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August 2009

August 2009. DISCLAIMER

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August 2009

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  1. August 2009

  2. 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

  3. Highlights • Successful EUR 82.7 million / GBP 71.3 million placing completed in July putting Talvivaara in strong financial position • Decision to expand production capacity by almost 50% to up to 50,000 tonnes nickel per annum from 2012 • Good progress with upgrade of crushing circuit to eliminate earlier design problems and to expand capacity to approx. 22 million tonnes of ore per annum • As anticipated, crushing capacity with old circuit remained below budgeted levels due to significant downtime • Successful nickel and zinc sulphide production campaigns in Jan-Feb and Apr-May with subsequent product deliveries to Norilsk Nickel and zinc customers • Secondary listing of shares on Helsinki Stock Exchange on 11 May 2009 resulting in significant expansion of shareholder base • Continued good safety record with 3 LTI’s to Talvivaara personnel in Jan 2009 and none since the launch of the Work Group Safety Challenge in Feb 2009 Kuusilampi open pit at Talvivaara June 2009 2

  4. Key figures 1 Prior to receiving the proceeds of the EUR 82.7 million equity placing 3

  5. First income from deliveries to customers Sales EUR 1.8m Other operating income EUR 25.6 mostly from realised and unrealised gains on nickel, zinc and USD forwards Operating loss EUR 7.9m Strong cash position Drawdown of EUR 45m Finnvera facility EUR 82.7m equity placing of 22,280,000 shares at EUR 3.70/ GBP 3.20 each; proceeds were received in July Capital expenditure H1 2009 capital expenditure EUR 57.7m on completion of mine construction and railway H2 2009 new commitments towards expansion capex being made (hydrogen plant, mobile equipment) Financial review 4

  6. Production summary • Materials handling bottleneck being resolved alongside expansion 5

  7. Production update – mining and materials handling • Mining • Processes performing well • Full capacity not tested due to bottleneck in crushing • Materials handling • Ongoing problems in fine crushing throughout H1 2009 despite temporary improvements in capacity as a result of amendments to existing circuit • Total capacity achieved H1 2009 was 4.0 mt or ore (53% of budgeted amount) • Primary crusher also experienced technical problems • Modifications being made • Capacity secured by contractors for the time being • Crushing circuit being upgraded • Capacity to increase to 22 million tonnes per annum • Installation of redesigned circuit progressing on schedule for start-up in the beginning of September 6

  8. Installation of upgraded crushing circuit progressing as planned New secondary crushing equipment installed, 24 Aug 2009 7

  9. Production update - bioheapleaching and metals recovery • Bioheapleaching • Bioheapleaching proceeding as planned • Control of heat generation through aeration and irrigation critical to prevent re-precipitation metals in the heap • 6.5 million tonnes of ore under leaching at the end of H1 2009 • Plans to stack the heap in two layers being reconsidered; likely return to original plan of a single layer primary heap • Metals recovery • Successful nickel and zinc production campaigns in January-February and April- May • Production levels during May campaign • Nickel 12-14 tonnes/day • Zinc 29-30 tonnes/day • Leached amounts corresponded to the size and age of the heap at the time • Quality of metal products good and improving throughout campaigns 8

  10. Environment, health and safety • Environment • Ongoing environmental management and monitoring programmeaccording requirements set out in the Environmental Permit • Talvivaara is preparing its environmental processes for ISO 14001 certification • Health and safety • Good health and safety record • Three minor lost time injuries (LTIs) among Talvivaara employees during H1, none since the launch ofWork Group Satey Challenge in Feb 2009 • Good safety rating • Talvivaara: 12 LTIs/ million man hours • Finnish mining industry: 40 LTIs/ million man hours • Construction industry: 80 LTIs/ million man hours Talvivaara personnel 2003-2010e Aug 2009 9

  11. Short term outlook still uncertain Underlying demand yet to grow Temporary fall in commodity prices still possible Positive long term outlook Promising recent development in developing economies Signs of restocking and increasing industrial demand also on OECD markets Market outlook 10

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