RUSSIAN AQUACULTURE ANNOUNCES PRICING OF SECONDARY PUBLIC

RUSSIAN AQUACULTURE ANNOUNCES PRICING OF SECONDARY PUBLIC OFFERING OF SHARES

Moscow, 30 November 2017. Russian Aquaculture ("Russian Aquaculture" or "the Company"), Russia's largest aquaculture company, announces the pricing of its secondary public offering (the "Offering") of new ordinary shares of the Company (the "Shares") at RUB 120 per Share following the completion of over-the counter ("OTC") bookbuilding on 29-11-2017. 

DETAILS OF THE OFFERING

• The Company announces the pricing of the SPO at RUB 120 per Share following the completion of OTC bookbuilding on 29-11-2017.
• The Company expects to raise around RUB 2 billion during the Offering, selling 16.7 million Shares that are part of the new share issue that has been registered with the Central Bank of Russia.
• The Company's free float will amount to approximately 22% of its total share capital.
• Information about the timing of the bookbuilding and the placement date of the Shares will be disclosed by the end of this week.
• The Offering is expected to be completed by mid-December 2017.
• Otkritie Bank and Gazprombank are acting as the joint global coordinators and bookrunners for the Offering. Otkritie Bank is also acting as the broker for the Offering.

Russian Aquaculture CEO Ilya Sosnov said: "I think that the Board of Directors has set an attractive price that reflects the interests of both investors and the Company: investors will have the opportunity to benefit significantly from future growth of the business, while the Company will receive funds to invest in its expansion and attract high-quality investors whose involvement in the Company will have a long-term positive effect on the share price and equity story of Russian Aquaculture.

"This additional placement should also significantly increase the liquidity of the Company's shares, which should reduce the volatility of the share price. The SPO marks an important step towards raising the Company's valuation to be on par with its international peers."

STRENGTHENING RUSSIAN AQUACULTURE'S STATUS AS A PUBLIC COMPANY

The Company remains committed to high standards of corporate governance and information disclosure. The Board of Directors already has two independent directors and a Norwegian aquaculture business expert.

The Company is in an active growth phase and intends to expand its access to high-quality sources of financing that are available only to open and transparent issuers. The SPO is an important step in the development of Russian Aquaculture as a publicly listed company, diversification of the shareholder structure, increasing liquidity and strengthening the Company's investment case.

INVESTMENT HIGHLIGHTS

• Focus on the high-margin aquaculture sector . 2016 was a watershed year in the history of Russian Aquaculture: the entire business was restructured, the composition of the Board of Directors and shareholders changed, and a new long-term strategy was approved. As part of the transformation plan, the Company sold its distribution business in order to concentrate on the most profitable segment, i.e., aquaculture.
• Leader on the Russian chilled fish market . Russian Aquaculture is currently the only company in Russia that farms Atlantic salmon in maritime conditions. The Company currently has an approximately 20% share of Russia's nearly 60 ths tonne chilled salmon market. Thanks to its developed infrastructure, close proximity to sales markets, and quality control, the Company offers consumers one of the best-quality chilled fish products in Russia.
• Well-considered long-term growth strategy . The Company has adopted a new long-term growth strategy that aims to create Russia's leading aquaculture company, with its own production of feedstock and fry, as well as facilities for primary processing and a diversified base of biological assets. As part of its strategy, the Company plans to increase production volumes to 25-30 thousand tonnes in the next few years, to build a smolt plant in Russia in the long term, and also to become one of the world's largest producers of Atlantic salmon by volumes. Company's core shareholders fully share and support Russian Aquaculture's drive to build a high-quality new business, as well as the Company's long-term future as a publicly listed company.

ABOUT RUSSIAN AQUACULTURE

Russian Aquaculture is one of the leaders in the production of Atlantic salmon and trout in Russia. Development of aquaculture is the Company's strategic priority.

The Company's core business areas include:

• Commercial farming of Atlantic Salmon in the Barents Sea in the Murmansk region
• Commercial farming of trout in lakes of the Republic of Karelia
• Producing smolt at the Company's own facilities in Norway

The Company's long-term development strategy aims to make it the largest player in Russia's aquaculture segment, including production of own fry and primary processing of the Company's own products.

OPERATING AND FINANCIAL INDICATORS

Source: Company IFRS financial statements for 1H 2017, management accounts

Russian Aquaculture's investor presentation is available on the Company's website:  http://russaquaculture.ru/en/shareholders-and...entations/

Contacts for media

Moscow Denis Denisov Mobile: +7-985-410-3544 denisov@em-comms.com

Irina Logutenkova Mobile: +7-910-438-4843 logutenkova@em-comms.com

Moscow/London Tom Blackwell Mobile: +7-919-102-9064, +44-7432-680606 blackwell@em-comms.com

London Maria Levitov Mobile: +44 7553 092 429 levitov@em-comms.com

This document (the " Document ") has been prepared for the purpose of the proposed open subscription offering of securities of PJSC Russian Aquaculture, OGRN 1079847122332, INN 7816430057 (also the " Company ") in the form of thirty-two million, seven hundred sixty-nine thousand, two hundred twenty-three (32,769,223) newly issued uncertificated registered ordinary shares with a par value of one hundred roubles (RUB 100) each, state registration number 1-01-04461-D of 05 October 2017 (also the " shares ", " securities ", " securities of PJSC Russian Aquaculture ").

This Document is published for information purposes, solely and only in connection with the potential future offering of the securities of PJSC Russian Aquaculture.

This Document is not a prospectus, a resolution to issue securities, an offer to buy securities or any assets or to subscribe to securities or to sell the securities or any assets, is not a public offer or invitation to make offers, is not an advertisement of securities, guarantee or promise to sell securities or any assets or to offer securities or enter into any agreement, and should not be interpreted as such.

This Document must not be treated as and is not a recommendation to acquire securities of PJSC Russian Aquaculture or any other securities or assets mentioned herein.

This Document is not intended to serve as a basis for making any investment decisions.

The information contained in this Document may change considerably. This Document does not provide exhaustive information about PJSC Russian Aquaculture required for examining the Company, making any conclusions or investment decisions.

PJSC Russian Aquaculture and lead managers reserve the right to change, at any time and to any extent, any information in this Document without giving reasons or notice.

By serving this Document, neither the lead managers, nor PJSC Russian Aquaculture accept any responsibility, including responsibility for changing or updating this Document or correcting any inaccuracies found therein. Transfer, distribution or publication of this Document does not in any manner oblige the lead managers or PJSC Russian Aquaculture to affect any transactions. No information provided or mentioned in this Document gives rise to any contractual obligations.

No information about any plans and any future events contained in this Document is definite; it may differ significantly from facts and events, which will actually occur in the future. Any recipient of this Document shall use the information contained herein at their own discretion and risk.

Recipients of this Document shall be aware that it does not contain any representations or warranties or assurances or obligations with regard to future events and facts, and any actual future results, events and facts may differ materially from the information presented herein. Consequently, neither the lead managers and PJSC Russian Aquaculture nor their affiliates, employees, officers, representatives, agents, advisors or consultants provide (or will provide in the future) any representations, warranties, assurances or obligations with regard to the occurrence, accuracy, feasibility or attainability of such plans or any future events or facts.

Neither the lead managers nor PJSC Russian Aquaculture and its affiliates, employees, officers, representatives, agents, advisors or consultants shall bear any liability for any losses, direct or indirect, arising as a result of the use of this Document or information contained herein, or for any faults or omissions contained herein. 

Neither PJSC Russian Aquaculture nor its shares have been registered or otherwise approved for issuance in jurisdictions other than the Russian Federation, and investors need to independently verify that these shares and their eligibility to buy such shares comply with the applicable laws of the jurisdictions of their incorporation and/or operations.

INFORMATION CONTAINED HEREIN IS NOT INTENDED FOR PUBLICATION OR DISTRIBUTION, DIRECT OR INDIRECT, IN THE USA, CANADA, AUSTRALIA OR JAPAN OR ANY OTHER JURISDICTIONS WHERE THE OFFERING OR SALE OF SECURITIES IS PROHIBITED BY APPLICABLE LAWS. INFORMATION CONTAINED HEREIN MAY ONLY BE USED FOR INFORMATIONAL PURPOSES. IT IS NOT AND SHALL NOT BE TREATED AS THE OFFERING OF SECURITIES IN THE USA, CANADA, AUSTRALIA OR JAPAN OR ANY OTHER JURISDICTION.

NO SECURITIES OF PJSC RUSSIAN AQUACULTURE HAVE BEEN OR WILL BE REGISTERED IN ACCORDANCE WITH THE UNITED STATES SECURITIES ACT OF 1933 (AS AMENDED) (THE "SECURITIES ACT") OR IN ACCORDANCE WITH THE LAWS OF ANY STATE, AND THEY MAY NOT BE OFFERED OR SOLD IN THE USA.

THE OFFERING OF SECURITIES HAS NOT AND WILL NOT BE REGISTERED IN ACCORDANCE WITH THE APPLICABLE SECURITIES LAWS OF AUSTRALIA, CANADA OR JAPAN.

In the United Kingdom, this Document is only intended for and addressed to (i) persons who are investment professionals as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"), (ii) high net worth companies and other persons that have the legal right to such information in accordance with Article 49(2)(a)-(d) of the Order, (iii) certified high net worth individuals, certified sophisticated investors or self-certified sophisticated investors pursuant to Articles 48, 50 and 50A, respectively, of the Order; and (iv) persons that are otherwise legally entitled to receive this Document (all such persons indicated in items (i), (ii), (iii) and (iv) shall be jointly referred to as the "relevant persons"). Any securities hereunder will only be available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will only be sent to or signed with, the relevant persons. A person other than a relevant person shall not act or rely on this Document or any of its contents.

In any European Economic Area member state that has implemented Directive 2003/71/EC (including the Directive and amendments thereto to the extent they are implemented in the relevant member state - the "Prospectus Directive"), this Document is only intended for and communicated to qualified investors in that member state as defined in the Prospectus Directive, and other persons that have the legal right to receive this Document. No person other than a relevant person or a qualified investor may act or rely on this Document or any of its contents.

In some jurisdictions, the publication of this Document or any information contained herein may be restricted by the law or applicable regulations or prohibited altogether. This Document is not intended for communication to persons from jurisdictions where this Document, any information contained herein, its communication or receipt may be deemed unlawful. Recipients of this Document shall be deemed aware of the requirement to comply with the applicable restrictions and conditions.

^[1] Last twelve months - starting from September 1, 2016 to August 31, 2017 basing on management accounts excl. revaluation of biological assets