Talvivaaran Kaivososakeyhtiö Oyj - Inside information

Talvivaara's Board of Directors approved the closing of the acquisition of energy saving technology - Development of new business opportunities continues

Stock Exchange Release
Talvivaara Mining Company Plc
31 January 2017


   Talvivaara's Board of Directors approved the closing of the acquisition of
                            energy saving technology

              Development of new business opportunities continues



Talvivaara  Mining  Company  Plc's  ("Talvivaara"  or  the  "Company")  Board of
Directors has today approved the closing of the acquisition of the energy saving
technology.  The acquisition of the energy saving technology was announced on 4
October  2016 and  the  closing  of  the  agreement  remained conditional on the
approval of the Company's Board of Directors.

The  Company's strategic focus  has been to  establish a sustainable business or
businesses that match the expertise inherent in the Company as well as providing
the  prospect of early cash flow. The new business opportunities investigated by
the Company are not limited to the mining industry, but also include projects in
the   recycling  and  energy-saving  sectors,  among  others.  The  Company  has
thoroughly  investigated several new business opportunities and projects, which,
if implemented, could form the Company's new core business or a part thereof.

Closing of the Acquisition of the Energy Saving Technology

On  4 October 2016, Talvivaara  signed an  agreement to  acquire the rights to a
technology  aimed at enhancing energy efficiency in the steel industry. The core
of  the  technology  acquired  is  a  new measurement and adjustment system that
improves  the alternating current  electric arc furnace  steel making process by
reducing energy consumption and stabilizing melting and heating processes.

Energy  consumption is one of the  largest components of operational expenditure
for  electric arc  furnaces used  in the  steel making process.  Reducing energy
costs  by just a  few percent can  materially improve profitability  for a steel
mill  utilising  electric  arc  furnaces.  The  Company believes that the market
potential of its technology is significant.

The  object of sale consists of the rights to the system on which the technology
is  based and the  existing equipment utilizing  the technology. The assets have
been  acquired by a wholly-owned subsidiary of  the Company, FATB Oy, 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 has paid compensation for the
equipment  reflecting its reasonable development  and manufacturing costs of EUR
160,000.

Talvivaara  has continued the development and  testing of the technology and has
also  hired the necessary technical staff to  refine the technology and to ready
it  for deployment in an industrial environment. The aim is to commercialize the
technology during the 2017.


Additional Business Opportunities

In  addition to the acquired energy  saving technology business, the Company has
initiated  a  commercialization  project,  based  on  its  chemical  engineering
expertise,  focused on  developing more  efficient use  of nutrients  and energy
production from renewable raw materials related to livestock farming.

Rational  and efficient disposal of manure from livestock farming is challenging
given geographical balance of livestock density and land availability for manure
spreading  in  many  areas  in  Finland  and  particularly  in  Central  Europe.
Talvivaara  is studying possibilities  to create processing  units to enable the
economic  extraction  of  valuable  content  as  commercial products from manure
streams  while  at  the  same  time  facilitating the management of the nutrient
streams in a way that benefits the livestock farmers. The Company's target is to
convert manure to energy fraction and high quality fertilizers and to purify the
liquid  fraction to a level that allows  safe discharge into the environment and
recover the nutrients as useful fertilizers.

In  addition  to  the  businesses  described  above, the Company is studying and
further  developing a number of other  opportunities of circular economy related
to metallurgy, chemical and construction industry that could meet its investment
requirements in the short term.

The  Board of  Directors has  proposed to  the Extraordinary  General Meeting of
Shareholders  that it would authorize the Board of Directors to decide on one or
several  share  issues,  which  in  their  part  would  facilitate  the  further
development of the chosen business opportunities.

While  several potential opportunities have been  identified it is currently too
early  for the Company to take a view on the likelihood of any of these projects
being  successfully  realized.  The  Company  will  inform  the  market  on  the
development of its selected businesses and business opportunities in due course.



Enquiries
Talvivaara Mining Company Plc Tel +358 20 7129 800
Pekka Perä, CEO
Pekka Erkinheimo, Deputy CEO



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Attachments:

Talvivaara Mining Company Stock Exchange Release Jan 31 2017.pdf