Atlantic Sapphire

Legal Proceedings Report • Jul 29, 2020

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

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

Miami, Fl, July 29th, 2020

On Tuesday, July 28th, 2020, Atlantic Sapphire’s subsidiary, Atlantic Sapphire USA LLC, was forced to initiate an emergency harvest from one of its growout systems, that was recently stocked despite not being fully commissioned. Other growout systems of the farm were unaffected.

The exact chain of events is still being investigated, however, disruptive construction work close to the operating environment, including loud sounds and severe vibrations, stressed the fish. Additionally, recent challenges of delayed construction and commissioning, in part because of the COVID-19 pandemic impact, have resulted in increased risk in the operation at this time. There is no indication of intoxication or disease being the cause of this event.

The fact that some critical components and functionality of the farm are not yet operational limits the tools the Company has to deal with non-conformities such as quickly moving fish out of systems if needed. The permanent fish movement system is planned to be operational shortly and would likely have mitigated this event.

Close to 200,000 fish with a total weight of approximately 400 tons (HOG) are expected to be harvested, of which approximately 150 tons (HOG) are planned to be sent for processing and will be sold. 200,000 fish account for approximately 700 tons (HOG) of projected harvest, or three to four weeks of US phase 1 annualized revenue. As the permanent emergency harvest facility has not yet been completed, all the fish will not be sold.

This incident demonstrates the challenges of completing construction commissioning of all Bluehouse systems and support functions while in operation, but also the value and importance of having multiple independent systems to diversify biological risk. Upon final completion of the US Phase 1 facility, with the expected annual output of around 10,000 tons (HOG) salmon per year, Atlantic Sapphire will have a total of twelve independent growout systems in the US, limiting the risk and financial impact of any systemic contamination to below 10% of total output and revenue.

The Company is still assessing the complete financial impact of the event, including insurance proceeds. Atlantic Sapphire is still planning first harvest in the US by the end of Q3 2020.

The Company will revert with further details regarding the incident.

For further information, please contact:

Johan E. Andreassen

Chairman, Atlantic Sapphire ASA;

or Karl Øystein Øyehaug

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 enables 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, beginning in Q3, 2020. The company has also 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.