* Oasis calls for Hokuetsu shareholders to vote against CEO Mr. Kishimoto at upcoming AGM

* Oasis announces “Hokuetsu Corp Gov” campaign and website calling for accountability now

More information available at www.HokuetsuCorpGov.com

Oasis Management Company Ltd. (“Oasis”) is the manager to funds that beneficially own over 18.0% of paper manufacturer Hokuetsu Corporation (3865 JT) (“Hokuetsu” or the “Company”). Oasis has adopted the Japan FSA’s “Principles of Responsible Ownership” (a/k/a the Japan Stewardship Code) and in line with those principles, Oasis monitors and engages with its investee companies.

Oasis, a long-term shareholder of Hokuetsu, urges its fellow shareholders to vote against the re-election of the Company’s president, Mr. Kishimoto, at the upcoming AGM. We firmly believe that Mr. Kishimoto’s leadership has failed to realize the full potential of Hokuetsu, and we must act now to hold management accountable, improve governance, and help build a better Hokuetsu.

During Mr. Kishimoto’s 15 years as CEO, the Company has:

• Failed in corporate governance
• Failed to plan for the future, despite increasing challenges to the paper industry
• Failed to increase employees’ salaries by growing the business
• Failed to meet the mid-term plan targets for four consecutive mid-term plans
• Failed to either divest its cross-shareholding with Daio or realize synergies
• Failed to manage the risks of holding such a large cross-shareholding
• Failed to meet with its largest shareholder, despite repeated requests over years

The Company’s corporate governance system, controlled by Mr. Kishimoto, has failed to function and hold him accountable for these failures. As a result, we believe true enhancement of the Company’s corporate value is not possible without his departure. We firmly believe that Mr. Kishimoto’s departure will enhance Hokuetsu’s corporate value over the long-term, to the benefit of all stakeholders.

Oasis has been engaging closely with the Company since 2019, both privately and publicly, on a host of operational and governance improvements. In October 2022, Oasis launched a public campaign (“A Better Hokuetsu”) and asked Hokuetsu to divest its shares of Daio Paper Corporation (“Daio”), noting the lack of synergies achieved which might have justified the risks involved in holding such a single large investment accounting at the time for over 75% of Hokuetsu’s NAV. Since then, the Company has failed to act upon this recommendation, and Daio’s share price declined by -48.1% in the 16 months since, equivalent to a JPY40 billion loss of economic value for the Company and its stakeholders.

Furthermore, Mr. Kishimoto has refused to meet Oasis, despite Oasis’s repeated requests. In addition to our phone calls, Oasis has written to ask to meet Mr. Kishimoto over five times to discuss value-enhancing proposals, all of which he has refused. Oasis is the Company’s largest shareholder, owning over 18% of the shares. Engaging with shareholders is a core duty of management under the Corporate Governance Code. We see this refusal alone, over the past four years, as a grievous breach of governance.

Seth Fischer, Founder and Chief Investment Officer of Oasis, said:

“It is clear that Mr. Kishimoto is no longer the best management for Hokuetsu, especially in an era where good management is needed more than ever, given the shrinking demand for paper. We must act now to hold management accountable and help Hokuetsu achieve its full potential. We ask all shareholders to vote against the re-election of Mr. Kishimoto, for the benefit of the Company and all its stakeholders.”

To learn more about Oasis’s proposals, please visit www.hokuetsucorpgov.com. We welcome all stakeholders to contact Oasis at info@hokuetsucorpgov.com to help improve Hokuetsu’s Corp Gov through accountability now.

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Oasis Management Company Ltd. manages private investment funds focused on opportunities in a wide array of asset classes across countries and sectors. Oasis was founded in 2002 by Seth H. Fischer, who leads the firm as its Chief Investment Officer. More information about Oasis is available at https://oasiscm.com. Oasis has adopted the Japan FSA’s “Principles of Responsible Institutional Investors” (a/k/a Japan Stewardship Code) and in line with those principles, Oasis monitors and engages with our investee companies.

The information contained in this press release (referred to as the "Document") is an information resource for shareholders in Hokuetsu offered by Oasis, the investment manager to funds that are shareholders of Hokuetsu (the "Oasis Funds"). The Document is not intended to solicit or seek shareholders' agreements to jointly exercise any voting rights with Oasis. Shareholders that have an agreement to jointly exercise their voting rights are regarded as Joint Holders under the Japanese large shareholding disclosure rules and they must file notification of their aggregate share ownership with the relevant Japanese authority for public disclosure under the Financial Instruments and Exchange Act. Oasis does not intend to be subjected to such notification requirement. The Document exclusively represents the opinions, interpretations, and estimates of Oasis.

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