First half year highlight

oProject is developing according to plan - on time and budget. First eggs in Q4
2021 and first harvest in Q4 2023

oUpscaling of business plan to 20,000 tonnes

oDesign package and site preparation completed in Q1 2021. Construction start on
hatchery facility in Q2 2021

oSigned agreement with Xiangshan Strait Economic & Technological Cooperation
Co., Ltd, for a 10 + 10 years' lease of land, infrastructure and facilities

oSigned banking agreement with Bank of Ningbo for working capital facility of
RMB 35 million (DKK  34 million)
oAvailable cash of DKK 374 million and total undrawn credit facility at EUR 25
million (DKK 186 million) as of 30.06.2021

Development of Stage 1 on Gaotang Island has been running on one time and on
budget since the project commenced. From April 2021, focus has been on
construction start on the facility for the hatchery and RAS 1, 2 and 3. The
facility will also include administration and other support functions.

In July 2021, the local authorities started construction of the hatchery
according to the lease agreement. The process is well under way and on time for
completion and first introduction of eggs in Q4 2021. Longyuan Construction
Group Co. Ltd., 0ne of the leading construction companies in China, is the main
contractor for all infrastructure, utilities, and facilities.

Total capital expenditure during the first half year was DKK 12 million, all
related to AKVA Group RAS technology. Capex will gradually increase as
construction accelerates. As per 30 June 2021, accumulated capex was DKK 18.5
million. At the same time, the company had available cash of DKK 374 million and
total undrawn credit facility at EUR 25 million (DKK 186 million).

Throughout the planning phase, Nordic Aqua Partners has optimized the design,
which allow for expansion up to 20,000 tonnes annual production on existing
land, up from previously 16,000 tonnes. The local government is providing
dedicated backing of the project, which has materialized in an attractive
20-year lease agreement where the government provide land area and construction
of all infrastructure and building for a very attractive fixed monthly rental
fee. This significantly reduces the capex risk to Nordic Aqua Partners, as any
possible cost overruns on the building side is with the landlord.

The lease agreement is for an initial 8,000 tonnes, but a Letter of Intent to
expand the annual capacity to reach 20,000 tonnes on current location and
contracted land area is in the process of being signed. Expansion is expected to
be done at similar lease terms as Stage 1 and 2.

During the quarter, Nordic Aqua Partners signed a banking agreement with Bank of
Ningbo for working capital facility of DKK 34 million. Combined with current
cash position of DKK 374 million and an undrawn debt facility of DKK 186
million, the company is fully funded to reach 4,000 tonnes, and expects that
cash flow from operations and new debt will be sufficient to bring production up
to 8,000 tonnes.

Commenting on the development, Chairman Ragnar Joensen, said:
"It is exciting to see the quick pace of development at the construction site in
Gaotang Island, which really kicked off in July. We are very happy with the
dedicated support shown by local authorities, which have delivered on time and
with a committed interest in ensuring steady progress. The Letter of Intent
under negotiation for expansion of the leasing agreement means that we
potentially have funded 30-40% of total capex for growth up to 20,000 tonnes.
That puts us in a unique position to deliver fresh salmon to the Chinese market
in 2023", says Joensen.

Outlook
Nordic Aqua Partners secured the necessary equity funding for expansion up to
8,000 tonnes when the company was listed in Q4 2020. The project has been
progressing on time since inception, and first eggs are expected to be
introduced in Q4 2021. With a two-year production cycle, that allows for first
harvest first harvest in Q4 2023. 

The organization now counts 15 employees, and the company continues to recruit
both foreign and local expertise, management and staff to fill the many
positions needed to meet our ambitious expansion and development plans.

As a local farmer of Atlantic salmon in the Chinese market, Nordic Aqua Partners
are focusing on the domestic salmon market and how that is expected to develop.
The company will be able to offer sustainable and locally farmed fresh salmon on
a 24/7 flexible delivery plan, with full traceability from egg to fully grown
salmon, thus guaranteeing quality, food safety and freshness.  It is the
company's view that a locally produced salmon could achieve a premium pricing on
top of the cost advantage, when considering freshness and 24/7 delivery capacity
which eliminates importer risk of having to place spot orders ahead of sales
being secured.

Result presentation
Nordic Aqua Partners will present its first half year 2021 results by webcast,
followed by a Q&A session, on Friday, August 20, 2021 at 9:00 a.m. CEST.
 
The presentation and subsequent Q&A will be in English by Ragnar Joensen,
Chairman Nordic Aqua Partners, Hjalti Hvítklett, CFO Nordic Aqua Partners, and
Ove Nodland, CEO Nordic Aqua Ningbo.

The presentation can be accessed at www.nordicaquapartners.com, or with the
following link: 
https://streams.eventcdn.net/nordicaquapartnersas/2021-h1/register

For further information please contact:
Hjalti Hvítklett, CFO Nordic Aqua Partners
hjalti@nordicaquapartners.com
+298 221222

About Nordic Aqua Partners
Nordic Aqua Partners is a Nordic land-based salmon farming company, using
cutting-edge Nordic technology and expertise to set up the first fully
integrated and commercially scaled Recirculating Aquaculture System [RAS] farm
for Atlantic salmon located in Ningbo, China. With operations in place, the
Nordic Aqua Partners will be the first local producer of truly sustainable
salmon to the Chinese market, positioned to deliver fresh and locally farmed
Atlantic salmon. The current business plan is for an annual production of 20,000
tonnes HOG.  

Nordic Aqua Partners A/S is listed at Euronext Growth under the ticker NOAP.

To learn more, please visit http://www.nordicaquapartners.com

This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.

Click here for more information

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