Fjord Defence Group ASA

Earnings Release • Jul 16, 2020

Axxis Geo Solutions - completion of restructuring

Axxis Geo Solutions - completion of restructuring

Lysaker, 16 July 2020

Reference is made to the Q1 Earnings Release from Axxis Geo Solutions ASA (AGS) dated 27 May 2020, in which AGS announced that the Company was working on a restructuring plan with its key creditors to reduce short-term liabilities.

AGS is pleased to announce that the Company has reached agreement with its key creditors to convert more than USD 34 million of outstanding trade obligations into loan agreements. This will reduce the Company's short-term liabilities and significantly strengthen the Company’s working capital.

The following new arrangements have been agreed:

- USD 24.7 million of accounts payable converted into a tradable and secured

two-year bond loan

o Second-lien security

o Semi-annual interest payments as follows: 4% per annum shall be paid in cash

and either 4% per annum in cash or 4.4% as additional bonds

payment-in-kind), at the Issuer’s option

- Conversion of USD 9.5 million of accounts payable into unsecured loan

agreements

o Interest rate of 4% per annum

o Amortization schedule implying repayment by January 2022

o USD 1.4 million and USD 1.7 million amortization in Q3 and Q4 2020,

respectively

o USD 1.6 million amortization the following quarters

- Maturity on the note payable to TGS extended from September 2020 to

June 2021

AGS has been evaluating a number of alternative restructuring solutions and is of the opinion that the agreed loan agreements represent the best outcome for all of the Company’s stakeholders.

AGS reported one of its strongest revenue quarters in Q1 2020 with segment reporting EBITDA and EBIT margins of 29% and 25%, respectively. This despite a very challenging market. With the agreed restructuring plan, the Company is well positioned for the future but will be dependent on securing additional revenues going forward.

Please see attached presentation for more information regarding the restructuring.

Contacts

Lee Parker, CEO

lee.parker@axxisgeo.com

+1 832 275 7258

Nils Haugestad, CFO

nils.haugestad@axxisgeo.com

+47 977 04 439

About AGS

Axxis Geo Solutions (AGS) is a pure-play ocean bottom node seismic company uniquely positioned to pursue both contract and multi-client seismic. AGS specializes on delivering tailored seismic solutions and flexible project management and execution to oil and gas companies world-wide. Its operations are based on a scalable asset-light setup through chartering of vessels and nodes to complete seismic surveys. AGS is listed on Oslo Axess and traded under the ticker AGS.

More information on www.axxisgeo.com