Villeta Project Update

ATOME announced on 13 May 2026 that, following approval of the Villeta Transaction at the General Meeting held earlier that day, the Company was now working to satisfy all conditions precedent prior to First Disbursement in respect of the Villeta Project financing.

The conditions precedent under the Common Terms Agreement included the execution of an already agreed form of power purchase agreement with ANDE ("Agreed PPA"), the Paraguay State-owned electricity supplier, incorporating the electricity tariffs and terms which had been established and mandated by a signed Presidential Decree issued by the President of Paraguay on 16 January 2026 ("Decree"). The Agreed PPA was intended to replace the previous executed variable rate power purchase agreement ("Original PPA") with a fixed rate agreement for the period of the project funding in accordance with the tariffs set out in the Decree.

The Company became aware yesterday, following a media report in Paraguay, that the Decree, had without prior notice or consultation been cancelled and replaced by a further decree ("New Decree"). Accordingly, the Agreed PPA has not yet therefore been executed as anticipated, notwithstanding that the form had been previously agreed with ANDE.

Under the terms of the New Decree, ANDE has been entrusted to establish conditions to facilitate investments into Paraguay, including the proposed investment by ATOME in the Villeta Project, under terms to be agreed and the previous tariffs in the Decree have been withdrawn.

ATOME is seeking at the earliest available opportunity to clarify with ANDE and the Government the status of the Agreed PPA, the applicable electricity tariffs, and the ongoing arrangements between ATOME and ANDE, which underpin the project funding and upon which ATOME and its major stakeholders in the Project have relied through the terms of the now cancelled Presidential Decree. ATOME is consulting with those key project multinational DFI stakeholders, including International Finance Corporation - a member of the World Bank Group, IDB Invest, the private sector arm of the Inter-American Development Bank Group and the European Investment Bank.

Shareholders should note for the sake of completeness that in the light of the above at this stage there is no certainty as to the outcome of these discussions and whether or not ATOME will be able to reach agreement with ANDE in a manner and form which satisfies the outstanding condition precedent to First Disbursement to the approval of the Project stakeholders.

Peter Levine, Chair of ATOME PLC, commented:

"The Government is a great supporter of our Project which is one of strategic importance to Paraguay creating 4,000 new local jobs during construction and 1,300 new jobs during operations and placing Paraguay on the map of international fertiliser producers. We had received assurances and guarantees at the highest level that the Agreed PPA would be executed in accordance with the Decree before the end of June. This was conveyed to our key Project investors in whom Paraguay relies for its future growth and inward investments. We are therefore perplexed by this unforeseen development but will nevertheless continue to work constructively with ANDE and the Government of Paraguay with the aim to resolve this issue urgently."

A further update announcement will be made in due course.