Drawdown of £1m Finance and Issue of ATM Shares

EnergyPathways (AIM: EPP), an energy transition company, has, following its announcement of the £15 million Financing Agreement on 28 April 2026, drawn down a first tranche of £1 million (before costs and expenses).

The net proceeds of this drawdown will be deployed to accelerate the development of the Company's Marram Energy Storage Hub project ("MESH" or the "MESH Project"), including progression of what is expected to be world's largest compressed air energy storage ("CAES") facilities, to be located here in the UK east Irish Sea, through Front End Engineering Design (FEED).

The MESH CAES development pathway is not contingent upon the award of a gas storage licence. The Company will advance the CAES long-duration energy storage project independently while continuing to progress in parallel the gas and hydrogen storage and low-carbon hydrogen production elements of the MESH Project.

Additionally, a sum of money has been set aside to fulfil the Company's proposed work commitments set out in its gas storage licence application, for which a decision is pending from the North Sea Transition Authority (NSTA).

Pursuant to the terms of the Financing Agreement, in conjunction with the drawdown, the Company has issued 5,060,917 warrants to the Investor, representing 30% of the value of the drawdown. The warrants are exercisable at a 40% premium to the Reference Price* which for this drawdown is 5.93 pence per Ordinary Share and the warrants are exercisable at 8.3 pence per Ordinary Share.

In addition, pursuant to the ATM Facility arrangement announced on 28 April 2026, 6,939,727 shares ("ATM Shares") have been issued at their nominal value of 1 pence per share. The ATM Shares will be sold in the market to provide further working capital to the Company.

Admission and Voting Rights

Application has been made for the 6,939,727 ATM Shares to be admitted to trading on AIM ("Admission"). Admission is expected to become effective and dealings in the ATM Shares are expected to commence on or around 6 May 2026.

Upon Admission, the Company's issued ordinary share capital will consist of 232,097,903 Ordinary Shares with one voting right each. The Company does not hold any Ordinary Shares in treasury. Therefore, from Admission the total number of Ordinary Shares and voting rights in the Company will be 232,097,903. With effect from Admission, this figure may be used by Shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.

*The Reference Price is calculated as the average of the daily VWAP of the Company' ordinary shares for the five consecutive trading days prior to the date of each applicable loan drawdown.

Defined terms in this announcement are the same as those in the announcement of the Financing Agreement made by the Company on 28 April 2026.

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