HS Orka hf. - Company Announcement

Arbritration results

HS Orka hf has received positive arbitration results regarding a dispute over
the quantity of power purchased since October 2011 by Norðurál Grundartangi,
one of the primary purchasers of HS Orka‘s geothermal power. The award requires
Norðurál Grundartangi to pay cash damages of just over $1.4 million to HS Orka
representing 100% of the value of the power that the Grundartangi smelter did
not take but was contractually obligated to purchase (such amounts were
previously recognized by HS Orka as revenue). The award also upheld HS Orka‘s
position regarding Norðurál Grundartangi's required power purchase amounts
going forward. 

For further information contact Júlíus Jónsson tel: 8605208