Circular & Notice of General Meeting

IQE plc (AIM: IQE, "IQE", the "Company" and, together with its subsidiary companies, the "Group"), a leading global supplier of compound semiconductor wafer products and advanced material solutions, is pleased to confirm that, further to the Company's announcement on 27 April 2026 in connection with the Proposed Fundraising, the Company has today published and posted to shareholders a circular ("Circular") containing a notice convening a general meeting of IQE (the "General Meeting").

The General Meeting is to be held at the offices of White & Case LLP at 5 Old Broad Street, London EC2N 1DW at 9:30 a.m. on 15 May 2026, at which the Fundraising Resolutions will be proposed: (i) by way of ordinary resolution, to approve the directors' authority to allot Ordinary Shares with an aggregate nominal value of up to £4,079,412.53, being equal to 407,941,253 new Ordinary Shares, in connection with and pursuant to the Proposed Fundraising; and (ii) by way of special resolution, empower the directors to allot and issue equity securities for cash on a non-pre-emptive basis with an aggregate nominal value of up to £4,079,412.53, being equal to 407,941,253 new Ordinary Shares, in connection with and pursuant to the Proposed Fundraising.

The Proposed Fundraising is conditional, inter alia, upon Shareholders approving the Fundraising Resolutions at the General Meeting.

A copy of the Circular (including the Notice of General Meeting) and the Proxy Form are available on the Company's website at https://www.iqe.com/investors/events/capital-raise-2026/.

The Independent Directors consider the Fundraising Resolutions to be proposed at the General Meeting to be in the best interests of the Company and the Shareholders as a whole. Consequently, the Independent Directors unanimously recommend that you vote in favour of the Fundraising Resolutions to be proposed at the General Meeting, as they intend to do in respect of the 371,972 Existing Ordinary Shares held, directly or indirectly, by them representing approximately 0.04 per cent. of the total voting rights of the Company. Shareholders should be aware that if the Fundraising Resolutions are not approved at the General Meeting, the Proposed Fundraising cannot complete and IQE will not receive the proceeds from the Proposed Fundraising. In such circumstances, the Company would be required to obtain emergency funding to meet its short-term liquidity needs and its financial position and prospects would be adversely affected.

Capitalised terms used but not defined in this announcement will have the same meaning given to them in the Circular.

• Smart Connected Devices
• Communications Infrastructure
• Automotive and Industrial
• Aerospace and Security

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