Production update

Stock Exchange Release

Talvivaara Mining Company Plc

7 April 2011





New production record slightly short of guidance achieved in Q1 2011

Production guidance for 2011 reduced to 22,000-28,000 tonnes of nickel
due to necessary plant upgrades



Talvivaara Mining Company Plc ("Talvivaara" or the "Company") announces that it
has achieved a new quarterly production record of 4,215t of nickel during the
period of January-March 2011. Although production was marginally below the
Company's guidance, it exceeded the previous quarter's nickel output by 10% and
confirmed further progress in production ramp-up at the Sotkamo mine.

The new quarterly production record was achieved despite a series of technical
issues resulting in low availability of the metals recovery plant. Particularly
good production levels were achieved in March, when the nickel output averaged
an annualised rate of over 32,000t for the last ten days of the month, achieving
also new monthly and weekly records.

Despite the recent success in metals recovery, the Company believes that certain
upgrades and modifications at the plant are necessary in order to sustain the
achieved throughput rates and to ramp up production further. The Company has
therefore decided to bring the annual maintenance break forward to April-May
2011 and to extend this scheduled break to allow for all of the identified
issues to be addressed and for the plant to be thoroughly inspected as part of
the Company's preventive maintenance plan. The overall duration of the
modification programme is to be extended by a fortnight.

The Company anticipates scheduling a second maintenance stoppage for September
or October in order to install long lead-time equipment which is not available
during the first stoppage, and to further enhance parts of process equipment in
order to avoid potential problems caused by exceptional winter conditions. The
second maintenance programme is estimated to last approximately one week and
will complete the upgrading of the plant for sustainable full scale production.

The planned plant modifications and maintenance works involve increasing of
sulphur melting and certain pumping capacities, cleaning and upgrading of
hydrogen sulphide generators, inspection and maintenance of reactors and
thickeners, and numerous small modification items, e.g. doubling up of selected
process pipelines, that help improve production reliability and sustainable
capacity. No major equipment additions or replacements are anticipated; hence
the upgrading and maintenance programmes are not expected to materially affect
the Company's capital expenditure during the year.

The impact on production output of the planned modification and maintenance
programmes depends on the timing and eventual length of the production stoppages
and the resulting improvement in production reliability and capacity. Delays in
reclaiming the primary heap may also have an impact on production due to
corresponding delays in obtaining leach solution from the secondary heap to
metals recovery.

Overall, the Company believes it realistic to anticipate a production shortfall
of 5,000-8,000t of nickel from the previous guidance. Accordingly, Talvivaara
revises its production guidance for 2011 to 22,000-28,000t of nickel.

Pekka Perä, Talvivaara's CEO commented: "Whilst the maintenance and upgrade work
at our metals plant will have a short-term impact on our production targets, it
will put Talvivaara in a stronger position in the long term. During the
programme we will concentrate on both preventive maintenance, which should
minimise unforeseen production problems in the future, and on upgrades which
will boost production capacity and reliability and improve resilience during
difficult weather conditions."




ENQUIRIES

Talvivaara Mining Company Plc                         Tel: 358 20 712 9800
Pekka Perä, Chief Executive Officer
Saila Miettinen-Lähde, Chief Financial Officer

Merlin PR                                        Tel: 44 207 726 8400
David Simonson
Anca Spiridon


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 estimated to support anticipated production for several decades.
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 atwww.talvivaara.com.




Production update 07 04 2011:
http://hugin.info/136227/R/1504275/439186.pdf




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Source: Talvivaaran Kaivososakeyhtiö Oyj via Thomson Reuters ONE

[HUG#1504275]


Unternehmen: Talvivaaran Kaivososakeyhtiö Oyj - ISIN: FI0009014716