NAT Completes CRAiLAR® Trial At Barnhardt Manufacturing

Naturally Advanced Technologies Inc. (NAT), Vancouver, Canada, provider of CRAiLAR® enzymatic
technology for processing bast fibers, reports it has completed its final large-scale production
and commercialization trial with Charlotte-based Barnhardt Manufacturing Co., a global supplier of
bleached and chemically enhanced cotton fibers and nonwoven products including medical, dental and

NAT and Barnhardt signed a third-party manufacturing agreement in March 2012 under which
Barnhardt would process Crailar fiber produced at NAT’s pilot facility in Kingstree, S.C., and
eventually at NAT’s first full-scale production facility currently under construction in Pamplico,
S.C. Barnhardt has processed 100 tons of Crailar flax fiber that will be supplied to
Georgia-Pacific for formed materials, to Levi Strauss & Co. for use in additional production
trials for apparel products, and to Target’s designated vendor for the remainder of the spring 2013
retail introduction.

“This is a validating step for Crailar as we demonstrate the ability of our technology to
scale without risk, and as we finalize the completion of our full scale production facility in
Pamplico, S.C.,” said Ken Barker, CEO, NAT. “Most importantly, this is a key milestone as we look
to expand finished products available at retail, and industries within which consumers will soon be
experiencing Crailar Flax Fiber.”

August 21, 2012