[image] Press release Stockholm, February 14[th], 2020


HIGHLIGHTS OF THE
FOURTH QUARTER 2019

  · Net sales were 86 MSEK (0)
  · EBITDA was 5 MSEK
(-10)
  · EBIT -32 MSEK (-34)
  · Cash and cash equivalents were 30 MSEK (123)

 · Earnings per share were -0.38 SEK (-0.32)
  · An impairment of -27 MSEK was
done on the exploration rights in Norway and
Sweden
  · The production was
about 418 000 ounces silver, 1 022 ounces gold, 337
tonnes lead, and 610 tonnes
zinc in concentrates
  · Milled tonnes were approx. 125 000 and average silver
head grade 119 g/tonne
  · Safety measurement LTIFR was 13

FULL YEAR 2019

  ·
Net sales were 197 MSEK (0)
  · EBITDA was 8 MSEK (-32)
  · EBIT -75 MSEK
(-54)
  · Earnings per share were -0.75 SEK (-0.49)
  · Investments were 185
MSEK (299)
  · The production was about 1 000 000 ounces silver, 2 697 ounces
gold, 932
tonnes lead and 1 915 tonnes zinc in concentrates
  · Milled tonnes
were approx. 343 000 and average silver head grade 107 g/tonne
  · No dividend
is proposed by the Board

Comparative figures refer to the corresponding period
of the previous year.

CEO PAUL JOHNSSON

Sotkamo Silver has been an
exploration company for many years, but as an
operational mining company, we
are at the beginning of our journey. Like
expected, metal grades and mineral
distribution in the ore zone vary greatly.
This impacts the production and
financial result of the company. Underground
stope mining has succeeded well
and metal recoveries into concentrates have been
mostly on good level in spite
of the grade fluctuation and ongoing optimisation
of the process.

In the
fourth quarter, the pyrite recovery line was introduced to comply with
the
environmental permit requirement. The pyrite flotation line worked mainly
as
expected but caused side effects due to reorganising of process flow
and
temporarily lowered silver recovery.

Despite of challenges, we produced
one million ounces of silver that was our
adjusted target for 2019. What makes
me confident in the Company is the energy
and the spirit how our employees
manage unexpected challenges. Our personnel are
eager to learn how to excel in
the handling of the orebody, the crusher, the
concentrating plant, and the
general management of the Silver Mine, all with the
safety in
focus.


BUSINESS

Sotkamo Silver AB owns, directly and through its subsidiary
Sotkamo Silver Oy,
mineral deposits containing silver, gold, zinc, and lead.
The Company's main
project is the Silver Mine in Sotkamo where the production
ramp-up started
during the first quarter of 2019 and was finalized by the end
of August.


Key figures, group            Q4 2019  Q4 2018  FY 2019  FY
2018
Sales MSEK                         86        0      197        0
EBITDA
MSEK                         5      -10        8      -32
EBIT MSEK            
            -32      -34      -75      -54
Equity ratio (%)                  
31       51       31       51
Earnings per share SEK          -0.38    -0.32   
-0.75    -0.49
Cash liquidity (%)                 35      230       35     
230
Personnel at end of period         47       14       47       14
Milled
tonnes approx.         125 000        0  343 000        0
Average Silver grade
g/tonne      119        -      107        -


PRODUCTION

In 2019, 343 000
tonnes of ore were milled, of which 125 000 tonnes during the
fourth
quarter.

During the fourth quarter, we produced approx. 418 000 ounces silver,
1 022
ounces gold, 337 tonnes lead, and 610 tonnes zinc. Since the start
of
production, we produced 2019 about 1 000 000 ounces silver, 2 697 ounces
gold,
932 tonnes lead, and 1 915 tonnes zinc in concentrates.


EVENTS AFTER
THE REPORTING PERIOD

No significant events after the reporting
period.


ANNUAL GENERAL MEETING

Sotkamo Silver AB’s AGM is planned to be held
on April 2[nd], 2020. The Board
will convene the meeting by a separate
invitation.
No dividend is proposed by the Board.


FINANCIAL CALENDER

  ·
Annual report on March 12, 2020
  · Q1 on May 29, 2020
  · Q2 on August 5,
2020
  · Q3 on October 28, 2020
  · Q4 and year-end report 2020 on February 17,
2021


FINANCIAL REPORTS

The reports are available on the Company
webpage:
http://www.silver.fi/sivu/en/finansiella_rapporter/

Stockholm,
February 14[th], 2019

Sotkamo Silver AB’s Board of Directors and CEO

CONTACT
PERSON

Paul Johnsson, CEO of Sotkamo Silver AB, tel. +46 70 777 69 76

This
information is information that Sotkamo Silver AB is obliged to make
public
pursuant to the EU Market Abuse Regulation and the Securities Markets
Act. The
information was submitted for publication, through the agency of the
contact
persons set out above on February 14[th] 2020, at 8.50 CET.

The
official Stock Exchange Releases are given in Swedish and there may
be
differences in the translated versions.


ABOUT SOTKAMO SILVER AB
Sotkamo
Silver AB's business concept is to exploit mineral deposits in the
Nordic
countries with positive social and environmental benefits. Sotkamo Silver
owns
mineral deposits, which contain silver, gold and tungsten in Finland and
Sweden
as well as zinc and gold in Norway. The Company's main development
project is
the Silver Mine project in the municipality of Sotkamo.
Sotkamo Silver applies
SveMin's & FinnMin's own rules of reporting for public
mining & exploration
companies. Sotkamo Silver has chosen to publish mineral
resources and ore
reserves according to the internationally accepted JORC or NI
43-101 code. The
company applies International Financial Reporting Standards
(IFRS) as approved
by the European Union.
Legal Entity Identifier (LEI): 213800R2TQW1OZGYDX93
The
ticker symbol is SOSI in NGM Equity in Stockholm and SOSI1 in
NASDAQ
Helsinki.
ISIN-code for Sotkamo Silver shares is SE0001057910.
Read more
about Sotkamo Silver on www.silver.fi
The Company's press releases, and
financial reports are distributed via Cision
Sverige and are available at
www.silver.fi