Arctic Paper S.A.

Report Publication Announcement • Apr 4, 2018

Current report number 07/2018

Dated: April 4th 2018

Subject: One-off events affecting the results of Arctic Paper SA andArctic Paper Capital Group

General legal basis:

Art. 17 sec. 1 of MAR - inside information

Content:

The Management Board of Arctic Paper S.A. (the "Company") hereby informsthat in reference to the ongoing audit of standalone and consolidatedannual financial statements for 2017 and conducted impairment test onassets of Arctic Paper Investment AB (company owning 100% of shares inArctic Paper Grycksbo AB), as of today a decision was taken towrite-down the value of impaired shares amounting to approximately PLN24 million on consolidated level and of PLN 42 million on standalonelevel.

The abovementioned write-down is a result of the change of assumptionsof the impairment test (conducted according to the discounted cash-flowsmethod) as to the production volume, sales prices and plannedinvestments. The impairment write-down will decrease the gross resultand assets value in the consolidated and standalone financial statementsof the Company for 2017.

In the same time, the Management Board informs about the today'sdecision to change the assumptions regarding estimated useful life ofassets in its subsidiary Rottneros AB(seated in Sweden) resulting frompurchase price allocation of that entity, effectively the totaldepreciation cost for 2017 and 2016 will be adjusted.

As a result of that change, the depreciation cost of 2017 will decreaseby PLN 19 million, which in turn will increase the gross consolidatedresult of the Group for 2017.

The depreciation cost for 2016 will be decreased by approximately PLN 19million, which will result in an increase of consolidated equity of theCompany via the retained earnings.

The Management Board of the Company indicates that as at the date ofpublication of this report the 2017 annual audit of consolidated andstandalone financial statements of the Group and the Company has notbeen finalized, therefore the final amount of the impairment write-downand depreciation adjustment will be presented in the consolidated andstandalone financial statements of the Company for 2017 which will bepublished on the 9th of April 2018.

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.