Atlantic Sapphire

Investor Presentation • Aug 26, 2021

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Operational Update & Phase 2 Intro First Half 2021 Report August 26, 2021

IMPORTANT INFORMATION

IMPORTANT INFORMATION

This presentation (the "Presentation") has been produced by Atlantic Sapphire ASA (the "Company") exclusively for information purposes. This Presentation has not been approved, reviewed or registered with any public authority or stock exchange. This Presentation is not a prospectus and does not contain the same level of information as a prospectus. This Presentation is strictly confidential and may not be disclosed, in whole or in part, or summarized or otherwise reproduced, distributed or referred to, in whole or in part, without prior written consent of the Company. To the best of the knowledge of the Company and its Board of Directors, the information contained in this Presentation is in all material respect in accordance with the facts as of the date hereof, and contains no material omissions likely to affect its import.

This Presentation contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates or intends to operate. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. None of the Company or any of its subsidiary undertakings or any such person's officers or employees provides any assurance that the assumptions underlying such forward-looking statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the actual occurrence of the forecasted developments. The Company assumes no obligation to update any forward-looking statements or to conform these forward-looking statements to our actual results. Furthermore, information about past performance given in this Presentation is given for illustrative purposes only and should not be relied upon as, and is not, an indication of future performance. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, neither the Company nor any of its parent or subsidiary undertakings or any such person's officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document. Actual experience may differ, and those differences can be material.

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Contents First Half 2021 Update

• US Operations
• US Biological Performance
• Past vs. Present: Incident Risk
• R&D: Trials On Rainbow Trout In Denmark
• Proven Offtake At Premium Pricing…
• …Charting The Path For A Billion Dollar Brand
• First Half 2021 Consolidated Financial Statements
• Summary and H2 2021 Focus Areas
• Phase 2 Intro

US Operations

First Half 2021 Update

Operational status

• Started Q3 2021 with good water quality parameters and biological performance
• Facilities Operation Advisory Board established to prevent future incidents by reviewing and approving all nonstandard procedures
  • Experts with different backgrounds to ensure all risk areas are covered
• Approaching one year of consecutive weekly harvest, currently supplying ~2000 retail locations
  • Continued strong demand for locally raised salmon in the US
  • Stable price achievement for premium Bluehouse salmon
• Unprecedented increase in demand for liquid oxygen related to Covid-19 spike is already impacting US operations
  • Steps currently being taken to minimize risk and reduce oxygen consumption, including controlled harvest of ~100,000 fish (sub-optimal weights) and paused feeding

Focus On Risk Management And Biological Performance

US Biological Performance

First Half 2021 Update

First US batches have mixed performance

• First batches have in periods been exposed to suboptimal conditions, which has negative trickle-down effects later in the life cycle
• Current biomass in the ongrowing systems is being optimized to ensure consistent supply to customers
• Estimating ~3,000t HOG in US harvest volume from the 'H2 2021 fish', half may be pushed into 2022
• Full steady state¹ harvest is expected in H2 2022, lower H1 2022 harvest volumes expected due to lower # of fish (H1 2021 losses)

US Batches introduced from mid-2020 have had stable

conditions and will raise the bar on biological performance

• Important with high smolt quality and to avoid stressors to ensure good biological results in salt water
• Phase 1 conditions now stable after a long period of commissioning efforts and construction challenges

Transitioning To The Batches With Good Production Conditions Through The Life Cycle

1 Steady state: When the Company produces the equivalent of 9,500t HOG of annualized harvest volumes in phase 1 in the given period in the US

Past vs. Present: Incident Risk

First Half 2021 Update

Past: Phase 1 start-up conditions

• 1. Operational risk profile: fragmented subcontractor network, smaller internal team, rapidly growing organization, all operational procedures not established
• 2. Systemic risk profile: Subpar equipment (frequent alarms etc.), unfinished design at construction start, production while constructing in the same systems
• 3. Risk diversification: Six newly commissioned ongrowing systems with six tanks each

Present: Risk mitigation strategies implemented

• 1. Operational risk profile: Critical systems established in-house (design/construction/automation), Facilities Operation Advisory Board overseeing all non-routine work, new Standard Operation Procedures (SOPs) being implemented constantly
• 2. Systemic risk profile: Stable Phase 1 after a long period of commissioning work; Improved equipment/filters/center drains, completed design, multi-prong risk mitigation system (H2S toxicity prevention), fewer alarms and irregularities, experienced workforce
• 3. Risk diversification: Each Phase 1 ongrowing system has been split in two, total of 12 ongrowing systems

Actions Taken Across The Board To Avoid Future Mortality Events

First Half 2021 Update

Testing Rainbow trout as an addition to Atlantic Salmon

Gaining valuable experience with trout as a potential Bluehouse species:

• Trout genetics from bio-secure, land-based sources are now available
• Robust species for RAS, as it tolerates higher temperatures and densities than Atlantic salmon
• Higher JEA index and annual production due to steeper growth curve
  • Shorter cycles could lower risk and cost/kg
• High product quality, silver skin and intense red fillet color
• No modifications needed to Bluehouse infrastructure
• European commodity prices similar to salmon, room to develop the market and premium price achievement

Atlantic salmon vs. Steelhead growth curve

Atlantic salmon vs. Steelhead trout fillet color

Trout May Be An Ideal Species For Bluehouse Farming In The Future

Proven Offtake At Premium Pricing With Strong And Growing Retail Footprint…

US price achievement – premium fish

Consumer acceptance of price premium and good visibility on offtake by existing customers

Positioning work for +7 years resulting in strong relationships and off-take

Several agreements in place with food service players, distributors, restaurants, government contracts and others

1 Bluehouse Salmon store locator is updated 'live' at bluehousesalmon.com/where-to-buy/

2 Atlantic Sapphire price for superior, 3kg+ salmon on Return To Farm basis (excluding freight costs). Fishpool index price converted to USD using Norges Bank fx rates

…Charting The Path For A Billion Dollar Brand

First Half 2021 Update

Brand awareness and recognition

• Generate product desirability and trial
• Strong traction from mainstream media of PR efforts
• Support price premium via differentiated attributes and communication of environmental benefits

Brand development

• Business drivers (metrics and KPI) + Buzz = Sustainable Profitable Growth
• Our mission and brand resonate with consumers
• Engagement levels above benchmark:
  • Social Media, website traffic

Being relevant and top of mind

Meeting consumers at the Point of Sale

Engaging consumers with social media and education

First Half 2021 Consolidated Financial Statements

First Half 2021 Update

		XXX
	H1 2021 financials at a glance
▪	Total harvest volume of 1,275t HOG in the first six months	▪ xxx
	of 2021, up from 989t HOG in FY 2020
▪	Stable and high premium price achievement combined
	with few downgrades in Q2 2021
▪	USD6.3m expensed through cost of materials for
	underutilized Phase 1 plant capacity
▪	Q1 2021 challenges: ~USD7m in temporary chiller and
	generator rental costs following the breakdown of the
	internal chiller plant in Q1 2021
	▪ Insurance and claim process ongoing
▪	NIBD as of June 30, 2021: USD(37.2)m
	▪ USD121m Private Placement in June 2021
	▪ USD20m RCF facility undrawn

Summary and Areas of Focus Going Forward

First Half 2021 Update

Summary

• Operational improvements after a challenging start to 2021
• US batches introduced from mid-2020 are raising the bar on biological performance compared to initial batches
• Incident risk expected to be significantly lower with actions taken
• Approaching one year of US harvest with consistent, strong price achievement

H2 2021 core focus areas

• Phase 2 construction
• Grand Master Plan development
• Fine tuning Phase 1 systems and processing facility

US phase 2 Bluehouse currently under construction

Focus On Execution

Phase 2 Intro

Phase 1 Challenges

1 Approached a large-scale project with a small number of internal staff 2 Reliance on single RAS system supplier with limited experience at a large scale and in the US 3 Prioritized a construction manager with 'local experience' rather than 'large complex water system experience'

Key hires: Management positions Key hire: Role critical to the delivery and operation of the facility.

Key hires: Management positions

! Limitations of RAS-focused design for Salmon Farming

Managing Seven "Design" Consultants

Similar piping, pumping and filtration systems are used for Bluehouse and municipal water treatment construction.

Bluehouse

Phase 2

1,136 mgd¹

Catskill/Delaware UV Disinfection Facility 2,010 mgd¹

1 mgd: million gallons per day

Municipal Water Treatment Requires Design at Large Scale

Commercial Construction Does Not Equal Water Facility Construction

Source: Hazen & Sawyer estimates

!

Design and Construction Team Has Experience in Large Complex Water Systems in Southeast U.S.

Hazen/Wharton-Smith Team: Completed Projects

Project	Location
Snow Hill Rd PS and FM Replacement	Durham County, NC
Leaf River Raw Water Reactor Clarifier	New Augusta, MS
Foley WWQI Fenholloway Pipeline	Georgia-Pacific
Thomas P. Smith WRF	City of Tallahassee, FL
Thomas P. Smith WRF Package 2	City of Tallahassee, FL
Thomas P. Smith WRF Package 2B	City of Tallahassee, FL
Biosolids Dewatering Building	Davenport, FL
Miramar East WTP	City of Miramar, FL
FEMA Pump Stations	City of St. Augustine, FL
Chlorine Gas to Bulk Sodium Hypochlorite Conversion	Orlando Utilities Commission, FL

Phase 2 Takes Advantage Of All Phase 1 Learnings

Continuous Improvement

Atlantic Sapphire has identified over 500 "Possibilities for improvement" that will be incorporated in Phase 2

Our New Phase 2 Delivery and Teaming Approach

Atlantic Sapphire We have changed how we are approaching the project to optimize quality and efficiency Hazen and Sawyer Top construction contractor for water systems Leaders in aquaculture fish movement, feed, filtering and farming Establishing criteria for Bluehouse Farming Leading design consultant in water treatment industry Wharton-Smith Aquaculture industry partners Phase 2

Phase 2 Approach Is The Solution To The Phase 1 Challenges