Borregaard — M&A Activity 2015

Dec 17, 2015

Borregaard: Definitive agreement regarding new lignin plant in Florida completed and signed

Borregaard: Definitive agreement regarding new lignin plant in Florida completed and signed

Reference is made to the stock exchange notice dated 15 June 2015. The

definitive agreement regarding the establishment of a new lignin operation at

the Fernandina Beach site in Florida has now been completed and signed by both

parties, Rayonier Advanced Materials (RYAM) and Borregaard.

A final decision by the boards of both companies on whether to proceed with the

project is anticipated in mid-2016, after completion of final engineering,

securing of local and state incentives, refinement of the capital cost

structure, and applicable permit approvals by applicable state and local

agencies.  The new company, LignoTech Florida LLC, is expected to commence

operations in the first quarter of 2018, after completion of the first

investment phase.

Sarpsborg, 17 December 2015

Contact:

Director Investor Relations, Jørn Syvertsen, +47 958 36 335

This information is subject to the disclosure requirements pursuant to Section

5-12 of the Norwegian Securities Trading Act.

[HUG#1974221]