29.5.2024 07:00:01 CEST | Andfjord Salmon | Non-regulatory press releases

Andfjord Salmon Group AS (Andfjord Salmon) reports that its build-out at
Kvalnes, Andøya, is progressing as planned. The company has successfully
completed an equity raise of NOK 350 million, attracting new strategic
industrial investors.

"Our build-out is progressing well. During the first quarter, we identified an
additional revenue stream that strengthens our business case. We also received
another report confirming strong biological conditions in our first production
cycle, which contributed to the success of last week's equity raise," said
Martin Rasmussen, CEO of Andfjord Salmon.

KVALNES EXPANSION ON TRACK

In the first phase of the build-out, Andfjord Salmon is completing four new
pools, increasing total production capacity to 8,000 tonnes HOG at Kvalnes by
2025. The company aims to achieve a total production capacity of 40,000 tonnes
HOG at Kvalnes through gradual volume increases between 2025 and 2030. The
initial phase includes developing shared infrastructure such as waterways and a
harbor area to support future production.

In the first quarter, Andfjord Salmon announced the early completion of
excavating the next 12 pool pits at Kvalnes. A facility to produce concrete
elements for pool walls and floors is now operational and will use excavated
materials as concrete ingredients, minimizing costs and environmental impact.
The development of inlet and outlet waterways is also on track, with the bedrock
quality meeting expectations. Harbor area development is progressing according
to plan.

"POST-SMOLT" STRATEGY

During the first quarter, Andfjord Salmon revealed plans to utilise surplus pool
capacity by releasing additional smolt in its land-based pools. These smolt will
be sold to ocean-based fish farmers in the region after 5-7 months, once the
fish reach approximately 1 kilogram. This strategy enhances production capacity
and income potential without additional infrastructure costs.

According to Andfjord Salmon's calculations, this strategy will enable a 10%
higher biomass turnover, leading to an estimated 15-25% increase in EBIT. Cash
flow will also improve as sales revenue can be generated after 5-7 months of
production, in addition to income from harvesting human-grade salmon after a
full 12-15 month production cycle. Releasing larger, more robust fish into ocean
net pens shortens the ocean-based grow-out phase, providing biological and
environmental benefits to ocean-based fish farmers. Andfjord Salmon has entered
a strategic collaboration with Eidsfjord Sjøfarm/Holmøy Havbruk to supply
post-smolt to nearby ocean-based farming locations.

SUCCESSFUL EQUITY RAISE

Last week, Andfjord Salmon capitalised on increased investor interest, raising
NOK 350 million in equity to enhance financial flexibility for the ongoing
Kvalnes build-out. Current shareholders, including the company's largest
shareholder Jerónimo Martins Agro-Alimentar S.A and Eidsfjord Sjøfarm, invested
their pro-rata shares in the private placement. High Liner Foods Incorporated, a
leading seafood processor and marketer in the US and Canada, also invested USD
10 million, becoming a new shareholder in Andfjord Salmon.

"We are satisfied with our progress and pleased to see reputable industrial
investors recognise this by investing in Andfjord Salmon," said Martin
Rasmussen.

SCIENCE-BASED APPROACH

Andfjord Salmon adopts a science-based approach to land-based fish farming.
Independent research body Nofima documented biological conditions and fish
welfare in the first pool. Nofima's final report, covering the full production
cycle from smolt release to harvest, highlights Andfjord Salmon's comprehensive
welfare and health documentation plan. The report documents numerous operational
welfare indicators, including environmental factors, fish behavior, growth, and
health. Key findings are summarised in the enclosed first-quarter presentation.

"The fish farming industry is under pressure to improve biological conditions,
fish health, and welfare. Although we are still a small player in a large global
industry, this report shows that our land-based flow-through system enables
fish-friendly salmon farming," said Martin Rasmussen.

FIRST QUARTER 2024 FINANCIAL RESULTS

Andfjord Salmon is expanding its Kvalnes facility and had no salmon production
and minimal revenue in the first quarter of 2024. The company reported an
operating loss of NOK 17 million for the first quarter, compared to a loss of
NOK 13.9 million in the same period last year.

PRESENTATION IN OSLO AT 08:00 (CET) TODAY

Andfjord Salmon will provide an operational update and presentation of the
company's first quarter 2024 financial results at 08:00 (CET) today. The
presentation will be held physically in Oslo as well as streamed live to online
viewers.

Venue: Hotel Continental, Stortingsgata 24/26, 0117 Oslo

The webcast presentation can also be watched from this URL: 
https://channel.royalcast.com/landingpage/hegnarmedia/20240529_3/

The presentation will be held in English. The presentation materials are
attached to this announcement.

CONTACTS

 * Investors: Bjarne Martinsen, CFO, Andfjord Salmon AS, +47 975 08 345,
   bjarne.martinsen@andfjord.no 
 * Media: Martin Rasmussen, CEO, Andfjord Salmon AS, +47 975 08 665,
   martin@andfjord.no 

ABOUT ANDFJORD SALMON

Located at Andøya on the Arctic Archipelago of Vesterålen, Norway, Andfjord
Salmon is developing the world's most sustainable and fish-friendly aquaculture
facility of its kind. Through a proprietary flow-through system, Andfjord Salmon
combines the best from ocean and land-based salmon farming. In its first
production cycle, the company achieved an industry-leading survival rate of 97.5
percent, feed conversion ratio of 1.05, superior share of 91.1 percent, and
required 1 kWh to produce one kilo of salmon. Andfjord Salmon has identified a
roadmap towards a production capacity of 40,000 tonnes HOG at Kvalnes, Andøya,
and set a long-term ambition to reach 90,000 tonnes HOG across Kvalnes, Breivika
and Fiskenes at Andøya. For more information, see www.andfjordsalmon.com -
http://www.andfjordsalmon.com/.

ATTACHMENTS

Andfjord Salmon Q1 2024 Presentation 240529.pdf -
https://kommunikasjon.ntb.no/ir-files/17847566/3154/4557/Andfjord%20Salmon%20Q1%
202024%20Presentation%20240529.pdf