Atlantic Sapphire

Environmental & Social Information • Mar 24, 2021

Atlantic Sapphire ASA: Incident in Atlantic Sapphire’s US facility

Atlantic Sapphire ASA: Incident in Atlantic Sapphire’s US facility

Miami, Fl, Mar 23, 2021

On Tuesday, March 23, 2021, Atlantic Sapphire USA LLC, a wholly owned subsidiary of Atlantic Sapphire ASA (the “Company”), had an incident in one of its grow out systems at Miami facility. The other systems were unaffected.

The Company’s preliminary analysis, which remains subject to change, indicates that an identified design weakness from its RAS supplier caused significant amounts of particles to flow from the drum filters (particle filtration systems) into the biofilters and trickling filters. This resulted in elevated turbidity and possibly gasses; and caused abnormal fish behavior. Fish gathered at the bottom of the tanks, disrupting the flow of new water, causing increasing mortality.

The Company has, from a previous incident, identified an opportunity to ensure undisrupted water flow by modifying the center drain design in all of its grow out tanks. This work had already started prior to this incident. The center drain in the affected system had not yet been modified. Keeping an undisrupted water flow is critical to the operation of a RAS system.

As earlier communicated, the Company is in the process of splitting its US phase 1 grow out systems in half in order to reduce the impact of a potential incident. Currently, four out of six systems have been split. The splitting of the affected system has not yet been completed.

500 tons (HOG) of fish is expected to be lost, equivalent of around 5% of annualized phase 1 harvest volumes, with an average weight of approximately 1kg. The incident comes in addition to the temporary challenges due to maturation and contractor workmanship but will not affect the continuity of supply to customers.

For further information, please contact:

Johan E. Andreassen

Chairman, Atlantic Sapphire ASA;

Karl Øystein Øyehaug

Chief Financing Officer & Managing Director, Atlantic Sapphire ASA

investorrelations@atlanticsapphire.com

About Atlantic Sapphire ASA

Atlantic Sapphire is pioneering Bluehouse® (land-raised) salmon farming, locally, and transforming protein production, globally. Atlantic Sapphire has been operating its innovation center in Denmark since 2011 with a strong focus on R&D and innovation to equip the company with technology and procedures that enable the company to commercially scale up production in end markets close to the consumer.

In the US, the Company has since 2010 worked to identify and permit the ideal location for Bluehouse® farming in Miami, Florida. The Company is close to completion of its phase 1 build out which is projected to harvest approximately 10,000 tons of salmon annually and performed its first commercial harvest in the US in September 2020. The Company has secured the key US water permits to produce up to 90,000 tons onsite, and has a targeted harvest volume in 2031 of 220,000 tons.