Arctic Paper S.A.

Capital/Financing Update • May 4, 2016

Current report number 09/2016

Dated: 4 May 2016

Subject: Plans to obtain financing through a contemplated bond issue orfacilities agreement.

General legal basis:

Art. 56 sec. 1 point 1 of the Act on Public Offerings - insideinformation

Contents:

The Management Board of Arctic Paper S.A. with its registered office inPoznań (the "Company") informs that on 4 May 2016 decided to formallycommence work in connection with the refinancing of the Company's andits subsidiaries' existing indebtedness arising under credit facilityand loan agreements concluded thereby and obtaining alternativefinancing (the "Financing") being considered by the Company. The mainaim of the actions of the Company's Management Board is changing thestructure of financing of the Company's capital group and, inparticular, its centralization facilitating more effective liquiditymanagement and flexible adjustment of the level of financing of theindividual companies.

The Financing being considered envisages the procurement of fundsthrough:

- an issue or issues of bonds denominated in PLN, which the Companywould issue under the bonds issue programme for up to PLN 150,000,000(the "Bonds Issue Programme"); and/or

- senior term and revolving facilities for up to EUR 85,700,000 and PLN47,000,000, which would be granted to the Company by a group of banksand/or credit institutions (the "Facilities"),

whereas the funds under the Financing being considered will be procuredeither jointly under the Bonds Issue Programme and Facilities (in suchcase the amount of the Facilities will be reduced accordingly by thevalue of the bonds issued simultaneously with the procurement of fundsunder the Facilities under the Bonds Issue Programme) or exclusivelythrough the Facilities.

If the Financing is obtained, it will be necessary to establishappropriate security and conclude additional agreements. The ManagementBoard of the Company is considering the possibility of security that isin line with market practice in similar transactions, in particular aregistered pledge or registered pledges over a collection of moveablesand property rights constituting the Company's enterprise or anorganized part thereof (the "Pledge").

In light of the foregoing, the Management Board of the Company will betaking steps to convene an Ordinary Shareholders' Meeting, which isnecessary so that the Pledge can be established.

The above-mentioned decision of the Management Board of the Company is apreliminary decision and may change. In particular, the Management Boardof the Company may decide not to take some or all the steps mentionedabove. Additionally, the Management Board of the Company informs that itis in talks with banks and/or credit institutions with regard to theirparticipation in the Financing, but at present no binding decision inthe matter has been made.

Legal basis for publication:

Art. 56 sec. 1 point 1 of the Act on Public Offerings - insideinformation