TALVIVAARA UPDATE MINING ON TOP: HELSINKI 17 SEPTEMBER 2013 Saila Miettinen-Lähde, Deputy CEO, CFO

DISCLAIMER

The following information contains, or may be deemed to contain, “forward-looking statements” (as defined in the U.S. Private Securities Litigation Reform Act of 1995). These statements relate to future events that involve known and unknown risks and other uncertainties. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. All forward-looking statements made in this presentation based on information presently available and Talvivaara Mining Company Plc. assumes no obligation to update any forward-looking statements.

Nothing in this presentation constitutes investment advice and this presentation shall not constitute an offer to sell or the solicitation of an offer to buy any securities or otherwise to engage in any investment activity.

1. Talvivaara in brief

2. Operational review – turning a corner

3. Safety, sustainability and permitting

4. Financial review

5. Outlook

3

TALVIVAARA IN BRIEF

• Significant base metals producer utilising

advanced proven technologies

• One of the largest known sulphide nickel

deposits in Europe with a long mine life

• Bioheapleaching has demonstrated to be a

feasible and cost-effective technology

following ramp-up

Targeted full scale production*

Nickel 50,000 tpa

Zinc 90,000 tpa

Copper 15,000 tpa

Cobalt 1,800 tpa

Uranium 350 tpa

* Subject to receipt of all necessary permits

4

5

Talvivaara mineral

resources 2012

Kuusilampi 1,033Mt

Kolmisoppi 1,020Mt

Total 2,053Mt

Kuusilampi

Kolmisoppi

Open pit

Secondary heap

Primary heap

Metals

recovery

Gypsum

pond

5

LONG-LIFE ASSET OF INTERNATIONAL SIGNIFICANCE

12,4

5.5 5.5 4.7

4.1 3.0 2.6 2.6 2.6 2.5 2.3 2.0 1.9 1.8 1.8 1.7 1.6 1.3 1.2

0,7

Ta

imyr

(Norils

k)

Weda B

ay

(Era

met)

Chin

ese a

sset,

est.

Indonesia

n a

sset,

est.

Cuban a

sset,

est.

Ta

lviv

aara

Phili

ppin

o a

sset,

est.

Murr

in M

urr

in

(Gle

ncore

)

Cerr

o M

ato

so

(BH

P)

SLN

(E

ram

et)

Kola

(N

orils

k)

Soro

ako (

PT

Inco)

Konia

mbo (

Xstr

ata

)

Goro

(V

ale

)

Tu

magain

(H

ard

C

reek)

Ravensth

orp

e (

FQ

)

Am

bato

vy (

Sherr

itt)

Onca P

um

a (

Vale

)

Onta

rio

(V

ale

)

Fe

nix

(S

olw

ay)

Estimated measured and indicated nickel contained resources, excluding inferred

(million tonnes)

Source: Public filings and industry estimates; selected mines

6

= Diversifieds

Estimated production capacity by mine (ktpa nickel)

124 113

70 65 60 60 60 60 53 50 50 45 40 28 24

12

Ta

imyr

(Norils

k)

Kola

(N

orils

k)

Soro

ako (

PT

Inco)

Weda B

ay

(Era

met)

SLN

(E

ram

et)

Konia

mbo

(Xstr

ata

)

Goro

(V

ale

)

Am

bato

vy

(Sherr

itt)

Onca P

um

a (

Vale

)

Ta

lviv

aara

Cerr

o M

ato

so

(BH

P)

Tu

magain

(H

ard

C

reek)

Murr

in M

urr

in

(Gle

ncore

)

Ravensth

orp

e

(FQ

)

Fe

nix

(S

olw

ay)

Onta

rio

(V

ale

)

INDUSTRY-LEADING CAPITAL EFFICIENCY

Ambatovy (Sherritt)

Goro (Vale)

Koniambo (Xstrata)

Barro Alto (Anglo American)

Talvivaara*

Onca Puma (Vale)

Ravensthorpe (First Quantum)

Santa Rita (Mirabela)

Kevitsa (First Quantum)

0

5

10

15

20

25

30

35

40

45

50

2008 2009 2010 2011 2012 2013 2014

Es

tim

ate

d C

ap

ex

($ / l

b N

i a

t fu

ll c

ap

ac

ity)

Year of first production

Capital efficiency and production start-up of selected nickel projects

Source: Public filings; Bubble size represents estimated ramped-up production

*Talvivaara Capex intensity incorporates all historical Capex, and estimated remaining Capex required to reach capacity

= Laterite

= Sulphide

Size of bubble

represents

estimated full

capacity

7

World-class

deposit

Capex

efficiency

Profitability

and growth

Investment

grade

geography

TALVIVAARA PROCESS FLOWSHEET

8

Key challenges in 2012-13

• Water balance

• Temporary suspension of

mining

• Slowing down of leaching

process

1. Talvivaara in brief

2. Operational review – turning a corner

3. Safety, sustainability and permitting

4. Financial review

5. Outlook

9

OPERATIONAL REVIEW – TURNING A CORNER

• Production impacted by maintenance downtime

and low metal grades in leach solution

- Continued effect of excess water in older

heaps

• Successful re-start of ore production in May

• Promising early leaching results with new ore

• Extensive efficiency and productivity

programme ongoing

• Organisational changes

10

Nickel and zinc production (t)

Q2

2013

Q1

2013

Q2

2012

FY

2012

Nickel 1,776 2,732 3,194 12,916

Zinc 4,465 3,128 6,686 25,867

EFFICIENCY AND PRODUCTIVITY PROGRAMME

• Key elements of the programme

- Operational efficiency and

productivity

- Organisational structure, roles

and responsibilities

- Clear plans and follow-up

• 30 improvement levers identified;

full-scale implementation on-going

• Performance management process

rolled out into entire organisation as

an integral part of the programme

11

KAIVOS Heinäkuu 2013

Kustannusylitykset Juurisyy ja korjaavat toimenpiteet Omistaja Tuotantoa rajoittaneet tekijät Juurisyy ja korjaavat toimenpiteet Omistaja

KUMULATIIVINEN TUOTANTO- JA KUSTANNUSEURANTA

2013-01 2013-02 2013-03 2013-04 2013-05 2013-06 2013-07 2013-08 2013-09 2013-10 2013-11 2013-12

Tuotanto (tonnia)

Kuukausituotanto 100 100 100 100 100 100 100

Kumulatiivinen tuotanto 100 200 300 400 500 600 700

Kumulatiivinen tavoite 120 210 300 400 550 650 700 750 800 870 900 999

Erotus 20 110 200 300 450 550 600

Kustannukset (EUR / tonni, ilman leasingiä)

Kuukausikustannukset 99 76 56 77 88 66 120

Kuukausibudjetti 88 88 88 88 85 85 85 83 83 83 83 83

Erotus -11 12 32 11 -3 19 -35

Kumulatiivisen kustannukset 99 175 231 308 396 462 582

Kumulatiivinen tavoite 88 176 264 352 437 522 607 690 773 856 939 1022

Erotus -11 12 32 11 -3 19 -35

KUSTANNUSTEN TARKEMPI EROTTELU

Muutos

Erotus

budjettiinkEUR EUR/tonni EUR/tonni kEUR EUR/tonni EUR/tonni kEUR EUR/tonni

Kaivos yhteensä 999 999 10 999 999 10 999 999

Ilman leasingiä 999 999 10 999 999 -5 999 999

Leasing 999 999 12 999 999 3 999 999

Poraus ja räjäytys 999 999 10 999 999 10 999 999

Palkat 999 999 10 999 999 -5 999 999

Koneet 999 999 12 999 999 3 999 999

Räjäytysaineet 999 999 -10 999 999 10 999 999

Lastaus ja kuljetus 999 999 10 999 999 10 999 999

Palkat 999 999 10 999 999 -5 999 999

Ajoneuvojen huolto 999 999 12 999 999 3 999 999

Polttoaineet 999 999 12 999 999 3 999 999

Renkaat 999 999 -10 999 999 10 999 999

Yleiskustannukset 999 999 10 999 999 10 999 999

Palkat 999 999 10 999 999 -5 999 999

IT ja lisenssit 999 999 12 999 999 3 999 999

… 999 999 -10 999 999 10 999 999

OPERATIIVISET MITTARIT

Poraus (metriä)Toteuma 99 76 56 77 88 66 120Tavoite 88 88 88 88 85 85 85 83 83 83 83 83Erotus -11 12 32 11 -3 19 -35

Nikkelitonnit kasalle (ton Ni)Toteuma 99 76 56 77 88 66 120Tavoite 88 88 88 88 85 85 85 83 83 83 83 83Erotus -11 12 32 11 -3 19 -35

Polttoainekulutus (litraa / tkm)Toteuma 99 76 56 77 88 66 120Tavoite 88 88 88 88 85 85 85 83 83 83 83 83Erotus -11 12 32 11 -3 19 -35

Renkaiden kulutus (rengasta / tkm)Toteuma 99 76 56 77 88 66 120Tavoite 88 88 88 88 85 85 85 83 83 83 83 83Erotus -11 12 32 11 -3 19 -35

Ajotapakoulutus 6kk sisään (%)Toteuma 99 76 56 77 88 66 120Tavoite 88 88 88 88 85 85 85 83 83 83 83 83Erotus -11 12 32 11 -3 19 -35

Gatekeeper-osuus (%)Toteuma 99 76 56 77 88 66 120Tavoite 88 88 88 88 85 85 85 83 83 83 83 83Erotus -11 12 32 11 -3 19 -35

Toteuma tukokuu 2013 Toteuma kesäkuu 2013 Budjetti kesäkuu 2013 Kommentit per kululaji

0

20

40

60

80

100

120

140

1 2 3 4 5 6 7 8 9 10 11 12

EUR

/ m

alm

ito

nn

i

Kaivoksen yksikkökustannukset (ilman leasing)Kuukausikustannukset

0

200

400

600

800

1000

1200

1 2 3 4 5 6 7 8 9 10 11 12

Mal

mit

on

nia

Kaivoksen kumulatiivinen tuotantoKumulatiivinen tuotanto Kumulatiivinen tavoite

• EUR 100m cash impact

expected in the next 12 mo.

• Positive cash flow

• Permanent change

ORGANISATIONAL CHANGES

• Darin Cooper appointed COO from Sep. 2013

- BEng, Metallurgy, MBA

- Successfully implemented several production

and cost efficiency programmes in the mining

and metals industries

- Former employers include Nyrstar, Teck

Metals, Hudson Bay Mining, Britannia Zinc

• Co-operation consultations concluded in August

- Reduction of headcount by 68 through

terminations of employment and retirements

- The employment of 96 employees with

temporary contracts to terminate at the end

of the agreed contract period without renewal

12

Darin Cooper, COO

SUCCESSFUL RE-COMMENCEMENT OF ORE PRODUCTION

• Mining and materials handling operations resumed in mid-May, seven

weeks ahead of plan

13

0

10 000

20 000

30 000

40 000

50 000

60 000

04/2011 08/2011 12/2011 04/2012 08/2012 12/2012 04/2013

Average daily ore production (t) – rolling 30 days

MINING AND MATERIALS HANDLING PRODUCING AT RECORD SPEED AND AT IMPROVED UNIT COSTS

0

1

2

3

4

5

6

7

Ja

n'1

2

Fe

b'1

2

Ma

r'1

2

Ap

r'1

2

Ma

y'1

2

Ju

n'1

2

Ju

l'12

Au

g'1

2

Ma

y'1

3

Ju

n'1

3

Ju

l'13

14

Materials handling units costs (EUR / t ore)

Jul-2013

level

Ni tonnes to primary heap since re-start

• Approx. 8,000t of nickel stacked between re-start of ore production and end of July

• Record ore production level of 1.6Mt in July

• Improved grade control

• Improved unit costs across ore processes; especially optimised reclaiming process

0

1 000

2 000

3 000

4 000

5 000

May 2013 Jun 2013 Jul 2013

->13rd

May

+25%

+84%

2012 average

per month

RECLAIMING BOTTLE-NECK REMOVED

0

50 000

100 000

150 000

200 000

250 000

300 000

01

/20

12

02

/20

12

04

/20

12

05

/20

12

07

/20

12

08

/20

12

10

/20

12

11

/20

12

01

/20

13

02

/20

13

04

/20

13

05

/20

13

06

/20

13

Weekly Q1'12 avg Q2'12 avg Q3'12 avg Since re-start avg Jul-13 avg

15

Weekly primary heap reclaiming (t)

• Reclaiming process operating at planned capacity levels aided by process

modifications and the addition of a jaw crusher unit

BIOHEAPLEACHING – LOW NICKEL GRADE IN SOLUTION, BUT SHOWING SIGNS OF TURNAROUND

16

0

5

10

15

20

25

30

35

40

45

50

04/13 05/13 06/13 07/13 08/13

Heap 1 Heap 2

Heap 3 Heap 4

Heap temperatures (°C)

-

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013

Average nickel grade in plant PLS feed (g/l)

ACCELERATED DE-WATERING OF OLD HEAPS

• De-watering of older heaps slower than anticipated through Q2 2013 e.g. due to

available pond volumes

• De-watering now accelerating as a result of focused efforts to improve leaching

performance; pond volumes now sufficient for solution removed from heaps

17

EARLY LEACHING RESULTS DEMONSTRATE VERY ACTIVE PROCESS START-UP OF NEW HEAP

• Early leaching of fresh ore has been very promising; temperatures of circulating solution

already exceeding 50°C

- Exceeds corresponding performance of any previous heap historically

• First new heap (primary heap no. 4) completed in the beginning of September

• Fresh ore starting to contribute metals as precipitation phase is ending

• Special attention is paid to securing efficient start-up of the new heaps

18

1 800

2 000

2 200

2 400

2 600

2 800

800

850

900

950

1 000

1 050

1 100

2.8. 3.8. 4.8. 5.8. 6.8. 7.8. 8.8. 9.8. 10.8. 11.8. 12.8. 13.8.

Zn

(m

g/l)

Ni (m

g/l)

Ni (mg/l)

Zn (mg/l)

Metals grades in new heap – starting to contribute metals

METALS RECOVERY – RECORD FLOW RATE AND CONTINUED STABILITY

• Q2 2013 production impacted by

- Scheduled maintenance stoppage of approx. 2.5 weeks in late May and early June

- Capacity restrictions due to planned maintenance of hydrogen sulphide plants

already from mid-April

• Flow rate reached a record level of 1,650 m3/h in June

• Metals plant operation stable throughout H1 2013

- Plant operation not anticipated to restrict production

- Leach solution metal grade improvement to drive production volume increase

19

3 194

4 030

2 317 2 732

1 776

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Nickel production (t)

6 686 7 184

4 106

3 128

4 465

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Zinc production (t)

FLOW RATES AT THE METALS PLANT IMPROVING

20

-

300

600

900

1 200

1 500

1 800

01

/11

03

/11

05

/11

07

/11

09

/11

11

/11

01

/12

03/1

2

05

/12

07

/12

09

/12

11

/12

01

/13

03

/13

05

/13

07/1

3

Monthly average 2011 average 2012 average 2013 average

Monthly average flow rate to the plant (m3/h)

Average in June

2013 subsequent to

plant maintenance

06

/13

1. Talvivaara in brief

2. Operational review – turning a corner

3. Safety, sustainability and permitting

4. Financial review

5. Outlook

21

SAFETY, SUSTAINABILITY AND PERMITTING

Safety

• Increased focus on further safety training across all

departments

• LTIs at 19.5 / million working hours at the end of Q2

2013

Sustainability

• Focus continues to be on water management

– Treatment and discharge of water has continued

throughout H1 2013

• Gypsum pond leakage in April fully contained within the

safety dams

• Historical issues with odour and dust resolved

Permitting

• New water discharge permit received in May

– Volume quota removed

– Discharge flow rate restricted by Kalliojoki river

flow rate; Talvivaara has submitted an appeal

with respect to this permit condition

• Decision on renewal of overall environmental permit

and on environmental permit for uranium extraction

expected before the end of 2013

22

APPROX. 3 MILLION M3 OF EXCESS WATERS DISCHARGED IN THE FIRST HALF OF 2013

23

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

01

/20

13

02

/20

13

03

/20

13

04

/20

13

05

/20

13

06

/20

13

07

/20

13

Cumulative 2013 water discharge (Mm3) • Treatment and discharge of excess waters

from the mine area continued throughout

H1 2013

• Discharge will continue within permitted

limits, but risks already materially reduced

300 000

400 000

500 000

600 000

01/13 02/13 03/13 04/13 05/13 06/13 07/13

Primary heap pond volume

Max. pond volume

Primary heap solution volume (m3)

12-Feb

discharge

permit from

Kainuu ELY

31-May

environmental

permit update

from AVI

SIGNIFICANT REDUCTION IN ENVIRONMENTAL OBSERVATIONS FROM NEIGHBOURING RESIDENTS

24

0

5

10

15

20

25

30

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

2011 2012 2013

Nu

mb

er

of

ob

serv

ati

on

s

Odour

Noise

Vibration

Dust

Water

Other

1. Talvivaara in brief

2. Operational review – turning a corner

3. Safety, sustainability and permitting

4. Financial review

5. Outlook

25

Q2 2013 FINANCIAL RESULTS

• Results reflect production levels and a

depressed nickel price environment

- LME nickel price below USD 14,000/t

at the end of Q2 2013

• Q2 2013 key financials

- Sales: EUR 13.0m

- Operating loss: EUR (23.9)m

- Capex: EUR 15.3m

• Costs impacted by:

- Water management

- Metals plant maintenance

- Re-commencement of ore production

- Chemicals efficiency impact of low

metals grade in solution

26

33.4

44.8

25.7 27.6

13.0

Q2 … Q3 … Q4 … Q1 … Q2 …

Net sales (EURm)

-10.9 -4.3

-57.0

-20.0 -23.9

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Operating profit (EURm)

LIQUIDITY POSITION AND BALANCE SHEET

27

-

50

100

150

200

250

300

2013 2014 2015 2016 2017 2018

Other Finance lease liabilities

Corporate revolver Senior unsecured bond

Convertible bonds* WC (Finnvera) loans

* Convertible bond maturity reflects accreted principal

Debt maturity profile (EURm)

Net interest-bearing debt (EURm)

476

515 564 530

410

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

• Financing transactions in H1 2013 significantly

improved balance sheet and liquidity position

- Gearing from 183% at year-end 2012 to

81% at the end of Q2 2013

- Net debt from EUR 564m at year-end to

EUR 410m at the end of Q2

• Remaining EUR 77m convertible bond

maturity repaid in May

• Next material maturity in December 2015

(excluding RCF)

• Cash at EUR 101.1m at the end of Q2

• Several significant initiatives to maintain

liquidity as part of efficiency and productivity

programme

1. Talvivaara in brief

2. Operational review – turning a corner

3. Safety, sustainability and permitting

4. Financial review

5. Outlook

28

NICKEL MARKET – NEAR-TERM OUTLOOK CHALLENGING

• Nickel price under significant pressure

through H1 2013

- Declined from USD 18,000-19,000/t in

early 2013 to below USD 14,000/t in

the summer

- Macro outlook and weak stainless steel

market

- Build-up of nickel inventories to a

record level of more than 200,000t

• Short-term outlook:

- Near-term outlook remains challenging

- Current price level considered

unsustainable; restrictions of supply

and positive macro developments may

trigger upside movement

29

LME nickel price (USD/t)

10 000

15 000

20 000

25 000

30 000

01/11 05/11 09/11 01/12 05/12 09/12 01/13 05/13

LME nickel price (USD/t) and nickel stocks (kt)

-

50

100

150

200

250

300

-

5 000

10 000

15 000

20 000

25 000

30 000

2008 2009 2010 2011 2012 2013

LME nickel stocks (t) LME nickel price (USD/t)

LONG-TERM TALVIVAARA STORY INTACT

• Extensive sulphide nickel deposit with a long mine life

• Favourable characteristics of the Talvivaara deposits

• Cost-effective and scalable bioheapleaching technology

• Demonstrated feasibility of using bioheapleaching to extract nickel

• Long-term off-take agreements for nickel, cobalt, zinc and uranium

• Attractive long-term supply-demand dynamics of the nickel industry

• Experienced management team

30

• Long-term story intact – world-class ore body and cost efficiency following ramp-up

• Short-term challenges being addressed and showing signs of success

THANK YOU! Q & A

31