Arctic Paper S.A.

Report Publication Announcement • Nov 15, 2018

Current report number 21/2018

Dated: 15th November 2018

Subject: Plans for the closure of paper machine at Arctic Paper GrycksboAB mill in Sweden

Legal basis:

Art. 17.1 of MAR - inside information

Content:

The Management Board of Arctic Paper S.A.("Company", "Issuer") herewithinforms that it took a decision to open a process of planned closure ofpaper machine no. 7("PM7") located in paper mill Arctic Paper GrycksboAB in Sweden.

The paper machine subject for closure (PM7) produces coated paper andhas a capacity of 45,000 tons out of a total capacity of 265,000 tonnesin Grycksbo. Capacity utilization in PM7 has been low in recent yearsand PM7 is less efficient and more expensive to operate than the othertwo paper machines in Grycksbo.

Planned closure of PM7 and following redundancies (approximately 25positions will be subject to notice for lay off) according to theSwedish regulations are to be subject to the negotiations with the unionrepresentatives.

The Management Board anticipates that the plan will be implementedduring the first quarter of 2019. The lower manning will result in alower cost structure which will have an impact on Group results in thesecond half of 2019.

Specific legal basis:

Art. 17.1 of Regulation (EU) No. 596/2014 of the European Parliament andof the Council of 16 April 2014 on market abuse (market abuseregulation) and repealing Directive 2003/6/EC of the European Parliamentand of the Council and Commission Directives 2003/124/EC, 2003/125/ECand 2004/72/EC.