Arctic Paper S.A.

Report Publication Announcement • Aug 28, 2017

Current report number 16/2017

Dated: 28 August, 2017

Subject: Bond issue by subsidiary company

Legal basis:

Art. 17 sec. 1 of MAR - inside information

Content:

Management Board of Arctic Paper S.A.("Company", "Issuer") herewithinforms that as at today, it has obtained information that subsidiarycompany Rottneros AB with its seat in Sweden ("Rottneros") has issuedsenior unsecured  bonds   in  the  total amount  of  SEK  400  million(PLN 179 million) with  a  tenor  of 5 years. The aim of the issue is tofinance strategic plans of Rottneros Group and to achieve long-termefficiency of the capital structure.

The  bonds  have  a  floating  interest  rate  of  STIBOR  3m  + 4.15percent  and  mature  in  September  2022.

The  bond  framework  amounts  in  total  to  SEK  600  million (up toPLN 287 million).

Rottneros  intends  to  apply  for  listing  of  the   bonds  on NasdaqStockholm.

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.