Arctic Paper S.A.

Capital/Financing Update • Oct 27, 2020

Current report no. 16/2020

Date of preparation: 27th October 2020

Subject: Revolving Credit Facility Extension

General legal basis:

Art. 17 sec. 1 MAR - inside information

Contents:

The Management Board of Arctic Paper S.A. ("Company", "Issuer") inreference to the current report no.20/2016 dated September 9th, 2016regarding the conclusion between Arctic Paper S.A. and BNP Paribas BankPolska S.A., Santander Bank Polska S.A. and the European Bank forReconstruction and Development (the "Lender") of significant agreementsrelated to the refinancing process of the Company and its subsidiaries("Credit Agreement") and to the current reports no. 19/2019 of August30, 2019 and no. 27/2019 of October 22nd, 2019 about the technicalextension of the validity period of the revolving loan ("RevolvingFacility"), informs that today Lenders have extended the availability ofthe Revolving Facility to the Company until January 31st, 2021, on theconditions adopted so far.

The Revolving Facility was granted to the Company for a total value ofEUR 19,800,000 and PLN 20,000,000 and was made available for the purposeof refinancing of intra-group liabilities of the Company or financing ofintra-group loans.

The extension of the availability of the Revolving Facility for threemonths results from the possibilities considered by the Company and thepossible conditions for the refinancing of the Group's current debt. TheCompany plans to simplify the current debt structure and to furtheroptimize the conditions and reduce the costs of debt service. A possibledecision on the implementation of refinancing and the selection of itsfinal structure will depend on the analyzes conducted by the Issuer andthe current situation on the financial market.

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.