IceBear Steenwijk B.V. – Market and company update

08 Nov 2022 20:11 CET

Steenwijk, 8 November 2022

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Reference is made to previous reports by IceBear Steenwijk B.V. (the "Company"),
latest the Company's interim report for Q2 2022 released on 29 August 2022,
where the Company expressed signals of softening in the market related to
volumes and pricing and challenges in the ramp-up of production.

The Company has continued to face challenges in the production ramp-up. Although
de-bottlenecking and production performance is improving, the Company is still
behind nominal capacity, with operational challenges causing instabilities over
time.

In addition to this, the market has continued to soften significantly through Q3
and into Q4, both with respect to demand and prices. The market for One-Way
blocks (65% of volume) is down 25-40% and the EPAL market is down about 20%
compared to Q1/Q2 2022.

The energy market in Europe, especially Germany, has put a lot of pressure on
waste wood and bio-mass supply market in the Netherlands. Through 2022 market
pricing for waste wood has increased from 10-20 €/tn to 50-105 €/tn and bio-mass
from 40 €/tn to 70-90 €/tn. This has an adverse impact on both availability and
pricing of key input factors for the Company. In the short term, the Company is
therefore not able to get sufficient volumes to maintain production at all six
lines.

These three fundamental challenges have placed the Company in a very difficult
position. Absent rapidly improved market conditions, the Company's reduced gross
profit levels require action to be taken within a short period of time.

The Company is closely monitoring the situation. The Company's financial
position is severe, and it continues to be difficult to predict market
conditions for 2023. If the unprecedented situation continues with increasing
input cost and decreasing sales price, it will be challenging to make meaningful
profits. As such, the Company and Investors need to assess all possibilities.

The Company's majority shareholder has provided a EUR 750,000 liquidity
injection in the form of a shareholder loan which took place on 13. October
2022. The Company is assessing additional short-term liquidity needs in light of
the challenging market.

The Company will provide further updates with additional information about
development, actions and alternatives, and expected debt service capacity going
forward.

For further information, please contact:

Halbe Pomper
CEO
E-mail: hp@icebear.eu

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