Director's Loan Extension

Narf Industries plc (LSE: NARF), a leading U.S.-based cybersecurity group specialising in advanced threat intelligence and software system security, is pleased to announce an extension to its unsecured Invoice Financing Facility Agreement (the "Facility") with the Company's Chief Executive Officer, Steve Bassi (see RNS dated 12 April 2023).

The Facility, which was previously extended to expire on 31 July 2025 (see RNS dated 31 July 2024), and later increased from US$2.5 million to US$3 million (see RNS dated 30 December 2024), has been extended by a further year to 31 July 2026. The Facility remains capped at US$3 million and a current principal amount outstanding of US$2.8 million.

The Board considers the Facility, which bear interest linked to the prevailing US Federal Reserve rate (currently 4.5 per cent per annum) to be financially more favourable to the Group than alternative financing options currently available. Funds advanced under the Facility will continue to support the cash flow management of the Company's subsidiaries, Narf Industries PR LLC, and Narf Industries LLC (together, the "Operating Subsidiaries"), in addressing timing mismatches on certain receivables.

The Company's current financial forecasts indicate significant repayments will be made during the extended term. In addition, management remains confident that sufficient capital is in place to support planned operations, including the upcoming launch of Narf's Software-as-a-Service ("SaaS") Social Cyber solution, on which a further update will be provided soon.

The Facility allows for early repayments without penalty and provides flexibility to reborrow any repaid amounts, subject to the overall cap.

Steve Bassi did not take part in any Board's discussions or deliberations on the terms of the Facility and did not attend any part of the Board meetings at which such discussions and deliberations took place.