Strategic Update

Sabien (AIM: SNT), a provider of energy efficiency technologies through its M2G intelligent boiler optimisation platform, provides an update on the proposals announced by the Company on 21 May 2026.

SMCC commercial discussions

Sabien remains in constructive discussions with Haydale Plc ("Haydale") and Intelligent Resource Management Limited trading as SaveMoneyCutCarbon ("SMCC"), regarding agreeing a definitive UK distribution and implementation agreement for the Company's M2G technology platform ("M2G").

The parties have exchanged detailed contractual proposals and are working towards terms capable of approval by their respective boards. Notwithstanding this, no definitive agreement has as yet been agreed. Furthermore, material commercial and legal terms remain under negotiation, and accordingly, there can be no certainty that a binding agreement will be concluded or as to its timing.

The Company will make a further announcement if and when a definitive agreement is executed.

Strategic Investment and Financing Framework

Following further consideration, the Company confirms that the Proposed Strategic Investment and Financing Framework as announced by the Company on 21 May 2026 will no longer proceed.

Accordingly:

the proposed Strategic Investor Group will not acquire the shareholding held by Richard Parris and associated parties;

Parris Group Limited ("PGL") will retain its existing shareholding in the Company;

the proposed restructuring, refinancing and/or conversion of the relevant PGL debt and invoice-financing arrangements will not proceed under the previously contemplated framework; and

the proposed senior secured convertible loan note financing of up to £2 million, together with the associated warrants, will not proceed.

The proposed acquisition of existing shares in Sabien was a secondary transaction, under which the relevant proceeds would have been payable to the selling shareholders rather than to Sabien. As the transaction will no longer proceed, Richard Parris and associated parties will not receive any sale proceeds under the previously announced proposed framework. PGL will remain a substantial shareholder in the Company and Richard Parris will remain materially aligned with the interests of the Company's shareholders.

PGL continues to provide financial support to Sabien under the Group's existing arrangements and has indicated its present intention to maintain that support for the foreseeable future. Notwithstanding this, no new binding funding commitment has been entered into. The Board will continue to monitor the Company's funding requirements and, if required, will seek to formalise appropriate support arrangements with PGL.

As it currently stands, the SMCC commercial discussions are not conditional upon an equity investment, transfer of the PGL shareholding or completion of the previously announced proposed financing framework.

Board transition

As previously announced, Richard Parris intends, at an appropriate point, to transition from Executive Chairman to Non-Executive Chairman.

The timing will be determined by the Board, having regard to the Company's commercial progress, executive leadership requirements and the need to ensure an orderly succession. There is currently no fixed timetable, and no decision has been made regarding the executive leadership arrangements that would accompany any such transition.

A further announcement will be made when these arrangements have been determined.

Strategic focus and non-core activities

The Board's principal strategic focus remains the commercial deployment of M2G and the development of associated software, optimisation and recurring revenues.

The review of Sabien's interest in b.grn Group Limited ("b.grn") and the City Oil Field ("COF") opportunity remains ongoing. Sabien retains its existing contractual and economic interests relating to COF, while b.grn is currently funding the operating expenditure associated with pursuing those opportunities. Sabien is not contributing cash or committed to provide additional funding during the review period.

Sabien will determine in due course whether to participate in future b.grn funding rounds to, inter alia, seek to maintain its current equity interest or allow that interest to be diluted. No decision has been made regarding any further investment, dilution, disposal or restructuring.

Under its existing sales agency agreement, Sabien continues to actively engage with prospective counterparties in multiple continents regarding potential applications of the COF technology. No definitive commercial agreement has been entered into and there can be no assurance that current discussions will result in a transaction or revenue. Further announcements will be made if and when material agreements are executed.

Richard Parris, Executive Chairman of Sabien, commented:

"The proposals announced in May 2026 combined a commercial partnership with a complex investment and financing structure. Following further consideration, we have concluded that Sabien's interests are better served by progressing the commercial opportunity with SMCC through a potential UK distribution and implementation agreement.

"Our discussions with SMCC remain constructive and the opportunity to strengthen the route to market for M2G is clear.

"The proposed sale of my shareholding will not proceed and neither I nor associated parties will receive any proceeds under that proposal. Parris Group will remain a substantial shareholder in the Company and will continues to support Sabien. My interests therefore continue to remain directly aligned with those of all shareholders as we work to build value through the commercial deployment of M2G.

"We are also preserving Sabien's existing economic interests in COF while b.grn funds the current operating expenditure associated with pursuing those opportunities. This maintains Sabien's commercial optionality without creating a current operating cash requirement for the Company."

Further announcements will be made as appropriate.