company's ability to acquire, develop or finance
its new businesses.

As  part of  the adjustment  actions, the  Company will  temporarily lay off, on
economical  and  production-related  grounds,  some  of  its personnel wholly or
partly  as of the  beginning of June.  In addition, the  Company has agreed with
some  of the members of the management who  will remain outside the scope of the
lay-offs on a voluntary arrangement whereby such employees will accept a portion
of  their compensation from  the Company as  debt, which shall  be repaid to the
employees  once  the  new  financing  required  for  the  Company's new business
operations  has been obtained. Furthermore, the CEO and the members of the Board
of  Directors of Talvivaara have notified the Company that they will accept 75 %
of  the fees payable  to them from  the Company in  the form of debt, which will
likewise  be  repaid  once  the  new  financing  required  for the Company's new
business  operations  has  been  obtained.  Despite  the adjustment actions, the
Company  will continue the development of its new businesses and its projects in
the circular economy sector, as well as the energy saving business.

With the adjustment actions, the Company targets a monthly saving of some 50% in
its  monthly  personnel  costs,  which  will  help to facilitate the securing of
sufficient   cash  reserves  to  developing  the  Company's  new  businesses  in
accordance  with  its  plans,  despite  the  delays in having the Company's debt
restructuring programme confirmed.



Enquiries

Talvivaara Mining Company Tel. +358 20 712 9800

Pekka Perä, CEO
Pekka Erkinheimo, Deputy CEO

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Viðhengi:

Talvivaara adjusts business operations.pdf