Element ASA acquires PALcapital Ventures, Inc. - strengthening its position within the digital and

OSLO, NORWAY 14 AUGUST 2019 – ELEMENT ASA (ELEMENT, OSE:ELE) TODAY ANNOUNCES THE ACQUISITION OF 100% OF THE SHARES OF PALCAPITAL VENTURES INC. TO PROVIDE A PLATFORM FOR EARLY-STAGE INVESTMENTS WITHIN THE DIGITAL AND BLOCKCHAIN SECTORS. Element ASA has today signed and consummated an agreement to acquire 100% of the shares in PALcapital Ventures, Inc. ("PALcapital") from Pacific Alliance Limited, LLC. Pacific Alliance Limited, LLC is a wholly owned company of James Haft (56), a US resident based in New York, who is also engaged as a consultant to Element. PALcapital is an investment company with early stage investments within the digital and distributed ledger/blockchain sectors and holds rights to acquire equity and/or rights to tokens (if issued) in four companies within the digital and blockchain industry. With this transaction Element now offers indirect exposure to the digital industry, through the listed and liquid Element share, tradeable on Oslo Børs. The consideration for the shares in PALcapital, shall be settled by Element against the issuance of 2,650,000 new shares in Element at par value of NOK 1.60 ("Consideration Shares"). The issuance of the Consideration Shares has been resolved pursuant to the existing authorization to Element's board of directors to increase the company's share capital, as adopted at the ordinary annual general meeting held on 28 June 2019. Registration of the new share capital with the Norwegian Register of Business Enterprises will take place as soon as possible and once the registration of the share capital increase is completed, the Consideration Shares will be registered in the Norwegian Central Securities Depository. The Consideration Shares will be delivered on a separate ISIN on the time of settlement, and will be listed and tradable following announcement of a listing prospectus by Element. The Consideration Shares are subject to a lock-up undertaking that will gradually be lifted during the first 12 months following closing of the transaction. "We have been working closely with James Haft since announcing our partnership before the summer of 2019, aiming at developing new business initiatives within the digital space. I´m happy to announce the acquisition of PALcapital Ventures to provide a platform for venture investments focused primarily on the distributed ledger/blockchain technology. PALcapital Ventures already has interest in four companies within the digital space and gives our shareholders exposure towards early-stage investments within the digital sector”, says Geir Johansen, CEO of Element. Element announced 6 June 2019 the partnership with James Haft and PALcapital for the development of new digital initiatives, building on work previously done by Element. PALcapital currently holds interests in:

• AdNode - a marketing and advertising company that brings accountability to digital marketing • metaMe - bringing control of personal data back to the individual consumer • TradeStars - a fantasy sports platform powered by the Ethereum blockchain where users can own, create, trade and monetize digital assets that represents real-life sports performance. • SportsCastr – an ultra-low latency live video platform for sports. The company has launched FanChain, a cryptocurrency and decentralized sports ecosystem. “James has long experience and an extensive network within the blockchain eco-system globally. We are happy to announce this new platform for exposure towards early-stage digital and blockchain sectors normally not available for equity investors who wants liquid assets. All assets in PALcapital represents exposure to the early phase of the portfolio companies. The transaction price balances the implied risk with the potential value creation from future exits. We look forward to develop the PALcapital portfolio further and to continue our work with James to create value within the digital space, “says Johansen. For further information, please contact: Thomas Christensen Chairman +47 9225 5444 Geir Johansen CEO E-mail: gj@elementasa.com +47 4771 0451 www.elementasa.com This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.