Proximar Seafood AS: Tank breach and biomass loss at grow-out facility- limited impact on long-term harvest projections

05 Feb 2024 07:58 CET

Yokohama, 5 February 2024: On Saturday February 3, Proximar Seafood AS
(“Proximar” or the “Company”) experienced a breach in one of four operational
tanks at its new post-smolt grow out facility, resulting in a loss of biomass.
Preliminary estimates suggest that 50,000 fish have been lost in the tank
breach.

The total number of fish in the Proximar facility across all stages amounts to
more than one million individuals.

Early investigations indicate that a leakage from the tank has washed away soil
beneath the tank resulting in a sudden breach. A part of the batch in the tank
was saved and transferred to another production tank.

Proximar is currently thoroughly investigating the incident and preparing to
improve all joints and sealings to prevent any future leakage.

The treatment will be made for all tanks in the grow-out facility, and the costs
associated with the improvements are expected to be approximately NOK 5 million.
Costs related to fixing the breached tank are expected to be approximately NOK 1
million. The Company is in contact with its insurance companies for coverage of
damages and loss of fish.

Limited impact on long-term harvest projections

The RAS technology at the post smolt grow-out facility is demonstrating good
performance, in terms of water treatment capacity and steady operations. Since
the start of production, the company has not experienced any system-related
problems, and the fish are performing very well across all the batches.

According to plan, Proximar will start to harvest the first batches at the post
smolt grow-out facility in the third quarter 2024. The breach will impact the
harvest volumes in the fourth quarter of 2024.

In the start-up phase Proximar has inserted a high number of eggs and will
continue to do so. This is a precautionary measure put in place to secure excess
biomass needed to handle unexpected incidents, like the one now experienced.

Recent checks by a qualified veterinary confirm good health and welfare
conditions. There is no fin damage, and the fish is healthy and shows a good
body shape. There was no escape of fish to the outside environment from the
breach incident.

Proximar will provide further information on the breach incident as well as a
general production update in the scheduled fourth quarter reporting 23rd of
February.

For more information, please contact:
Joachim Nielsen, CEO, +81 70 2811 9898, jn@proximar.com
Ole Chr. Willumsen, CFO, +47 48 21 34 29, ocw@proximar.com

About Proximar Seafood
Proximar Seafood is a Norwegian land-based salmon farming company with its first
production facility and production at the foot of Mount Fuji in Japan. The
company inserted its first batch of eggs in October 2022 and plans first harvest
in Q3 2024. Through land-based salmon farming, using high-quality ground water
secured close to Mount Fuji, the company will produce fresh Atlantic Salmon,
harvested the same day. Proximar's location, near one of the world's most
important fish markets, implies significant advantages, both in terms of reduced
cost and carbon footprint.

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