Reference is made to the stock exchange announcement from Salmon Evolution ASA (“Salmon Evolution” or the “Company”, OSE: SALME) on 29 April 2023 regarding increased mortality levels in selected fish groups.

The Company has taken a number of actions to mitigate the negative effects of the situation. Harvesting of batch 2 started last week and two out of four tanks have now been harvested out, yielding about 310 tonnes HOG. The harvest confirmed strong product quality, evidenced by a superior grade share of more than 90%. The fish has subsequently been sold at attractive prices. The last two tanks containing batch 2 will be fully harvested out this week, about one month ahead of the original plan.

The Company continues to see elevated mortality levels for one of the subgroups in each of batch 3 and 4, but the situation has stabilized somewhat over the last week. Batch 5 continues to see low mortality levels and normal feeding.

The investigation into the root cause for the increased mortality levels continue, but the Company has strong indications that AGD is the triggering cause. AGD is a common challenge for the conventional salmon farming industry and there are well proven treatment methods, namely by using freshwater. The Company has therefore secured relevant capacities and plans to start freshwater treatment this week with the aim of normalizing the situation and thereby avoiding early harvest of the affected subgroups in batch 3 and 4.

In parallel, the Company is implementing measures to minimize the risk of such problem in the first place, including but not limited to applying a substantially higher UV disinfection dose and enhanced cleaning and disinfection of emptied tanks and connected systems.

The Company’s stocking plan for new batches remains unchanged with two new batches planned stocked during the second quarter and another three batches during the second half of 2023.