Salmon Evolution ASA — Capital/Financing Update 2023

Mar 29, 2023

Salmon Evolution ASA - Signed agreement for new NOK 1,550 million green debt financing package

Salmon Evolution ASA - Signed agreement for new NOK 1,550 million green debt financing package

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

pleased to announce that it has entered into a binding loan agreement with DNB

and Nordea (the "Lenders") for a new green debt financing package totalling NOK

1,550 million relating to phase 1 and 2 at Indre Harøy.

The new debt financing package consists of the following facilities:

· NOK 525 million non-amortizing Term Loan Facility which will refinance the

Company's existing NOK 525 million construction loan relating to phase 1 (the

"Term Loan")

· NOK 250 million RCF Capex Facility available for general corporate purposes

including Indre Harøy phase 2 capex (the "RCF Facility")

· NOK 775 million Construction Facility available for financing of capex

relating to phase 2 at Indre Harøy (the "Construction Facility")

The new debt financing package is the result of a thorough process with strong

interest from a number of leading banks following the Company's strong

operational development over the last year and will have several positive

effects for the Company:

· Improved cash flow following the refinancing of the Company's existing

construction loan into a non-amortizing term loan

· Significantly lower margin

· Significant financial flexibility to finance early phase 2 capex at Indre

Harøy

All facilities have a 3 year term with 2x1 year extension options. Furthermore,

the debt financing package allows for an increase of the Company's existing

overdraft facility related to working capital financing from current NOK 100

million to NOK 300 million.

Indre Harøy phase 2 capex is currently estimated to NOK 1,600 - 1,700 million

with the new RCF Facility and Construction Facility representing a total

financing of NOK 1,025 million, implying an incremental loan to value of around

60-65%. The remaining capital requirements are planned financed by cash at hand,

operational cash flow, equity or other sources.

The Company has not taken any material investment decision or entered into any

definitive construction agreement as to Indre Harøy phase 2 and maintains full

flexibility both as to timing and spending. Furthermore, upon a potential

investment decision, the Company currently expects moderate investments the

first 6-9 months of the project.

The RCF Facility will be fully available upon closing which is expected during

April 2023 providing the Company with significant flexibility to finance early

phase 2 capex. Utilisation of the Construction Facility is subject to customary

conditions, including sufficient new equity demonstrating that phase 2 is fully

financed as approved by the Lenders.

As stated in the Q4 2022 report, the Company is on track for profitable farming

operations in Q2 2023 and steady state production from late Q3 2023.

For further information, contact:

Trond Håkon Schaug-Pettersen

CEO, Salmon Evolution

+47 911 91 327

About Salmon Evolution

Salmon Evolution is a Norwegian land-based salmon farming company targeting a

production capacity of 100,000 tonnes HOG by 2032. The Company's core focus is

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 strategically located at Indre Harøy

on the Norwegian west coast with unlimited access to fresh seawater, renewable

energy, established infrastructure, and an educated and experienced work force.

Phase 1 is already in operation and will have an annual capacity of 7,900 tonnes

HOG at steady state. Fully developed, the Indre Harøy facility will have an

annual capacity of 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.

Furthermore, Salmon Evolution has initiated a process with the aim of

establishing a land-based salmon farming operation in North America.

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

To learn more, please visit www.salmonevolution.no

Forward-looking information

Matters discussed in this announcement may constitute forward-looking

statements. Forward-looking statements are statements that are not historical

facts and may be identified by words such as "believe", "aims", "expect",

"anticipate", "intends", "estimate", "will", "may", "continue", "should" and

similar expressions. The forward-looking statements in this release are based

upon various assumptions, many of which are based, in turn, upon further

assumptions. Although the Company believes that these assumptions were

reasonable when made, these assumptions are inherently subject to significant

known and unknown risks, uncertainties, contingencies, and other important

factors which are difficult or impossible to predict and are beyond its control.

Such risks, uncertainties, contingencies, and other important factors could

cause actual events to differ materially from the expectations expressed or

implied in this release by such forward-looking statements. Forward-looking

statements speak only as of the date they are made and cannot be relied upon as

a guide to future performance. The Company expressly disclaims any obligation or

undertaking to update, review or revise any forward-looking statement contained

in this announcement whether as a result of new information, future developments

or otherwise.