Bakkafrost P/f

BAKKAFROST: Update on the continued effects from previously disclosed biological challenges

With reference to the announcement made 9 November (NewsWeb

(oslobors.no) (https://newsweb.oslobors.no/message/546255)) regarding the

quarterly results for Q3 2021, an update is given on the previously disclosed

biological challenges and the effects on Bakkafrost's expected results in Q4

As disclosed in the presentation of the quarterly results for Q3 2021,

Bakkafrost incurred severe biological issues in its farming operation in

Scotland in Q3 2021. The biological issues increased in late September and

continued into Q4 2021. Consequently, Bakkafrost has accounted for exceptional

mortality of 174.6 mDKK in total in October and November 2021, mainly caused by

the biological issues in Scotland. After write-down of the exceptional

mortality, preliminary numbers indicate an operational EBIT for the Bakkafrost

Group in October and November 2021 combined of around 52 mDKK.

The main root-cause for the mortality in Scotland is compromised gill health in

combination with secondary complications, such as blooms of micro

-jellyfish/hydrozoans and fish handling during necessary treatments. The overall

biological situation improved during November and stabilised further in

December.

As part of the 5-year investment programme, announced on the Capital Markets Day

in September 2021, Bakkafrost will more than tripple the freshwater treatment

capacity in 2022 with two new wellboats with large freshwater treatment

capability. These vessels are expected to be in operation in Q2 and Q3 2022

respectively and will play an important role in mitigating compromised gill

health, hence improving overall fish health and significantly reducing risk of

mortality caused by secondary complications.

The Group's guidance on harvest volume for 2021 of 96,000 tonnes head on gutted

weight is maintained and Bakkafrost expects to release the trading update for Q4

and full year 2021 around 4 January 2022.

Contacts:

· Regin Jacobsen, CEO of P/F Bakkafrost: +298 235001 (mobile)

· Høgni Dahl Jakobsen, CFO of P/F Bakkafrost: +298 235060 (mobile)

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

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