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Sotkamo Silver AB Q4/2020 Release InfoCEO Erkki Kuronen

CFO Mikko Sopanen

17.2.2021

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Agenda of today

• Operational Update CEO Erkki Kuronen

• Financial Result of 2020 CFO Mikko Sopanen

• Questions and Answers

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Our Mission and Values

Our Mission

”Discover, Mine and Deliver –

metals and value”

We believe in being

Responsible and Local

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Project 700 – Mining continues until year 2030Project 700: 10 MEUR investment to increase life of mine (LOM) until 2030, expenditure in phases over a period of 5-7 years.

The works include the core drilling and the development of the mine decline and infrastructure.

Current LOM of the Silver Mine is based on Ore Reserve down to 400-level.

• Ore Reserve 2.75 Mt (as at day one)

Project 700 and planned core drilling program

• Targeted Ore Reserve tons min. 2.25 Mt

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Core Drilling P700

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Mining

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Quarterly Production and Grade

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Environment• Strong local support and active collaboration with stakeholders.

• Committed to:

• Finnish Towards Sustainable Mining –standard (Network of Sustainable Mining).

• Implement the management systems for Quality, Environment and Occupational Health and Safety.

• Implement an Energy-Efficiency Initiative among its key partners to reduce overall energy consumption per produced silver ounce

• Increase the share of renewable energy

• Define its CO2 footprint of the production and road map to reduce CO2 emissions

• Promote recycling and principles of circular economy in its activities

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Project REX – creating opportunitiesRegional Exploration and Development: • To develop an attractive and explorative portfolio

of mineral assets, and

• To discover new exploitable ore deposits in the Kainuu region.

Our homebase:

Tipasjärvi

Our vicinity:

Kuhmo West and Suomussalmi

Kuhmo West

Tipasjärvi

Suomussalmi

Silver Mine

Base map © National Land Survey and GTK

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Suomussalmi – a potential future supplier of nickel, copper and platinum group metals

Sotkamo Silver has acquired the mining rights of the deposits in Suomussalmi.

Company will prepare and apply for the environmental and mine safety permits required for the start-up.

Simultaneously continue project planning to be ready for the production at the right momentum.

Platinum and palladium are listed as Critical Raw Materials by EU Commission.

Laboratory scale metallurgical testing yielded concentrate grades comparable to the commercial concentrate products by flotation technique.

Classi-fication

Milliontons

Ni

%

Cu

%

Co

%

Pt

g/t

Pd

g/t

Peura-aho

Indicated 0.40 0.63 0.29 0.04 0.28 0.62

Inferred 0.09 0.48 0.23 0.04 0.21 0.42

Total 0.49 0.60 0.27 0.03 0.27 0.58

Hieta-harju

Indicated 0.85 0.85 0.44 0.06 0.53 1.25

Inferred 0.24 0.59 0.27 0.04 0.34 0.89

Total 1.09 0.80 0.40 0.05 0.49 1.17

The former owner of the mining rights, Altona Mining Ltd., has prepared mineral resource estimates of the deposits in accordance with the Australian JORC Code.

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Published Year End 2020 (2019) resultsFY2020

• Net sales was 366 MSEK (197 MSEK)

• EBITDA was 73 MSEK (8 MSEK)

• EBIT was -10 MSEK (-75 MSEK)

• Milled tonnes were about 546 000 (343 000)

• The production in the concentrates was about • 1 580 000 ounces silver (1 000 000),• 3 965 ounces gold, (2 697),• 1 532 tonnes lead (937) and • 3 254 tonnes zinc (1 915)

• The annual production guidance for 2021: • Silver production is forecasted to be 1.45 -

1.75 million ounces.

Q4 2020

• Net sales was 78 MSEK (86 MSEK)

• EBITDA was 7 MSEK (5 MSEK)

• EBIT was -16 MSEK (-32 MSEK)

• Milled tonnes were about 142 000 (YTD 343 000)

• The production in the concentrates was about

• 349 000 ounces silver (418 000),

• 969 ounces gold, (1 022),

• 330 tonnes lead (337) and

• 757 tonnes zinc (611)

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2020 in a nutshell

Q1 Q2 Q3 Q4 H1 H2 H2% FY FY%

Revenue 91 67 130 78 158 208 366

EBITDA 8 0 58 7 8 65 31 % 73 20 %

EBIT -11 -22 40 -16 -33 24 12 % -9 -2 %

Silver koz. 391 406 433 349 797 782 1579

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Pricing mechanism example

• Illustrative pricing example for September 2020 production

• Link to official market prices: http://www.lbma.org.uk/precious-metal-prices#/table

Updated, corrected slide after the livestream 17.2.2021

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Sotkamo Silver in SwedenSotkamo Silver ABNybrogatan 34/Box 5216SE-102 45 Stockholm

Sotkamo Silver in FinlandSotkamo Silver OyHopeatie 20FI-88600 SOTKAMO

Telephone +358 44 733 2355