Talvivaara Mining Company Interim Report for January-September 2012

Stock Exchange Release
Talvivaara Mining Company Plc
8 November 2012


Talvivaara Mining Company Interim Report for January-September 2012

Improved production in the third quarter
Continued heavy rains have prolonged water balance challenges and impacted
solution grades


Highlights

Q3 2012
* Nickel production of 4,030t and zinc production of 7,184t; improved output
compared to Q2 2012
* Stable operation of the metals recovery plant throughout most of the quarter
* Continued progress in equipment availabilities and run-rates across
processes
* Heavy rains prolonged water balance challenges and impacted solution grades;
measures to improve water balance in progress
* Successful implementation of altered production scheme with emphasis on heap
reclaiming for 3-4 months from the beginning of September
* Net sales of EUR 44.8m
* Operating loss of EUR (4.3)m


Q1-Q3 2012
* Nickel production of 10,598t and zinc production of 21,760t
* Net sales of EUR 117.3m
* Operating loss of EUR (26.6)m


Production guidance

As announced in connection with Talvivaara's Production Update on 15 October
2012, Talvivaara anticipates its Q4 2012 production to improve over the level
attained in Q3 2012. However, due to the challenging water balance situation the
Company considers it unlikely that its full year 2012 production target of
approximately 17,000t of nickel will be achieved.

Key figures

-------------------------------------------------------------------------------
EUR million Q3 Q3 Q1-Q3 Q1-Q3 FY
2012 2011 2012 2011 2011
-------------------------------------------------------------------------------
Net sales 44.8 60.6 117.3 164.7 231.2
-------------------------------------------------------------------------------
Operating profit (loss) (4.3) 5.5 (26.6) 16.0 30.9
-------------------------------------------------------------------------------
      % of net sales (9.6%) 9.1% (22.7%) 9.7% 13.4%
-------------------------------------------------------------------------------
Profit (loss) for the period (12.1) (3.4) (44.5) (8.9) (5.2)
-------------------------------------------------------------------------------
Earnings per share, EUR (0.05) (0.02) (0.16) (0.05) (0.04)
-------------------------------------------------------------------------------
Equity-to-assets ratio 28.0% 28.7% 28.0% 28.7% 27.9%
-------------------------------------------------------------------------------
Net interest bearing debt 514.6 410.2 514.6 410.2 455.7
-------------------------------------------------------------------------------
Debt-to-equity ratio 140.6% 128.1% 140.6% 128.1% 141.3%
-------------------------------------------------------------------------------
Capital expenditure 32.5 22.0 67.9 57.6 79.1
-------------------------------------------------------------------------------
Cash and cash equivalents at the end of 87.3 38.6 87.3 38.6 40.0
the period
-------------------------------------------------------------------------------
Number of employees at the end of the 551 446 551 446 461
period
-------------------------------------------------------------------------------

All reported figures in this release are unaudited.

CEO Harri Natunen comments: "In the third quarter, we continued our consistent
work to gradually ramp up production, enhance stability and availability of
processes and improve our environmental performance. Across all of these areas,
we have seen continued positive development which gives us a high degree of
confidence for the future. In July, we achieved a record level of ore production
despite the mining department sourcing ore from a more distant location than
planned. The metals recovery plant operated steadily throughout most of the
third quarter, and in September reached an average monthly flow rate of 1,447
m(3)/h excluding an unscheduled stoppage towards the end of the month. Our
environmental track record continued to improve in the third quarter and, for
example, no odour complaints from nearby residents were received in September.

Whilst I am pleased to report these underlying supportive trends, we have
continued to face water balance challenges and consequential effects on metals
production. Historically heavy rainfall has continued in Sotkamo since the
spring, and during the summer months rainfall exceeded the long-term average by
50-100%. Excess water in circulation has diluted metal grades in leach solution,
and the high water content in heaps has also impacted leaching performance by
reducing the efficiency of aeration.

We are implementing a number of measures to improve the water balance and the
leaching performance, including the commissioning of reverse osmosis technology
for water purification, accelerated reclaiming of primary heaps, and development
work on the design of future primary heaps. As a result, we expect some
improvement in the metal grades towards the year-end, but a complete reversal is
unlikely to be achieved until next year. Whilst we expect production in the
fourth quarter to be higher than in the third quarter, the water balance
challenges have led us to conclude that we are unlikely to achieve our full year
nickel production target of 17,000t.

Because of the challenging water balance and temporary storage of water in the
open pit we also decided to alter our production scheme for 3-4 months starting
September. During this time we will not mine and crush new ore, but rather
concentrate on primary heap reclaiming and removal of water from the open pit.
To date, implementation of the scheme has progressed well and is expected to
result in cost savings amounting to around EUR 20 million during the remainder
of 2012 and the first part of 2013.

Our third quarter financial result was impacted by the LME nickel price
declining to its lowest levels since mid-2009, recording an average of
approximately USD 15,700/t in August. Although the price recovered somewhat
towards the quarter-end, the market outlook for nickel remains quite cautious
and uncertain in the coming months. In order to ensure Talvivaara's financial
flexibility in this environment, we are focusing on attaining the targeted
savings from the temporary alteration of our production scheme as well as
assessing options for additional funding.

As announced in our previous releases on 5 and 7 November 2012, we detected a
leakage in the mine's gypsum pond on 4 November 2012. Ever since then, our own
and our contractors' personnel have worked day and night to locate and stem the
leakage and to minimize its environmental impact. At the time of this
announcement, we have managed to locate the damaged area and materially reduce
the leakage, but work to repair the pond still continues. We have also built and
are building more safety dams, which have enabled us to contain most of the
leaked water within the mining concession area. I take this opportunity to thank
our own and our contractors' personnel for their tireless work on resolving this
issue, and I wish them further strength as we now continue our work on
minimizing the environmental impact and normalizing our production."

Enquiries:

Talvivaara Mining Company Plc. Tel. +358 20 712 9800
Harri Natunen, CEO
Saila Miettinen-Lähde, Deputy CEO and CFO

College Hill Tel. +44 20 7457 2020
David Simonson
Anca Spiridon

Webcast and conference call on 8 November 2012 at 12:00 GMT / 14:00 EET

A combined webcast and conference call on the January-September 2012 Interim
Result will be held on 8 November 2012 at 12:00 GMT / 14:00 EET. The call will
be held in English.

The webcast can be accessed through the following link:
http://qsb.webcast.fi/t/talvivaara/talvivaara_2012_1108_q3/

A conference call facility will be available for a Q&A with senior management
following the presentation.

PARTICIPANT AUDIO ACCESS - CONNECTION DETAILS
Participant - UK: +44 (0)20 7162 0025
Participant - US: +1 334 323 6201
Participant - Finland: +358 (0)9 2313 9201

Conference ID: 914121

The webcast will also be available for viewing on the Talvivaara website shortly
after the event.




Financial review

Q3 2012 (July-September)

Net sales and financial result

Talvivaara's net sales for nickel and cobalt deliveries to Norilsk Nickel and
for zinc deliveries to Nyrstar during the quarter ended 30 September 2012
amounted to EUR 44.8 million (Q3 2011: EUR 60.6 million). Net sales grew by
33.9% compared to Q2 2012 primarily due to an increase of 34.5% in nickel
product deliveries and a slight increase in the nickel price. Product deliveries
in Q3 2012 amounted to 3,978t of nickel, 97t of cobalt and 5,638t of zinc.

The change in work in progress during Q3 2012 amounted to EUR 10.4 million and
reduced by 56.5% compared to Q2 2012. The reduction resulted from the
implementation of an alteration to the production scheme, whereby mining and
crushing operations are temporarily discontinued as of September 2012. As no new
ore was stacked during September, work in progress increased less in Q3 2012
than during normal operations.

Operating loss for Q3 2012 was EUR (4.3) million (Q3 2011: profit of EUR 5.5
million), corresponding to an operating margin of (9.6%) (Q3 2011: 9.1%). During
the period, materials and services amounted to EUR (29.3) million (Q3 2011: EUR
(29.1) million) and other operating expenses to EUR (13.9) million (Q3 2011: EUR
(12.3) million). Compared to Q2 2012, materials and services and other operating
expenses decreased by 11.0%, reflecting primarily efficiency improvements at the
metals recovery plant.

Loss for the period amounted to EUR (12.1) million (Q3 2011: EUR (3.4) million).

Balance sheet and financing

Capital expenditure during the third quarter totalled EUR 32.5 million (Q3
2011: EUR 22.0 million). The expenditure related primarily to secondary heap
foundations, secondary leaching and the uranium extraction circuit. Talvivaara
received advance payments amounting to EUR 14.0 million from Cameco to cover the
construction costs of the uranium extraction circuit.

In order to secure Talvivaara's financial flexibility and a sufficient level of
liquidity, the Company is undertaking an assessment of a range of funding
options including debt, convertible bonds, royalty streams and equity. At this
stage no formal decision has been made and the Board continues to assess funding
alternatives.

Q1-Q3 2012 (January-September)

Net sales and financial result

Talvivaara's net sales for nickel and cobalt deliveries to Norilsk Nickel and
for zinc deliveries to Nyrstar during Q1-Q3 2012 amounted to EUR 117.3 million
(Q1-Q3 2011: EUR 164.7 million). Net sales decreased by 28.8% compared to Q1-Q3
2011 mainly due to a lower nickel price. Product deliveries amounted to 10,457t
of nickel, 21,078t of zinc and 285t of cobalt (Q1-Q3 2011: 11,136t of nickel,
24,266t of zinc, 266t of cobalt).

The Group's other operating income amounted to EUR 4.0 million (Q1-Q3 2011: EUR
2.6 million) and mainly resulted from indemnities on losses and fair value gains
on biological assets.

Materials and services were EUR (97.8) million in Q1-Q3 2012 (Q1-Q3 2011: EUR
(97.3) million) and other operating expenses were EUR (47.8) million (Q1-Q3
2011: EUR (42.6) million). The largest cost items were production chemicals,
external services, electricity and maintenance.

Employee benefit expenses were EUR (20.7) million (Q1-Q3 2011: EUR (19.1)
million). The increase was attributable to the increased number of personnel.

Operating loss for Q1-Q3 2012 was EUR (26.6) million (Q1-Q3 2011: profit of EUR
16.0 million). Operating margin for Q1-Q3 2012 was (22.7%), showing an
improvement over (30.8%) in H1 2012. The key determinants to the change in the
operating margin were a somewhat higher but still challenging nickel price and
increased nickel product deliveries.

Finance income for the period was EUR 2.1 million (Q1-Q3 2011: EUR 1.0 million)
and consisted mainly of exchange rate gains. Finance costs of EUR (34.1) million
(Q1-Q3 2011: EUR (27.8) million) were mainly due to interest and related
financing expenses on borrowings.

Loss for Q1-Q3 2012 amounted to EUR (44.5) million (Q1-Q3 2011: EUR (8.9)
million) reflecting the challenging nickel price, high maintenance costs and
lower than anticipated level of product deliveries. Earnings per share were EUR
(0.16) (Q1-Q3 2011: EUR (0.05)).

The total comprehensive income for Q1-Q3 2012 was EUR (44.5) million (Q1-Q3
2011: EUR (16.3) million). In 2011, it included a reduction in hedge reserves
resulting from the occurrence of the hedged sales.

Balance sheet

Capital expenditure in Q1-Q3 2012 totalled EUR 67.9 million (Q1-Q3 2011: EUR
57.6 million). The expenditure related primarily to the uranium extraction
circuit, earthworks in secondary leaching and secondary heap foundations. In
addition, major investments were made in environmental technology toimprove the
quality of effluent waters, reduce odour emissions and limit dust emissions. On
the consolidated statement of financial position as at 30 September 2012,
property, plant and equipment totalled EUR 793.4 million (31 December 2011: EUR
762.0 million).

In the Group's assets, inventories amounted to EUR 301.9 million on 30 September
2012 (31 December 2011: EUR 240.4 million). The increase in inventories reflects
the ramp-up of production and the consequent increase in the amount of ore
stacked on heaps, valued at cost. The temporary alteration to the production
scheme will also affect the amount of inventories in Q3-Q4 2012.

Trade receivables amounted to EUR 52.9 million on 30 September 2012 (31 December
2011: EUR 64.0 million). Trade receivables remained roughly at the same level as
at the end of Q2 2012 due to unscheduled downtime at the metals recovery plant
in late September.

On 30 September 2012, cash and cash equivalents totalled EUR 87.3 million (31
December 2011: EUR 40.0 million).

In equity and liabilities, the total equity amounted to EUR 366.1 million on 30
September 2012 (31 December 2011: EUR 322.6 million). Talvivaara raised EUR
81.5 million, net of transaction costs, from an issue of 24,589,050 new shares
in Q1 2012. In addition, interest cost of EUR 2.8 million of a perpetual capital
loan was capitalized in equity. A total of 1,830,087 new shares were subscribed
and paid for in Q1-Q3 2012 under the Company's stock option rights 2007A and the
entire subscription price amounting to EUR 4.9 million was recognized in equity.

Borrowings increased from EUR 495.7 million on 31 December 2011 to EUR 601.9
million at the end of September 2012. The changes in borrowings during Q1-Q3
2012 included an issue of a senior unsecured bond of EUR 110 million, a draw-
down of EUR 20 million from the revolving credit facility, a repayment of
commercial paper notes amounting to EUR 8.5 million, and a partial buy-back,
with a nominal value of EUR 8 million, of senior unsecured convertible bonds due
2013.

Total advance payments as at 30 September 2012 amounted to EUR 265.5 million,
representing an increase of EUR 18.2 million from EUR 247.3 million on 31
December 2011. During Q1-Q3 2012, Talvivaara received a total of EUR 22.3
million in advance payments from Cameco based on the uranium off-take agreement
between the companies, whilst the advance payment from Nyrstar was amortised by
EUR 4.1 million as a result of zinc deliveries.

Total equity and liabilities as at 30 September 2012 amounted to EUR 1,309.5
million (31 December 2011: EUR 1,156.7 million).

Financing

In June, Talvivaara's EUR 130 million revolving credit facility was amended,
changing its margin to 4.00% through to June 2013. Thereafter, the margin will
be 1.75-3.00% depending on the Company's leverage ratio.

As at 30 September 2012, EUR 70 million of the facility was drawn. The drawdown
has been reported under current liabilities following a breach of some of the
facility's covenant requirements in the third quarter. The breached covenants
have been waived by the banks since the quarter-end.

In April and May, Talvivaara conducted a buy-back for a portion amounting to a
nominal value of EUR 8 million of the Company's senior unsecured convertible
bonds due 2013. The remaining convertible bonds have a nominal value of EUR
76.9 million and are due in May 2013.

In March, Talvivaara issued a EUR 110 million senior unsecured bond. The 5-year
bond has an issue price of 100%, pays a coupon of 9.75% and is callable after 3
years. The bond issue was sold to both Finnish and international institutional
and private investors. The bond was settled and the notes were listed on NASDAQ
OMX Helsinki in April.

In February, Talvivaara completed an issue of 24,589,050 new shares representing
approximately 10 per cent of the number of the existing shares of the Company.
The proceeds of the share issue amounted to EUR 82.6 million before commissions
and expenses and to EUR 81.5 million net of costs. An Extraordinary General
Meeting of Talvivaara Mining Company Plc resolved to approve the share issue in
March, and the new shares were subsequently registered in the Finnish Trade
Register.

Currency option programme

Talvivaara has entered into a currency option programme comprising USD options
for three months from October 2012 through to December 2012. Monthly obligation
is USD 5.0 million and protection is USD 5.0 million. The collar ranges from
1.1500 to 1.3750.

Production review

Metals recovery

Talvivaara produced 4,030t of nickel (Q3 2011: 3,153t) and 7,184t of zinc (Q3
2011: 7,286t) in the third quarter of 2012, which represents a clear improvement
over 3,194t nickel and 6,686t zinc in the previous quarter. During the first
nine months of 2012, the Company produced 10,598t of nickel (Q1-Q3
2011: 11,319t) and 21,760t of zinc (Q1-Q3 2011: 21,291t).

The Company continued to achieve stable operation of the metals recovery plant
for most of the third quarter. Deviations from stable operation were caused by
two brief power outage -related stoppages in late July and an unscheduled
downtime of 8 days in late September due to problems in re-starting hydrogen
sulphide production following a planned 4-hour stoppage for piping installations
to enable de-watering of the open-pit mine. Leach solution flow rate through the
plant improved throughout the quarter and reached an average of 1,447 m(3)/h in
September excluding the unscheduled stoppage.

Bioheapleaching and water management

Continued historically heavy rainfall throughout the third quarter has prolonged
water balance issues at the Sotkamo mine. In the first nine months of the year,
the total rainfall in the area amounted to 710mm, which exceeds the long-term
average of 489mm by 45%. During most of the spring and summer, rainfall in the
area exceeded the long-term average by 50-100%. The excess water in circulation
has continued to dilute metal grades in leach solution. During the third
quarter, the average nickel grade in solution pumped to the metals recovery
plant was 1.5-1.6 g/l compared to slightly below 2 g/l at the start of the year.

Talvivaara is taking active measures to moderate the water balance and to
enhance leaching performance. The construction of two reverse osmosis plants for
water purification was nearly completed during the third quarter. The plants are
expected to improve the water balance by enabling the Company to increase the
recycling of purified process waters and to reduce raw water intake. A third
reverse osmosis unit will be installed next spring.

The unusually high water content in the heaps has also been found to impact
leaching by reducing the efficiency of aeration. Measures to improve aeration
are being taken and include accelerated reclaiming of the existing primary heaps
as well as improving the overall water balance, which over time enables
reduction of the amount of water in circulation. Development work is also on-
going to improve the design of future primary heaps for optimal aeration
efficiency.

As a result of the heavy rains, some 1.7Mm(3) of excess water has accumulated at
the mine site and been temporarily stored in the open pit. De-watering of the
pit started in September following the completion of an expansion of the gypsum
pond, and is expected to take 2-3 months.

Ore production

Because water in the open pit prevented mining in accordance with original plans
in the third quarter, the mining department sourced ore from a more distant
location at the Southern end of the Kuusilampi pit. Despite this, a record level
of 1.5Mt of ore was mined and subsequently crushed in July and equipment
availabilities in materials handling approached the required steady state
levels. In total, 2.6Mt of ore was mined and stacked in the third quarter (Q3
2011: 3.0Mt). Waste mining during the period amounted to 1.5Mt (Q3 2011: 4.5Mt).

As previously announced, Talvivaara has decided to discontinue mining and
crushing operations for a period of 3-4 months from the beginning of September
due to the prevailing water balance situation. Discontinuing mining and crushing
operations is carried out without lay-offs or redundancies. The temporary
production scheme alteration is proceeding as planned.

Production key figures

------------------------------------------------------------------
    Q3 Q3 Q1-Q3 Q1-Q3 FY
2012 2011 2012 2011 2011
------------------------------------------------------------------
Mining
------------------------------------------------------------------
     Ore production Mt 2.6 3.0 8.7 7.9 11.1
------------------------------------------------------------------
     Waste production Mt 1.5 4.5 4.1 15.0 17.0
------------------------------------------------------------------
Materials handling
------------------------------------------------------------------
     Stacked ore Mt 2.6 3.0 8.7 7.9 11.1
------------------------------------------------------------------
Bioheapleaching
------------------------------------------------------------------
     Ore under leaching Mt 44.3 32.2 44.3 32.2 35.6
------------------------------------------------------------------
Metals recovery
------------------------------------------------------------------
     Nickel metal content Tonnes 4,030 3,153 10,598 11,319 16,087
------------------------------------------------------------------
     Zinc metal content Tonnes 7,184 7,286 21,760 21,291 31,815
------------------------------------------------------------------


Sustainable development, safety and permitting

Safety

A safe working environment and safe working practices are top priorities for
Talvivaara. Following the regrettable fatality at the site in March, the Company
has implemented a number of preventative safety-related improvements to its
processes and operational procedures. There have been no accidents leading to
employee absence at the metals recovery plant during the second and third
quarters of 2012. Talvivaara continues its efforts to improve occupational
safety and to enhance the Company's safety culture.

At the end of the third quarter, the injury frequency among the Talvivaara
personnel was 13.2 lost time injuries/million working hours on a rolling 12
month basis (30 September 2011: 13.9 lost time injuries/million working hours).

Environment

Talvivaara continues to focus on minimising the environmental impact of its
operations. In the second quarter the Company announced investments in
environmental technology amounting to more than EUR 13 million, which are
currently being implemented. The new technologies will further improve the
quality of effluent waters, reduce odour emissions and limit dust emissions.

Hydrogen sulphide (odour) emissions have been largely addressed. Odour
complaints from nearby residents have reduced substantially, and there were no
complaints in September.

Dust emissions have been addressed through the commissioning in July of a new
dust removal system at the screening hall. In line with Talvivaara's commitment
to continuous improvement, several technological solutions are being studied to
further reduce dust emissions.

Talvivaara has continued to make significant progress in reducing its sulphate
and sodium discharges into nearby lakes as a result of process improvements and
increased water recycling. In order to further reduce discharges into water,
Talvivaara has invested in a reverse osmosis-based water treatment system, which
is expected to be commissioned before year-end 2012.

In order to improve timely and transparent communication on environmental
matters with the neighbouring communities and other interested stakeholders,
Talvivaara launched a specific website for this purpose in January 2012. The
Finnish language website, www.paikanpaalla.fi, reviews environmental data and
events in blog format and aims to provide region-specific information in an
easily understandable and concise form.

Permitting

In January, Talvivaara received a positive opinion on its uranium recovery
process from the European Commission under the Euratom Treaty. In its opinion,
the European Commission considered that uranium recovery at the Talvivaara mine
complies with the goals set by the Euratom Treaty and may improve the supply
security of nuclear fuel in the European Union. In March, Talvivaara also
received a licence from the Finnish Government to extract uranium as a by-
product from its existing operations pursuant to the Nuclear Energy Act. The
permit is valid throughout the life of the mine, however, no longer than until
the end of 2054.

In April, Talvivaara was informed by the Northern Finland Regional State
Administrative Agency that the Company's environmental permit for uranium
extraction and the general update of Talvivaara mine's environmental permit are
to be processed together. Decisions on the permits were previously expected by
year-end 2012, but the permitting authorities have informed the Company of a
delay in processing the applications. Permit decisions are now expected to be
postponed until late January or February 2013. Talvivaara continues to operate
under the Company's existing environmental permit until the renewal process is
completed and does not anticipate the delay having any material impact on its
production output or financial results. Talvivaara aims to start uranium
recovery as soon as all the necessary permits have been obtained.

Following completion of the Environmental Impact Assessment ("EIA") programme,
the EIA process for the potential expansion of the Talvivaara mine was initiated
during the first quarter of 2012. The EIA covers options to expand production
capacity up to 100,000t of nickel per annum, and also the option to refine
nickel sulphide into LME-quality nickel metal. Talvivaara expects to submit the
environmental permit application for production expansion in 2013 following
completion of the EIA process.

Business development

Uranium production

Talvivaara is preparing for the recovery of uranium as a by-product of the
Company's existing operations. Uranium occurs naturally in small concentrations
in the Talvivaara area and leaches into the process solution along with
Talvivaara's main products. Annual uranium production is estimated at 350tU (ca.
770,000 pounds), corresponding to approximately 410t (900,000 pounds) of yellow
cake (UO(4)). Talvivaara's entire uranium production will be sold under a long-
term agreement to Cameco.

Following receipt of the construction permit in August 2011, Talvivaara
commenced construction of the uranium recovery facility, which will be completed
during the current year. The permitting process for uranium production is on-
going and the start of uranium production is further subject to, among others,
environmental permit approval and chemical authorisation. The decision on the
environmental permit is expected in late January or February 2013 in connection
with the general update of the mine's environmental permit.


Production expansion - Operation Overlord

Conceptual studies relating to production expansion beyond 50,000tpa of nickel
continued during the quarter, with a particular emphasis on permitting and the
on-going Environmental Impact Assessment. The scoping studies are based on the
target of doubling the presently planned production to approximately 100,000tpa
of nickel. Whilst studies relating to various processing options continue, it
appears relatively likely that a substantial part of the expanded production
would be LME-quality nickel metal, i.e. Talvivaara would integrate its
production one step further downstream.

No investment decisions relating to the production expansion have yet been
taken, with such a decision expected at the earliest in 2014.

Energy strategy

Talvivaara's energy strategy is focused on building an environmentally sound
portfolio of low-cost capacity allowing the Company to be energy self-sufficient
in the longer term. Talvivaara's electricity need is currently approximately
45MW, and is expected to increase significantly if the Company proceeds with the
planned capacity expansion and further refining of nickel into LME-quality
metal.

Talvivaara increased its capacity share in the Fennovoima nuclear project in
Finland from approximately 10MW to approximately 60MW during the first quarter
of 2012. The Company is also studying, amongst others, on-site windpower
production, bioenergy and utilization of energy generated in the production
process.

Annual General Meeting

Talvivaara's Annual General Meeting was held on 26 April 2012 in Sotkamo,
Finland. The resolutions of the AGM included:

* that no dividend be paid for the financial year 2011;
* that the annual fee payable to the members of the Board for the term until
the close of the Annual General Meeting in 2013 be as follows: Executive
Chairman of the Board EUR 280,000, Deputy Chairman (Senior Independent
Director) EUR 69,000, Chairmen of the Board Committees EUR 69,000 and other
Non-executive Directors EUR 48,000;
* that the number of Board members be eight and that Mr. Edward Haslam, Ms.
Eileen Carr, Mr. D. Graham Titcombe, Mr. Tapani Järvinen and Mr. Pekka Perä
be re-elected as Board members and Mr. Stuart Murray, Mr. Michael Rawlinson
and Ms. Kirsi Sormunen be appointed as new members of the Board;
* that the auditor be reimbursed according to the auditor's approved invoice
and authorised public accountants PricewaterhouseCoopers Oy be elected as
the Company's auditor for the financial year 2012;
* that the Board be authorised to decide on the repurchase, in one or several
transactions, of a maximum of 10,000,000 of the Company's own shares. The
authorisation is valid until 25 October 2013 and replaces the authorisation
to repurchase 10,000,000 shares granted by the Annual General Meeting of 28
April 2011; and
* that the Board be authorised to decide on the conveyance, in one or several
transactions, of a maximum of 10,000,000 of the Company's own shares.The
shares may be conveyed to the Company's shareholders in proportion to their
present holding or by waiving the pre-emptive subscription rights of the
shareholders and the authorisation is valid until 25 April 2014.


Risk management and principal risks

In line with current corporate governance guidelines on risk management,
Talvivaara carries out an on-going process endorsed by the Board of Directors to
identify risks, measure their impact against certain assumptions and implement
the necessary proactive steps to manage these risks.

Talvivaara's operations are affected by various risks common to the mining
industry, such as risks relating to the development of Talvivaara's mineral
deposits, estimates of reserves and resources, infrastructure risks, and
volatility of commodity prices. There are also risks related to counterparties,
currency exchange ratios, management and control systems, historical losses and
uncertainties about the future profitability of Talvivaara, dependence on key
personnel, effect of laws, governmental regulations and related costs,
environmental hazards, and risks related to Talvivaara's mining concessions and
permits.

In the short term, Talvivaara's key operational risks continue to relate to the
on-going ramp-up of operations. While the Company has demonstrated that all of
its production processes work and can be operated on industrial scale, the rate
of ramp-up is still subject to risk factors including the reliability and
sustainable capacity of production equipment, and eventual speed of leaching and
rates of metals recovery in bioheapleaching. In addition, there may be
production and ramp-up related risks that are currently unknown or beyond the
Company's control.

The market price of nickel has historically been volatile and in the Company's
view this is likely to persist, driven by shifts in the supply-demand balance,
macroeconomic indicators and variations in currency exchange ratios. Nickel
sales currently represent close to 90% of the Company's revenues and variations
in the nickel price therefore have a direct and significant effect on
Talvivaara's financial result and economic viability. Talvivaara is, since
February 2010, unhedged against variations in metal prices. Full or
substantially full exposure to nickel prices is in line with Talvivaara's
strategy and supported by the Company's view that it can operate the Talvivaara
mine, once it has been fully ramped up, profitably also during the lows of
commodity price cycles.

Talvivaara's revenues are almost entirely in US dollars, whilst the majority of
the Company's costs are incurred in Euro. Potential strengthening of the Euro
against the US dollar could thus have a material adverse effect on the business
and financial condition of the Company. Talvivaara hedges its exposure to the US
dollar on a case by case basis with the aim of limiting the adverse effects of
US dollar weakness as considered justified from time to time.

Liquidity and refinancing risks may arise as a result of the Company's inability
to produce sufficient volumes of its saleable products, particularly nickel,
unexpected increase in production costs, and sudden or substantial changes in
the prices of commodities or currency exchange rates. Talvivaara seeks to reduce
liquidity risk by close monitoring of liquidity in order to detect any threat of
adverse changes in advance so as to allow for sufficient time to secure access
to adequate credit or other funding on reasonable terms. Talvivaara also seeks
to maintain a balanced maturity profile of its long-term debt in order to
mitigate refinancing risks.

Personnel and management

The number of personnel employed by the Group on 30 September 2012 was 551 (Q3
2011: 446).

Wages and salaries paid during the three months to 30 September 2012 totalled
EUR 4.8 million (Q3 2011: EUR 4.9 million). Wages and salaries paid during the
nine months to 30 September 2012 totalled EUR 17.1 million (Q1-Q3 2011: EUR
16.2 million).

Harri Natunen was appointed as CEO in April 2012. Following his appointment,
Natunen consolidated the Executive Committee, which now continues in the
following composition:

Harri Natunen, Chief Executive Officer
Saila Miettinen-Lähde, Deputy CEO / Chief Financial Officer
Pekka Erkinheimo, Chief Commercial Officer
Kari Vyhtinen, Chief Investment Officer
Eeva Ruokonen, Chief Sustainability Officer
Maija Kaski, Chief Human Resources Officer
Mikko Korteniemi, Chief Production Officer (Bioheapleaching and Metals Recovery)
Jari Voutilainen Chief Mining Officer (Mining and Materials Handling).

Shares and shareholders

The number of shares issued and outstanding and registered on the Euroclear
Shareholder Register as of 30 September 2012 was 272,309,640. Including the
effect of the EUR 85 million convertible bond of 14 May 2008, the EUR 225
million convertible bond of 16 December 2010, the Option Scheme of 2007 and
share subscriptions registered during 2012, the authorised full number of shares
of the Company amounted to 315,785,376.

The share subscription period for stock options 2007A was between 1 April 2010
and 31 March 2012. By the end of the subscription period a total of 2,279,373
Talvivaara Mining Company's new shares were subscribed for under the stock
option rights 2007A. A total of 53,727 stock option rights 2007A remained
unexercised following the end of the subscription period and expired.

The share subscription period for stock options 2007B is between 1 April 2011
and 31 March 2013. No new shares of Talvivaara were subscribed for under the
stock option rights 2007B in Q1-Q3 2012 and a total of 2,284,337 stock option
rights 2007B remain unexercised. A total of 2,333,000 option rights 2007C have
been issued to 250 key employees and the subscription period for stock options
2007C is between 1 April 2012 and 31 March 2014. A total of 2,333,000 stock
options 2007C remain unexercised.

In February 2012, Talvivaara completed an issue of 24,589,050 new shares. An
Extraordinary General Meeting of Talvivaara Mining Company Plc. resolved on 12
March 2012 to approve the proposal by the Board of Directors on the share issue
in deviation from the shareholders' pre-emptive subscription rights. The new
shares were registered with the Finnish Trade Register on 13 March 2012.

In addition, the Board of Directors has resolved, on the basis of the
authorisation granted by the Extraordinary General Meeting held on 12 March
2012, to issue special rights entitling to subscribe up to 184,428 new shares,
in order to carry out an adjustment to the conversion price, as a result of the
equity placing, in accordance with the terms and conditions of the convertible
bonds due 2013. Accordingly the maximum number of ordinary shares that may be
issued upon conversion is 11,677,591 shares. Due to an adjustment to the
conversion price of the convertible bonds due 2015, as a result of the placing,
the maximum number of ordinary shares that may be issued upon conversion is
27,180,708 shares.

As at 30 September 2012, the shareholders who held more than 5% of the shares
and votes of Talvivaara were Pekka Perä (20.8%), Solidium Oy (8.9%), Varma
Mutual Pension Insurance Company (8.7%) and Ilmarinen Mutual Pension Insurance
Company (6.2%).

Events after the review period

Commencement of copper production

Talvivaara has commenced production of saleable quantities of copper sulphide in
October 2012. For the time being, the product is being sold under spot
arrangements.

Leakage at the gypsum pond

Talvivaara located on Wednesday 7 November 2012 the gypsum pond leakage detected
on Sunday morning 4 November 2012. The leakage was detected near the center of
the approximately 60-hectare pond. The process of plugging was initiated
following the detection of the leakage, and at the time of this announcement we
have managed to materially reduce the leakage.

As a precaution, Talvivaara's metals recovery plant was temporarily suspended
following detection of the leakage. Preparations for the re-start of the metals
recovery plant are being carried out, and the Company anticipates starting the
metals production by this weekend.During the shutdown, Talvivaara reconfigured
the process flows enabling the isolation of the damaged gypsum pond from the
solution circulation. In addition, the new reverse osmosis plant connections
were completed. The re-start of production at the plant will not cause
additional strain on the damaged gypsum pond, or impact the measures or timing
of repairing the pond.

Short-term outlook

Operational outlook

As previously announced, Talvivaara has decided to discontinue mining and
crushing operations for a period of 3-4 months from the beginning of September
due to the prevailing water balance situation. The temporary production scheme
alteration is proceeding as planned and, as a result, Talvivaara expects to
realize operating cost savings of approximately EUR 20 million during the fourth
quarter of 2012 and first quarter of 2013. The altered production scheme is not
anticipated to negatively impact metals production during the remainder of
2012. Because of the large nickel inventory already under leaching in the heaps
and the long leaching times that in total extend over several years, the impact
on 2013 production is also anticipated to be minor.

As a result of the ongoing efforts to reduce the impact of excess water on
leaching performance, Talvivaara expects to see moderate improvement in the
leach solution grades during the remainder of 2012. However, a complete reversal
of the impact is unlikely to be achieved before the year-end. As a result,
Talvivaara anticipates its Q4 2012 production to improve over the level attained
in Q3 2012, but the Company considers it unlikely that its full year 2012
production target of approximately 17,000t of nickel will be achieved.

Talvivaara expects to release its 2013 full year production guidance in
connection with the Company's Capital Markets Day, which will be held in London
on 20 November 2012. Further details of the event and its video cast will be
available on the Company's web site approximately one week prior to the event.

Market outlook

The nickel price remained at a depressed level through most of the third
quarter, and the August average LME nickel price of approximately USD 15,700/t
was the lowest monthly average since mid-2009. While the nickel price somewhat
recovered towards the end of the quarter, short-term visibility remains low and
volatility is likely to remain elevated.

Talvivaara foresees the nickel industry fundamentals to support favourable
nickel price development in the longer term, driven by increasing marginal cost
of production across the nickel industry and lack of new committed nickel
projects to replace depleting supply after the next few years. Talvivaara
continues to see the longer term nickel price support level at around USD
20,000/t.


8 November 2012

Talvivaara Mining Company Plc.
Board of Directors





CONSOLIDATED INCOME STATEMENT

Unaudited Unaudited Unaudited Unaudited
three three nine nine
months to months to months to months to
(all amounts in EUR '000) 30 Sep 12 30 Sep 11 30 Sep 12 30 Sep 11
-------------------------------------------
Net sales 44,787 60,620 117,254 164,734

Other operating income 2,497 1,136 3,996 2,557

Changes in inventories of finished
goods and work in progress 10,367 2,562 56,689 42,236

Materials and services (29,317) (29,131) (97,791) (97,335)

Personnel expenses (5,863) (5,708) (20,662) (19,129)

Depreciation, amortization,
depletion
and impairment charges (12,863) (11,668) (38,274) (34,484)

Other operating expenses (13,888) (12,277) (47,793) (42,612)
-------------------------------------------
Operating profit (loss) (4,280) 5,534 (26,581) 15,967

Finance income 574 170 2,142 961

Finance cost (12,338) (10,025) (34,083) (27,781)
-------------------------------------------
Finance income (cost) (net) (11,764) (9,855) (31,941) (26,820)

Profit (loss) before income tax (16,044) (4,321) (58,522) (10,853)

Income tax expense 3,908 921 14,001 1,909
-------------------------------------------
Profit (loss) for the period (12,136) (3,400) (44,521) (8,944)
-------------------------------------------
Attributable to:

Owners of the parent (11,256) (3,577) (40,816) (10,178)

Non-controlling interest (880) 177 (3,705) 1,234
-------------------------------------------
  (12,136) (3,400) (44,521) (8,944)
-------------------------------------------
Earnings per share for profit (loss) attributable to the owners of
the
parent (expressed in EUR per share)

Basic and diluted (0,05) (0,02) (0,16) (0,05)



CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Unaudited Unaudited Unaudited Unaudited
three three nine nine
months to months to months to months to
(all amounts in EUR '000) 30 Sep 12 30 Sep 11 30 Sep 12 30 Sep 11
----------------------------------------
Profit (loss) for the period (12,136) (3,400) (44,521) (8,944)

Other comprehensive
income, items net of tax

Cash flow hedges - (2,506) - (7,385)

Other comprehensive income,
net of tax - (2,506) - (7,385)
----------------------------------------
Total comprehensive income (12,136) (5,906) (44,521) (16,329)
----------------------------------------
Attributable to:

Owners of the parent (11,256) (5,682) (40,816) (16,381)

Non-controlling interest (880) (224) (3,705) 52
----------------------------------------
  (12,136) (5,906) (44,521) (16,329)
----------------------------------------


CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Unaudited Audited Unaudited
As at As at As at
(all amounts in EUR '000) 30 Sep 12 31 Dec 11 30 Sep 11

ASSETS

Non-current assets

Property, plant and equipment 793,437 761,985 751,448

Biological assets 9,349 7,688 8,793

Intangible assets 7,100 7,371 7,485

Deferred tax assets 41,207 26,398 25,847

Other receivables 2,928 2,902 2,986

Available-for-sale financial assets 5,603 630 630

  859,624 806,974 797,189

Current assets

Inventories 301,928 240,436 225,038

Trade receivables 52,872 64,027 47,602

Other receivables 7,749 5,249 5,806

Derivative financial instruments 13 10 237

Cash and cash equivalent 87,306 40,019 38,555

  449,868 349,741 317,238

Total assets 1,309,492 1,156,715 1,114,427

EQUITY AND LIABILITIES

Equity attributable to owners of the parent

Share capital 80 80 80

Share issue - 278 -

Share premium 8,086 8,086 8,086

Hedge reserve - - 1,665

Other reserves 539,490 449,532 448,802

Retained earnings (193,722) (151,129) (152,646)

  353,934 306,847 305,987

Non-controlling interest in equity 12,137 15,733 14,238

Total equity 366,071 322,580 320,225

Non-current liabilities

Borrowings 443,358 467,161 421,982

Advance payments 253,813 235,568 227,344

Provisions 5,582 6,036 5,860

  702,753 708,765 655,186

Current liabilities

Borrowings 158,567 28,515 26,761

Advance payments 11,684 11,684 14,800

Trade payables 27,184 33,678 35,607

Other payables 43,231 51,478 61,074

Derivative financial instruments 2 15 774

  240,668 125,370 139,016

Total liabilities 943,421 834,135 794,202

Total equity and liabilities 1,309,492 1,156,715 1,114,427



CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
A. Share capital
B. Share issue
C. Share premium
D. Hedge reserve
E. Invested unrestricted equity
F. Other reserves
G. Retained earnings
H. Total
I. Non-controlling interest
J. Total equity
(all amounts
in EUR '000) A B C D E F G H I J
--------------------------------------------------------------------------------
1 Jan 11 80 91 8,086 7,494 401,612 31,400 (80,068) 368, 16, 385,
695 895 590

Profit (loss) (10, 1, (8,
for the - - - - - - (10,178) 178) 234 944)
period

Other
comprehensive
income

- Cash flow - - - (6,203) - - - (6, (1, (7,
hedges 203) 182) 385)
------------------------------------------------------------------
Total
comprehensive - - - (6,203) - - (10,178) (16,   (16,
income for 381) 52 329)
the period

Transactions
with owners

Stock options - (91) - - 658 - -   - 567
567

Senior
unsecured 1, 1,
convertible - - - - 1,800 - - 800 - 800
bonds
due 2015

Acquisition - - - 374 - 996 (60,509) (59, (2, (61,
of subsidiary 139) 349) 488)

Perpetual - - - - - - (1,891) (1, (360) (2,
capital loan 891) 251)

Incentive
arrangement
for - - - - - 70 - 70 - 70
Executive
Management

Senior
unsecured
convertible 9, 9,
bonds - - - - - 9,018 - 018 - 018
due 2015,
equity
component

Employee
share
option scheme

- value of 3, 3,
employee - - - - - 3,248 - 248 - 248
services
------------------------------------------------------------------
Total
contribution (46, (2, (49,
by and - (91) - 374 2,458 13,332 (62,400) 327) 709) 036)
distribution
to owners

Total (46, (2, (49,
transactions - (91) - 374 2,458 13,332 (62,400) 327) 709) 036)
with owners
------------------------------------------------------------------
  80 - 8,086 1,665 404,070 44,732 (152,646) 305, 14, 320,
30 Sep 11 987 238 225
------------------------------------------------------------------
  80 278 8,086 - 404,069 45,463 (151,129) 306, 15, 322,
31 Dec 11 847 733 580

  80 278 8,086 - 404,069 45,463 (151,129) 306, 15, 322,
1 Jan 12 847 733 580

Profit (loss) (40, (3, (44,
for the - - - - - - (40,816) 816) 705) 521)
period

Other
comprehensive
income

- Cash flow - - - - - - - - - -
hedges
------------------------------------------------------------------
Total
comprehensive - - - - - - (40,816) (40, (3, (44,
income for 816) 705) 521)
the period

Transactions
with owners

  - (278) - - 5,198 - - 4, - 4,
Stock options 920 920

Senior
unsecured
convertible - - - - - (251) - (251) - (251)
bonds due
2013


Perpetual - - - - - 2,353 (1,777) 576 109 685
capital loan

  - - - - 81,481 - - 81, - 81,
Share issue 481 481

Incentive
arrangement
for - - - - - 71 - 71 - 71
Executive
Management

Employee
share
option scheme

- value of 1, 1,
employee - - - - - 1,106 - 106 - 106
services
------------------------------------------------------------------
Total
contribution 87,   88,
by and - (278) - - 86,679 3,279 (1,777) 903 109 012
distribution
to owners

Total 87,   88,
transactions - (278) - - 86,679 3,279 (1,777) 903 109 012
with owners
------------------------------------------------------------------
30 Sep 12 80 - 8,086 - 490,748 48,742 (193,722) 353, 12, 366,
934 137 071
------------------------------------------------------------------


CONSOLIDATED STATEMENT OF CASH FLOWS

Unaudited Unaudited Unaudited Unaudited
three three nine nine
months to months to months to months to
(all amounts in EUR '000) 30 Sep 12 30 Sep 11 30 Sep 12 30.Sep.11
----------------------------------------
Cash flows from operating activities

Profit (loss) for the period (12,136) (3,400) (44,521) (8,944)

Adjustments for

Tax (3,908) (921) (14,001) (1,909)

Depreciation and amortization 12,863 11,668 38,274 34,484

Other non-cash income and expenses (7,302) (8,824) (19,339) (26,816)

Interest income (574) (170) (2,142) (961)

Fair value gains on financial assets
at fair value through profit or loss (11) 58 (16) (327)

Interest expense 12,338 10,026 34,083 27,781
----------------------------------------
  1,270 8,437 (7,662) 23,308

Change in working capital

Decrease(+)/increase(-) in other
receivables (5,656) (23,324) 10,293 14,383

Decrease (+)/increase (-) in
inventories (11,361) (5,934) (61,491) (49,677)

Decrease(-)/increase(+) in trade and
other payables (4,107) 30,673 (25,403) 8,026
----------------------------------------
Change in working capital (21,124) 1,415 (76,601) (27,268)
----------------------------------------
  (19,854) 9,852 (84,263) (3,960)

Interest and other finance cost paid (844) (2,573) (13,375) (14,087)

Interest and other finance income 119 716 476 1,055
----------------------------------------
Net cash generated (used) in operating
activities (20,579) 7,995 (97,162) (16,992)

Cash flows from investing activities

Acquisition of subsidiary, net of cash
acquired - - - (61,487)

Purchases of property, plant and
equipment (32,513) (21,938) (67,640) (57,322)

Purchases of biological assets - (29) - (64)

Purchases of intangible assets (19) (71) (213) (175)

Proceeds from sale of property, plant
and equipment - 19,995 18 19,995

Proceeds from sale of biological
assets 10 25 101 257

Proceeds from sale of intangible
assets - 5 - 5

Purchases of financial assets at fair
value through profit or loss - - - (12,010)

Purchases of available-for-sale
financial assets (1,025) (39) (13,141) (167)

Proceeds from sale of

financial assets at fair value through
profit or loss - 12,022 - 12,022
----------------------------------------
Net cash generated (used) in investing
activities (33,547) 9,970 (80,875) (98,946)

Cash flows from financing activities

Proceeds from share issue net of
transactions costs (30) - 81,108 -

Realised stock options - 156 4,920 567

Proceeds from interest-bearing
liabilities - 9,94 130,000 11,016

Perpetual capital loan - - - (3,042)

Proceeds from advance payments 14,016 - 22,349 7,000

Payment of interest-bearing
liabilities (1,289) (24,143) (13,053) (26,603)
----------------------------------------
Net cash generated (used) in financing
activities 12,697 (14,038) 225,324 (11,062)

Net increase (decrease) in cash and
cash equivalents (41,429) 3,927 47,287 (127,000)

Cash and cash equivalents at beginning
of the period 128,735 34,628 40,019 165,555
----------------------------------------
Cash and cash equivalents at end of
the period 87,306 38,555 87,306 38,555
----------------------------------------


NOTES

1. Basis of preparation

This year-end report has been prepared in compliance with IAS 34.


The interim financial information set out herein has been prepared on the same
basis and using the same accounting policies as were applied in drawing up the
Group's statutory financial statements for the year ended 31 December 2011.


2. Property, plant and
equipment

Machinery Construction Land Other
and in and tangible
(all amounts in EUR '000) equipment progress buildings assets Total
--------------------------------------------------
Gross carrying amount at 1
Jan 12 361,245 41,344 273,921 224,796 901,306

Additions 2,005 67,228 25 - 69,258

Disposals (34) - - - (34)

Transfers 1,729 (6,200) 2,602 1,869 -
-------------------------------------------------------------------------------
Gross carrying amount at 30
Sep 12 364,945 102,372 276,548 226,665 970,530
--------------------------------------------------
Accumulated depreciation and
impairment losses

at 1 Jan  2012 66,791 - 32,644 39,886 139,321

Disposals (17) - - - (17)

Depreciation for the period 22,391 - 9,172 6,226 37,789
-------------------------------------------------------------------------------
Accumulated depreciation and
impairment losses

at 30 Sep 12 89,165 - 41,816 46,112 177,093
--------------------------------------------------
Carrying amount at 1 Jan 12 294,454 41,344 241,277 184,910 761,985
--------------------------------------------------
Carrying amount at 30 Sep 12 275,780 102,372 234,732 180,553 793,437
--------------------------------------------------


3. Trade receivables

(all amounts in EUR '000)

  30 Sep 12 31 Dec 11
--------------------
Nickel-Cobalt sulphide 47,887 55,258

Zinc sulphide 4,985 8,769
--------------------
Total trade receivables 52,872 64,027
--------------------


4. Inventories

(all amounts in EUR '000)

  30 Sep 12 31 Dec 11
--------------------
Raw materials and consumables 18,818 14,016

Work in progress 267,697 213,629

Finished products 15,413 12,791
--------------------
Total inventories 301,928 240,436
--------------------


5. Borrowings

(all amounts in EUR '000)

Non-current 30 Sep 12 31 Dec 11
--------------------
Capital loans 1,405 1,405

Investment and Working Capital loan 57,272 57,863

Bond due 2017 108,504 -

Revolving Credit Facility - 49,110

Senior Unsecured Convertible Bonds due 2015 223,748 217,138

Senior Unsecured Convertible Bonds due 2013 - 80,796

Finance lease liabilities 32,862 37,444

Other 19,567 23,405
--------------------
  443,358 467,161
--------------------
Current

Investment and Working Capital loan 1,430 1,430

Senior Unsecured Convertible Bonds due 2013 75,134 -

Commercial papers - 8,481

Revolving Credit Facility 69,364 -

Finance lease liabilities 12,639 18,604
--------------------
  158,567 28,515
--------------------
Total borrowings 601,925 495,676
--------------------



6. Advance payments

(all amounts in EUR '000)

Non-current 30 Sep 12 31 Dec 11
--------------------
Deferred zinc sales revenue 217,083 221,187

Deferred uranium sales revenue 36,730 14,381
--------------------
  253,813 235,568
--------------------
Current

Deferred zinc sales revenue 11,684 11,684
--------------------
  11,684 11,684
--------------------
Total advance payments 265,497 247,252
--------------------


7. Changes in the number of shares issued

  Number of shares
----------------------
31 Dec 11 245,781,803

Stock options 2007A 1,938,787

Share issue 24,589,050
----------------------
30 Sep 12 272,309,640
----------------------


8. Contingencies and commitments

(all amounts in EUR '000)

The future aggregate minimum lease payments
under non-cancellable operating leases

  30 Sep 12 31 Dec 11
--------------------
Not later than 1 year 1,306 1,919

Later than 1 year and not later than 5 years 791 929

Later than 5 years - 37
--------------------
  2,097 2,885

Capital commitments

At 30 September 2012, the Group had capital commitments amounting to EUR 22.8
million (31 December 2011: EUR 14.5 million) principally relating to the
completion of the Talvivaara mine, improving the reliability and expansion of
production capacity. These commitments are for the acquisition of new property,
plant and equipment.


Key financial figures of the
Group

Three Three Nine Nine Twelve
months to months to months to months to months to
    30 Sep12 30 Sep 11 30 Sep 12 30 Sep 11 31 Dec 11
--------------------------------------------------
Net sales EUR '000 44,787 60,620 117,254 164,734 231,226

Operating profit
(loss) EUR '000 -4,280 5,534 -26,581 15,967 30,899

Operating profit
(loss)
percentage   -9,6 % 9,1 % -22,7 % 9,7 % 13,4 %

Profit (loss)
before tax EUR '000 -16,044 -4,321 -58,522 -10,853 -6,964

Profit (loss) for
the period EUR '000 -12,136 -3,400 -44,521 -8,944 -5,216

Return on equity   -3,3 % -1,1 % -12,9 % -2,5 % -1,5 %

Equity-to-assets
ratio   28,0 % 28,7 % 28,0 % 28,7 % 27,9 %

Net interest-
bearing debt EUR '000 514,619 410,188 514,619 410,188 455,657

Debt-to-equity
ratio   140,6 % 128,1 % 140,6 % 128,1 % 141,3 %

Return on
investment   0,0 % 0,9 % -1,2 % 2,3 % 4,0 %

Capital expenditure EUR '000 32,532 22,038 67,853 57,561 79,144

Property, plant and
equipment EUR '000 793,437 751,448 793,437 751,448 761,985

Derivative
financial
instruments EUR '000 11 -537 11 -537 -5

Borrowings EUR '000 601,925 448,743 601,925 448,743 495,676

Cash and cash
equivalents
at the end of the
period EUR '000 87,306 38,555 87,306 38,555 40,019



Share-related
key figures

Twelve
months
Three Three Nine Nine to
months to months to months to months to 31 Dec
    30 Sep 12 30 Sep 11 30 Sep 12 30 Sep 11 11
---------------------------------------------------------
Earnings per
share EUR -0,05 -0,02 -0,16 -0,05 -0,04

Equity per
share EUR 1,34 1,25 1,34 1,25 1,25

Development of
share price
at London
Stock Exchange

Average
trading
price(1) EUR 1,84 3,95 2,83 5,19 4,22

  GBP 1,46 3,44 2,30 4,56 3,66

Lowest trading
price(1) EUR 1,50 2,89 1,50 2,87 2,25

  GBP 1,22 2,52 1,22 2,52 1,95

Highest
trading
price(1) EUR 2,16 5,24 4,42 7,09 7,17

  GBP 1,76 4,57 3,59 6,22 6,22

Trading price
at the end
of the
period(2) EUR 1,91 2,91 1,91 2,91 2,39

  GBP 1,52 2,52 1,52 2,52 2,00



Change during
the period   -11,1 % -45,8 % -23,8 % -57,7 % -66,4 %

Price-earnings
ratio   neg. neg. neg. neg. neg.

Market
capitalization
at
the end of the EUR
period(3) '000 520,017 714,672 520,017 714,672 588,487

GBP
  '000 415,000 619,370 415,000 619,370 491,564

Development in
trading volume

1000
Trading volume shares 12,765 15,709 79,481 42,056 67,799

In relation to
weighted
average number
of shares 4,8 % 6,4 % 30,1 % 17,1 % 27,6 %

Development of share
price at OMX Helsinki

Average
trading price EUR 1,82 3,87 2,73 5,46 4,33

Lowest trading
price EUR 1,55 2,97 1,55 2,97 2,27

Highest
trading price EUR 2,17 5,11 4,35 7,34 7,34

Trading price
at the end
of the period EUR 1,90 2,97 1,90 2,97 2,49

Change during
the period   -10,6 % -42,4 % -24,0 % -58,0 % -64,8 %

Price-earnings
ratio   neg. neg. neg. neg. neg.

Market
capitalization
at the end of EUR
the period '000 516,027 730,464 516,027 730,464 612,488

Development in
trading volume

1000
Trading volume shares 32,199 34,256 147,094 116,983 190,901

In relation to
weighted
average number
of shares 12,2 % 14,0 % 55,7 % 47,6 % 77,7 %

Adjusted
average number 245,601,
of shares   263,907,605 245,540,343 263,907,605 245,540,343 204

Fully diluted average 244,497,
number of shares 263,907,605 244,436,343 263,907,605 244,436,343 204

Number of shares at
the 245,781,
end of the period 272,309,640 245,781,803 272,309,640 245,781,803 803




(1)) Trading price is calculated on the average of EUR/GBP exchange rates
published by the European Central Bank during the period.
(2)) Trading price is calculated on the EUR/GBP exchange rate published by the
European Central Bank at the end of the period.
(3)) Market capitalization is calculated on the EUR/GBP exchange rate published
by the European Central Bank at the end of the period.


Employee-related key
figures

Three Three Nine Nine Twelve
months to months to months to months to months to
    30 Sep 12 30 Sep 11 30 Sep 12 30 Sep 11 31 Dece 11
---------------------------------------------------
Wages and salaries EUR '000 4,824 4,927 17,098 16,189 21,574

Average number of
employees   577 471 536 443 445

Number of
employees at the
end
of the period   551 446 551 446 461



Other figures

Three Three Nine Nine Twelve
months to months to months to months to months to
  30 Sep 12 30 Sep 11 30 Sep 12 30 Sep 11 31 Dec 11
--------------------------------------------------
Share options outstanding at
the end
of the period 4,611,337 5,735,851 4,611,337 5,735,851 6,501,151

Number of shares to be
issued
against the outstanding
share options 4,611,337 5,735,851 4,611,337 5,735,851 6,501,151

Rights to vote of shares to
be issued
against the outstanding
share options 1,7 % 2,3 % 1,7 % 2,3 % 2,6 %



Talvivaara Mining Company Plc

Key financial figures of the Group



Return on equity Profit (loss) for the period
--------------------------------------------------
(Total equity at the beginning of period + Total
equity at the end of
  period)/2



Equity-to-assets ratio Total equity
--------------------------------------------------
  Total assets



Net interest-bearing debt Interest-bearing debt - Cash and cash equivalent



Debt-to-equity ratio Net interest-bearing debt
--------------------------------------------------
  Total equity



Return on investment Profit (loss) for the period + Finance cost
--------------------------------------------------
(Total equity at the beginning of period + Total
equity at the end of
period)/2 + (Borrowings at the beginning of
  period + Borrowings at the end of period)/2



Share-related key figures



Profit (loss) attributable to equity holders of
Earnings per share the Company
--------------------------------------------------
  Adjusted average number of shares



Equity attributable to equity holders of the
Equity per share Company
--------------------------------------------------
  Adjusted average number of shares



Price-earnings ratio Trading price at the end of the period
--------------------------------------------------
  Earnings per share



Number of shares at the end of the period *
Market capitalization at the trading price at the end
end of the period of the period





Talvivaara Interim Report Jan-Sep 2012:
http://hugin.info/136227/R/1656134/535350.pdf



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Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.

Source: Talvivaaran Kaivososakeyhtiö Oyj via Thomson Reuters ONE
[HUG#1656134]




Unternehmen: Talvivaaran Kaivososakeyhtiö Oyj - ISIN: FI0009014716