Clean Seas Seafood Limited

Environmental & Social Information • Aug 2, 2022

3 August 2022

Clean Seas and CH4 Commence Asparagopsis Collaboration

• Clean Seas and CH4 to assess the methane mitigation potential of Asparagopsis at Clean Seas' Arno Bay hatchery
• The innovative R&D collaboration seeks a sustainable solution to offset the carbon and nitrogen typically generated through aquaculture farming
• Clean Seas will make available existing infrastructure at its Arno Bay hatchery, whilst CH4 will contribute the funding and resources required to operate the facility
• A successful outcome would provide significant ESG benefits to both aquaculture and agriculture, and reduce Clean Seas' cost of production

Clean Seas Seafood Limited ("Clean Seas" or "the Company")(ASX: CSS, OSE: CSS), the global leader in full cycle breeding, production and sale of Yellowtail Kingfish, and CH4 Australia Pty Ltd ("CH4"), licensee and technology leader for the production and harvest of Asparagopsis for methane mitigation in livestock are pleased to announce an R&D collaboration into the propagation and commercial grow out of Asparagopsis.

Asparagopsis armata and asparagopsis taxiformis are species of marine algae which occur naturally in the waters of Spencer Gulf, South Australia, the use of which as a feed ingredient has been shown to significantly reduce the methane output of livestock with the potential to increase their productivity.

Clean Seas and CH4 believe that the complementary production of Kingfish and Asparagopsis represents an opportunity to offset the carbon and nitrogen output of aquaculture while at the same time expediting the growout to harvest of Asparagopsis.

As part of this R&D collaboration, Clean Seas will provide infrastructure and nutrient enriched water at its Arno Bay hatchery, and CH4 will provide the intellectual property and operating capability to propagate and harvest pilot commercial quantities of Asparagopsis at Clean Seas' facility. CH4 will immediately begin site preparation activities and the pilot program is expected to run for an initial period of three years, with options to extend for further periods. The estimated revenue to be generated, and the quantity of methane, carbon and nitrogen to be abated is not quantifiable at this stage, however these factors will be disclosed to the market once known. The collaboration will not impact Kingfish production on site.

If successful, the study is expected to confirm Asparagopsis as a suitable feed ingredient that can significantly reduce methane output from livestock, and while grown in synergy, have the potential to reduce the nitrogen and carbon footprint of Kingfish production, and reduce cost of production. Both CSS and CH4 strongly believe in the future opportunities associated with the blue economy with a focus on the sustainable use of ocean resources for economic growth, improved livelihoods and job creation, and the preservation and health of the ocean's ecosystem.

Clean Seas Seafood Limited | ABN 61 094 380 435 CH4 Global & CH4 Australia Pty Ltd 7 Frederick Road, Royal Park SA 5014 | PO Box 3316, Port Adelaide SA 5015 Suite 30, T8Tonsley 6 MAB Eastern Promenade The collaborative farming of Kingfish and Asparagopsis represents an exciting opportunity to further this work and to establish a sustainable aquaculture hub on the Eyre Peninsula of South Australia.

Clean Seas' CEO Rob Gratton said "Clean Seas is justifiably proud of its sustainability credentials. Growing a native species of Yellowtail Kingfish in its natural waters gives us substantial quality and provenance benefits, but we are always looking to the future of sustainable aquaculture. This R&D collaboration provides us with the opportunity to encourage a new and emerging industry with the potential for meaningful environmental benefits for aquaculture and agriculture into the future."

CH4 CEO Dr Steve Meller said "We are excited to have finalised this agreement with Clean Seas Seafood. This is exactly the kind of innovation collaboration CH4 is pioneering in Australia and New Zealand. It is also an example of how Australian aquaculture businesses can work together on sustainable and strategic utilisation of ocean resources. As we further scale our commercial supply of Asparagopsis supplements, such collaboration also diversifies our portfolio of harvesting assets which already span tank and marine operations."

Authorised for release by the Board of Clean Seas Seafood Limited and CH4 Australia Pty. Ltd.

For further information on Clean Seas Seafood, please contact:

Rob Gratton	Andrew Angus
CEO	Investor Relations
rob.gratton@cleanseas.com.au	andrewangus@overlandadvisers.com.au
+61 434 148 979	+61 402 823 757

About Clean Seas Seafood

Clean Seas Seafood is a fully integrated Australian Aquaculture business listed on the Australian Securities Exchange (ASX) and with a secondary listing on Euronext Growth Oslo (OSE) – the leading exchange for high growth seafood companies.

Clean Seas is the global leader in full cycle breeding, farming, processing and marketing of its Hiramasa or Yellowtail Kingfish (Seriola lalandi) and is renowned amongst leading chefs and restaurants around the world for its exceptional quality.

Clean Seas is recognised for innovation in its sustainable Yellowtail Kingfish farming and has become the largest producer of aquaculture Yellowtail Kingfish outside Japan.

Clean Seas is headquartered at its processing facility in Royal Park in Adelaide, South Australia while its hatchery is at Arno Bay and its fish farms are at Port Lincoln, Arno Bay and Fitzgerald Bay on the Eyre Peninsula of South Australia.