11:45 London, 13:45 Helsinki, 01 July 2026 - Afarak Group SE ("Afarak" or "the Company") (LSE: AFRK, NASDAQ: AFAGR)

Afarak Group SE and its group companies are evaluating potential acquisition of the metal factory of ABS SISAK d.o.o. located is Sisak, Croatia.

Stock Exchange Release

Afarak Group SE and its group companies are evaluating potential acquisition of the metal factory of ABS SISAK d.o.o. located is Sisak, Croatia.

The discussions are held with the with the Italian ABS , a company belonging to the steel division of the Italian Danieli Group. The target of the discussion is acquisition of the ABS Sisak plant for the resumption of production, and the installation of a new production line for rebar, with a capacity of approximately 500,000 metric tons per year.

Today, Croatia imports nearly all of its construction steel—about 400,000 metric tons per year—so domestic production would directly reduce dependence on imports. The total value of the deal, including the installation of the mini mill developed by Danieli, a compact and energy-efficient production model that transforms ferrous scrap into rebar, wire rod, and bars for the construction industry, is in the order of 200 million euro.

At this stage there are no binding obligations between the parties. This stock exchange release is published because the Croatian media has published some information about the potential transaction. Some of the information in the media is incorrect/inaccurate. Afarak will not comment on the issue further at this point.

Helsinki, July 1, 2026

AFARAK GROUP SE

Board of Directors

For additional information, please contact:

Guy Konsbruck, CEO, +356 2122 1566, guy.konsbruck@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).

Distribution:
NASDAQ Helsinki
London Stock Exchange
Main media

www.afarak.com