Arctic Paper S.A.

Capital/Financing Update • Feb 8, 2021

Current report no. 05/2021

Date of preparation: 8th February 2021

Subject: Full early redemption of Bonds issued by Arctic Paper S.A.

General legal basis:

Art. 17 sec. 1 MAR - inside information

Content:

The Management Board of Arctic Paper S.A. ("Company", "Issuer") inaccordance with clause 8.5 of the terms of issue of A series bonds (ISINcode PLARTPR00038) ("Bonds"), the issue of which the Company informedabout in the current report no. 24/2016 dated September 30th, 2016,hereby inform about the adoption of a resolution on the early redemptionof all Bonds.

The date of establishing the persons entitled to receive benefits due tothe early redemption of the Bonds is February 22nd 2021. The earlyredemption of the Bonds will take place on March 1st, 2021 ("EarlyRedemption Date").

On the Early Redemption Date the Issuer will redeem 100,000 (in words:one hundred thousand) Bonds with the total nominal amount of PLN58,500,000 (in words: fifty eight million five hundred thousand zloty).The benefit amount per one Bond will be PLN 585 (in words: five hundredeighty five zloty) and will be increased by the accrued interest andpremium calculated in accordance with the terms and conditions of issueof the Bonds.

The purchased Bonds will be redeemed.

Specific legal basis:

Art. 17 sec. 1 of Regulation (EU) No. 596/2014 of the EuropeanParliament and of the Council of 16 April 2014 on market abuse (marketabuse regulation) and repealing Directive 2003/6/EC of the EuropeanParliament and of the Council and Commission Directives 2003/124/EC,2003/125/EC and 2004/72/EC.