Norsk Titanium AS — Earnings Release 2023

Aug 30, 2023

Norsk Titanium AS: First half results and financing update

Norsk Titanium AS: First half results and financing update

Oslo, Norway, August 30th 2023: Norsk Titanium AS is in the early stages of commercialization of its leading RPD® metal 3D printing technology, and reports revenue of USD 1.1 million and a loss before tax of USD 5.2 million for the first half 2023. The Company experienced an increase in its activity level with existing and potential customers throughout the first half of 2023, with ongoing efforts set to establish base revenue from serial production parts in all its three current focus markets: Commercial Aerospace, Defense, and Industrial.

“We maintain a record-high activity level moving into the second half 2023. There has been a simultaneous increase in the number of parts identified by existing customers for transition to serial production and new customer development activities that we believe will generate a robust revenue backlog supporting our longer-term revenue forecast.” says CEO Michael J. Canario of Norsk Titanium.

Delays in commercial deliveries to Hittech and final qualification approval from Airbus have pushed anticipated revenues from 2023 into 2024 and reduced expected revenues for 2023 below the previously published revenue range of USD 7-15 million. This delay, however, does not impact the Company’s revenue target of USD 150 million in 2026.

In addition to the strengthening of relationships with its tier-1 customers, the Company has entered into a strategic Collaboration Agreement with ATI, Inc., a global producer of high-performance materials and solutions for the aerospace and defense markets.

“We have seen customers that are using legacy production methods show an increased interest in our RPD® technology, with a goal to diversify their supply chains ahead of an anticipated upcycle in our target markets. We are very excited to now enter a strategic collaboration with ATI, and our two companies will immediately start to jointly assess the opportunities to apply RPD® to the applications and markets served by ATI.” adds Canario.

As previously announced, Norsk Titanium is evaluating additional investments into the Company and other strategic alternatives to secure necessary funding for continued operation. The Company is engaged in discussions with several potential investors to extend the financial runway. Average monthly cash burn in the first half year was USD 1.9 million, and the Company ended the first half with USD 4.1 million in cash. To facilitate continued operations in anticipation of a conclusion of the funding discussions, the Company’s two largest shareholders, Norsk Titanium Cayman Limited and Scatec Innovation AS, have agreed to provide a bridge loan of USD 2 million. This will provide liquidity through the end of September at the current burn rate.

The Company notes that no assurances can be given as to the outcome or timing of ongoing processes to secure additional funding. Should the process of securing funding extend beyond the available cash runway, the Company may not be able to financially support current operations and be required to implement inter alia cost reducing measures and assess continued operations.

CEO Michael Canario and CFO Ashar Ashary will present Norsk Titanium’s results at 15.00 CEST, followed by a Q&A.

Please use the following link to access the presentation: https://channel.royalcast.com/webcast/hegnarmedia/20230830_8

For more information, please contact:

Mike Canario, President and CEO of Norsk Titanium

Email: Michael.Canario@norsktitanium.com

Tel: +1 518 324 4010

Ashar Ashary, CFO Norsk Titanium AS

Email: Ashar.Ashary@norsktitanium.com

Tel: +1 518 556 8966

John Andersen, Chairman of Norsk Titanium AS

Email: John.Andersen@scatec.no

Tel: +47 90 17 40 80

About Norsk Titanium:

Norsk Titanium is a global leader in metal 3D printing, innovating the future of metal manufacturing by enabling a paradigm shift to a clean and sustainable manufacturing process. With its proprietary Rapid Plasma Deposition® (RPD®) technology and 700 MT of production capacity, Norsk Titanium offers cost-efficient 3D printing of value-added metal parts to a large addressable market. RPD® technology uses significantly less raw material, energy, and time than traditional energy-intensive forming methods, presenting customers with an opportunity to better manage input costs, logistics, and environmental impact. RPD® printed parts are already flying on commercial aircraft, and Norsk Titanium has gained significant traction with large defense and industrial customers.

For the latest news, go to www.norsktitanium.com or follow us on LinkedIn.

Important notice:

This information is considered to be inside information pursuant to the EU Market Abuse Regulation (MAR) and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act. The stock exchange announcement was published by Anne Lene Gullen Bråten, Director Finance of Norsk Titanium AS, at the time and date stated above in this announcement.

The distribution of this announcement and other information may be restricted by law in certain jurisdictions. Persons into whose possession this announcement or such other information should come are required to inform themselves about and to observe any such restrictions.

Forward-looking statements

This announcement is not and does not form a part of any offer to sell, or a solicitation of an offer to purchase, any securities of the Company. Copies of this announcement are not being made and may not be distributed or sent into any jurisdiction in which such distribution would be unlawful or would require registration or other measures.

This announcement is for information purposes only and is not to be relied upon in substitution for the exercise of independent judgment. It is not intended as investment advice and under no circumstances is it to be used or considered as an offer to sell, or a solicitation of an offer to buy any securities or a recommendation to buy or sell any securities of the Company.

This announcement contains statements regarding the prospects and growth strategies of the Company. These statements are sometimes identified by the use of the future or conditional tense, or by the use of forward-looking terms such as “considers”, “envisages”, “believes”, “aims”, “expects”, “intends”, “should”, “anticipates”, “estimates”, “thinks”, “wishes” and “might”, or, if applicable, the negative form of such terms and similar expressions or similar terminology. Such information is not historical in nature and should not be interpreted as a guarantee of future performance. Such information is based on data, assumptions, and estimates that the Company considers reasonable. Such information is subject to change or modification based on uncertainties in the economic, financial, competitive or regulatory environments. The Company’s forward-looking statements speak only as of the date of this announcement. Absent any applicable legal or regulatory requirements, the Company expressly disclaims any obligation to release any updates to any forward-looking statements contained in this announcement to reflect any change in its expectations or any change in events, conditions or circumstances, on which any forward-looking statement contained in this announcement is based.

The Company operates in a competitive and rapidly evolving environment; it is therefore unable to anticipate all risks, uncertainties or other factors that may affect its business, their potential impact on its business or the extent to which the occurrence of a risk or combination of risks could have significantly different results from those set out in any forward-looking statements, it being noted that such forward-looking statements do not constitute a guarantee of actual results.