Talvivaara Mining Company Ltd



Talvivaaras main activity is the development and commercial exploitation of two polymetallic deposits, Kuusilampi and Kolmisoppi, in Sotkamo, Eastern Finland. The Talvivaara deposits comprise one of the largest known sulphide nickel resources in Europe with 266 million tonnes of ore in measured and indicated categories. The mine is also expected to produce copper, zinc and cobalt as by-products of the process

Since acquiring the rights to mine the Talvivaara deposits and the rights to use the related geological and bioleaching research data in February 2004, the Group has actively pursued the development of the Talvivaara deposits. In March 2007, the bankable feasibility study, which contains detailed estimates of all material capital and operating expenditures expected to be incurred in connection with constructing and operating the mine, was approved. The Group has also obtained an environmental permit and other material permits required for the commencement of mining operations. Talvivaara plans further development of its open pit mines, the construction of processing and ancillary infrastructure and the design, construction and commissioning of a processing facility. The Group is expecting to benefit from the proximity of its operations to existing energy and transportation infrastructure and potential customers.

The Group plans to supply metal intermediaries to companies with metal refining operations and has already entered into a 10-year Off-take Agreement with Norilsk Nickel for the entire output of the mines nickel and cobalt production at market prices.


COMPANY OVERVIEW

n Talvivaara and its subsidiary Talvivaara Project Ltd (the "Subsidiary", together with the Company, the "Group") aims to become an internationally significant base metals producer with its primary focus on nickel and zinc using a technology known as bioheapleaching to extract metal out of low grade ore

n The Group's main activity is the development and exploitation of two polymetallic deposits, Kuusilampi and Kolmisoppi, in Sotkamo, Finland (together, the "Talvivaara deposits") using bioheapleaching technology (the "Talvivaara Project")

The Talvivaara deposits comprise one of the largest known sulphide nickel resources in Europe with 266 million tonnes of ore in measured and indicated resources

Resources are sufficient to support anticipated production for a minimum of 24 years, expected to start in late 2008, with an expected annual nickel output of approximately 33,000 tonnes; the Company has the potential to provide approximately 2.3% of the world's current annual production of nickel by 2010

In addition to the mining of nickel, as by-products of the process, the mine is also expected to produce zinc (approximately 60,000 tpa), copper (approximately 10,000 tpa) and cobalt (approximately 1,200 tpa)

The mine site is situated close to existing energy and transportation infrastructure

JPMorgan Cazenove is sponsor, sole global co-ordinator and bookrunner for the proposed offering, while Nordea is co-lead manager.





http://www.talvivaara.com/index.phtml?page_id=1049

PRESS RELEASE 18.5.2007

Outokumpu Oyj

Outokumpu to participate in the Talvivaara nickel mining project in Finland

Outokumpu has decided to exercise its option to acquire a 20% stake in
the Talvivaara nickel mining project company for a total consideration
of one euro. Outokumpu will also subscribe shares in the initial public
offering of Talvivaara Mining Company Ltd, the parent company of the
project company. The size of the subscription will be decided upon later.

Based on a strategic choice, Outokumpu has divested its mining business,
except for the Kemi chromite mine, which is an integral part of the
Group's stainless steel operations. As part of the exit-mining program,
Outokumpu sold the Talvivaara exploration project in 2004 for one euro to
what is now known as Talvivaara Mining Company Ltd. In the agreement
between the two companies Outokumpu retained an option to acquire a 20%
free carried interest in the project company for the sum of one euro.
Outokumpu has also been granted an option to subscribe shares in a
possible share offering by Talvivaara Mining Company Ltd, the parent
company for the project, with a 20% discount to the offering price,
representing up to 5% ownership in the company after the offering. As
Talvivaara now intends to list on the London Stock Exchange and has
started a share offering, Outokumpu has decided to exercise both
options as described above.

The offering, together with a previously arranged project financing
facility will secure financing for the Talvivaara project and enable its
development into an operating mine. Outokumpu's ownership in the project
and the parent company does not call for participation by Outokumpu in
further financing of the project.

Outokumpu supports and endorses the project for strategic reasons as it
will increase the availability of nickel on the world market and
therefore improve its market balance. Nickel is an integral and currently
the most expensive alloying element in stainless steel. The participation
can also be seen as partial nickel hedge for Outokumpu.

For further information, please contact:

Eero Mustala, SVP - Corporate Communications

Lucky Outokumpu :o)

Talvi is worth watching - thanks for the head-up, Smiler.