Atlantic Sapphire

Regulatory Filings • Mar 1, 2020

Atlantic Sapphire AS - Incident in Atlantic Sapphire’s Denmark facility

Atlantic Sapphire AS - Incident in Atlantic Sapphire’s Denmark facility

Miami, Florida, March 1st, 2020

On Saturday, February 29th, 2020, Atlantic Sapphire’s subsidiary, Atlantic Sapphire Denmark A/S, experienced a mortality event in one of its grow-out systems. Other portions and systems of the pilot farm were unaffected due to the segregation design to have various independent systems.

Preliminary analysis, subject to further verification over the next days, indicates higher nitrogen levels than desired as the cause of the event, which has been addressed in a design modification. Other systems in the Danish pilot farm and the US-based main facility had already been modified or are in the process of being modified to avoid future events.

Approximately 227,000 fish were lost, pushing the next harvest revenue back by about 4 months. The value of the biomass represented by the affected fish is insured, but the Company is still assessing the complete financial impact of the event.

This incident demonstrates the importance and challenges of finishing commissioning of all BluehouseTM systems while already in operation as well as the value of having multiple independent systems for biological risk diversification reasons. At the same time, the Company’s strategy to have its Danish pilot farm as R&D facility proves immensely valuable in testing designs and identifying issues in this first and largest ever land-based, RAS salmon farm in the world.

Upon completion of the US Phase 1 facility this year, with the expected annual output of 10,000 tons (HOG) salmon per year, Atlantic Sapphire will have a total of six independent grow-out systems in the US alone, limiting the risk of any systemic contamination to only about 15% of total output.

The Company will revert with further details regarding the incident.

For further information, please contact:

Johan E. Andreassen

Chairman, Atlantic Sapphire AS;

or Karl Øystein Øyehaug

Finance Director, Atlantic Sapphire AS

investorrelations@atlanticsapphire.com

About Atlantic Sapphire AS

Atlantic Sapphire is pioneering BluehouseTM (land-raised) salmon farming, locally, and transforming protein production, globally. Atlantic Sapphire has been operating its innovation center in Langsand, 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 BluehouseTM farming in Miami, Florida. The company is well underway with construction 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, annually.

This information is subject to the disclosure requirements pursuant to the Continuing Obligations for companies listed on the Merkur Market.