Geothermal Licence Extension & Federal Programme

Weinheim licence extension completes acquisition of three German geothermal licences as federal support programme is launched

Cindrigo Holdings Limited (LSE: CINH), an integrated renewable energy company, is pleased to announce that the exploration licence relating to its German geothermal project, Weinheim, has been extended by three years to 30 November 2028. Weinheim is one of three geothermal licences being developed by Cindrigo in the Upper Rhine Valley, a well-established geothermal production area in Germany.

All three licences have now been extended in accordance with the Investment Agreement between Zukunft Geoenergie GmbH ("ZGG"), and CGEO Cindrigo Geothermal Limited ("CGEO"), a 100% owned subsidiary of the Company. As a result, Cindrigo's acquisition of an 85% interest in ZGG, which holds the licences, has now become unconditional.

Cindrigo also notes that on 18 December 2025, the German federal development bank KfW Group, together with insurance company Munich Re and the German Federal Ministry for Economic Affairs and Energy, officially launched a new programme for Germany to support the development of deep geothermal energy projects for municipal and industrial heat supply.

The "KfW Geothermal Support Loan" assists with the financing of geothermal drilling projects and provides insurance against the risks associated with drilling. Loans of up to €25 million per project are available, with a maximum term of five years. Cindrigo intends to apply for these loans as it advances the development of its three geothermal licences.

The Weinheim, Worms and Eich licences collectively cover approximately 125 km² and are to be developed on a staged basis, targeting c.300 MW of capacity across district heating, electricity generation and lithium extraction.

Lars Guldstrand, CEO of Cindrigo, commented: "Germany is one of the fastest-developing geothermal markets in Europe and we are delighted to be advancing three strategic licences at this opportune time. The launch of the KfW Geothermal Support Loan highlights Germany's significant support for geothermal development as the German Government aims to deliver on a national objective to produce 10 TWh of geothermal energy by 2030, which will require more than 100 new geothermal plants to be developed.

"The federal support programme is significant; it greatly supports the drilling while mitigating the risk, and affirms clear end-user demand. It is our intention to utilise this funding support as much as possible to advance our three projects on a staged basis. This extension is symbolic as it also marks the final step in concluding our acquisition of our three German geothermal projects. We are looking forward to progressing this portfolio in 2026 alongside our growing biomass operations in Finland."

KfW Geothermal Support Loan

The KfW Geothermal Support Loan forms part of the Germany Fund (Deutschlandfonds), initiated by the Federal Ministry of Finance, the Federal Ministry for Economic Affairs and Energy, and KfW. The fund deploys various financing instruments to create state-backed incentives that mobilise private capital for investment in key future sectors of the German economy.

Structure of the Programme

The innovative programme addresses two core challenges:

• Financing support for geothermal drilling projects at depths of 400 metres or more in Germany through low-interest KfW loans
• Risk mitigation, covering the exploration (resource) risk associated with geothermal drilling

Financing Terms

• KfW provides loans of up to €25 million per project
• Maximum loan term: five years
• The loan must be secured by insurance coverage or partial debt forgiveness
• The Federal Government provides funding for the risk mitigation component

Project overviews for preliminary review can be submitted with immediate effect.

Role of Munich Re

Munich Re assesses projects for insurability and technical feasibility. Following a positive assessment of minimum requirements, a detailed project review is conducted. If this assessment is also positive, KfW issues an invitation to submit a formal loan application.

• Munich Re insures 30% to 70% of the loan amount
• For the uninsured portion, KfW grants partial debt forgiveness in the event of loss (e.g. non-discovery), under the same conditions as the insurance contract
• This structure allows project sponsors to secure up to 100% of the loan amount

Broader Impact

The new support programme makes a significant contribution to expanding heat infrastructure and strengthening security of energy supply in Germany.

KfW will shortly expand its "Investment Loan for Municipal and Social Enterprises" to include investments in efficient heat and power supply systems. This will enable continued financing for the construction of geothermal plants following successful drilling.

Cindrigo Holdings Limited

Lars Guldstrand, CEO lg@cindrigo.com

Beaumont Cornish Limited (Sponsor)

Roland Cornish / Asia Szusciak / Andrew Price Tel: +44 (0)207 628 3396

Capital Plus Partners Limited (Broker)

Jonathan Critchley Tel: +44 (0)207 432 0501

St Brides Partners (Financial PR)

Paul Dulieu / Charlotte Page / Will Turner cindrigo@stbridespartners.co.uk

Notes