Arctic Paper S.A.

Share Issue/Capital Change • May 20, 2025

Current report no 10/2025

Date: 20th May 2025

Subject: Issuance of shares by a subsidiary Rottneros AB and the Issuer's undertaking to acquire shares of the new issue

General legal basis: Art. 17 sec. 1 of MAR – inside information

The Management Board of Arctic Paper S.A. ("Company", "Issuer") hereby announces that on 20th May 2025 it received information that the Board of Directors of the subsidiary Rottneros AB ("Rottneros") decided to issue new shares with subscription rights to the existing shareholders of Rottneros worth approximately SEK 300 million ("Rottneros Issue"). The resolution of the Board of Directors of Rottneros on the issue of new shares will be subject to approval by the Extraordinary General Meeting of Shareholders of Rottneros, which will be held on 12 June 2025.

At the same time, the Management Board of Arctic Paper S.A. informs that after obtaining the consent of the Supervisory Board of the Company, on 20th May it has incurred an obligation towards Rottneros concerning the Company's participation in the issue of new shares in Rottneros and the full exercise of its subscription rights related to the Rottneros shares held, as well as a guarantee of submitting a subscription for the remaining newly issued shares, in the event that they are not acquired by other shareholders under their subscription rights or by other investors.

The Company, holding 51% of the shares in Rottneros, declares that it intends to acquire the shares of the new issue to which it is entitled under the subscription rights.

The maximum value of the Company's incurred liability in connection with the Rottneros Issue will not exceed SEK 300 million and in the Issuer's opinion has been established on market terms.

The purpose of the issue of new shares by Rottneros is to reduce the financial leverage ratio and strengthen the financial situation of the subsidiary.

Details regarding the terms of the Rottneros Issue will be provided by Rottneros in a separate communication.

Specific legal basis:

Art. 17 sec. 1 of Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive

2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC.