Half-year Results

(Registration Number: 12886458)

Share code on the LSE: MAST

('MED' or the 'Company')

Unaudited interim results for the six-month period ended 30 June 2025

Dated 28 August 2025

MAST Energy Developments PLC ('MED' or the 'Company') the UK-based multi-asset owner, developer and operator in the rapidly growing flexible power market, is pleased to announce its unaudited interim results for the six months ended 30 June 2025.

Overview of key highlights during the interim period and to date:

• Total revenues generated for the first 6-months of 2025 came to c. £727,488, an increase of c. 260% compared to the comparative period ending 30 June 2024;
• Pyebridge generated and sold c. 7.3 GWh of electricity during the 12-month period ending June 2025;
• Record monthly revenue of approximately £201,000 was achieved at Pyebridge in January 2025, driven by market conditions and increased generation capacity;
• Pyebridge successfully bid for and secured additional new Capacity Market ("CM") contracts, which combined with its existing CM contracts will ensure uninterrupted guaranteed gross profit income until 2029, and is planning to bid for and secure a final T-4 15-year contract in the upcoming CM auction;
• Executed £5 million investment agreement with Powertree to fully fund its Hindlip 7.5MW flexgen site through construction to commercial operations.
• Hindlip successfully bid for and secured a T-4 15-year CM contract with a total cumulative guaranteed gross income value of c. £6.3 million (before inflation increases);
• During July 2025 the Company implemented a share capital reorganisation and completed an Equity Fundraise raising £5 million in gross proceeds at PLC level, with the potential to raise and additional £10 million, materially strengthening MED's market appeal, balance sheet, and providing capital for the growth of its projects portfolio;
• Signed a binding definitive agreement with Green Light Energy to acquire the exclusive rights to an initial portfolio of c. 25 MW of flexible generation development projects, as well as a new project development framework agreement just after period end in July 2025; and
• Signed a heads of terms for a new JV with C-Zero Markets to develop, construct, and operate power supply applications for the rapidly growing AI datacentre industry.

We are pleased to present our Interim Report for the six-months ending 30 June 2025.

During the first half of 2025, Mast Energy Developments PLC ('MED') focused intensively on optimising operations at its flagship Pyebridge flexible generation site, while also making significant progress in securing funding, advancing construction readiness at other portfolio sites, and growing its portfolio of sites.

The Pyebridge facility delivered record financial and operational performance in early 2025, achieving trading revenues of approximately £201,000 in January alone. This was enabled by strong winter demand, volatile market pricing, and the successful refurbishment of a second 2.7MW genset, bringing total operating capacity at Pyebridge to 5.4MW.

Pyebridge successfully bid for and secured additional new Capacity Market ("CM") contracts, combined with its existing CM contracts ensuring uninterrupted guaranteed gross profit income until 2029, and is planning to bid for and secure a final T-4 15-year contract in the upcoming CM auction. Combined with performance-based trading revenues, this enhances site profitability and reinforces MED's focus on capacity-secured, high-margin operations.

From a capital growth perspective, the Company executed a £5 million investment agreement with Powertree (Holdings) Ltd to fully fund construction of its Hindlip 7.5 MW flexgen project through to commercial operations. Construction activities are now underway, targeting commercial operation in Q2 of 2026. This transaction marked the first deployment under MED's Growth Capital Partnership with Powertree, which is expected to be extended to additional projects in due course.

MED further completed a £5 million Equity Fundraise at PLC level just after period end, significantly strengthening the balance sheet and eliminating legacy debt liabilities. This capital raise, combined with project-level funding from Powertree and RiverFort, provides MED with a solid platform to pursue its strategic goal of building a portfolio exceeding 300 MW of flexible generation capacity. The Equity Fundraise was preceded by a reorganisation of the Company's share capital approved by the shareholders which the directors believe will assist with making it more attractive to trading for investors.

The Company is pleased to note the appointment of Celia Li as a non-executive director effective 14 July 2025. Celia brings a wealth of experience from prior senior roles in media and investor relations and will be a valuable addition to the board as it proceeds with its ambitious development plans over

few years.

Below follows a description of progress and activities at the respective sites:

Pyebridge

MED's 100% owned Pyebridge asset generated and sold c. 4.09 Gigawatt/hours ("GWh") of electricity during the first 6-months of 2025, an increase of c. 0.93 GWh or c. 30% compared to the preceding 6-month period. The revenue increase is aligned to the electricity generation results. The total revenue generated for the first 6-months of 2025 came to c. £727,000, an increase of c. 30% compared to the preceding 6-month period.

The Pyebridge average actual electricity sales price achieved during first 6-months of 2025 equates to c. £157 MWh, representing a c. 76% outperformance compared to the average wholesale market electricity price over the same period.

Pyebridge has drawn c. £2.77m from the finance debt facility with RiverFort, and has repaid c. £870k or c. 31% over the past 12 months from cash generated by Pyebridge (including VAT refunds).

MED management is planning to apply for a final T-4 Capacity Market ("CM") contract for Pyebridge in the upcoming CM prequalification window, with the intention of obtaining a maximum 15-year term CM contract, to supplement Pyebridge's existing CM contracts which cover the periods up to 2029, meaning if the final contract is obtained Pyebridge will have uninterrupted guaranteed CM gross income payments until 2044.

Bordesley

The Bordesley project remains shovel-ready and in good standing, with all key pre-construction elements in place, including long-term leasehold, secured grid- and gas connections, and granted planning consent. A revised engineering design has been completed to accommodate a 4.5MW higher efficiency engine, and a Capacity Market contract at £30.59/kW/year (pre inflation increases) has been secured, requiring delivery by October 2026. A major breakthrough came through switching from a costly Medium-Pressure gas connection to a Low-Pressure alternative, reducing gas connection construction costs by around 60%. Discussions on capex funding are currently well advanced, with the expectation to start with Engineering, Procurement and Construction ("EPC") work in Q3 of 2025.

Hindlip

Hindlip saw major advancement in H1 2025 with the signing of a £5 million Definitive Investment Agreement between MED and Powertree, securing full capital and construction funding. MED retains a significant 25% equity stake in the project with no further funding obligations. Pre-construction requirements have been completed, and the site's full construction works are planned to commence in September 2025 with commercial operations expected in Q2 2026. An Optimisation Agreement is also in place with Hartree Partners for market access and dispatch services.

Stather

Progress on the Stather project has been postponed due to grid constraints arising from upgrade works at the nearby Keadby Power Station, with new connections in the area currently anticipated from late 2025 onwards. In light of this, MED has successfully renegotiated with the landlord to postpone payments on the existing lease agreement, avoiding unnecessary costs while preserving the site's strategic rights and viability.

Looking forward

MED remains firmly committed to expanding its portfolio of flexible, green-focused energy generation sites to achieve 300+ MW of capacity in the short to medium term. The recently announced acquisition of exclusive rights to five new development sites totalling approximately 25 MW, along with the Project Development Framework Agreement with Green Light Energy, represents a significant step forward in this strategy. This acquisition effectively doubles MED's current portfolio and secures strategically located sites with confirmed grid connections at a time when new connections are increasingly challenging to secure. The scalable nature of the new portfolio, combined with MED's proactive approach to identifying and acquiring high-potential sites at an early stage, provides a robust platform to reach its 100 MW target and beyond, positioning the company for sustainable long-term growth.

Further, MED signed exclusive joint venture ("JV") heads of terms with C-Zero Markets Ltd ("CZM"), a UK company with strong connections and a proven track-record in the energy industry in the UK and EU. Under the JV, MED and CZM will exclusively work together to identify, develop, construct, and operate AI datacentre power supply solutions and applications. The short-term goal is to develop c. 50 MW of AI datacentre power supply projects, and scale to 150+ MW in medium term. The JV will also look to attract AI datacentre developers to co-locate next to MED's existing and future sites to benefit from economies of scale. This new strategy will complement and is expected to significantly grow MED's existing flexgen portfolio and the Company's goal to build a portfolio of 300+ MW.

Financial summary of the MAST Energy Developments PLC Group

The following information is included to highlight the financial performance of the Group for the six months ended 30 June 2025.

Group revenue is £727,488 for the six-month period ended 30 June 2025. Revenue is mainly derived from the electricity generation sales and the Capacity Market payments at the Company's 100% owned Pyebridge site.

The overall decrease in loss period-on-period, as disclosed in the table above and in the statement of comprehensive income, is mainly owing to a combination of the following reasons:

• Significant increase in revenue due to the comprehensive overhaul of two 2.7 MW engines at Pyebridge. The overhaul is designed to improve operational performance, reliability, minimise maintenance costs, and extend the asset's lifespan.
• Decrease in project expenditure recognised in the Statement of Comprehensive Income as the capitalised overhaul costs incurred by Pyebridge resulted in reduced maintenance costs.
• Decrease in administrative expenses due to stringent cost control, including decreased directors' fees and consulting services.
• Once-off non-cash consolidated accounting loss on de-recognition of non-current asset regarding Hindlip due to Investment Agreement with Powertree.
• Increase in the accrual of finance cost due to loans that were required for the overhaul of the engines.

There have been no dividends declared or paid during the current interim financial period (31 December 2024: £ Nil, 30 June 2024: £ Nil).

Principal Risks

Refer to Note 17 of the RNS for our assessment of Principal Risks.

Related Parties

Refer to Note 14 of the RNS for key relationships and disclosure of Related Parties.

Board of Directors

Paul Venter (Non-Executive Chairman)

Pieter Krügel (Chief Executive Officer)

Celia Li (Non-Executive Director)

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2025

Note 1: General information

MAST Energy Developments PLC ('MED' or the 'Company') is incorporated in England & Wales as a public limited company. The Company's registered office is located at Salisbury House, London Wall, London, EC2M 5PS.

The principal activity of MED, through its subsidiaries (together the 'Group'), is to acquire and develop a portfolio of flexible power plants in the UK and become a multi-asset operator in the rapidly growing flexible generation power market.

The Group currently has four existing projects in its portfolio referred to as Bordersley, Hindlip (ADV 001 Limited), Pyebridge and Stather (ARL 018 Limited). The Group has further acquired five additional projects for development, Mountfield, Ringles, Romney Warren, Warren Farm, Dymchurch Road.

Note 2: Statement of preparation

The condensed consolidated interim financial statements are prepared on the historical cost basis, unless otherwise stated. The Group's accounting policies used in the preparation of condensed consolidated interim financial statements are consistent with those used in the annual financial statements for the year ended 31 December 2025, except for the adoption of new or amended standards applicable from 1 January 2024, which had no material impact on the condensed consolidated financial statements of the Group.

The condensed consolidated interim financial statements of the Company have been prepared in accordance with the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority and Accounting Standard IAS 34, 'Interim Financial Reporting', as adopted by the UK.

The interim report does not include all of the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 31 December 2024, which has been prepared in accordance with UK-adopted international accounting standards, and any public announcements made by MED during the interim reporting period.

The condensed consolidated interim financial statements of the Group are presented in Pounds Sterling, which is the functional and presentation currency for the Group and its related subsidiaries.

The condensed consolidated interim financial statements have not been audited or reviewed by the Group's auditors thus no assurance is provided therein.

The Directors acknowledge they are responsible for the fair presentation of these condensed consolidated interim financial statements.

Note 3: Consolidation

The consolidated interim financial statements comprise the financial statements of MAST Energy Developments PLC and its subsidiaries over which the Company has control as at 30 June 2025.

Control is achieved when the Company:

• has the power over the investee;
• is exposed, or has rights, to variable return from its involvement with the investee; and
• has the ability to use its power to affect its returns.

The Group accounts for business combinations using the acquisition method of accounting.

The Group applied merger accounting for the common control transaction that occurred during the creation of the group between Kibo Mining (Cyprus) Limited, Kibo Energy PLC and MAST Energy Projects Limited. The common control reserve of £383,048 has not changed during the six month period ended 30 June 2025 (30 June 2024: £383,048 and 31 December 2024: £383,048).

Note 4: Going concern

The financial results have been prepared on the going concern basis of accounting that contemplates the continuity of normal business activities and the realisation of assets and the settlement of liabilities in the normal course of business.

In performing the going concern assessment, the Board considered various factors, including the availability of cash and cash equivalents, data relating to working capital requirements for the foreseeable future, cashflows from operational activities, available information about the future, the possible outcomes of planned events, changes in future conditions, geopolitical events, and the responses to such events and conditions that would be available to the Board.

• The total comprehensive loss for the six-month period ended 30 June 2025 of £585,594 (six months ended 30 June 2024 of £492,055 and year ended 31 December 2024 of £1,097,433);
• Cash and cash equivalents readily available to the Group in the amount of £148,227 in order to pay its creditors and maturing liabilities in the amount of £2,902,467 as and when they fall due and meet its operating costs for the ensuing twelve months;
• Whether the Group has available cash resources, or equivalent short term funding opportunities in the foreseeable future, to deploy in developing and growing existing operations or invest in new opportunities; and
• The equity fundraise that that took place in July 2025 whereby £5,000,000 in gross proceeds were raised which improves the balance sheet and provide growth capital for site acquisitions;
• Following the fundraise after period end, in July 2025, all "Other financial liabilities" allocated to MED - as disclosed in note 13 - were settled in full. This significantly improved the net current liability position.

The Directors have evaluated the Group's liquidity requirements to confirm the Group has adequate cash resources to continue as a going concern for the foreseeable future. Considering the net current liability position, the Directors have reviewed the financial projections to 30 August 2026. Based on the capital reorganisation during July 2025, the assumption that further drawdowns on the GBP 4m facility with RiverFort are available to the Company as and when required, as well as the successful electricity generation by Pyebridge, the Company will have a positive cash balance for the period. Unforeseen challenges with either of the aforementioned cause a risk that the Company may not be able to meet its current liabilities without another cash injection. In the event further funding cannot be secured, the Group may experience continuous cash shortfalls over the next 12 months. A severe but plausible financial projection was also reviewed, whereby further drawdowns are not successful. Under this scenario the Group experiences cash shortfalls throughout the forecast period.

In response to the net current liability position, to address future cash flow requirements, detailed liquidity improvement initiatives have been implemented and are being pursued. Implementation is regularly monitored in order to ensure the Group is able to alleviate the liquidity constraints in the foreseeable future. Cost saving measures were identified and implemented on operational expenditure.

• Raising of short- and medium-term working capital and project capex funding, by way of capital placings. This was partially implemented by way of the share capital reorganisation and the £5,000,000 Equity Fundraise. Further, Cash Warrants have been approved and are being implemented as part of the capital reorganisation.
• The successful drawdown on the funding facility of £4,000,000 with RiverFort. There are terms and conditions limiting the drawdown which have to be adhered to.

Although there is no guarantee, the Directors are confident that the above matters will be successfully implemented and have a reasonable expectation that the Group will be able to raise sufficient financing to support its ongoing development and commercialisation activities to continue in operational existence in the next 12 months.

Note 5: Segmental reporting

The Group discloses segmental analysis based on its different operations, being Bordersley, Pyebridge, Hindlip and Stather.

The Group has no dilutive instruments in issue as at period end.

Note 7: Property, plant and equipment

Land Plant & Machinery Right of use assets Computer Equipment Asset under construction Total Cost (£) (£) (£) (£) (£) (£) Opening Cost as at 1 January 2024 602,500 1,538,629 418,157 4,766 126,800 2,690,852 Additions 745,117 32,215 777,332 Closing Cost as at 30 June 2024 602,500 2,283,746 418,157 4,766 159,015 3,468,185 Derecognition of leases - - (62,717) - - (62,717) Additions - 859,223 - - - 859,223 Disposals (90,000) (270,000) - - - (360,000) Closing Cost as at 31 December 2024 512,500 2,872,969 355,440 4,766 159,015 3,904,690 Additions - 29,260 - - - 29,260 Disposal - - - - (32,215) (32,215) Change in lease - - 30,995 - - 30,995 Closing Cost as at 30 June 2025 512,500 2,902,229 386,435 4,766 126,800 3,932,730 Accumulated Depreciation ("Acc Depr") (£) (£) (£) (£) (£) (£) Opening Acc Depr as at 1 January 2024 - (111,136) (418,157) (2,340) (78,350) (609,983) Depreciation - (29,252) - (794) - (30,046) Closing Acc Depr as at 30 June 2024 - (140,388) (418,157) (3,134) (78,350) (640,029) Depreciation - (48,054) - (794) - (48,848) Derecognition of leases - - 62,717 - - 62,717 Closing Acc Depr as at 31 December 2024 - (188,442) (355,440) (3,928) (78,350) (626,160) Depreciation - (60,476) (596) (794) - (61,866) Closing Acc Depr as at 30 June 2025 - (248,918) (356,036) (4,722) (78,350) (688,026) Carrying Value as at: (£) (£) (£) (£) (£) (£) 30 June 2024 602,500 2,143,358 - 1,632 80,665 2,828,155 31 December 2024 512,500 2,684,527 - 838 80,665 3,278,530 30 June 2025 512,500 2,653,311 30,399 44 48,450 3,244,704

The Group has a lease contract for land it shall utilise to construct a 5MW gas-fuelled power generation plant. The land is located at Bordersley, Liverpool St. Birmingham.

The Group has another lease contract for land where it shall construct a 2.4MW gas-fuelled power generation plant. The land is located at Stather Road, Flixborough. The lease term is 25 years.

The Group's obligations under its leases are secured by the lessor's title to the leased assets. The Group's incremental borrowing rate ranges between 8.44% and 10.38%.

Note 8: Intangible assets

Intangible assets consist of separately identifiable assets or intellectual property, acquired either through business combinations or through separate asset acquisitions. These intangible assets are recognised at the respective fair values of the underlying asset acquired or, where the fair value of the underlying asset acquired is not readily available, the fair value of the consideration.

Intangible assets are amortised once commercial production commences over the remaining useful life of the project, which is estimated to be 20 years, depending on the unique characteristics of each project.

Until such time as the underlying operations commence production, the Group performs regular impairment reviews to determine whether any impairment indicators exist.

One or more of the following facts or circumstances indicate that an entity should test an intangible asset for impairment:

• The period for which the entity has the right to develop the asset has expired during the period or will expire in the foreseeable future;
• The substantial expenditure on the asset in future is neither planned nor budgeted.
• Sufficient data exists to indicate that, although a development in the specific area is likely to proceed, the carrying amount of the development asset is unlikely to be recovered in full from successful development or by sale.

Note 9: Investment in Associate

MED signed a binding investment agreement (the "Investment Agreement") with Powertree (Holdings) Ltd ("Powertree"). The Investment Agreement formalizes the long-term partnership between MED and Powertree to deploy capital into the portfolio of development flexible power generation projects that MED owns, starting with its 7.5MW construction-ready Hindlip project (the "Growth Capital Partnership").

Under the Investment Agreement, Powertree will invest up to £5,000,000 into MED's Hindlip project (the "Investment Consideration"), resulting in the Hindlip project being fully funded.

The Investment Consideration will consist of £500,000 for 75% of the fully diluted ordinary equity of the Hindlip SPV, ADV 001 Ltd and, up to £4,500,000 will be by way of secured loan (the "Investor Loan") entered into between Powertree (as the lender) and the Hindlip SPV (as the borrower).

MED shall retain 25% of the fully diluted ordinary equity of the Hindlip SPV with no further funding obligations.

Note 10: Share Capital

The called up and fully paid share capital of the Company is as follows:

Note 11: Reserves

Common control reserve

On 17 September 2020, the Company became the legal parent of Sloane Developments Limited following completion of the acquisition of the entire issued share capital of Sloane Developments Limited from Kibo Mining Cyprus Limited at the time, a wholly owned subsidiary of Kibo Energy PLC. Following the completion of the acquisition, the ultimate holding company, being Kibo Energy PLC, retained control over Sloane Developments Limited.

As MED is only an investment holding company, incorporated for the purposes of raising capital funding for its investee projects, and the majority shareholder before and after the acquisition continued to be Kibo Energy PLC, the transaction is considered to be a common control transaction, outside the scope of IFRS 3, and seen as a capital reorganisation, where predecessor valuation accounting was applied with regard to the incorporation of historic financial information.

The common control reserve is the result of the predecessor valuation accounting which was applied as a result of the common control transaction.

Non-controlling interest acquired

On 31 July 2020, Sloane Developments Limited, MAST Energy Projects Limited and St. Anderton on Vaal Limited entered into the Share Exchange Agreement relating to the acquisition by Sloane Developments Limited of the remaining 40% of the issued share capital of MAST Energy Projects Limited. Under the Share Exchange Agreement, the Company will pay St Anderton on Vaal Limited the sum of £4,065,586 payable by the issue of 36,917,076 ordinary shares of £0.001 each in the Company. Completion of the Share Exchange Agreement was subject to and conditional upon the Admission of MAST Energy Developments Limited to the London Stock Exchange.

Following completion of the IPO on 14 April 2021, the Group acquired the remaining equity interest in MAST Energy Projects Limited for the consideration equal to 36,917,076 shares at a total value of £4,065,586. As the controlling stake in the entity had already been acquired, the transaction was seen as a transaction with owners and the financial impact recognised directly in equity of £4,065,586.

The rationale for the transaction was to acquire the remaining equity within MAST Energy Projects Limited in order to have the exclusive see-through equity interest in the Bordersley project, held in the form of royalty and revenue agreements between MAST Energy Projects Limited and Bordersley Power Limited, from which MED could restructure the Group through its special purpose vehicles (SPVs).

Warrant and share based payment reserve

On 7 May 2024, MAST Energy Developments PLC entered into warranty agreements with financial institutions as part of convertible loan note financial instruments.

The following warrants were in issue as at 30 June 2025:

Convertible loan notes

Convertible loan notes included in short-term liabilities relate to two unsecured loan facilities, which are repayable either through the issue of ordinary shares or payment of cash by the Company.

These facilities have repayment periods of between 12 and 24 months.

The initial convertible loan notes (owing to Riverfort and Sanderson) was settled in July 2025 after the Equity Fundraise where £5,000,000 gross proceeds were raised. The Company entered into a full and final settlement deed with the noteholders in relation to the Reprofiled Balance due. Per the terms of the settlement deed, the Company paid £772,250 in cash to the noteholders as settlement of the Reprofiled Balance. Further, it has been agreed that any outstanding warrants due under the Reprofiling Agreement has been waived by the noteholders. Moreover, as part of the full and final settlement, the noteholders have agreed to release the fixed and floating debenture security charges held over the MED Group.

MED has entered into an interest-free CLN with a principal amount of £350,000. The CLN is intended as a working capital bridge until completion of the financing under the Equity Fundraise.

Term Loans

• The "Term loan - Powertree" is payable by the Hindlip project SPV. The loan was used to pay the Capacity Market deposit. This loan is payable in full during the 2025 financial year and bears interest at 10% per annum. This term loan has been rolled up into the investment agreement after year-end.
• The "Term loan - RiverFort" is payable by the Pyebridge SPV. The funding was used to overhaul the 2 engines at Pyebridge. The loan consists of three separate drawdowns all repayable during the 2026 financial year and bear interest at 12% per annum.

After period end, during July 2025, all the loans listed above as payable by MED and Hindlip was repaid.

Director's loan and accrued interest on director's loan

The director's loan consists of interest payable on a director's loan which is to be settled in cash. The interest is accrued at 7% per annum.

Derivatives

The derivative liability is derived from the convertible loan notes. The convertible feature within the convertible loan notes enables the noteholders to convert the notes into a fixed number of shares at the Fixed Premium Payment Price ('FPPP'). This price does have variability, although the FPPP is set at the reference Price. In the event that a share placing occurs at below the reference Price, the FPPP will be the share placing price (round down - feature). The conversion includes an embedded derivative as its value moves in relation to the share price (through a placing price) and it is not related to the underlying host instrument, the debt. The effect is that the embedded derivative is accounted for separately at fair value.

Note 14: Related parties

Related parties of the Group comprise subsidiaries, significant shareholders and the Directors.

Relationships

Board of Directors/ Key Management

Focus Xplore PLC (Up to June 2024)

Directly held subsidiaries: Sloane Developments Limited

Indirectly held subsidiaries: ARL 018 Limited

Bordersley Power Ltd

Pyebridge Power Ltd

Sloane Energy Ltd

Balances and transactions

1 - The balances are disclosed as zero because they were not related parties anymore at 30 June 2025.

Note 15: Post Statement of Financial Position events

The Company announced on 11 July 2025 (further to its RNS announcements of 23 May 2025 and most recently 9 July 2025 respectively), all conditions in respect of the Equity Fundraise have been satisfied and the Equity Fundraise has successfully completed subject to admission and settlement.

The Equity Fundraise (including the CLN) has delivered gross proceeds of £5 million, putting the Company in a strong financial position from which to advance its current Flexible Generation Power build-out strategy to develop or acquire a portfolio of up to 300+ MW generating capacity.

Note 16: Commitments and contingencies

Note 17: Principal risks

• Funding risks;
• Regulatory risks;
• Commodity risks;
• Development and construction risks;
• Staffing and key personnel risks; and
• Information technology risks.

Funding risks

There can be no assurance that funds will continue to be available on reasonable terms, or at all in future, and that projects will be completed within the anticipated timeframes to supplement cashflows through operational activities. Any equity funding may be subject to shareholder approvals in line with legal and regulatory requirements as appropriate. Refer to note 4 for a detailed description around funding risks in the going concern assessment.

Regulatory risks

The United Kingdom power sector has undergone a number of considerable regulatory changes over the last few years and is now at a state of transition from large fossil-fuel plants to a more diverse range of power generation sources including renewables, small, distributed plants and new nuclear. As a result, there is greater regulatory involvement in the structure of the UK power market than has been the case over the last 20 years. Therefore, there remains a risk that future interventions by Ofgem or Government could have an adverse impact on the underlying assets that the Group manages and/or owns. The Company continually monitors this risk and, where possible, acts proactively to anticipate and mitigate any regulatory changes that may have an adverse impact on the ongoing financial viability of its projects. In order to monitor compliance with evolving UK government energy regulations, the Company subscribes to relevant environmental and energy regulation bodies updates which management reviews and makes recommendations to the Board in terms of mitigation that may be required should it become aware of any pending regulatory changes that may threaten the economic viability of its projects.

Commodity Risks

The assets that the Group manages and owns will receive revenue from the sale of energy to the wholesale market or to end users at a price linked to the wholesale power market price. Fluctuations in power prices going forward will affect the profitability of the underlying reserve power assets. The Group will also use its skills, capabilities and knowledge of the UK power market in order to optimise these wholesale revenues. The Group's ability to effectively manage price risk and maximise profitability through trading and risk management techniques will have a considerable impact on revenues and returns.

Development and Construction Risks

Risks to project delivery include damage or disruption to suppliers or to relevant manufacturing or distribution capabilities due to weather, natural disaster, fire, terrorism, pandemic, strikes or other reasons that could impair the Groups ability to deliver projects on time.

Failure to take adequate steps to mitigate the likelihood or potential impact of development and construction setbacks, or to effectively manage such events if they occur, could adversely affect the Group's business or financial results. There are inherent risks that the Group may not ultimately be successful in achieving the full development and construction of every site and sunk costs could be lost. However, the risk is mitigated as the Group targets shovel ready sites that adhere to specific requirements, coupled with an experienced senior management team.

Staffing and Key Personnel Risks

Personnel are our only truly sustainable source of competitive advantage and competition for key skills is intense, especially around science, technology, engineering and mathematics (STEM) disciplines. While the Group has good relations with its employees, these relations may be impacted by various factors. The Group may not be successful in attracting, retaining, developing, engaging and inspiring the right people with the right skills to achieve our growth ambitions, which is why staff are encouraged to discuss with management matters of interest to the employees and subjects affecting day-to-day operations of the Group.

Information Technology Risks

The Group relies on information technology ('IT') in all aspects of its business. Any significant disruption or failure, caused by external factors, denial of service, computer viruses or human error could result in a service interruption, accident or misappropriation of confidential information. Process failure, security breach or other operational difficulties may also lead to revenue loss or increased costs, fines, penalties, or additional insurance requirements. The Group continues to implement more cloud-based systems and processes, and improve cyber security protocols and facilities to mitigate the risk of data loss or business interruption.

Note 18: Use of estimates and judgements

Estimation uncertainty:

Impairment assessment of investments in subsidiaries, property plant and equipment and intangible assets

In applying IAS 36, impairment assessments are performed whenever events or changes in circumstances indicate that the carrying amount of an asset or CGU may not be recoverable.

A cash-generating unit (CGU) is defined as the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

Estimates are made in determining the recoverable amount of assets which includes the estimation of cash flows and discount rates used. In estimating the cash flows, management bases cash flow projections on reasonable and supportable assumptions that represent management's best estimate of the range of economic conditions that will exist over the remaining useful life of the assets. The discount rates used reflect the current market assessment of the time value of money and the risks specific to the assets for which the future cash flow estimates have not been adjusted.

During the period no impairments have been identified.

Useful life of intangible assets

Leases - Estimating the incremental borrowing rate

Useful life of property, plant and equipment

Environmental rehabilitation provisions

The Company recognises that its activities require it to have regard to the potential impact that it, its subsidiaries and partners may have on the environment. Where energy development projects are undertaken, care is taken to limit the amount of disturbance and where any remediation works are required, they are carried out as and when required.

Once commercial production is undertaken, the Group ensures adequate provisions or rehabilitation, and decommissioning is made in accordance with the relevant laws and regulations.

Fair value estimation of financial instruments

The determination of fair value for financial instruments involves significant judgment and estimation, particularly where observable market data is not available. The fair value measurements are categorized within a three-level hierarchy based on the observability of the inputs used in the valuation. For financial instruments classified within Level 3 of the fair value hierarchy, where unobservable inputs are significant, the valuation process involves the use of assumptions about market participant behaviour, including estimates of future cash flows, discount rates, and other factors that may vary with economic conditions. Management regularly reviews these estimates and assumptions to ensure that they reflect current market conditions and are reasonable and supportable. Only Level 1 and 2 inputs were provided for the financial instrument for the six month periods ended 30 June 2025 and 30 June 2024 and the year ended 31 December 2024.

Warrants

For such grants of share options or warrants qualifying as equity-settled share-based payments, the fair value as at the date of grant is calculated using the Black-Scholes option pricing model, taking into account the terms and conditions upon which the options or warrants were granted. The amount recognised as an expense is adjusted to reflect the actual number of share options or warrants that are likely to vest, except where forfeiture is only due to market-based conditions not achieving the threshold for vesting.

Critical judgements:

Going Concern

The Groups current liabilities exceed its current assets as at 30 June 2025, which contributes significantly to the material uncertainty related to the going concern assumption applied in preparation of the financial statements. In determining whether or not the Group is able to continue as a going concern for the foreseeable future, management applies judgement in identifying the matters that give rise to the existence of the material uncertainty and in developing responses thereto in order to address the risk of material uncertainty. Refer Note 4.

Note 19: Financial instruments - Fair value and risk management

The Group's principal financial instruments comprise cash. The main purpose of these financial instruments is to provide finance for the Group's operations. The Group has various other financial assets and liabilities such as other receivables and trade payables, which arise directly from its operations.

It is, and has been throughout the 2025 and 2024 financial period, the Group's policy not to undertake trading in derivatives. The Group may however recognise derivative liabilities arising from convertible instruments.

The main risks arising from the Group's financial instruments are credit risk, liquidity risk, interest rate risk and capital risk. Management reviews and agrees policies for managing each of these risks which are summarised below.

Fair value measurement and fair value hierarchy

The fair value of financial instruments is determined using the following fair value hierarchy, which categorizes the inputs used in valuation techniques into three levels:

• Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. This includes:

o Quoted prices for similar assets or liabilities in active markets.

o Quoted prices for identical or similar assets or liabilities in markets that are not active.

o Inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates, yield curves, credit spreads).

o Market-corroborated inputs.

• Level 3: Unobservable inputs for the asset or liability. This level applies to fair value measurements where observable inputs are not available, requiring the use of significant judgment or estimation. These inputs reflect the entity's own assumptions about the assumptions market participants would use in pricing the asset or liability.

The fair value hierarchy has been applied to the financial instruments as follows:

Credit risk

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Group. As the Group has minimal sales to third parties, this risk is limited.

The Group's financial assets comprise receivables and cash and cash equivalents. The credit risk on cash and cash equivalents is limited because the counterparties are banks with high credit-ratings assigned by international credit rating agencies. The Group's exposure to credit risk arise from default of its counterparty, with a maximum exposure equal to the carrying amount of cash and cash equivalents in its consolidated statement of financial position.

The Group does not have any significant credit risk exposure to any single counterparty or any Group of counterparties having similar characteristics. The Group defines counterparties as having similar characteristics if they are connected or related entities.

The expected credit losses for the Group are £Nil for the six-month period ended 30 June 2025 (June and December 2024: £Nil).

Financial assets exposed to credit risk at period end were as follows:

Liquidity risk management

The Group manages liquidity risk by maintaining adequate reserves and by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. Cash forecasts are regularly produced to identify the liquidity requirements of the Group.

The Group's financial liabilities' contractual cashflows as at 30 June 2025 were:

Interest rate risk

The Group and Company does not have significant exposure to the risk of changes in market interest rates relating to holdings of cash and short term deposits. It is the Group and Company's policy as part of its management of the budgetary process to place surplus funds on short term deposit in order to maximise interest earned.

Group Sensitivity Analysis:

Currently no significant impact exists due to possible interest rate changes on the Company's interest bearing instruments.

Capital risk management

The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust its capital structure, the Group may adjust or issue new shares or raise debt. No changes were made in the objectives, policies or processes during the six-month period ended 30 June 2025. The capital structure of the Group consists of equity attributable to equity holders of the parent, comprising issued capital, reserves and retained losses as disclosed in the consolidated statement of changes in equity.

Fair values

The carrying amount of the Group and Company's financial assets and financial liabilities recognised at amortised cost in the financial statements approximate their fair value. For those assets held at fair value (such as CLN derivative liabilities), they are remeasured at the reporting date.

Hedging

At 30 June 2025, the Group had no outstanding contracts designated as hedges.