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2015-09-25

EAM Solar ASA : Status of operations and litigations

Operations, reporting and shareholders meetingAll assets (25 PV power plants) are operating and delivering electricity to
the grid on a daily basis. 17 of the power plants are still not receiving FIT
payment from GSE for the electricity delivered to the GSE. At the end of
September 2015, GSE has an accumulated unpaid electricity bill of
approximately EUR 10m. A more detailed update on operational status will be
given in the Shareholders meeting the 8thof October and in the third quarter
2015 report.

The third quarter 2015 report will be released later than previously
announced. The announced date is 30 October 2015. The new reporting date will
be 30 November 2015. The reason for postponing the report release is to await
the outcome of the criminal and administrative court proceedings that will
take place in October.

The Company will convene a shareholders meeting on Friday 9 October 2015 in
order to present current status, and for the Board and administration to be
available for questions and clarifications from the shareholders on the
current status of the company. The time and venue on the 9thof October will
be announced in a separate stock exchange notice.

Status of criminal proceedings against Aveleos directors and related partiesReference is given to previous stock exchange notices and quarterly reports
from EAM Solar ASA.

Since the execution of the partial closing of the P31 acquisition the 15thof
July 2014, some of the Directors of Aveleos SA have been indicted by the
Prosecutors Office in Milan for several crimes against the State of Italy and
other parties. The Prosecutors Office's investigation was concluded in the
first quarter 2015, and at current the Criminal Court of Milan is conducting
the preliminary hearing in order to decide on approving the Prosecutors
Office request for a committal to trial.

Aveleos SA is a special purpose vehicle, established in 2010, owned by Enovos
of Luxembourg (59%) and Avelar Energy (41%), with the specific purpose to
build for sale PV power plants. Aveleos has no employees but is managed by a
Board of Directors consisting of 3 Enovos directors and 2 Avelar directors.
The Enovos directors since the inception of Aveleos SA has amongst other been
Jean Lucius, CEO of Enovos, and Michel Schaus, member of the Enovos Executive
Board.

The preliminary hearing in the criminal proceedings started the 3rdof June
2015. On the 15thand 17thof September the preliminary hearings were
continued, and the preliminary conclusions from the hearing are as follows:

The judge of the preliminary hearing of the criminal proceedings against,inter
alia
, the Aveleos' directors Marco Giorgi and Igor Akhmerov, has given EAM Solar
ASA and its daughter company EAM Solar Italy Holding S.r.l. the status of a
victim of fraud with reference to the crime of contractual fraud (as
described in point F of the Prosecutors Office of Milan's request for
committal for trial).

Mr Giorgi and Mr Akhmerov are accused of several crimes, including organised
crime, aggravated fraud aimed at obtaining public contributions, filing of
fraud declarations and contractual fraud against EAM.

In particular, under indictment point F, Marco Giorgi and Igor Akhmerov are
claimed to be responsible of collaborating with each other, as
representatives of Aveleos SA,, upon receiving the first instalment of the
total payment of Euro 36.864.618 subject to the transfer of the shares of the
companies that comprise the P31 portfolio. Together they are accused of
having procured an illegitimate profit to Aveleos SA, equal to the value of
the sales agreement, as they deceived EAM by not disclosing to the latter the
lack of the necessary requirements in order to be granted with the incentive
tariffs by the GSE and therefore convinced EAM Solar Italy Holding and its
holding company, EAM Solar ASA, to make bank transfers with three different
payments, in such a way causing a serious economic damage to EAM Solar on 15
July 2014.

Furthermore, the judge of the preliminary hearing has allowed EAM to summon
Aveleos SA, Enovos Luxembourg SA and Avelar Energy Ltd as financially liable
parties for the economic damage suffered by EAM as a result of the fraud. The
judge rejected the objections of the companies summoned as financially
liable, which asked to be excluded from the criminal proceedings
The next preliminary hearing will be held on 20 October 2015. The judge will
most likely schedule another preliminary hearing before deciding on the
request for committal for trial of the defendants.

By obtaining the status as a victim of a fraud, EAM received the investigation
documentation from the Prosecutors Office. The documentation has enabled EAM
to prepare for the forthcoming legal measures, beyond the criminal case in
Milan, to be taken in order to seek compensation for the economic damages
caused by the fraud against EAM.

The next legal steps under criminal and civil law in Italy, Luxembourg and
Switzerland are now being prepared with EAM's advisors.

Status of the FIT suspension and administrative proceedings against GSEGestore Servizi Energetici ("GSE") has unilaterally suspended payments of
their electricity bills from 17 power plants since July 2014. During this
period EAM has challenged the payment suspension conducted by GSE in several
administrative court proceedings. On the 27thof January 2015 the State
Council ruled, at EAM's request in favour of EAM, that GSE had to make a
decision on the validity of the FIT contracts and decide on a final
conclusion since the payment suspension measure according to Italian law
cannot be continued without a definite timeline.

GSE has a triple role as both the administrative body responsible for
authorizing PV power plants, responsible for regulating operations and
controlling compliance of PV power plants, as well as being the commercial
customer of the purchase of electricity from the PV power plants.

In April the administrative court in Lazio (TAR) decided that the suspension
measure and the merits of the suspension would be subject to a court decision
the 9thof July for 7 of the 17 power plants.

Following this decision by the TAR, GSE issued a new suspension measure on the
30thof April with a 90 day finite timeline for a decision by GSE on the
validity of the FIT contracts for all 17 power plants.

In the first week of May GSE conducted physical inspections together with EAM
personnel of the 17 suspended power plants, and in addition GSE has received
information requested related to the construction and permitting of the PV
power plants in 2010 and 2011. Most of this material was previously received
by GSE in 2010 and 2011.

On the 9thof July the administrative court (TAR) decided that since GSE had
conducted inspections and was in the process of concluding their internal
evaluation of the validity of the FIT with a definite deadline being the
29thof July 2015, TAR ruled that GSE should make their conclusion within the
stated deadline.

No decision has been taken by GSE within the deadline of the 29thof July and
GSE has not resumed payments of the FIT. Consequently, GSE is now in breach
with the order issued by the Administrative Court of Lazio (TAR).

Based on the lack of decision and breach of law by GSE, EAM has summoned GSE
and asked the administrative court to take urgent measures against GSE. The
court will likely decide on this issue on the 15thof October 2015.

In light of the breach of administrative law and breach of EAM's legal rights
conducted by GSE, and the administrative court rulings in favour of EAM, EAM
took the initiative to a meeting with the administration of GSE, represented
its President, Mr Sperandini, in order to see if a negotiated solution could
be found.

The meeting took place the 14thof September 2015 in Rome. Present in the
meeting were GSE, representatives from the ministry, EAM representatives and
also the Norwegian Ambassador to Italy, Mr Grydeland.

Although an amicable meeting, the meeting was inconclusive since GSE considers
itself incapable of performing its legal administrative obligations and make
a final decision on the validity of the FIT contracts for the suspended power
plants. Consequently, EAM is now forced to initiate the necessary legal
action in Italy, in the European Union and under the protection of the
International Energy Charter Treaty in international arbitration courts, in
order to enforce and protect the legal rights of EAM Solar ASA.

For further information, please contact:

Viktor E Jakobsen, Executive Director, phone +47 9161 1006,viktor@eam.no

Audun W. Iversen, CEO, phone +47 916 16 250,audun@eam.no

About EAM Solar: EAM Solar is a utility company that acquires and operates
solar power plants. The Company currently owns solar PV power plants in
Italy. The plants are operating under long-term sales contracts.

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: EAM Solar ASA via Globenewswire

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