Salmon Evolution ASA — Earnings Release 2022

May 24, 2022

Salmon Evolution - Results for the first quarter 2022

Salmon Evolution - Results for the first quarter 2022

First quarter highlights

· First fish tanks and related technical installations at Indre Harøy

completed and put into operation

· First smolt batch released at Indre Harøy late March as per original

timeline - next smolt release planned in Q2 2022

· Batch 1 performing in line with expectations - stable farm conditions with

strong initial feed numbers and low mortality - average weight of ~725 grams as

of 21 May

· Phase 1 construction continuing according to plan - phase 1 capex estimate

unchanged

· Initiated phase 2 preparations at Indre Harøy - signed Heads of Terms with

Artec Aqua for phase 2 build-out

· Available liquidity of NOK 1,056 million per 31 March 2022 including

committed undrawn credit facilities and adjusted for April 2022 private

placement

Subsequent events

· Completed NOK 300 million private placement to partly fund planned Indre

Harøy phase 2 build out and smolt facility expansion

All 12 fish tanks in phase 1 are now assembled with most of the structures and

buildings completed. Following a period of testing and commissioning started in

December last year with the first part of the facility commenced operations late

March.

Capex during the first quarter amounted to 244 million. In addition, NOK 13.5m

of internal G&A were capitalized. Q1 2022 saw good progress at the construction

site. Together with timing effects as to delivery dates of high value equipment,

this contributed to the high Q1 capex.

Following an extensive commissioning and testing period commenced already in

December, Salmon Evolution took over the first part of the facility on 26 March.

The handover included inter alia the water intake station and the first two fish

tanks together with connecting infrastructure and technical installations. Later

the same day, Salmon Evolution successfully completed its first smolt release

consisting of about 100,000 smolt with an average weight of around 300 grams.

Following the positive confirmation of the fish transfer process and a customary

short adaption period for the fish, initial feeding commenced.

Along with the Company's technicians being accustomed with the facility, feeding

has been gradually increased. Throughout this process feed waste has been

carefully monitored to avoid overfeeding. The Company is very pleased to see

that the fish is responding very well to feeding and on 30 April a significant

milestone was reached when the daily feeding volume for the first time exceeded

1 ton, which represented more than 2% of the standing biomass. The positive

trend has continued in May with average daily feeding exceeding 2% of the

biomass.

Commenting on the development, CEO Håkon André Berg, said:

"Since we started construction back in May 2020, the first smolt release has

been the moment that we all have been waiting for. I am extremely proud of our

organization and the fact that we have been able to adhere to our ambitious

timeline, even with the challenges faced us during the pandemic.

At the same time, this is just the beginning. As we now move forward, our number

one priority is the biology in our farm. Good biology will improve fish quality

and translate into strong growth, which finally will be reflected in the

financial performance. With our organization now totaling almost 50 highly

skilled employees, I am more confident than ever in our mission - extending the

ocean potential."

In addition, on 7 February 2022 Salmon Evolution announced that the company had

entered into a Heads of Terms with Artec Aqua for 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. The final design and

construction agreement 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.

Further, on 5 April 2022 Salmon Evolution completed a private placement raising

gross proceeds of NOK 300 million at a subscription price of NOK 9.00 per share.

The private placement attracted strong interest from Norwegian, Nordic and

international high-quality investors and was significantly oversubscribed. The

net proceeds from the private placement will be used to (i) partly fund the

second phase of the Indre Harøy facility, (ii) smolt facility expansion and

(iii) for general corporate purposes.

Summary and outlook

Since Salmon Evolution was listed on Euronext Growth in September 2020, all eyes

have been set at our targeted Q1 2022 milestone - first smolt release.  The

Company is very pleased to see that this target was achieved, transforming this

ground-breaking building project at Indre Harøy into a full-fledged farming

operation.

Moreover, after nearly two months of production the operating KPIs look very

promising. The feeding has increased steadily throughout the period and

stabilized at a level in line with the targets set out in our production plan

which should yield an annualized production of 7,900 tons HOG for each phase.

The organization across the Group now totals nearly 50 skilled employees. The

process leading up to the smolt release followed by initial operations have

already provided our employees with valuable experience, strongly benefitting

the next phase 1 construction milestones and upcoming smolt releases.

Furthermore, these experiences will be vital as we move into our planned phase 2

expansion.

The Company also aims to utilize these experiences in our international

expansion, first in Korea through our K Smart joint venture where initial design

and engineering activities continued in the first quarter with K Smart also

retaining Billund Aquaculture to assist in this respect.

With Salmon Evolution soon entering the operational and commercial phase, the

Company is very pleased to see that the market fundamentals for salmon remain

very strong. The average Fish Pool salmon price was NOK 80.0/kg in Q1 2022

compared to NOK 54.3/kg in Q1 2021, representing an increase of 47% year over

year. Looking at the forward prices for the remainder of 2022, this points to a

full year 2022 salmon price of more than NOK 80/kg. In comparison the full year

salmon price for 2021 was NOK 58.4/kg. The Company also notes that airfreight

costs for in particular the Asian market has been at elevated levels following

the pandemic and war in Ukraine, resulting substantially higher salmon prices

locally, e.g. in South Korea.

Looking at 2022 most analysts now expect neutral or slightly negative global

supply growth which should support a scenario with high salmon prices. Salmon

Evolution sees a significant demand growth potential for salmon over the coming

decade subject to the industry being able to grow the supply side. In this

context the Company remains firm in its belief that land-based farming will need

to play an important role alongside conventional farming.

With our first fish now enjoying its new life at Indre Harøy and steadily

growing every day, we look forward to first harvest during the fourth quarter

and well ahead of year end. Salmon Evolution remains confident that 2022 will be

a landmark year for the Company setting the stage for significant growth in the

years to come. This in turn will enable Salmon Evolution to take a global

frontrunner position in the future development of land-based salmon farming.

Results presentation

CEO Håkon André Berg and CFO Trond Håkon Schaug-Pettersen will present the

results by webcast today, Tuesday 24 May at 08:00 a.m. CEST.

The presentation and subsequent Q&A will be held in English.

The presentation can be accessed at www.salmonevolution.no, or with the

following link: https://streams.eventcdn.net/salmonevolution/2022q1/

For further information, please contact:

Håkon André Berg, CEO, Salmon Evolution

hakon.andre.berg@salmone.no

+47 41 19 22 57

Trond Håkon Schaug-Pettersen, CFO, Salmon Evolution

thsp@salmone.no

+47 91 19 13 27

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

This information is subject to the disclosure requirements pursuant to section 5

-12 of the Norwegian Securities Trading Act.