Fjord Defence Group ASA

Capital/Financing Update • Jan 11, 2022

Carbon Transition converts convertible loan position in Arbaflame AS to common shares

Carbon Transition converts convertible loan position in Arbaflame AS to common shares

Oslo, 11 January 2022

Reference is made to the company’s announcement of 7 July 2021 (https://newsweb.oslobors.no/message/537646) regarding its investment of NOK 30 million in a convertible loan to Arbaflame AS. The company is pleased to announce that is has agreed to convert its convertible loan position to common shares in Arbaflame. In connection with the conversion, the company will receive a 4% premium to its initial investment plus accrued interest.

Following the conversion, Arbaflame will have reduced its convertible loans from NOK 316.0 million to NOK 3.7 million. Carbon Transition holds 3.9 million shares in Arbaflame or approximately 4.7% on a fully diluted basis. The newly issued shares have now been registered.

For further information, please contact:

Nils Haugestad, Interim CEO and CFO

nils.haugestad@carbn.no

+47 977 04 439

About Carbon Transition ASA

Carbon Transition ASA ("CARBN") is an investment company listed on Euronext Expand. CARBN has a strategy to invest in companies and technologies which contribute to significant reductions of carbon emissions. The company may also invest more broadly in the "energy transition" space. CARBN has a legacy seismic business operating under the name Axxis Geo Solutions, with both an ocean-bottom seismic contract business and a multi-client data library.

More information on www.carbn.no

About Arbaflame AS

Arbaflame recycles biowaste from sustainable forestry into renewable energy and biochemicals. The company neutralizes coal plants used for balancing power by replacing coal with ArbacoreTM pellets from residual waste (sawdust) from sawmills practicing sustainable forestry. Arbaflame owns the patent covering the steam explosion technology and have developed exclusive and confidential know-how on how to make it work. Arbaflame has built unique experience from extensive full-scale co-firing tests of its ArbaCoreTM pellets to replace coal at several coal fired power plants worldwide. As byproducts from the production process, Arbaflame is also developing chemicals used in bioplastics, food flavoring, polymers, solvents, and fish feed.

More information on www.arbaflame.no