Talvivaara Mining Company Ltd. announces successful completion of a € 33 million private placement financing round

9.10.2006

Talvivaara Mining Company Ltd. today announces the completion of a € 33 million private placement financing round to accelerate the exploitation of Europe's largest known sulphide nickel resources. The financing round was substantially oversubscribed, indicating great interest in the company and the underlying mineral asset.

The financing round was led by international investment funds Eton Park and Tisbury Capital Management, and attracted also local Finnish investors Varma Mutual Pension Insurance Company and Finnish Industry Investment Ltd. The proceeds allow the company to commence key infrastructure and pre-development works prior to launching commercial mining operations.

The capital infusion coincides with other significant developments at Talvivaara, including successful completion of large-scale pilot trials, in which the company's application of bioleaching technology for extraction of nickel in sub-arctic climatic conditions has been proven.

"This significant funding will enable us to achieve our aggressive development and commercialization roadmap and to continue building a world class organization. We are also delighted that we have been able to attract a strong international investor base to support us through our development," comments Talvivaara's CEO Pekka Perä.

J.P. Morgan acted as sole placement agent and financial advisor to the company.


Talvivaara Mining Company Ltd. is a Finnish mining company focused on the development and commercial exploitation of the Talvivaara polymetallic deposits in Sotkamo, Finland. The Talvivaara deposits comprise the largest known sulphide nickel resource in Europe with 340 million tones in classified resources. The orebodies also contain substantial amounts of copper, zinc and cobalt. www.talvivaara.com

Eton Park is a global, multi-disciplinary, team-oriented investment organisation dedicated to delivering superior risk-adjusted returns over a long term period. Eton Park manages funds in excess of $5.5 billion with offices in New York, London and Hong Kong, investing in both public securities and privately negotiated transactions.

Tisbury Capital Management pursues multiple investment strategies to generate high risk-adjusted returns. With assets under management of over $1.6 billion, Tisbury has offices in London and Boston.

Varma Mutual Pension Insurance Company is the largest private sector pension insurance company in Finland. Entrusted with pension funds of more than 25 billion euros, Varma is the biggest private investor in Finland. www.varma.fi

Finnish Industry Investment Ltd is a government-owned investment company. The company invests the proceeds accrued from the privatisation of state-owned companies in promoting the growth and internationalisation of Finnish businesses. The company´s investments and investment commitments amount to some EUR 350 million. Finnish Industry Investment is actively seeking investment prospects in the mining industry and has allocated EUR 20 million in its mining financing programme for investing in exploration and mining companies with operations located in Finland. www.teollisuussijoitus.fi


Further information:

Pekka Perä, CEO, Talvivaara Mining Company
Tel. +358 40 585 9225, pekka.pera@talvivaara.com

Kimmo Viertola, Director, Finnish Industry Investment Ltd
Tel. +358 50 309 2734, kimmo.viertola@industryinvestment.com