Italia MDC update and share ownership

EQTEC plc (AIM: EQT), a global technology innovator powering distributed, decarbonised, new energy infrastructure through its waste-to-value solutions for hydrogen, biofuels, and energy generation announces that the share capital ownership of EQTEC Italia MDC Srl ("Italia MDC"), the operating company for the Group's Italy-based Market Development Centre ("MDC") has been formally updated to reflect recent investments made into the 1 MWe biomass-to-power plant that is the focus of its business activities (the "Plant") and as part of the legal preparation for the drawdown of financing for the plant provided by Banca del Fucino S.p.A. (the "Lender").

The Company announced on 04 September 2023 that it had entered into a loan facility of €2.9 million (the "Facility") provided by the Lender to refinance the Plant, subject to the Plant's achievement of certain performance criteria set by the Lender. In order to achieve these criteria, Italia MDC is implementing a series of performance improvements which are anticipated to be completed in Q4 2023, at which point Italia MDC intends to draw down the full amount of the Facility.

Those improvements are being financed through a combination of shareholder loans and equity from two of the four investors in Italia MDC, Quainstone Limited and the Company, resulting in a change to relative ownership of Italia MDC, which the shareholders have recorded officially with Italian authorities as of 03 November 2023. The updated capital ownership of the Plant is as follows:

EQTEC Italia MDC Srl ("Italia MDC") is a company registered in Italy for the purpose of transforming agricultural and forestry waste into electrical power and biochar in a relatively remote and heaviliy agrarian community. The Company currently owns 38.30% of Italia MDC.

Italia MDC owns and operates a 1 MWe plant in Gallina (the "Plant"), a village near Castiglione d'Orcia in Tuscany's Val d'Orcia, an area considered to be the region's most scenic. It is on a site originally owned by Toscana Cereali Societa' Cooperativa Agricola, from whom Italia MDC is currently leasing and with whom Italia MDC have agreed to purchase the land by 30 July 2024. With EQTEC technology at its core, the Plant is capable of converting multiple types of biomass feedstock into electrical power and thermal energy.

Initially, the Plant is converting higher-density wood waste into electrical power for export to the national grid, for which a connection has been secured with a preferential tariff. In addition to the electricity, the Plant is producing biochar for purchase by two European wholesalers of the product. Thermal energy produced through the continuous EQTEC thermochemical conversion process is being recycled to dry the feedstock, improving the Plant's waste-to-energy conversion efficiency.

Feedstock is being delivered by multiple, local suppliers, and Italia MDC has identified additional, potential suppliers in order to maintain continuity of supply and leverage over cost and availability. Further, the Plant has been upgraded to support lower-density feedstocks such as straw or other agricultural waste. This ability to switch amongst feedstock types and suppliers adds resilience to Italia MDC's business model.

About EQTEC plc

Further information on the Company can be found at www.eqtec.com.