Arctic Paper S.A.

Regulatory Filings • Sep 25, 2020

Current report number 14/2020

Dated: September 25th 2020

Subject: New technologies in Arctic Paper Kostrzyn S.A. co-financed bythe National Center for Research and Development

General legal basis:

Art. 17 sec. 1 of MAR - inside information

Content:

The Management Board of Arctic Paper S.A. ("Company", "Issuer") informsthat it has received an information about the signing by the subsidiaryArctic Paper Kostrzyn S.A. ("Subsidiary") of the agreement ("Agreement")with the National Center for Research and Development ("NCBiR") forco-financing the project entitled "Development and implementation of atechnology for the production of high-barrier biodegradable packagingpaper" as part of the Intelligent Development Operational Program2014-2020 ("Project").

The total net value of the project is PLN 20,224,638.37, with themaximum grant amount of PLN 8,343,568.42. The Subsidiary will cover theremaining expenses related to the project with own funds.

The aim of the project is to develop and implement a technology for theproduction of a new product, which will be high-barrier biodegradablepackaging paper. Product innovation will introduce to the segment ofpackaging papers products characterized by high barrier properties andbiodegradable, combined with maintaining the properties of high-qualityprinting, which will allow the extension of the range of products toinclude packaging papers with special properties and improve achievedmargins.

The cost eligibility period for the Project starts on September 1st,2020 and ends on May 31st, 2023.

The subsidiary undertook to ensure the sustainability of the effects ofthe Project financed with structural funds for a period of 5 years fromthe date of completion of the Project (project duration). The subsidiaryis obliged to achieve the assumed objectives and indicators of theProject, specified in the application for co-financing, as well as toimplement the full material scope of the Project and implement theresults of industrial research and development works within 3 years fromthe end of the Project, in accordance with the application forco-financing. The terms of the Agreement do not differ from commonlyused terms in this type of agreements.

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.