SOTKAMO SILVER. A mining Investment Opportunity 6.5.2014 1

SOTKAMO SILVER A mining Investment Opportunity 6.5.2014 1

FINLAND AS A MINING COUNTRY Ø History of mining and mining equipment manufacturing Ø Stable taxation (dropping from 32% to 20% in the last 8 years) Ø No royalties Ø Very low political risk Ø Highly educated workforce Ø Good infrastructure Ø High security Ø Low corruption 6.5.2014 2

SOTKAMO SILVER AB Company shareholders as of December 30, 2013 Ø The company has been founded by Dr. Lindborg, Mr. Jylänki and Mr. Taipale. Ø Sotkamo Silver consists of the parent company, Sotkamo Silver AB, with one wholly owned subsidiary in Finland: Sotkamo Silver Oy. Ø Sotkamo Silver develops silver, gold and zinc deposits in the Nordic region. The Company has completed the Bankable Feasibility Study for Silver Mine project and is working on project financing issues Ø Invested capital so far about 25 M. 12 M has been invested in the project Silver Mine deposit before Sotkamo Silver bought the rights to this mineral reserve. After this 13 M has been invested by the investors of Sotkamo Silver. Shareholders Number of shares % Teknoventure Oy 2 016 000 14,2 Finnish Industry Investment Ltd 2 016 000 14,2 Timo Lindborg through company 1 448 340 10,2 Ilmarinen Mutual Pension Insurance Company 1 200 000 8,5 Jouko Jylänki 1 068 879 7,5 Kaarlo Taipale 940 930 6,6 FIM Bank Ltd 710 425 5,0 Nordea Finland 454 580 2,5 Öhman Luxemburg 327 086 2,3 Försäkringsaktiebolaget, Avanza Pension 317 041 2,2 Olli Salo 93 888 0,7 Pohjola Bank PLC Client 84 725 0,6 Nordnet Pensionsförsäkring AB 74 286 0,5 Göran Sundholm 50 990 0,4 Folke Hillberg 50 052 0,4 Other 3 407 946 24,1 TOTAL 14 156 664 100,0 Number of registered shareholders 6 026 Share capital development 6.5.2014 3

MANAGEMENT Chief Executive Officer Sotkamo Silver AB Dr. Timo Lindborg has been the Chief Executive Officer and President of Sotkamo Silver AB since May 1, 2010. Dr. Lindborg has a vast experience of more than 35 years in Nordic exploration and development companies and projects, encompassing gold, silver and industrial minerals. He has a strong track record of the successful implementation of projects, from financing and project management, to managing knowledge-based companies. Dr. Lindborg served as the Chief Executive Officer of Kalvinit Oy, Endomines AB and Endomines Oy. He serves as the Chairman of the Board of Sotkamo Silver Oy. Dr. Lindborg has been a Director of Endomines AB since 2005. He serves as an Adjunct professor in Oulu University and has experience in Business Development of Mining industry. Dr. Lindborg holds a Doctor of Technology degree in industrial management from Oulu University in Finland, Master of Sciences degree in Engineering from Oulu University and Bachelor of Science in Geology degree from Uppsala University in Sweden. Managing Director Sotkamo Silver Oy Ilkka Tuokko made his MSc in geology and mineralogy at the University of Oulu, Finland. During University Ore Project of Prof Tauno Piirainen he found together with Kalle Taipale the Taivaljärvi deposit in 1980, all three were granted later Prospecting Award of State. Ilkka Tuokko has more than 35 years experience in exploration and mining projects and international mining companies. He started his career in 1981 as geologist of Kajaani Oy, focusing in Taivaljärvi silver deposit during tunnel-construction and associated investigations. In 1991 he joined talc and nickel producer Mondo Minerals, where his position was since 1995 Group Geology and Mining Manager, besides he has been board member of Sotkamo Silver AB. He is a member of AusIMM.``Competent Person status, according to Australian JORC. Ilkka Tuokko was appointed Managing Director of Sotkamo Silver Oy in August 2011." 6.5.2014 4

BOARD OF DIRECTORS HAVE EXTENSIVE MINING EXPERIENCE IN MINING Mauri Visuri Chairman of the Board (since 2011) MSc in Economics from the University Of Vaasa Bachelor of Science in Machinery Engineering from Vaasa Polytechnic Extensive exindustry perience in mining and process Mr. Visuri is also Managing Director of Teknoventure Oy Born 1957 Teuvo Jurvansuu (since 2010) 35 years experience in the mining industry Worked in various mines in Finland during that period including Vihanti, Keretti, Enonkoski and Pyhäsalmi In 2001 he entered the position of Managing Director of Pyhäsalmi Mine Oy and at the same time, Inmet Finland Oy (retired in 2009) Born 1948 Katja Keitaanniemi(since 2014) A Licentiate of Science from the Helsinki University of Technology Shehas previously been Head of Investment Banking Finland & Member of Management Group of Global Investment Banking at Swedbank in Helsinki Born 1973 Jarmo Vesanto (since March 2013) MSc (Geology and Mineralogy) Member of the Australian Institute of Mining and Metallurgy More than 30 years experience in mining and exploration including 10 years in Australia and Canada with Outokumpu Oyj Currently General Manager - Finland at Altona Mining Ltd Born 1954 6.5.2014 5

PROPERTY DESCRIPTION AND LOCATION Ø The Sotkamo Silver Mine Project is located in the municipality of Sotkamo in eastern Finland, 475km from Helsinki. Ø Kajaani Airport within 80km Ø Paved Roads Ø Ports of Oulu, Kemi and Kokkola within 350km 6.5.2014 6

BANKABLE FEASIBILITY STUDY DONE UNDERGROUND ACCESS IN PLACE THE NECESSARY MINING LICENSE ENVIRONMENTAL PERMIT RECEIVED ACCESS TO LAND 6.5.2014 7

MINERAL RESORCE ESTIMATES The resources of the Taivaljärvi Ag-Zn-Pb-Au deposit are classified in accordance with guidelines of the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves [JORC Code (2012)]. Sotkamo Silver Mine Classified Mineral Resources 2014/01/15 Cut-Off Grade 50g/t Ag applied Top cut-off grades: 1200 g/t Ag, 12 g/t Au, 9% Pb, 6,6% Zn JORC Classificatio n Volume m 3 Tonnage t Density t/ m 3 Ag g/t Au g/t Cu g/t Pb % S % Zn % Measured Indicated Total 1 196 931 950 131 2 147 062 3 351 408 2 660 328 6 011 776 2,8 2,8 2,8 80,6 87,0 83,4 0,24 0,24 0,24 106,7 125,7 115,1 0,3 0,3 0,3 1,8 1,6 1,7 0,6 0,7 0,6 Inferred 467 894 1 335 303 2,8 75,5 0,22 99,2 0,2 1,6 0,5 Notes: 1. Mineral Resources are not Ore reserves until they have demonstrated economic viability based on a Feasibility study or pre-feasibility study. 2. Mineral Resources are reported inclusive of any reserves. 3. Grade represents estimated contained metal in the ground and has not been adjusted for metallurgical recovery. 6.5.2014 8

ORE RESERVES ESTIMATES Ø A summary of the Ore Reserves is presented in the table below, based on the update mineral-resources of 2013 mine-plan. 6.5.2014 9

ADDITIONAL EXPLORATION POTENTIAL MORE THAN 20 Mt Ø Geophysical surveys showing beyond this to 1km depth and with a potential additional strike length of an additional 1km. Ø Exploration Target more than 20 Mt mineralresources with 60 g/t Ag at cut- off grade 30 g/t Ag. Ø Deposit continues down to at least 1400 meters, to be investigated and developed for mining while producing from upper parts Ø Based on geophysical survey mineralized zone is wider in depth Ø Lower apparent resistivity of deep parts indicates higher amount of ore minerals Ø Huge future potential in the area. 3D model of the Silver Mine (Taivaljärvi) deposit; measured and indicated resource is red; blue is the extension of mineralization inferred with Sampo soundings; green lines indicate drill-holes. Production tunnel has been mined down to 350 meters level. 6.5.2014 10

MINING PLAN START WITH HIGH GRADES Ø Mine plan for first production years is prepared for high quality open pit and underground ores down to -110m from sea level. Ø During the first four planned production-years the silvercontent will vary between 120 to 130 g/ton and gold-content will be about 0.4 g/ton. During the third planned production-year the plan-capacity is planned to increase from 350 000 tons to 450 000 tons/year. Ø Planned production-time based on presently known reserves will be 8 to 9 years. 6.5.2014 11

Bankable feasibility study update March 24 2014 OPEN PIT MINING 16 Open pit mining plan Open pit/mining Year Ore Waste Tonnes Ageq Calc Ag Au Pb Zn Tonnes 1 5 000 150,74 127,91 0,43 3277 5574 460 000 2 64 775 150,74 127,91 0,41 3268 5603 125 000 3 62 208 143,39 123,91 0,36 3239 5694 90 000 4 65 000 136,48 120,77 0,28 3141 6271 250 000 5* 20 000 138,50 121,56 0,31 3075 6797 550 000 6 59 800 128,18 108,99 0,32 3038 6963 600 000 7 60 000 128,18 108,99 0,35 2964 7294 500 000 8 65 569 99,78 85,12 0,27 2429 5715 200 000 9 ** 99 466 61,91 53,30 0,16 1716 3609 94 630 10 ** 97 343 61,91 53,30 0,16 1716 3609 Total 703 790 115,39 99,84 0,28 2706 5700 3 149 140 * starter pit ends ** marginal ore A Underground 6.5.2014 12

Underground mining plan is presented in Table below and Figure 34. UNDERGROUND MINING Table 17 Underground mining plan Underground mine/mining Year Ore Stopes Drifting Drifting Drifting Total mining Tonnes Ageq Calc Ag Au Pb Zn Meters Tonnes levels Tonnes 1 Open pit: years 01 08 1250 87500 180, 160 87 500 2 285 873 235,75 214,23 0,36 3801 5681 C180 1 1000 70000 140,120,240,220 355 873 3 267 145 145,46 128,41 0,29 4327 8251 C160, A140, A120, B240, B220 1500 105000 340, 320, 300, 180 372 145 4 223 292 153,69 136,41 0,29 3085 6842 H340, H320, H300, B180, B160 2200 154000 420,400, 380, 360 377 292 5* 370 822 137,68 122,34 0,34 4455 9329 C420 C340, I410 I350 2500 175000 545 822 6 424 344 100,82 84,75 0,29 3500 7475 A160 A120, C320, C300, B180 2500 175000 599 344 7 390 000 100,82 84,75 0,29 3500 7475 2000 140000 530 000 8 390 000 100,82 84,75 0,29 3500 7475 1500 105000 495 000 9 ** 280 173 92,77 78,58 0,24 3430 7877 Unplanned reserve 1250 38500 318 673 10 ** Total 2 631 648 118,89 102,52 0,29 3629 7514 15000 1050000 3 681 648 Ø During the first four planned production-years the silver-content will vary between 120 to 130 g/ton and gold-content will be about 0.4 g/ton. During the third planned production-year the plan-capacity is planned to increase from 350 000 tons to 450 000 tons/year. Planned production-time based on presently known reserves will be 8 to 9 years. 6.5.2014 13

ADDITIONAL SHORT TERM POTENTIAL Bankable feasibility study update March 24 th 2014 Ø Beside these ore reserves there are earlier published mineral resources of 1.33 million tons inferred resources with 75 g/ton silver and about 0.5 million tons containing more than 100 g/ ton Ag. A substantial portion of these resources are expected to be converted to ore reserves in a costeffective way, with reasonable amount of drilling from existing decline. Figure 34 Underground mining plan 6.5.2014 14

BANKABLE FEASIBILITY STUDY FINANCIAL PARAMETERS Bankable feasibility study update March 24 th 2014 Financial parameters 6.5.2014 15

For Base Case an annualized cash flow position is shown in Figure 44 and a detailed cash flow analysis is given in Table 31. SOTKAMO PROJECT ECONOMICS Figure 44 Annualized cash flow, Base Case 6.5.2014 16

Down side Ag 15,0 392 8.39 Down side EUR/USD 0,65 12 510 20.10 3.4 Bankable feasibility study update March 24 th 2014 SOTKAMO PROJECT ECONOMICS Up side Ag 28,0 46 781 51.47 1.7 Up side EUR/USD 0,90 37 090 42.79 1.9 The payback time is calculated from the process start-up. In the EUR/USD cases Ag price 21,50 USD/oz was used. Base case 23 333 30.24 2.5 Down side Ag 15,0 392 8.39 Down side EUR/USD 0,65 12 510 20.10 3.4 Up side Ag 28,0 46 781 51.47 1.7 Up side EUR/USD 0,90 37 090 42.79 1.9 The payback time is calculated from the process start-up. In the EUR/USD cases Ag price 21,50 USD/oz was used. Resulting effects on NPV, IRR and payback time before tax Financial sensitivity NPV 1000 IRR % Payback time (Y) Base case 29 514 35.37 2.2 Down side Ag 15,0 1 012 9.01 7.6 6.5.2014 17 Up side Ag 28,0 58 841 61.01 1.5 16 FINANCIAL ANALYSIS Bankable feasibility study update March 24 th 2014 16.1 Basis of economic evaluation Resulting effects on NPV, IRR and payback time before tax Table 31 Capital and operating cost estimates were generated and inputted to an economic model Detailed along cash flow with analysis, other economic Base Case inputs including product prices and exchange rates. Production data from the mining plan were also input. The economic model was then used to Financial sensitivity NPV 1000 IRR % Payback time (Y) Production AgPb evaluate Zn different Revenue scenarios in order Total to determine the Capex viability of Opex 1000 the project. Annual Cumulative year Con Con 1000 mining 1000 total cash cash flow Base case 29 514 35.37 2.2 Taxation and depreciation was also taken into account in the model. An annual discount 1000 tpa flow 1000 rate of 8% is used. The Net Present Value calculation assumes cash flows occur at the Down side Ag 15,0 1 012 9.01 7.6 middle of each year, and are discounted back to 1 January 2015. 1000 Up side Ag 28,0 58 841 61.01 1.5 1 547 23 903 23 903 23 903 flow 1 2 253 Also 3 509 a model where 27 095 the construction 546 year and first 1 877 two production 13 364 years where calculated 8 152 15 751 as monthly basis was modelled. This was then chosen as the final model for the financial 2 2 230 analyses. 4 602 27 812 546 1 224 13 767 10 532 5 219 For Base Bankable Case feasibility annualized study cash flow update position is March shown 24in th 3 2 564 5 055 31 782 1 134 2 740 17 510 8 860 3 641 2014 Figure 44 and a detailed cash The model contains one construction year (-Y1) and 8 production years. The model incorporated flexibility for the key drivers of the project enabling analysis and the sensi- 4 2 346 6 794 30 916 1 179 1 474 17 639 9 521 13 163 flow analysis is given in Table 31. Resulting effects on NPV, IRR and payback time (tax included) 5 1 749 tiveness 5 588 of key variables. 23 507 1 225 755 17 911 4 606 17 769 6 1 721 USD/Euro 5 627 exchange 23 238 rate 0,76 was 1 090 used for product 377 pricing. All 17 cost 060 information 4 778 is input 22 547 Financial sensitivity NPV 1000 IRR % Payback time (Y) 7 1 653 into 5 121 the model in 22 078 real terms as Q3/2013. 758 14 523 6 263 28 809 8 16.2 1 038 Sotkamo 3 957 Silver base case 14 490 509 11 703 4 354 33 164 9 8 058 An international market report was used to evaluate the future product prices. 12 047 45 210 For this BFS Update the following price scenarios was used: 16.5 Conclusions Table 27 Product prices The updated Bankable Feasibility Study (BFS) has demonstrated both the technical and Metal price Down side Base case Up side economic viability of the project. The results of Base Case profitability calculation are Ag USD/oz 15.0 21.5 28.0 presented in Appendix 17 Profitability calculation, Base Case. Au USD/oz 1 000.0 1 380.0 1 500.0 Zn USD/t 2 000.0 2 615.0 2 800.0 Pb USD/t 2 000.0 2 380.0 2 500.0 EUR/USD 0.65 0.76 0.90 The historical silver price development is illustrated in the Figure 43. In the financial model Zinc and Lead prices are based on long term forecast. The prices used are presented in table 28. In financial calculations the Silver and Gold prices has been kept stable based on each case.

ENVIRONMENT MATERS EQUATOR PRINCIPLES ASSESSMENT Sotkamo Silver has undertaken an independent consultant-report concerning an Environmental, Health and Safety and Limited Social Review - Equator Principles Assessment in relation to financing arrangements in order to construct and operate the Company s Silver Mine in Sotkamo municipality, Finland. This independent assessment has revealed that proposed actions will comply with i) the 2007 IFC Environmental, Health and Safety Guidelines for Mining, ii) requirements of the EU BAT BREF 2009: Management of Tailings and Waste Rock in Mining Activities and iii) with the 108 requirements set forth in the site s Integrated Environmental Permit no 33/2013/1, Dno PSAVI/ 91/04.08./2011 issued on 16 April 2013. It is worth noting that the requirements set forth in the Site s Integrated Environmental Permit are in many cases significantly more stringent than those in the 2007 IFC Environmental, Health and Safety Guidelines for Mining and that the technical solutions /structures required often exceed the BAT or implement several or all of the BAT options presented in the applicable BAT BREF 2009. The approach taken is path-breaking in the mining industry and results from the recent lessons learnt from the mining industry in Finland. 6.5.2014 18

POTENTIAL FOR FURTHER SILVERDEPOSIT Prospects of Sotkamo Silver Oy in Tipasjärvi Greenstone Belt area; aeromagnetic low altitude map, picture width 22km Ø A mining lease of about 400 hectares covers the mining area. Applied claims cover the possible extensions of the silver deposit and all the known mineral prospects in the Tipasjärvi greenstone belt. Ø Silver-zinc-lead-gold type prospects. Ø Known centres of acid volcanic activity along the Tipasjärvi belt; eg at Hiidenkirkko and Hietajärvi areas are potential host areas for silver-zinclead deposits; gold belongs also into this type. Acid volcanic rocks containing fragments of volcanic material and sulfide minerals are often host rocks for high-value deposits of Zn-Pb-Cu- Ag and Au In Archean Greenstone belts. These rocks are called in Canada mill-rocks ; while often one can hear sound of process mills when standing on outcrops of these kind of rocks. 6.5.2014 19

MINERAL RESOURCES ESTIMATES The resources of the Taivaljärvi Ag-Zn-Pb-Au deposit are classified in accordance with guidelines of the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves [JORC Code (2012)]. Ø Mm than 53.000m drilled Ø Measured resources based on a drill grid of 20m along strike and 17m down dip with 15 samples having been used in the estimation. Ø Indicated resources based on a drill grid of 20-30m along strike and 17m to 25m down dip with 15 samples used for estimation. Ø Inferred resources within defined mineralized wireframes and not estimated in the Measured and Indicated searches. Silver in drill hole 6.5.2014 20

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