Andfjord Salmon

Earnings Release • Dec 3, 2021

Andfjord Salmon: Pool testing progressing well | Q3 2021 interim financial results

Andfjord Salmon: Pool testing progressing well | Q3 2021 interim financial results

3.12.2021 07:00:01 CET | Andfjord Salmon | Inside information

Andfjord Salmon has successfully completed the extensive test programme of

standard pool functions at the company's first pool. Next step is to initiate

testing of the laminar water flow, which is the heart of Andfjord Salmon's

flow-through technology.

"The test process is providing the answers we wanted. Now we are preparing for

an extensive test programme of the laminar water flow. We are entering a very

exciting period for Andfjord Salmon," says Martin Rasmussen, CEO of Andfjord

Salmon.

COMPLETE INLET PIPELINE AND POOL

In the last few months, Andfjord Salmon has successfully finalised pool

completion activities such as installation of water measurement systems, power

switches and final section of the water intake filter.

The outer section of the water inlet pipeline has also been successfully

installed, meaning that Andfjord Salmon can now source fresh seawater from below

the level where lice and algae live.

In recent weeks, the first pool and inlet and outlet pipelines have undergone an

extensive functional test programme. Its primary purpose has been testing of

pool functions with seawater, plus various equipment and components such as

power adapters, sensors and the filtration system for discharge water. The

technical test results have been consistent and solid.

TEST OF LAMINAR WATER FLOW

Testing of the laminar water flow, which is the heart of Andfjord Salmon's

patented flow-through technology, is the next step for the first pool at

Kvalnes. Preparations have already started, and testing will be ongoing for the

next couple of months.

A flow-through system with laminar water flow reduces energy consumption and

associated costs significantly as there is no need to lift, filter or heat the

seawater. Simply because the seawater is clean and holds a perfect temperature

as it is sourced directly from the nearby Andfjorden.

KVALNES PHASE 2

In addition to the first pool (Phase 1), Andfjord Salmon has also progressed

with further groundwork for the next pools at Kvalnes during the third quarter.

Phase 1 and 2 represents a total production volume of approximately 12,600

tonnes HOG. Further, a recent land purchase agreement has enabled 50 percent

volume expansion at Kvalnes, to 19,000 tonnes HOG at full production (Phase 3).

During the third quarter, Andfjord Salmon has prepared the Phase 2 area for

further excavation through conducting trial blasting.

Q3 2021 INTERIM FINANCIAL RESULTS

Andfjord Salmon is currently developing its first land-based salmon farming

facility, which means that the company does not yet generate revenues.

The company had an operating loss of NOK 11.4 million in the third quarter of

2021 compared to a loss of NOK 4.2 million in the same quarter last year.

In the third quarter, some of Andfjord Salmon's largest shareholders granted the

company a NOK 50 million unsecured shareholder loan at favourable terms (3%

interest and two years' maturity). The loan secures funding for the extended

test period of the first pool and Andfjord Salmon's patented flow-through

technology solution in preparation for smolt release next year.

As of 30 September 2021, Andfjord Salmon held cash or cash equivalents of NOK

36.4 million. This figure does not include NOK 25 million undrawn from the

shareholder loan or a NOK 20 million undrawn credit facility. Neither does the

figure include NOK 11 million in available grants.

PRESENTATION AT 08:00 CET

A presentation on updates to operations will be held at 08:00 CET today. The

presentation material is attached to this announcement. The webcast presentation

can be accessed from this link:

https://channel.royalcast.com/landingpage/hegnarmedia/20211203_1/

DISCLOSURE REGULATION

This is information that Andfjord Salmon AS is obliged to make public pursuant

to the EU Market Abuse Regulation (MAR) Article 17 no. 1. The information was

submitted for publication, through the NTB Kommunikasjon service by the contact

persons listed above.

CONTACTS

* Bjarne Martinsen, CFO, Andfjord Salmon AS, +4797508345,

bjarne.martinsen@andfjord.no

* Martin Rasmussen, CEO, +47 975 08 665, martin@andfjord.no

ABOUT ANDFJORD SALMON

About Andfjord Salmon AS

Located at Kvalnes on the island of Andøya on the Arctic Archipelago of

Vesterålen, Norway, Andfjord Salmon has developed an innovative and sustainable

aquaculture concept for land-based farming of Atlantic salmon, based on a

flow-through technology solution. The company's ambition is to build the world's

most sustainable aquaculture facility of its kind.

Andfjord Salmon AS is listed on Euronext Growth under the ticker ANDF.

www.andfjordsalmon.com - http://www.andfjordsalmon.com/

The information in this announcement is subject to disclosure requirements under

the EU Market Abuse Regulation and Euronext Growth listing rules. The

information was submitted for publication by the contact person set out above.

ATTACHMENTS

Andfjord Salmon Q3 2021.pdf -

https://kommunikasjon.ntb.no/ir-files/17847566/1039/1390/Andfjord%20Salmon%20Q3%

202021.pdf