AFARAK GROUP AND THE SHAREHOLDERS OF LL-RESOURCES GMBH HAVE ENTERED INTO AN AGREEMENT ON THE TERMINATION OF THE COMBINATION AGREEMENT AND THE CANCELLATION OF THE TRANSACTION

Afarak Group SE        Inside information         12 October 2023 at 14:00 EET

AFARAK GROUP AND THE SHAREHOLDERS OF LL-RESOURCES GMBH HAVE ENTERED INTO AN AGREEMENT ON THE TERMINATION OF THE COMBINATION AGREEMENT AND THE CANCELLATION OF THE TRANSACTION

Afarak Group SE ("Afarak” or "Afarak Group”) and the shareholders of LL Resources GmbH (the "Sellers”) have today signed an agreement on the termination of the Combination Agreement (the "Termination Agreement”) and the cancellation of the transaction (the "Transaction”). The Termination Agreement and the cancellation of the Transaction entered into force immediately.

Afarak and the Sellers (together the "Parties”) signed a Combination Agreement (the "Combination Agreement”) on 11 May 2023 with certain conditions precedent in order to upon fulfilment of the conditions precedent execute the Transaction in which Afarak would have acquired all shares in LL-resources GmbH ("LLR”) by issuing 140,000,000 new shares of Afarak as consideration to the Sellers. The Annual General Meeting of Afarak have conditionally approved the Transaction on 21 June 2023.

During the completion process of the Transaction and the initial steps of the integration of LLR into Afarak Group, it became evident to the Parties that the anticipated synergy effects of the Transaction would not materialize in the way that was expected by the Parties. Hence, the mutual conclusion reached by the Parties was that the completion of the Combination Agreement would not bring sufficient synergy benefits to the shareholders of Afarak nor to the Sellers. Despite of the termination of the Combination Agreement and the Transaction, the Parties agree that they wish to continue developing the business relationship between Afarak and LLR also in the future.

Helsinki, 12 October 2023

AFARAK GROUP SE

Board of Directors

For additional information, please contact:

Thorstein Abrahamsen, Chairman of the Board, +4790924602, Thorstein.Abrahamsen@afarak.com

Financial reports and other investor information are available on the Company's website www.afarak.com.

Afarak Group is a specialist alloy producer focused on delivering sustainable growth with a Speciality Alloys business in southern Europe and a FerroAlloys business in South Africa. The Company is listed on Nasdaq Helsinki (AFAGR) and the Main Market of the London Stock Exchange (AFRK).

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