Arctic Paper S.A.

Regulatory Filings • Feb 1, 2021

Current report no. 02/2021

Date: 1st February 2021

Temat: Commissioning of a hydro-power plant Arctic Paper Munkedals

General legal basis:

Art. 17 sec. 1 MAR - inside information

Content:

The Management Board of Arctic Paper S.A. ("Company", "Issuer") inreference to the current report no.06/2018 dated March 13th, 2018regarding the decision to launch an investment in the expansion of thehydro power plant at the Munkedal mill, informs about the completion ofthe investment and the commissioning of the expanded power plant.

The aim of the project was to strengthen the mill's environmentalsustainability and increase the energy self-sufficiency of the mill byincreasing the amount of energy produced by the Arctic Paper Munkedalshydropower plant from 2 to 6 MW.

The value of the investment was SEK 100 million (approx. PLN 45million). The project was financed partly from a loan taken by thesubsidiary Arctic Paper Munkedals Kraft AB and with equity.

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.