11.3.2025 07:00:00 CET | Andfjord Salmon | Non-regulatory press releases

Andfjord Salmon Group AS (Andfjord Salmon) today provides an operational update,
highlighting strong progress across all key workstreams at its land-based
aquaculture facility at Kvalnes, Andøya.

The waterway system, initially anticipated to be one of the most technically
demanding aspects of the project, is now 98% complete. The tunnel system beneath
the pool pits is finished, with only 6-7 meters remaining of the outlet waterway
and approximately 70 meters left to complete the inlet waterway. Andfjord Salmon
plans to execute the final breakthrough from the inlet/outlet tunnel to
Andfjorden in Q2 2025.

"Filling the tunnels with water for the first time will mark a significant
milestone in preparing the facility for fish farming operations. This step
brings us closer to realising our vision, and we look forward to achieving this
important breakthrough," says Martin Rasmussen, CEO of Andfjord Salmon.

In this initial build-out phase, Andfjord Salmon is completing four new pools
and developing a new harbour area. The pool construction is advancing in line
with plans and has now reached 65% completion. Installation of the pools'
technical infrastructure is currently at 25% completion. 

The development of the harbour area is also progressing well, now 71% complete.
A temporary breakwater has been constructed to shield ongoing construction work
from waves and currents originating from Andfjorden. Once the harbour and port
infrastructure are fully completed, the outer section of the breakwater will be
removed, allowing vessels to enter and operate within the protected harbour.

 "Construction activity is maintaining strong momentum, and we are in parallel
beginning preparations for infrastructure testing. This marks an exciting phase
in our development. We look forward to keeping our shareholders informed on our
continued progress in the months ahead," adds Martin Rasmussen.

OPTIMIZED BUILD-OUT PLAN

 On 26 February 2025, Andfjord Salmon announced that it had identified an
optimized build-out plan that will enable a 20% increase in production capacity
at its Kvalnes site. This is achieved through optimized pool utilization
including the implementation of a more efficient and gentle fish logistics
system and reinforced concrete walls to enhance water flow. This results in an
expanded production capacity from 8,000 tons to up to 11,000 tons (HOG +
post-smolt) for the current build-out phase (Phase 1) at Kvalnes. The total
production volume under Andfjord Salmon's existing license at Kvalnes is
expected to increase from 19,000 tons to 23,700 tons.

Consequently, the company's blended capital expenditure (CAPEX) per kilogram at
Kvalnes is estimated to be reduced from NOK 114/kg to NOK 105/kg.

FINANCING

Andfjord Salmon is now planning for immediate start of Phase 2a construction
which will allow the company to benefit from construction synergies due to the
continuous process across phases, e.g., through the retention of personnel and
use of equipment already on-site, optimizing the resource usage and accelerate
execution time.

To support the advancement of the company's Phase 2 construction at Kvalnes,
optimization of fish logistics, and preparations for adherence to potential
regulatory changes, Andfjord Salmon has recently raised significant funds,
including:

- Received a term sheet signed by the banks for a NOK 400 million construction
loan.

- Signed a term sheet for the sale of the Kvalnes harbour area, valued at
approximately NOK 400 million, of which 200 MNOK will be used to reduce bank
loan

- Completed a NOK 600 million private placement of new shares.

Further, a leasing facility of NOK 175 million is planned for certain equipment
financing, and an overdraft facility of up to 60% of the borrowing base, which
is expected to be finalized ahead of the first smolt release, is discussed but
not yet committed.

PRESENTATION TODAY AT 08:00 (CET)

Andfjord Salmon will provide an operational update and present the company's
optimized Kvalnes build-out plan at 08:00 today. The presentation will be held
physically in Oslo and streamed to online viewers.

Venue: Haakon VIIs gate 2, Vika, Oslo (Auditorium H2)

The webcast presentation can also be viewed from this URL: 
https://channel.royalcast.com/landingpage/hegnarmedia/20250311_1/

The presentation material is enclosed to this announcement.

CONTACTS

 * Investors: Bjarne Martinsen, CFO, Andfjord Salmon Group AS, +47 975 08 345,
   bjarne.martinsen@andfjord.no 
 * Media: Martin Rasmussen, CEO, Andfjord Salmon Group 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. For more information, see 
www.andfjordsalmon.com - http://www.andfjordsalmon.com.

ATTACHMENTS

250311 Operational update.pdf -
https://kommunikasjon.ntb.no/ir-files/17847566/18451089/5753/250311%20Operationa
l%20update.pdf