Nippon Paper Industries Co., Ltd.:

We hereby announce that our Australian consolidated subsidiary, Paper Australia Pty Ltd ("Opal") has today commenced legal proceedings against the Victorian Government in the Supreme Court of Victoria following the Government's breach of the Wood Pulp Agreement.

As previously advised in the "Notice of Withdrawal from White Pulp and Paper (Graphic Paper) Business at Opal, a Consolidated Overseas Subsidiary of the Company" on 14 February 2023, in response to the unexpected cessation of wood supply, Opal was forced to cease the graphic paper business at the Maryvale Mill which involved the permanent closing of some manufacturing assets. In connection with this withdrawal, Opal has suffered substantial loss and damage. Regarding the cessation of wood supply by the Victorian Government, Opal has sought to reach a negotiated outcome with the Victorian Government but has been unable to reach resolution. Opal has been left with no choice but to proceed with a court-determined outcome against the Victorian Government in the Supreme Court of Victoria, seeking payment of AU$402 million (approximately JPY 40 billion) in damages following the Government's breach of the Agreement. The Company will continue to provide updates, as appropriate, regarding the progress of the proceedings.