HIGHLIGHTS

July – September

• Net sales decreased by 3% to 110 MSEK (114 MSEK*). Silver production was lower than in the same period last year due to lower silver grade and lower mill feed. The positive development of silver and gold prices supported net sales which increased by 60% compared to Q1 2025 and 39% compared to Q2 2025.
• EBITDA fell by 30% to 35 MSEK (50) and EBITDA margin weakened to 32% (44) compared to Q3 2024. Compared to Q1 2025 EBITDA increased 43 MSEK and 33 MSEK compared to Q2 2025
• EBIT decreased to 16 MSEK (30), however EBIT increased by 40 MSEK compared to Q1 2025 and 33 MSEK compared to Q2 2025
• Profitability improved clearly compared to the previous quarters of the year, but weakened from the comparison period mainly due to lower mill feed volume and silver grade
• CAPEX fell to 16 MSEK (18)
• The production amounted to approximately 255,000 ounces of silver (312,000), 468 ounces of gold (684), 167 tonnes of lead (211), and 404 tonnes of zinc (507) in concentrates
• Cash and cash equivalents amounted to 1 MSEK (76). The Company has a credit facility of 2 MEUR (22 MSEK)
• The Company carried out an exchange offer to the holders of the Company’s 6.3 MEUR convertible loan 2022/2026 to exchange their convertibles for either new shares or new convertibles in the Company. 49.8 percent (3.2 MEUR (35 MSEK)) of the convertibles was exchanged for new shares in the Company leading to an increase in share capital by 33 MSEK. 41.6 percent (2.6 MEUR (30 MSEK)) of the convertibles was exchanged for new convertibles 2025/2029. The maturity date of the new convertibles is 31 October 2029. The remaining principal of the convertible 2022/2026 is 0.5 MEUR (5 MSEK) and the maturity date is 30 September 2026
• The Company signed an agreement to extend the maturity of the Senior Loan and additional financing. The total amount of the Senior Loan under the agreement is 9.1 MEUR (101 MSEK) consisting of the outstanding 8.1 MEUR (90 MSEK) and an additional 1 MEUR (11 MSEK) financing. The Senior Loan maturity was extended by two years, in addition to which the Senior Loan includes a one-year extension option subject to the lenders’ approval. The Company also ensured the renewal of the environmental and restoration guarantee.

January – September

• Net sales decreased by 15% to 258 MSEK (304 MSEK). Lower silver grade and lower mill feed led to lower silver production
• EBITDA weakened to 29 MSEK (86), EBITDA margin fell to 11% (28)
• EBIT fell to -24 MSEK (29)
• Inadequate mining resources and rock mechanical challenges led to lower silver production and decreased profitability
• Cash and cash equivalents decreased to 1 MSEK (76)
• CAPEX increased by 4% to 48 MSEK (46)
• The production was approximately 611,000 ounces of silver (895,000), 1,250 ounces of gold (1,991), 448 tonnes of lead (575), and 1,083 tonnes of zinc (1,204) in concentrates

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

In case of discrepancies, the official Swedish version of this report prevails.

OUTLOOK (UNCHANGED)

The Company has given 31 July 2025 the following guidance for year 2025:

• The Company expects to produce 1.0 -1.2 million ounces of silver
• Annual EBITDA margin to be at least 22%
• Net debt-to-EBITDA to be below 2.5 at year-end

The Company's profitability is significantly affected by external factors, such as metal prices and exchange rates and internal factors like uncertainties related to ore volumes and metal grades. The achievement of the guidance assumes that metal prices and EUR/USD rate stay approximately at the current level of the time when the guidance was published (31 July 2025).

Medium-term targets

Medium-term targets until the end of the year 2027 will be updated during the last quarter of the year 2025.

CEO REVIEW

Improved profitability and operational performance

Autumn has started on a positive note, and our operational performance has been more efficient than in previous quarters, although we are still behind last year’s production levels. The refinancing carried out in August also provides solid support for our operations.

The price of silver has already risen by over 60% this year. Several factors influence price development, including investment silver demand and long-term industrial demand. Forecasts for silver price development vary widely, but it is clear that demand continues to exceed supply this year. In our financial figures, changes in silver price are reflected with a delay of a few months, partly due to price hedging.

Our operations have normalized during early autumn, and we have not faced the same mining-related technical challenges as in the first half of the year. However, we are not yet satisfied with our current performance and continue to speed up mining progress.

One of our key goals is to improve operational reliability, for example by opening alternative mining areas. We are also preparing for the start of a new mining contractor in early 2026.

We have conducted drilling aimed at extending the life of the current mine and have also explored new areas in the vicinity of the mine. Preliminary results are positive, and analysis of the findings is ongoing. Based on these results, we will publish new medium-term targets during last quarter.

We refinanced our long-term loans in August, which improves our ability to implement our strategy. As a result, our debt decreased by approximately EUR 3 million and repayment periods were extended.

The first half of the year was challenging in many ways, and we faced several unexpected issues. The situation is now more stable, but there is still room for improvement. I want to thank our personnel for their contribution and resilience in overcoming these challenges, and I believe the coming months will be better for us in many respects.

KEY FIGURES

Alternative key performance measures are marked with asterisk. For more detailed definitions, please see the full report.

EVENTS AFTER THE REPORTING PERIOD

No significant events have materialized after the reporting period.

FINANCIAL CALENDAR

• Q4/2025: 20 February 2026
• Financial Statements and the Board of Directors' Report for the Year 2025: Week commencing 30 March 2026
• Q1/2026: 29 April 2026
• Q2/2026: 31 July 2026
• Q3/2026: 23 October 2026
• The Annual General Meeting is planned to be held on 21 April 2026 in Stockholm.

WEBINAR

The result webinar will be held today on 23 October at 1:00 p.m. Finnish time (EEST). You can participate in the event through the link:  https://player.videosync.fi/sotkamosilver/2025-q3

The webinar will be conducted in Finnish, with the material presented in English. During the event, you can ask questions using the chat function. The presentation from the webinar will be made available on the company's website at: https://www.silver.fi/en/investors/presentations

Stockholm, 23 October 2025

Sotkamo Silver AB’s Board of Directors and CEO

CONTACT INFORMATION

Mikko Jalasto,
CEO of Sotkamo Silver AB
mikko.jalasto@silver.fi
+358 50 482 1689

Tommi Talasterä,
CFO of Sotkamo Silver AB
tommi.talastera@silver.fi
+358 40 712 6970

Sotkamo Silver in brief

Sotkamo Silver is a mining and ore prospecting company that develops and utilises mineral deposits in the Kainuu region in Finland. Sotkamo Silver supports the global development towards green transition technologies and produces the metals needed responsibly and by taking local stakeholders into account. Sotkamo Silver’s main project is a silver mine located in Sotkamo, Finland. In addition to silver, the mine produces gold, zinc and lead. The company also has mining and ore prospecting rights for mineral deposits in the vicinity of the silver mine in Kainuu. Sotkamo Silver Group consists of the parent company Sotkamo Silver AB and its wholly owned Finnish subsidiary (Sotkamo Silver Oy). Sotkamo Silver AB is listed at NGM Main Regulated in Stockholm (SOSI), Nasdaq Helsinki (SOSI1), and Börse Berlin.

Read more about Sotkamo Silver at www.silver.fi/en/