Talvivaara signs uranium off-take agreement with Cameco Corporation

STOCK EXCHANGE RELEASE
Talvivaara Mining Company Plc
8 February 2011


Talvivaara signs uranium off-take agreement with Cameco Corporation


Talvivaara Mining Company Plc ("Talvivaara" or the "Company") announces that it
has signed an agreement with Cameco Corporation ("Cameco"), the international
uranium producer, for the off-take of uranium obtained as a by-product at the
Talvivaara mine.

Highlights
·         Cameco is to provide an upfront investment of up to USD 60m to cover
the construction costs of the uranium extraction circuit
·         Talvivaara will repay the investment through deliveries of uranium
concentrate during the initial years of the agreement; once the capital sum has
been repaid all uranium concentrate produced thereafter until 31 December 2027
will be bought by Cameco at a price based on market prices at the time of
delivery
·         Annual uranium production is estimated at 350tU (ca. 770,000 pounds),
corresponding to approximately 410t (900,000 pounds) of yellow cake (UO(4))

Cameco is already a supplier of uranium fuel to generate clean electricity for
Finnish utilities and their customers. Cameco will continue to provide technical
assistance to Talvivaara in the design, construction, commissioning and
operation of the uranium extraction circuit to be constructed at the Sotkamo
mine. Talvivaara plans to start construction of the uranium extraction circuit
in the coming months and complete it in 2012.

Under the terms of the off-take agreement with Talvivaara, Cameco will provide
an up-front investment, to a maximum of $60 million, to cover the construction
cost of the uranium extraction circuit. Cameco's capital contribution will be
repaid through deliveries of uranium concentrate in the initial years of the
agreement.

Once the capital is repaid, Cameco will purchase the uranium concentrate
produced at Sotkamo through a supply agreement that will be in effect until 31
December 2027. This agreement will provide Talvivaara with payment for the
uranium, based on a formula that references market prices at the time of
delivery.

Cameco will take ownership of the uranium at the Sotkamo site and will have the
sole right to market the product to its customers.

The agreements between Talvivaara and Cameco are subject to ratification by the
Euratom Supply Agency and the approval of the European Commission pursuant to
the Euratom Treaty, as well as to the permits from the appropriate Finnish
authorities. Talvivaara and Cameco expect the Euratom approval within a few
months. Talvivaara applied in April 2010 to the Ministry of Employment and
Economy for a permit to extract uranium as a by-product, in accordance with the
Nuclear Energy Act. The Environmental Impact Assessment Process as well as the
preparations for submitting the application for the Environmental Permit
relating to the uranium extraction process are ongoing at the site.

Talvivaara expects steady state production of uranium at the Sotkamo mine to be
approximately 350tU (770,000 pounds), corresponding to ca. 410t or 900,000
pounds per annum of yellow cake (UO(4 )equivalent). Ultimately, the production
capacity for uranium extraction at the Sotkamo mine could be increased with
Talvivaara's stated intention to increase production of nickel and zinc products
at the mine through use of its unique bioheapleaching process.
Commenting on the announcement, Pekka Perä, CEO of Talvivaara, said:"We are
pleased to be partnering with Cameco in developing uranium production at
Sotkamo. The uranium found locally is naturally occurring and it makes sense to
extract it in the same way as we do with our other metals. Our primary concern
in investigating this initiative has been to ensure that we could achieve
production safely and securely, and to act in an environmentally sensitive
manner. Cameco has the long-standing international experience to assist us in
ensuring these conditions."

"This agreement with Cameco provides the upfront funding for the construction of
the uranium extraction circuit, whilst not diluting Talvivaara's strong balance
sheet. Once the initial capital investment has been paid off Talvivaara will
benefit from market prices for uranium, and the Board is confident that with
rising demand for uranium around the world the project economics provide for a
solid additional revenue stream for the Company."



ENQUIRIES

Talvivaara Mining Company Plc          Tel: 358 20 7129 800
Pekka Erkinheimo, Chief Commercial Officer
Kari Vyhtinen, General Manager Expansion


Uranium production
Natural uranium is found in low concentrations in the Sotkamo mine area. This
naturally occurring uranium does not radiate significantly; in surveys by the
Geological Survey of Finland in 2009 all measured gamma radiation levels in the
area were within the range classified by the Radiation and Nuclear Safety
Authority of Finland as normal background radiation in Finland. The uranium
grade in the bedrock ore at Sotkamo is on average 0.0015-0.0020%.

Uranium leaches, along with Talvivaara's other products (nickel, zinc, copper
and cobalt), under controlled conditions into the solution obtained from the
mine's bioheapleaching process. Uranium will be recovered as an intermediate,
yellow cake, through a safe and technically simple solvent extraction process.
This production will be strictly monitored by the Radiation and Nuclear Safety
Authority of Finland and International Atomic Energy Agency (IAEA).

Talvivaara Mining Company Plc
Talvivaara Mining Company is an internationally significant base metals producer
with its primary focus on nickel and zinc using a technology known as
bioheapleaching to extract metals out of ore. Bioheapleaching makes extraction
of metals from low grade ore economically viable. The Talvivaara deposits
comprise one of the largest known sulphide nickel resources in Europe. The ore
body is sufficient to support anticipated production for at least 46 years.
Talvivaara has secured a 10-year off-take agreement for 100 per cent of its main
output of nickel and cobalt to Norilsk Nickel and entered into a long-term zinc
streaming agreement with Nyrstar NV. Talvivaara is listed on the London Stock
Exchange Main Market and NASDAQ OMX Helsinki and is included in the FTSE 250
Index. Further information can be found at www.talvivaara.com.

Cameco Corporation
Cameco, with its head office in Saskatoon, Saskatchewan, is one of the world's
largest uranium producers. The company's uranium products are used to generate
electricity in nuclear energy plants around the world, providing one of the
cleanest sources of energy available today. Cameco's shares trade on the Toronto
and New York stock exchanges.



Talvivaara_Cameco Agreement 08 02 2011 En:
http://hugin.info/136227/R/1486210/421379.pdf




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Source: Talvivaaran Kaivososakeyhtiö Oyj via Thomson Reuters ONE

[HUG#1486210]


Unternehmen: Talvivaaran Kaivososakeyhtiö Oyj - ISIN: FI0009014716