Arctic Paper S.A. financial statement for the year 2013 together with independent auditor's opinion.

Management Board of Arctic Paper S.A. herewith publishes the standalone
financial statement of Arctic Paper SA for 2013.

  Selected standalone
  financial data

              For the     For the     For the     For the period
              period      period      period      from 01.01.2012
              from        from        from        to 31.12.2012
              01.01.2013  01.01.2012  01.01.2013
              to          to          to
              31.12.2013  31.12.2012  31.12.2013
              000'PLN     000'PLN     000'EUR     000'EUR

Revenues      107 172     110 902     25 532      26 499
Operating     (179 498)   35 784      (42 762)    8 550
profit
(loss)
Profit        (179 910)   13 528      (42 860)    3 232
(loss)
before tax
Profit        (179 910)   13 529      (42 860)    3 233
(loss) from
continuing
operations

Profit        (179 910)   13 529      (42 860)    3 233
(loss) for
the period

Net           76 185      209 353     18 150      50 022
operating
cash flow
Net           (38 272)    (43 040)    (9 118)     (10 284)
investment
cash flow
Net           (59 251)    (159 718)   (14 116)    (38 162)
financial
cash flow

Net change    (21 338)    6 596       (5 083)     1 576
in cash and
cash
equivalents

Weighted      68 905 218  66 144 483  68 905 218  66 144 483
average
number of
shares
Weighted      68 905 218  66 144 483  68 905 218  55 727 201
average
diluted
number of
shares
EPS (in       (2,61)      0,20        (0,62)      0,05
PLN/EUR)
Diluted EPS   (2,61)      0,20        (0,62)      0,05
(in
PLN/EUR)

Average                               4,1976      4,1852
PLN/EUR
rate*

              As at       As at       As at       As at
              31          31          31          31 December 2012
              December    December    December
              2013        2012        2013
              000'PLN     000'PLN     000'EUR     000'EUR

Assets (as    905 588     1 113 516   218 361     272 373
on
31/12/2013
i 31/12/2012
)
Long-term     178 188     131 102     42 966      32 068
liabilities
(as on
31/12/2013
i 31/12/2012
)
Short-term    37 356      132 216     9 007       32 341
liabilities
(as on
31/12/2013
i 31/12/2012
)
Equity (as    690 044     850 198     166 388     207 964
on
31/12/2013
i 31/12/2012
)
Share         69 288      55 404      16 707      13 552
capital (as
on
31/12/2013
i 31/12/2012
)

Number of     69 287 783  66 144 483  69 287 783  66 144 483
shares
Diluted       69 287 783  66 144 483  69 287 783  55 727 201
number of
shares
Book value    9,96        12,85       2,40        3,14
per share
(in
PLN/EUR)
Diluted       9,96        12,85       2,40        3,14
book value
per share
(in
PLN/EUR)

Declared or   -           9 972 630   -           2 439 369
paid
dividend
(in
PLN/EUR)
Declared or   -           0,18        -           0,04
paid
dividend
per share
(in
PLN/EUR)

PLN/EUR                               4,1472      4,0882
rate at the
end of the
period**

* Items of
the income
and cash
flow
statement
are
converted
at the
exchange
rate which
is the
arithmetic
mean of
average
rates
announced
by the NBP
in the
given
reporting
period.
** Items of
balance
sheet and
book value
per share
were
converted
at the
average
exchange
rate
announced
by the NBP
and
prevailing
at the
balance
sheet date.

INDEPENDENT AUDITORS’ OPINION

To the Supervisory Board of Arctic Paper S.A.

1. We have audited the attached financial statements for the year ended 31
December 2013 of Arctic Paper S.A. (‘the Company‘) located in Poznań at
Dąbrowskiego 334A, containing balance sheet as at 31 December 2013, the income
statement, the statement of comprehensive income, the statement of changes in
equity, the cash flow statement for the period from 1 January 2013 to 31
December 2013 and the summary of significant accounting policies and other
explanatory notes (‘the attached financial statements’).

2. The truth and fairness[1] (http://#_ftn1) of the attached financial
statements, the preparation of the attached financial statements in accordance
with the required applicable accounting policies and the proper maintenance of
the accounting records are the responsibility of the Company’s Management Board.
In addition, the Company’s Management Board and Members of the Supervisory Board
are required to ensure that the attached financial statements and the Directors’
Report meet the requirements of the Accounting Act dated 29 September 1994
(Journal of Laws 2013.330 with subsequent amendments – ‘the Accounting Act’).
Our responsibility was to audit the attached financial statements and to express
an opinion on whether, based on our audit, these financial statements comply, in
all material respects, with the required applicable accounting policies, whether
they truly and fairly[2] (http://#_ftn2) reflect, in all material respects, the
financial position and results of the operations of the Company and whether the
accounting records that form the basis for their preparation are, in all
material respects, properly maintained.

3. We conducted our audit of the attached financial statements in accordance
with:

  · chapter 7 of the Accounting Act,
  · national auditing standards issued by the National Council of Statutory
Auditors,

 in order to obtain reasonable assurance whether these financial statements are
free of material misstatement. In particular, the audit included examining, to a
large extent on a test basis, documentation supporting the amounts and
disclosures in the attached financial statements. The audit also included
assessing the accounting principles adopted and used and significant estimates
made by the Company’s Management Board, as well as evaluating the overall
presentation of the attached financial statements. We believe our audit has
provided a reasonable basis to express our opinion on the attached financial
statements treated as a whole

4. In our opinion, the attached financial statements, in all material respects:

  · present truly and fairly all information material for the assessment of the
results of the Company’s operations for the period from 1 January 2013 to 31
December 2013, as well as its financial position[3] (http://#_ftn3) as at 31
December 2013;
  · have been prepared in accordance with International Financial Reporting
Standards as adopted by the EU and based on properly maintained accounting
records;
  · are in respect of the form and content, in accordance with legal regulations
governing the preparation of financial statements and the Company’s Articles of
Association.

5. We have read the ‘Directors’ Report for the period from 1 January 2013 to 31
December 2013 and the rules of preparation of annual statements’ (‘the
Directors’ Report’) and concluded that the information derived from the attached
financial statements reconciles with these financial statements. The information
included in the Directors’ Report corresponds with the relevant regulations of
the Decree of the Minister of Finance dated 19 February 2009 on current and
periodic information published by issuers of securities and conditions for
recognition as equivalent the information required by laws of non-EU member
states (Journal of Laws 2009.33.259 with subsequent amendments).

Ernst & Young Audyt Polska spółka z ograniczoną odpowiedzialnością sp. k.
(formerly: Ernst & Young Audit sp. z o.o.)
Rondo ONZ 1, 00-124 Warsaw
Reg. No 130

Key Certified Auditor

Andrzej Kowal
certified auditor
No. 90032

Warsaw, 21 March 2014

----------------------------------------------------------------------

[1] (http://#_ftnref1) Translation of the following expression in Polish:
‘rzetelność i jasność’

[2] (http://#_ftnref2) Translation of the following expression in Polish:
‘rzetelnie i jasno’

[3] (http://#_ftnref3) Translation of the following expression in Polish:
‘sytuacja majątkowa i finansowa’
For additional information, please contact:

Wolfgang Luebbert, CEO, tel. +49 40 51485310