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2016-11-16

Sotkamo Silver: SUMMARY OF THE INTERIM REPORT, JANUARY - SEPTEMBER 2016

THE CURRENT PERIOD (3 months, July - September)

* Net profit/loss was 400 KSEK (-294) and earnings per share -0.00 SEK
(-0.01).
* The Group sale was 0 KSEK (4).
* Investments were during the period was 2 656 KSEK (11 162).

SUMMARY OF THE INTERIM REPORT JANUARY - SEPTEMBER 2016

* Net profit/loss was -4 057 KSEK (-6 500) and earnings per share -0.10 SEK
(-0.31).
* Group´s sale was 3 KSEK (446).
* Cash and cash equivalents was 163 341 KSEK (12 741) at September 30th 2016.
* Investments during the period was 6 504 KSEK (14 626).
* Equity was 290 473 KSEK (124 757) at September 30th 2016.
* The financing- and delivery agreement with ABB was extended until December
2016.
* The silver-content of the ore-reserves increased with 22%.
* The feasibility-study was completed and economic figures for the Silver
mine project was up-dated.
* The power-line at the Silver-mine was sold to the local grid company,
Loiste.
* The fully subscribed rights issue raised about 186 million SEK before
issue-cost.
* The Company repaid the convertible loan to Taaleri, inclusive interest.

SUMMARY OF SIGNIFICANT EVENTS AFTER THE BALANCE

* Erkki Kuronen started his employment as Chief geologist at Sotkamo Silver
Oy on October 1st 2016.

The comparative numbers relate to the corresponding period of the previous
year's income statement and cash flow items and December 31st 2015 for
Balance Sheet items.

THE CEO

It was a positive third quarter for the silver market, according to GMP
Securities Equity Research. During the period, the average price was $ 19.62
/ Oz., which was 19.5 % higher than previous quarter. In October however, we
have seen a stabilization around $ 17 per Oz. The current silver-price is
higher than the one used when the updated feasibility study´s economic
figures was presented. The development is positive and I expect that this
will remain.

Two analyzes was made upon requests from the Company. One was made by
Aktiespararna (Shareholders Association), Analysguiden and the other one was
made by Inderes in Finland. The latter is in Finnish. In these analyzes the
Company's operations and future plans are described. Although the scale of
the two analyzes are different, the results are almost the same with a share
valuation of SEK 4. These analyzes are available at the Analysguiden´s and
Inderes´ internet pages.

With a successful rights issue last summer, the Company raised approximately
186 KSEK. The total issue-cost amounted to about 10 %, which is considered as
relatively low. We say thank you to our advisor Stockholm Corporate Finance
and to Taaleri, who actively helped us with marketing in Finland. The issue
gave us many new, relatively large owners which I am happy for.

After the sale of Sotkamo Silver´s power-line the Company strengthened the
cash by approximately 12 KSEK. The resources and the capital released by the
transaction will be used for construction of the mine.

In August, the Company repaid the convertible loan to Taaleri inclusive
interest of total 15.5 KSEK. Therefore, the Group is currently almost debt
free, which strengthens the Company's position at negotiations on additional
financing- opportunities and conditions.

The Company believes that the remaining part of the required capital will be
financed through various options such as debt instruments, 'streaming'
financing and vendor financing etc. The Company is also investigating the
possibility of offering shareholders the opportunity to participate in the
financing on an interest-baring basis.

The Company has started works on construction at the Silver Mine. The works
include planning and construction of the concentrator´s and underground´s
mine infrastructure. The underground mine will be prepared for mining by
improvement of the ventilation- and pumping stations. Preparatory ground-work
is ongoing for the area's transportation roads and pond-bottom plus
equalization of the peat sealing layer.

By starting these works already now the Company can plan and implement them
effectively. In addition, the construction will be carried out faster and
smoother. The ambition is that all building and construction should be
completed by the end of 2017, with the aim to reach full production during
the first half of 2018.

Ahead of us we have a very stimulating time that together with Sotkamo
Silver´s skilled employees build the Silver Mine.

Timo Lindborg

Reporting Dates

* Year End Report 2016 - February 15th 2017.
* Annual General Meeting – March 23rd 2017.

Share data

Sotkamo Silver´s shares were traded at 3,47 last trading date, i. e. September
30th 2016. The share capital amounted to SEK 141 596 341,47. Quota value was
SEK 1.37. Number of shares and votes are 103 215 990. Market capitalization
on September 30th was about 358 million SEK.

The shares are traded at NASDAQ OMX Helsinki, NGM Equity-pörssissä Stockholm
and Börse Berlin, Open Market Berlin.

The ticker symbol is SOSI in NGM Equity in Stockholm and SOSI1 in NASDAQ OMX
Helsinki.

ISIN-code for Sotkamo Silver shares is SE0001057910.

ISIN- code for share warrants series 2016/2017 are SE0008373880

Legal Entity Identifier (LEI): 213800R2TQW1OZGYDX93

Read more about Sotkamo Silver on www.sotkamosilver.com orwww.silver.fi

For further information: Timo Lindborg, CEO, tel. +358 40 508 35 07

A complete Report in Swedish can be downloaded from:
http://www.silver.fi/sivu/se/delarsrapporter/

Sotkamo Silver AB discloses the information provided herein pursuant to the
Swedish Securities Markets Act and/or the Swedish Financial Instruments
Trading Act.

The official Stock Exchange Releases are given in Swedish and there may be
slight differences in the translated versions.

Stockholm, November 16th 2016

Sotkamo Silver AB

Timo Lindborg, CEO

The Company's press releases and financial reports are distributed via NGM and
are available onwww.silver.fi

About Sotkamo Silver AB:

Sotkamo Silver AB´s business concept is to exploit mineral deposits in the
Nordic countries with regards to human society and environment. Sotkamo
Silver owns, through its subsidiary mineral deposits, which contains silver
and gold in Finland and zinc in Norway. The Company’s main development
project is the Silver Mine project in the municipality of Sotkamo.

Sotkamo Silver applies SveMin’s&FinnMin’s respective rules of reporting for
public mining&exploration companies. Sotkamo Silver has chosen to report
mineral resources and ore reserves according to the internationally accepted
JORC or NI 43-101-code. The company applies International Financial Reporting
Standards (IFRS) as approved by the European Union.

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