Codfarmers ASA has suffered substantial losses as fish being ready for harvesting at two locations in Møre has been hit by diseases. This, in combination with low prices in the market for cod, has brought the Company into a difficult liquidity position.

Substantial portions of the biomass at two locations in Møre have been destructed. The remaining portions of the biomass at these locations have been downgraded, and have therefore been sold at prices lower than those otherwise achievable. The destruction and downgrading have caused an extraordinary loss of around NOK 25 million, which has a negative impact on the Company’s cash position in the same amount.

In general, the market for whole cod and cod fillets has been characterized by low prices. The volume of our STRØM product is not large enough to compensate for low spot market prices, even though the sale of the STRØM product has increased by 100% this year.

Diseases and low prices have brought the Company into a difficult liquidity position, and alternatives for refinancing the Company are being worked on. These will have to imply that additional cash resources are made available to the Company, which again will be subject to a restructuring of the Company’s debt.

Based on the above, the Company has resolved to implement extensive cost reductions. As a part of this, planned releases of juveniles will be substantially reduced, and the Company will divest subsidiaries, locations, equipment and land bases.

Downscaling of operations, restructuring of debt and sale of assets will reduce the Company’s cost base to a level where the largest shareholders may be willing to contribute to the financing of the Company.

The Company will call for an extraordinary general meeting to be held in December.

The Company has resolved to postpone the release of its Q3 report to 30 November 2012.

For further information, please contact:

Harald Dahl, CEO of Codfarmers, telephone +47 90 11 92 82

About Us

ABOUT CODFARMINGCOD BOOM The latest issue of “norsk Fiskeoppdrett” (#10, October 2007, focused on the development in cod farming and predicted a boom within the coming two years in this relatively new industry. The following extract of just one of the articles offers a brief background for the prediction. THE TABLE IS SET FOR COD Traditionally, the battle for fishing rights has been very hard. In recent history, it should suffice to mention the cod war between UK and Iceland, Canada throwing Portuguese and Spanish vessels out of its national waters when fishing at Grand Banks, as well as Iceland’s demand for fishing rights in what Norway considered Norwegian territorial waters. In 1987 2.1 million ton cod was caught in the North Atlantic. Since then, landings of North Atlantic cod has been reduced by more than 1.2 million tons down to 0.8 million tons in 2006. Iceland has announced a quota reduction in 2007/8 of 30% amounting to 65,000 tons of cod – this equals two years of total volume of cod caught in the Norwegian Lofoten fisheries. In the Barents Sea, quotas seem to remain stable so far. Volumes of cod from the North Atlantic appear to remain relatively stable in the medium-term and the gap between supply and demand has to be filled by aquaculture. THE MARKET Cod is no new species. With a global market of more than a million tons, the cod farmers don’t have to worry about first building the market. In Europe alone, 100,000 tons of fresh cod is sold annually. It is possible to increase this volume considerably with fresh cod and cod products without impacting prices negatively. Once can make a small comparison with the salmon farmers who produced 600 tons in 1974. They had to develop a whole new market for their products, which until then had been a small niche market. The cod farmers come to a table already set. They only need to fill it with good quality products. Extract of article in the publication “norsk FISKEOPPDRETT” Nr. 10, October 2007 (, by Stein-Ove Hansen, Analyst, Terra Securities (un-official translation by Codfarmers)