Proposed Fundraise and Capital Access WIndow

EnergyPathways plc ("EPP"), the UK energy transition company, announces that it intends to undertake a fundraising with institutional investors through the issue of new ordinary shares in the Company (the "Proposed Fundraise").

Use of Proceeds

The funds will be used to progress activities for its MESH project, set to be the UK's largest Long Duration Energy Storage (LDES) project, which include licence work commitments, activities for its LDES Ofgem cap and floor submission, and planning and permitting activities.

Capital Access Window

Following the recent updates to the AIM Rules for Companies announced in August 2026, to support the Proposed Fundraise, the Company will enter a Capital Access Window with effect from 7.30am BST today. This is a voluntary temporary pause in the trading of the Company's shares on AIM to achieve pricing stability during the Proposed Fundraise. Following the successful conclusion of the Proposed Fundraise, the Company intends to undertake an offer to retail investors on the same terms as the Proposed Fundraise. The Capital Access Window will remain in place until a further announcement is made detailing the results of the Proposed Fundraise.

About MESH

The MESH Long Duration Energy Storage project has been designated as a project of "national significance" by the UK Government.

It combines compressed air energy storage with natural gas and hydrogen storage. It is set to become the UK's largest LDES project at 300 MW / 55 GWh / 100+ hours. It aims to start up hydrogen production operations in 2029-2030, followed by LDES operations starting up in 2031-2032, subject to government policy development, approvals and financing.

Significantly, MESH offers a multi-day storage capability in excess of 100+hours and so will be able to capture the UK's mounting surplus wind power being generated which is being wasted.

Last year the cost to consumers of switching off wind farms and replacing this with expensive gas power was in excess of £1.5 billion. By 2030, this is expected to increase to more than £8 billion as wind surpluses increase on the back of the planned increase in wind capacity which together with "must run" generation will reach around 80 GW compared with current average electricity demand of around 37 GW.

Other storage technologies, such as batteries, only store for a handful of hours at best (1-4 hours) and are not viable to handle multi-day wind surplus and deficit events typical of UK weather.

MESH's low-cost hydrogen production provides a decarbonisation pathway for the UK's gas consumption. It further enhances MESH's capability to store energy and supply flexible low-carbon dispatchable power for days to weeks and even seasons acting as an important strategic reserve. It will significantly strengthen national energy security and the UK grid's stability and reliability while also reducing greenhouse gas emissions.

By capturing the huge waste in wind power, MESH will lower system energy costs, provide system flexibility over any timeframe to strengthen energy security reduce the UK's current over-reliance on gas to backup renewables.

The Directors of the Company are responsible for the contents of this announcement.

Investor Engagement with EnergyPathways