Fjord Defence Group ASA

Earnings Release • Nov 10, 2021

Carbon Transition announces Q3 2021 Results

Carbon Transition announces Q3 2021 Results

Oslo, 10 November 2021

CEO STATEMENT

“In the third quarter, the Company continued the implementation of its strategy of investing in companies and technologies which contribute to substantial reduction of CO2 emissions. As the ongoing energy crunch and the recent COP26 summit have clearly demonstrated, accelerating the energy transition into large scale industrialization is now on top of the agenda globally. The critical need for change and the political will to enforce it is going to create massive opportunities in the “carbon transition” space. As a listed investment company with a unique access to deal flow within this space, the Company expects to generate substantial shareholder value going forward.

In July, the Company invested NOK 30 million (USD 3.4 million) into a convertible loan in Arbaflame AS, a highly promising company with a proven technology and substantial backlog for their bio waste-based coal replacement fuel solution (ArbaCore). When replacing coal with ArbaCore in coal fired power plants, Co2 emissions are reduced by approximately 90% compared to coal. With a unique and scalable solution, and a massive need for coal replacement world-wide, we believe that Arbaflame is at the start of a very exciting journey, as recently illustrated by Arbaflames letter of intent with the Ministry of Energy of Romania for a coal replacement verification programme, which might lead to a 10-year offtake agreement for 100,000 tonnes per year of Arbacore pellets.

In August, we announced our second investment of approximately GBP 1.3 million (USD 1.7 million) into common shares and options in the UK-based company Power by Britishvolt Limited (“Britishvolt”). Britishvolt is a developer, and future manufacturer, of lithium-ion cell chemistries and batteries for electric cars, established with the aim to meet rapidly accelerating EV demand. Britishvolt is targeting becoming a world leading sustainable, low-carbon battery cell producer. The company has started construction of its first gigafactory in the UK and is experiencing strong political support for its operations.

Carbon Transition has subsequently announced its third investment, and the first strategic entry into the carbon capture market, by investing NOK 40 million (USD 4.7 million) in the leading carbon capture technology company CO2 Capsol AS. The investment offers Carbon Transition shareholders a very attractive exposure to a vast growth sector with a very large global addressable market. With its unique and patented low-cost system and HSE-friendly HPC technology, CO2 Capsol is a highly attractive solution for the carbon capture marketplace.

Looking at the Company’s first three investments, common denominators are typically pre-IPO companies with unique and proven technology, scalable business models, high barriers to entry and a truly global potential. Through our unique network, we are constantly evaluating investment cases which fit the Carbon Transition “bill”.

In the legacy seismic business, the Company successfully completed the previously announced ROV-deployed ocean bottom node survey in the North Sea. Despite the challenges of COVID-19 and associated logistical issues, the survey was completed on time, on budget and without incidents. Although a recovery in the multi-client space is yet to materialize, we are seeing active interest in our “near-field” data libraries and remain optimistic about potential late sales to support our future investments.” says Ronny Bøhn, CEO of Carbon Transition.

EVENTS DURING THE QUARTER

• Change of Company name to Carbon Transition ASA and implementation of new strategic direction

• Two investments made under new strategy

o NOK 30 million (USD 3.4 million) convertible note in sustainable coal replacement manufacturer Arbaflame AS

o GBP 1.3 million (USD 1.7 million) common equity and options investment into leading UK battery cell developer Britishvolt Limited

• NOK 20 million repair offering substantially oversubscribed

• New option program initiated

• Reverse share split 10:1

• North Sea seismic node project successfully completed on time and ahead of budget

• Revenue USD 9.0 million; adjusted EBITDA USD (0.1) million 1)

1)Adjusted EBITDA for Q3 2021 is reflecting operational downscaling cost of USD 0.3 million and restructuring and transaction cost of USD 0.2 million.

SUBSEQUENT EVENTS

• Third investment – NOK 40 million (USD 4.7 million) in carbon capture technology company CO2 Capsol AS

• NOK 35 million equity private placement successfully oversubscribed

• Resignation of CEO

• Wayne Thomson announced as Strategic Advisor in carbon capture area

The third quarter 2021 report will be available at Carbon Transition ASA (www.carbn.no / www.axxisgeo.com) and Oslo Stock Exchange (www.newsweb.com).

For further information, please contact

Ronny Bøhn, CEO

Ronny.Bohn@carbn.no

+47 905 58 517

Nils Haugestad, 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 / www.axxisgeo.com

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.