Current Report No. 40/2012

Re: Repayment of debt under loan facility to Bank Polska Kasa Opieki S.A.

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 21
December 2012 Bank Polska Kasa Opieki S.A. acting as a loan agent in relation to
the loan agreement executed on 6 November 2012 between the Company, Arctic Paper
Kostrzyn S.A., Arctic Paper Investment GmbH and Arctic Paper Mochenwangen GmbH
on one side and Bank Polska Kasa Opieki S.A., BRE Bank S.A. and Bank Zachodni
WBK S.A. on the other side (the “Loan Facility Agreement”) disbursed the loan.

The Company informed about the Loan Agreement execution in current report
no.19/2012 dated 6 November 2012. The Company informed about the satisfaction of
conditions precedent to the disbursement of funds provided under the Loan
Agreement in current report no. 36/2012 of 18 December 2012.

Accordingly, the Company informs that on 21 December 2012 the liabilities of the
Company and its subsidiaries, i.e. Arctic Paper Kostrzyn S.A., Arctic Paper
Investment GmbH and Arctic Paper Mochenwangen GmbH towards Bank Polska Kasa
Opieki S.A. (the “Bank”) under the loan agreement of 23 October 2008 executed
between the Issuer, the Company’s subsidiaries and the Bank (the “Existing Loan
Agreement”) have been totally paid. The Issuer informed about the execution of
the Existing Loan Agreement in the prospectus and in current reports nos.
30/2010, 34/2010, 9/2011, 10/2011, 25/2011 and 26/2011.

Legal basis for the delivery of the report:
§ 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 (Journal of Laws of 2009
No. 33 item 259, as amended).