Arctic Paper S.A.

Regulatory Filings • Dec 15, 2017

Current report number 19/2017

Dated: 15 December 2017

Subject: Investment in Arctic Paper Kostrzyn S.A. - increase ofproduction capacity in the Mill

Legal basis:

Art. 17.1 of MAR - inside information

Content:

The Management Board of Arctic Paper S.A.("Company") herewith informsthat on 14 December 2017, together with the Supervisory Board it took adecision to launch an investment project in the Company's subsidiaryArctic Paper Kostrzyn S.A. with the aim to expand the latter'sproduction capacity by modernising the Mill.

The aim of the project is to increase the Mill's annual productioncapacity to 315,000 tonnes of fine paper, compared to 285,000 tonnestoday. The investment, estimated at approximately EUR 10m (approx. PLN42m), will be financed with funds from tranche B of the investment loanfrom the European Bank of Reconstruction and Development (the Companyinformed about the conclusion of the investment loan facility agreementin its current report No. 20/2016 dated 9 September 2016). The projectis planned for completion in the first half of 2019.

Apart from expanding the Mill's capacity, the planned investment willincrease the resource and operating efficiency of the Kostrzyn Mill. Itwill increase competitiveness of the Group's products and influencefuture operational results of the Group.

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.