Atlantic Sapphire : ESG Report

ANNUAL REPORT

2023

TABLE OF CONTENTS

2023			FOR THE HEALTH OF PEOPLE
IN REVIEW		AND THE PLANET

04.	Message from the CEO		22.	Our ESG Framework
06.	About Atlantic Sapphire	01	30.	Our Commitment to Responsible Governance	02
18.	The Global Challenges Facing Seafood	34.	Why Sustainability Matters
	Production		to Atlantic Sapphire

ATLANTIC SAPPHIRE'S			GROUP
ESG PRIORITIES		RESULTS

39.	Developing a Sustainable Option	84. Social Responsability	106. Board of Directors' Report	168. Atlantic Sapphire ASA Financial Statements
41.	Consumer and Product Responsibility	100. About this report	117. Board of Directors	187. Statement of Responsibility
53.	Economic Responsibility	101. GRI Content index	118. Corporate Governance	189. Auditor's Report
61.	Environmental Responsibility	03	122. Atlantic Sapphire Consolidated		04
		Financial Statements

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2023 IN REVIEW

ATLANTIC SAPPHIRE'S ANNUAL REPORT 2023

04. Message from the CEO

06. About Atlantic Sapphire

18. The Global Challenges Facing Seafood Production

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2023	FOR THE HEALTH OF PEOPLE	ATLANTIC SAPPHIRE'S	GROUP			3
IN REVIEW	AND PLANET	ESG PRIORITIES	RESULTS

MESSAGE FROM THE CEO

ATLANTIC SAPPHIRE'S ANNUAL REPORT 2023

2023

IN REVIEW

FOR THE HEALTH OF PEOPLE AND PLANET

ATLANTIC SAPPHIRE'S ESG PRIORITIES

GROUP RESULTS

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MESSAGE FROM THE CEO

DEAR STAKEHOLDERS,

2023 was a year that came with new challenges, but it was also pivotal year in our mission to produce healthy proteins in America. The first part of the year was focused on the biofilter reset project that was an enormous undertaking upgrading one of the most essential components of the Bluehouse while farming fish at the same time. Following the critical work of the biofilters the company faced new challenges during the summer months due to insufficient reliability of the water chillers resulting in higher temperatures in our fish tanks. The company completed the installation of new chillers in Q4. Since the new chiller bank was installed, we have achieved to stabilize our water temperatures to the target temperatures and have seen a drastic decrease in mortality and increase in production.

In a world where sustainable practices and responsible resource management are at the forefront of corporate strategies, our commitment to environmental stewardship has driven us to explore innovative solutions within the aquaculture industry. Land- based salmon farming represents a paradigm shift, aligning with our core values and pushing the boundaries of responsible business practices.

This vision is deeply rooted in environmental sustainability. By transitioning from conventional open-net pen systems to controlled, land-based facilities, we are taking significant strides towards mitigating the environmental impact associated with traditional aquaculture. This shift addresses

critical issues such as water pollution, disease transmission, and the escape of farmed fish, thereby safeguarding the delicate balance of our oceans.

Key to the success of this vision is our embrace of cutting- edge technologies. Recirculating aquaculture systems (RAS), coupled with advanced monitoring and automation, enable us to create an optimal environment for salmon growth. The integration of data analytics, artificial intelligence, and renewable energy sources not only enhances efficiency but also positions us as pioneers in sustainable aquaculture practices.

Our commitment to animal welfare is integral to this vision. The controlled environment we provide ensures that our salmon are raised in conditions that closely mirror their natural habitat. This ethical approach not only reflects our corporate values but also guarantees the production of high-quality, healthy fish.

From an economic perspective, land-based salmon farming offers a promising opportunity. By establishing these farms closer to consumer markets, we reduce transportation costs, minimize our carbon footprint, and enhance the freshness and traceability of our products. This localized approach not only benefits the economies of the regions in which we operate but also strengthens our market positioning.

The vision behind our land-based salmon farming initiatives is a testament to our commitment to sustainability, innovation, and responsibility. As we continue to navigate the evolving landscape of our industry, we remain steadfast in our dedication to delivering long-term value to our shareholders, customers, and the planet.

We look forward to increasing our production in 2024 to reach full Phase 1 production.

JOHAN E. ANDREASSEN

ATLANTIC SAPPHIRE'S	2023	FOR THE HEALTH OF PEOPLE	ATLANTIC SAPPHIRE'S	GROUP
ANNUAL REPORT 2023	IN REVIEW	AND PLANET	ESG PRIORITIES	RESULTS

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COMPANY FACTS

GRI 2-1

GRI 2-2 Atlantic Sapphire ASA ("ASA"), a public limited liability company incorporated in Vikebukt, Norway and domiciled in Vestnes, Norway, is the parent company of the Atlantic Sapphire group of companies (collectively, "Atlantic Sapphire" or the "Group"), which includes:

ATLANTIC SAPPHIRE DENMARK A/S ("ASDK", registered in Hvide Sande, Denmark)

ATLANTIC SAPPHIRE USA LLC ("ASUS", registered in Miami, Florida, US)

AS PURCHASING, LLC ("ASP", registered in Miami, Florida, US)

S.F. DEVELOPMENT, L.L.C. ("ASSF", registered in Miami, Florida, US)

ATLANTIC SAPPHIRE IP, LLC ("ASIP", registered in Miami, Florida, US)

This report is published as a single document and part of our annual integrated financial and ESG report, written by our internal ESG committee led by CFO Karl Øystein Øyehaug. (GRI 2-3) Additionally, we publish quarterly financial reports. (GRI- 2-4)

FOUNDED:

2010

LEGAL HEADQUARTERS:

VIKEBUKT, NORWAY

BUSINESS HEADQUARTERS:

MIAMI, FLORIDA, US

OSLO STOCK EXCHANGE TICKER:

ASA

US OTCQX TICKER:

AASZF

EMPLOYEES

158

TOTAL ASSETS (USD)

342.3M

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ATLANTIC SAPPHIRE BY LOCATION

Incorporated

Miami Bluehouse

Business Headquarters

99%	Revenue	1%
UNITED	by Market	CANADA
STATES

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SELECTED HISTORICAL HIGHLIGHTS

2010

ATLANTIC SAPPHIRE IS FOUNDED by Norwegian salmon entrepreneurs Johan Andreassen and Bjorn-Vegard Løvik with the vision of creating a world-class Bluehouse in the United States, the world's largest market for Atlantic salmon

FOUNDING PARTNER THUE HOLM, a Danish recirculation aquaculture expert, joins the company

CONSTRUCTION BEGINS on the commercial pilot Denmark Bluehouse, which would become the world's largest land- based salmon operation upon completion

2011

THE FIRST OVA of Atlantic salmon are stocked in the Denmark Bluehouse

2013

2015

2016

THE FIRST BATCH of Denmark Bluehouse salmon are harvested

ATLANTIC SAPPHIRE SALMON SELLS in the US market

AFTER AN ASSESSMENT including over 12 states, Miami, Florida is selected as the location for US operations

THE FIRST WATER USE and well drilling permits are secured for the Miami Bluehouse

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SELECTED HISTORICAL HIGHLIGHTS

2017

2018

NOK 595M equity raise completed

US CONSTRUCTION MANAGEMENT AGREEMENT is signed

WELL DRILLING AND US PHASE 1 Miami Bluehouse construction commences

CONSTRUCTION OF GROW-OUTSYSTEMS expansion begins in Denmark, increasing capacity from 700 metric tons to 2,900 metric tons annually of round living weight (RLW) production

NOK 600M equity raise completed and Atlantic Sapphire listed on the Merkur Market in Oslo, Norway

THE FIRST ATLANTIC SALMON OVA are stocked in the

Miami Bluehouse

1. 'KEY TO MIAMI-DADECOUNTY' is received from Miami- Dade County Mayor Carlos A. Gimenez in recognition of bringing responsible economic development and positive impact to the community

FIRST UNITED STATES PATENT granted for systems and methods of intensive recirculating aquaculture

2019

2020

DNB DEBT FINANCING COMPLETED, with a guarantee from EKF, Denmark's export credit agency, in alignment with IFC performance standards and guidelines. First 'green rated' seafood debt for DNB, the world's largest seafood lender.

NOK 783M equity raise completed. The Company increases its projected capacity target from 90,000 metric tons in 2026 to 220,000 metric tons by 2031.

THE FIRST GENERATION of Atlantic salmon born in Florida successfully grows through the freshwater stage and onto the saltwater post-smolt systems

ATLANTIC SAPPHIRE is named 'Star of Innovation' at the 2019 European Small and Mid-Cap Awards

ATLANTIC SAPPHIRE JOINS the UN Global Compact, committing to respecting and promoting the ten principles on human rights, labor rights, environmental standards, and anti-corruption

ATLANTIC SAPPHIRE IS LISTED in Oslo Stock Exchange ("OSE")

THE FIRST COMMERCIAL US HARVEST of Atlantic Salmon raised in RAS in Florida occurs

ATLANTIC SAPPHIRE INITIATES SALES of Bluehouse Salmon from Florida in several retail chains and food service outlets

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SELECTED HISTORICAL HIGHLIGHTS

2021

ATLANTIC SAPPHIRE and Skretting enter agreement to	ATLANTIC SAPPHIRE IS LISTED in the US OTCQX market
secure local feed supply	ATLANTIC SAPPHIRE DENMARK A/S receives the ASC
ATLANTIC SAPPHIRE INTRODUCES algal oil from	Standard certification
Veramaris,replacing fish oil by 25%
THE GROUP'S BRAND, Bluehouse Salmon, gains the
"Heart Check" certification from the American Heart
Association

2023

NEW CHILLER BANK is installed

START OF stable production conditions

2022

BLUEHOUSE SALMON IS CERTIFIED Friend of the Sea

ATLANTIC SAPPHIRE INTRODUCES new smoked salmon products

HOT SMOKED BUEHOUSE SALMON wins Parent Tested Parent Approved seal of certification

FILLETING LINE is installed for in-house capabilities

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