Andfjord Salmon

Earnings Release • Mar 12, 2021

Andfjord Salmon on track with Kvalnes build-out | Q4 and full-year 2020 interim financial results

Andfjord Salmon on track with Kvalnes build-out | Q4 and full-year 2020 interim financial results

12.3.2021 07:00:00 CET | Andfjord Salmon | Additional regulated information

required to be disclosed under the laws of a member state

12 March 2021 - Andfjord Salmon AS remains on track with its Kvalnes

development, which has been significantly de-risked during the fourth quarter

2020 and into 2021.

"The decision we made in December to fast-track the development of the full

Kvalnes area was smart as it reduces both overall project execution risk for the

area development and biological risk for the start pool. This year's successful

hook-up of the first pool has further de-risked the entire project. We are

pleased with the progress we are making," says Martin Rasmussen, CEO of Andfjord

Salmon.

In the fourth quarter 2020, Andfjord Salmon made the decision to go from a

sequential development at Kvalnes to a parallel development of the full Kvalnes

area. The main purpose was to fast-track the development of the production

capacity at Kvalnes from 1,260 tonnes (HOG) to 12,600 tonnes, while at the same

time reducing overall project risk and biological risk for the start pool.

Further, initiating a full area development results in saved expenses related to

de-mobilization and mobilization of required machinery, and does not otherwise

affect total capex.

Subsequent to this decision, Andfjord Salmon conducted a successful private

placement where it raised NOK 88.2 million to fast-track blasting and excavation

work related to the expansion from 1,260 to 12,600 tonnes (HOG) at Kvalnes.

At year-end 2020, Andfjord Salmon held cash or cash equivalents of NOK 148.8

million. This figure does not include a NOK 50 million undrawn credit facility

or NOK 15 million in available grants.

First pool connected with inlet and outlet pipelines

Subsequent to year-end, Andfjord Salmon has, in line with its project plan,

successfully installed the two most time-critical and weather dependent

installations: the water inlet and outlet pipelines for the first pool. Hence,

the most central building-blocks of its flow-through system are now connected to

the surrounding ocean at Andøya.

"Utilising a continuous stream of fresh seawater from the surrounding Andfjorden

is a key element of creating optimal living conditions for our salmon. We are on

track to build the world's most fish friendly and sustainable aquaculture

facility of its kind," says Martin Rasmussen.

Andfjord Salmon is currently finalising electrical and automation installations,

as well as installation of less time-critical pipeline connections, before the

first pool is ready for water testing.

Q4 and full-year results

Andfjord Salmon is currently building up its first land-based salmon farming

facility, which means that that the company does not yet generate a steady

revenue stream. In the fourth quarter 2020, Andfjord Salmon had revenues of NOK

0.18 million versus zero revenues in the same quarter in 2019. The company had

an operating loss of NOK 7.1 million in the fourth quarter 2020 compared to an

operating loss of 2.9 million in the corresponding quarter in 2019.

For the full-year 2020, Andfjord Salmon had revenues of 0.18 million compared to

NOK 1.7 million in 2019. Operating profit in 2020 showed a loss of NOK 19.6

million, compared to a loss of NOK 8.3 million in 2019.

Andfjord Salmon has developed a patented, innovative, and sustainable

aquaculture concept for land-based farming of Atlantic salmon. The company's

facility is escape-proof, lice-free and its innovative multi cleaning system

prevents polluting marine life.

The presentation material for today's Q4 and interim full-year 2020 financial

results presentation, to be held at 08:00 CET, is enclosed to this announcement.

The webcast presentation can be followed from this link:

https://channel.royalcast.com/landingpage/hegnarmedia/20210312_4/

ENDS

DISCLAIMER

This information is subject to the disclosure requirements set out in section

5-12 of the Norwegian Securities Trading Act.

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

Andfjord Salmon has developed an innovative and sustainable aquaculture concept

for shore-based farming of Atlantic salmon. The company's ambition is to build

the world's most sustainable aquaculture facility of its kind. The facility is

escape-proof, lice-free and its highly filtered effluent avoids polluting marine

life.

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

Vesterålen, Norway, the company's first facility is currently under

construction. The company holds a license to produce 12 600 tonnes (HOG) for

land-based farming of Atlantic salmon and has secured rights to land for a

planned expansion of an additional 77,400 tonnes (HOG) production capacity.

Further expansion is subject to the zoning of the land and granting of licenses.

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 AS presentation Q4 2020.pdf -

https://kommunikasjon.ntb.no/ir-files/17847566/381/475/Andfjord%20Salmon%20AS%20

presentation%20Q4%202020.pdf