Arctic Paper S.A.

Capital/Financing Update • Feb 9, 2017

Current report number 04/2017

Dated: February 9th 2017

Subject: Conclusion of a new factoring agreement by Arctic PaperMunkedals AB as seller and Arctic Paper S.A. as guarantor

General legal basis:

Art. 17 sec. 1 of MAR - inside information

Content:

The management board of Arctic Paper S.A. (the "Company") herebyannounces that on 8 February 2017 Arctic Paper Munkedals AB ("APMunkedals") and the Company concluded a factoring agreement withassignment of receivables arising from an insurance agreement("FactoringAgreement"), which was concluded between AP Munkedals as seller, theCompany as guarantor and BGŻ BNP Paribas Faktoring sp. z o.o. (the"Factor") as factor.

Under the Factoring Agreement, the Factor is to provide factoringservices for AP Munkedals incorporating the acquisition of AP Munkedals'receivables from its counterparties, with the maximum factoring limitgranted to AP Munkedals being PLN 35,000,000 (thirty five millionzlotys). On the basis of the Factoring Agreement, the Company undertookto settle AP Munkedals' liabilities in respect of the FactoringAgreement if AP Munkedals does not settle them in full or part in thetime limit set out in the Factoring Agreement. The Company's undertakingwill remain in force until all the liabilities arising under theFactoring Agreement have been settled, but no later than 36 months afterthe date of its termination, and is limited to PLN 52,500,000 (fifty twomillion five hundred thousand zlotys).

The Factoring Agreement provides for the establishment of the followingsecurity interests, which are standard for agreements of this type:

assignment of present and future receivables from counterpartiesdeclared to the Factor by AP Munkedals;

a blank promissory note with a promissory note declaration; and

power of attorney to the AP Munkedals bank accounts at Bank BGŻ BNPParibas S.A.

The Factoring Agreement does not depart from market standards used insimilar factoring agreements.

The conclusion of the Factoring Agreement is associated with theprocess, which the Company commenced in 2016, of refinancing theexisting indebtedness of the Company and its subsidiaries and with thechange to the structure of financing of the Company's group.

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.