Salmon Evolution ASA — Capital/Financing Update 2021

Apr 16, 2021

Salmon Evolution Holding ASA - Signed committed term sheet for NOK 625 million debt financing package

Salmon Evolution Holding ASA - Signed committed term sheet for NOK 625 million debt financing package

Salmon Evolution Holding ASA ("Salmon Evolution" or the "Company", OSE: SALME)

refers to the Company's report for the fourth quarter 2020 published on 2 March

2021 where it was stated that the Company expected to finalize a committed term

sheet for long term bank debt financing by Q2 2021.

Salmon Evolution is pleased to announce that it has now entered into a committed

term sheet (the "Term Sheet") with Nordea as agent and Sparebanken Vest as co

-lender (jointly the "Lenders") for a senior secured debt financing package of

up to NOK 625 million relating to its phase 1 build out at Indre Harøy.

The debt financing package consists of the following credit facilities:

· NOK 525 million senior secured credit facility which will be used to finance

construction capex for Indre Harøy phase 1 (the "Construction Facility")

· NOK 525 million in long term debt which will refinance the Construction

Facility upon completion of Indre Harøy phase 1 and consisting of the following:

· NOK 385 million senior secured term loan facility with the Lenders (the

"Term Loan Facility")

· NOK 140 million in a separate long term loan facility with a third-party

lender (the "Third-Party Loan"). The Third-Party Loan will be subject to a

coordination agreement with the Lenders and the Company has a separate process

ongoing to secure and finalize this facility

· NOK 100 million senior secured overdraft facility (the "Overdraft Facility")

which will be used for working capital purposes, hereunder financing of biomass

and receivables

The Construction Facility and the Term Loan Facility is partly guaranteed by the

Norwegian Export Credit Guarantee Agency ("GIEK").

The Term Loan Facility will be repaid over a 15 year profile and have a 3 year

term from completion of Indre Harøy phase 1 with 2x1 year extension options.

Mr. Håkon André Berg, CEO of Salmon Evolution comments:

"The finalization of this committed term sheet at commercial terms deemed very

competitive, is yet another major milestone for Salmon Evolution and secures a

fully funded platform for our committed projects. We are very grateful for the

support shown by the Lenders and GIEK and view this as a solid testament to

Salmon Evolution's technology approach and overall business model".

Ms. Louise Haahjem, Head of Business Banking Seafood in Nordea further comments:

"We have followed Salmon Evolution's development with great interest for a long

time and are very happy about being able to contribute to the realization of

such a ground-breaking project. The combination of a strong industrial

ownership, solid management team, strong ESG profile and a conservative but yet

disruptive business model fits very well with Nordea's ambitions of being a

leading financing partner for the Norwegian seafood industry".

Credit committee approvals have been undertaken by both the Lenders and GIEK and

the debt financing package is further subject to customary conditions precedent,

including due diligence and finalization and signing of legally binding

documentation.

The Company expects closing of the respective facilities during Q2 2021.

For further information, contact:

Håkon A. Berg

CEO, Salmon Evolution

+47 411 92 257

Trond Håkon Schaug-Pettersen

CFO, Salmon Evolution

+47 911 91 327

About Salmon Evolution

Salmon Evolution is a Norwegian land-based salmon farming company focused on

extending the ocean's potential by transferring the best preconditions offered

by the sea to farm fish on land through its hybrid flow-through system

technology (HFS). This secures a truly sustainable production process with

controlled and optimal growth conditions and limiting operational and biological

risk.

The Company's first production facility is under construction at Indre Harøy,

strategically located on the Norwegian west coast with unlimited access to fresh

seawater, renewable energy, established infrastructure for salmon farming, and

an educated and experienced work force. The entire project is designed for an

annual capacity of approx. 31,500 tonnes HOG.

The Company has also entered into a joint venture with Dongwon Industries where

the parties will develop, construct and operate a land-based salmon farming

facility in South Korea with an annual production capacity of 16,800 tonnes HOG,

using Salmon Evolution's HFS technology.

Salmon Evolution Holding ASA is listed at Euronext Growth under the ticker

SALME.

To learn more, please visit www.salmonevolution.no.