Arctic Paper: Current Report No. 41/2012

Regulatory News:

Arctic Paper (STO:ARP):

Subject: Execution of material agreements. Redemption of bonds.

General legal basis:

article 56 section 1 item 2 – current and periodical information

Contents:

The Management Board of Arctic Paper S.A. (the "Company”) informs that on 20 December 2012 the Company received the following agreements executed with BRE Bank S.A. (the "Bank”) on 19 December 2012:

1. Agreement for the sale of notes SCTRSC1235400259/BON-564358 ("Agreement 1”) and

2. Agreement for the sale of notes SCTRSC1235400260/BON-564357 ("Agreement 2” jointly with Agreement 1 referred to as the "Agreements”).

The Agreements were executed in connection with the earlier redemption of the Company’s bonds planned by the Company in respect of the bonds, which were issued in accordance with the issuance agreement dated 11 February 2010 (as amended). The Company informed about the issue of bonds in current reports nos. 6/2010, 7/2010, 3/2011 and 4/2011.

Agreement 1 was executed by the Company as the buyer and BRE Bank SA as the seller. The agreement concerns the acquisition by the Company of 577 Company’s bonds for the total amount of PLN 59,401,215.26. Agreement 1 does not provide for any conditions other than arm’s length conditions specific for such type of agreements or any contractual penalty provisions. Agreement 1 does not provide for any condition or date, no security interests were established under Agreement 1, either.

Agreement 2 was executed by the Company as the buyer and BRE Bank SA as the seller. The agreement concerns the acquisition by the Company of 704 Company’s bonds for the total amount of PLN 72,525,543.52 PLN. Agreement 2 does not provide for any conditions other than arm’s length conditions specific for such type of agreements or any contractual penalty provisions. Agreement 2 does not provide for any condition or date, no security interests were established under Agreement 2, either.

Accordingly, the Company informs that the bonds concerned by the Agreements were redeemed today, and the Agreements were totally settled.

The Agreements were deemed material due to the fact that the amount of Agreement 2 and the total amount of the Agreements exceed 10% of the Company’s equity.

Specific legal basis:

§ 5 section 1 item 3 of the Minister of Finance Regulation of 19 February 2009 on current and periodical information provided by the securities issuers and conditions on which information required under law applicable in a state not being a member state may be recognised as equivalent.

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