Salmon Evolution ASA — Capital/Financing Update 2022

Feb 7, 2022

Salmon Evolution initiates preparations for Indre Harøy phase 2 - signs Heads of Terms with Artec Aqua

Salmon Evolution initiates preparations for Indre Harøy phase 2 - signs Heads of Terms with Artec Aqua

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

pleased to announce that it has entered into a Heads of Terms with Artec Aqua

for the planning of the phase 2 build-out at Indre Harøy. Phase 2 is expected to

in principle be identical to phase 1 and add a further 7,900 tons HOG of annual

production, bringing the total planned production volume to 15,800 tons HOG per

annum.

Artec Aqua is the turnkey supplier for Salmon Evolution's phase 1 project at

Indre Harøy where the first smolt is expected to be released during March 2022

and with the full facility currently expected to be completed in Q4 2022.

The purpose of the Heads of Terms is to enable Salmon Evolution to be in a

position to swiftly commence construction of phase 2 following the completion of

phase 1. Such timeline requires significant preparatory activities, including

but not limited to, planning, concept and detailed engineering and structuring

of subcontractor tender processes.

Additionally, this preparatory phase will focus on leveraging the know-how and

experiences gained from phase 1, facilitating implementation of identified areas

of improvement, both from a biological, operational and financial perspective.

Given the timeline with first groundworks commencing after completion of phase

1, the parties should also be able to implement learning effects obtained during

the first 12 months of production.

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

"As the phase 1 build out at Indre Harøy now is nearing completion, we are very

pleased to start the preparations for phase 2 construction. Phase 2 will stand

on the shoulders of a successful phase 1 ramp-up and together with Artec Aqua we

expect to realize significant efficiency gains while at the same time being able

to continue optimizing the facility."

The Heads of Terms further sets out the main commercial terms to be reflected in

a final design and construction agreement between the parties. Capex for phase 2

is currently estimated to NOK 1.3 - 1.4 billion, reflecting both copy effects

from phase 1 as well as general inflation and increased raw material prices,

with final capex target expected to be set in 2H 2022.

The final design and construction agreement is expected to be effectuated during

first half of 2022 and will include financing reservations providing Salmon

Evolution with the necessary flexibility to align the phase 2 build out with the

Company's overall financing plan.

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 chosen 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 chosen HFS technology.

Salmon Evolution ASA is listed on Oslo Børs under the ticker SALME.

To learn more, please visit www.salmonevolution.no