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Press release: Stockholm, March 24, 2022, 11:30 CET

Sotkamo Silver AB (publ) ("Sotkamo Silver" or the "Company") announced on 21 March 2022 a directed issue of convertibles of an aggregate nominal amount of up to MEUR 6.4 (the "New Convertible Issue"). Today, the Board of Directors of Sotkamo Silver has resolved to allocate convertibles (the "New Convertibles") in a total nominal amount of approx. MEUR 6.4, divided between 320convertibles, based on the subscriptions received in the New Convertible Issue.

Allocated New Convertibles shall be paid on 28 March 2022, at the latest. The New Convertible Issue is expected to be registered with the Swedish Companies Registration Office on or around 31 March 2022.

As announced in the press release regarding the New Convertible Issue on 21 March 2022, the proceeds from the New Convertible Issue will be used to finance the redemption of the Company's outstanding convertibles of series 2018/2022, including payment of accrued interest. The Board of Directors of the Company has resolved that the record date for the redemption of convertibles of series 2018/2022 shall be 29 March 2022, implying that the redemption will be executed in the Euroclear Sweden system on 5 April 2022.

Stockholm, March 24, 2022

Sotkamo Silver AB

Erkki Kuronen, CEO

Contact person

Erkki Kuronen, CEO, tel. +358 50599 3539

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 March 24, 2022, at 11:30 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's business concept is to develop mineral deposits with regards to human society and environment. The Company owns the Silver Mine in Sotkamo which started production in March 2019. In addition, the Company holds mining and exploration rights to precious and base metal deposits in Finland.

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.

The ticker symbol is SOSI on NGM Main Regulated Equity in Stockholm and SOSI1 on Nasdaq Helsinki.

ISIN-code for Sotkamo Silver shares is SE0001057910.

Legal Entity Identifier (LEI): 213800R2TQW1OZGYDX93

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 on www.silver.fi

Important information

This press release is not and does not form a part of any offer for sale of securities. Copies of this communication may not be made in, and may not be distributed or sent into, Australia, Canada, Hong Kong, Japan, Singapore, South Africa, New Zealand, the United States, or any other jurisdiction in which distribution of this press release would be unlawful or would require registration or other measures. The distribution of this announcement in other jurisdictions may be restricted by law and persons into whose possession this announcement comes should inform themselves about, and observe, any such restrictions.

The securities referred to in this announcement have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or under the securities laws of any state or other jurisdiction of the United States and, accordingly, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with applicable state securities law. The Company does not intend to register any part of the New Convertible Issue in the United States or to conduct a public offering of convertibles in the United States.

The securities referred to herein have not been and will not be registered under the applicable securities laws of Australia, Canada, Hong Kong, Japan, Singapore, South Africa or New Zealand and, subject to certain exemptions, may not be offered or sold in or into or for the account or benefit of any person having a registered address in, or located or resident in, Australia, Canada, Hong Kong, Japan, Singapore, South Africa or New Zealand. There will be no public offering of the securities described herein in Australia, Canada, Hong Kong, Japan, Singapore, South Africa or New Zealand.

This press release is not a prospectus for purposes of Prospectus Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 and its delegated and implemented regulations (the "Prospectus Regulation") and has not been approved by any regulatory authority in any jurisdiction. The Company has not authorized any offer to the public of securities in any EEA Member State and no prospectus has been or will be prepared in connection with the New Convertible Issue. In any EEA Member State, this communication is only addressed to and is only directed at qualified investors in that Member State within the meaning of the Prospectus Regulation.

In the United Kingdom, this document and any other materials in relation to the securities described herein is only being distributed to, and is only directed at, and any investment or investment activity to which this document relates is available only to, and will be engaged in only with, "qualified investors" who are (i) persons having professional experience in matters relating to investments who fall within the definition of "investment professionals" in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"); or (ii) high net worth entities falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "relevant persons"). In the United Kingdom, any investment or investment activity to which this communication relates is available only to, and will be engaged in only with, relevant persons. Persons who are not relevant persons should not take any action on the basis of this press release and should not act or rely on it.

Any investment decision in connection with the New Convertible Issue must be made on the basis of all publicly available information relating to the Company and the issued convertibles. The information contained in this announcement is for background purposes only and does not purport to be full or complete. No reliance may be placed for any purpose on the information contained in this announcement or its accuracy or completeness. This announcement does not purport to identify or suggest the risks (direct or indirect) which may be associated with an investment in the Company or its securities.