Andfjord Salmon

Earnings Release • Aug 23, 2023

Andfjord Salmon: Kvalnes expansion in full momentum

Andfjord Salmon: Kvalnes expansion in full momentum

23.8.2023 08:00:02 CEST | Andfjord Salmon | Non-regulatory press releases

Andfjord Salmon is rapidly advancing with the expansion of its land-based

aquaculture facility at Kvalnes, Andøya. The summer months saw successful

preparatory efforts and the deployment of personnel and equipment, setting the

stage for the next phase of construction.

In mid-June, Andfjord Salmon unveiled the specifics of its expansion plan at

Kvalnes, targeting a total production capacity of 40,000 tonnes (HOG) through a

gradual increase between 2025 and 2030. An initial volumet of 8,000 tonnes (HOG)

is anticipated for 2025.

High levels of activity characterized the summer period, with contractors

accomplishing extensive groundwork spanning several hundred metres. This work

involved injecting concrete to stabilize the sections surrounding the 12 pools

that constitute the upcoming construction phase at Kvalnes. This preparatory

work will help speed up blasting and excavation, contributing to an economically

efficient development process.

Martin Rasmussen, CEO of Andfjord Salmon, explains: "Our approach essentially

involves constructing an ocean-like fish enclosure on land. We leverage bedrock

and topography to ensure a development that is both predictable and expeditious.

This integration of land-based and ocean-based fish farming is a distinctive

aspect of our approach here at Andøya."

During the successful first harvest in late June and early July, lead contractor

AF Hæhre-Contur, began mobilizing equipment and personnel along with

subcontractors. Simultaneously it prepared areas designated for machinery,

equipment, and tools, complementing the ongoing groundwork. These areas include

workshops, tunnel operations, equipment maintenance and cleaning stations.

Rasmussen says: "By timely executing our first harvest as scheduled in

June/July, we substantially mitigated project execution risks for our expansion.

Our primary objective is to increase production capacity to 8,000 tonnes by

2025, accompanied by increased revenues and cash flow. I'm truly impressed by

the swift progress achieved thus far."

Office barracks have been established at Kvalnes for the project administration,

and a site has been prepared for concrete production. In addition, Andfjord

Salmon's Breivik site is being prepared to receive accommodation barracks.

Extensive preparation work was carried out at Kvalnes prior to the first release

of smolt last year in order to prepare the area for the upcoming construction

phase.

Last week, Kvalnes received the machinery, drilling equipment, dumper trucks,

and wheel loaders necessary for excavating the initial twelve pool pits and

transporting materials to the port area. A mass balance approach is being

adopted, whereby excavated masses from pool pits and waterways will be utilised

for port and quay development.

Jostein Nilssen, Andfjord Salmon's project director, says: "The machinery is

already being used to remove and transport excavated masses to the port area.

The efforts undertaken in 2021 and 2022 are yielding remarkable efficiency gains

at present."

In addition to the port infrastructure, Andfjord Salmon will establish waterways

to support the production of 40,000 tonnes of salmon at Kvalnes. The plan is to

commence waterway pre-cutting, followed by tunnelling activities, in September

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 Kvalnes on the island of Andøya on the Arctic Archipelago of

Vesterålen, Norway, Andfjord Salmon has developed an innovative and sustainable

aquaculture concept for land-based farming of Atlantic salmon, based on a

flow-through technology solution. The company's ambition is to build the world's

most sustainable and fish-friendly aquaculture facility of its kind.

Andfjord Salmon AS is listed on Euronext Growth under the ticker ANDF.

www.andfjordsalmon.com - http://www.andfjordsalmon.com/