Operational Update, Term Loan & Equity Placing

Sound Energy PLC (AIM:SOU), the AIM quoted transition energy company, announces that it has entered into a Term Loan Facility Agreement (the "Term Loan") and an Equity Placing (the "Placing") to secure a total financing of approximately US$2.2 million for working capital purposes and initial funding of its solar power joint-venture in Morocco.

Operational Update

Tendrara Phase 1 Micro-LNG Development

The Tendrara Gas Gathering System has been fully tested and commissioned, and the LNG tank was successfully tested during the quarter, representing important milestones in the development of the Tendrara Phase 1 project. The Company is now preparing for the final commissioning of the micro-LNG plant, which will enable the commencement of gas sales. The Operator, Mana Energy Ltd, has received an updated schedule from the main subcontractor, Italfluid Geoenergy S.r.l., which indicates the start of commercial gas sales in early Q3 2026. The updated timing reflects delays in the delivery of the final pieces of equipment required to complete the micro-LNG plant.

Solar Power Joint Venture

Further to our announcement on 17 June 2025, the company has now formally entered into a Joint Venture, Tayra Energy SAS, with Moroccan renewables specialist Gaia Energy Ltd.

The Joint Venture plans to develop up to 270 MW of installed photovoltaic solar capacity across multiple locations in Morocco. Taking advantage of Morocco's liberalised medium-voltage ("MV") grid, the joint venture intends to develop solar power projects at a number of sites located close to MV substations and end customers, enabling efficient grid access and attractive power sales opportunities.

The first steps of the joint venture will be to work with the Moroccan authorities and other stakeholders to determine which solar photovoltaic project sites are most suitable for the joint venture to progress. These sites will be chosen from a short-list of twelve sites for which Gaia has already conducted a number of feasibility studies, or from a number of potential new locations. Lease or purchase options have been secured for five of these sites and discussions are ongoing for the remaining seven.

Term Loan Facility

The Company has entered into a €1.3 million Term Loan Facility Agreement with an international investment bank (the "Lender"). The Term Loan will provide the Company with access to additional working capital prior to receipt of revenues from LNG sales from the Tendrara Phase I development.

Any amounts drawn down under the Term Loan will attract an interest rate of 20 per cent. per 120 days, accruing daily on a pro rata basis and will fall due for repayment on or before 31 December 2026. The Company will pay the Lenders a fee of €100,000 if no draw down is made. In the event of default, the principal plus accrued interest plus default interest (40 per cent. per 120 days) can, at the Lender's option, be converted into Sound Energy plc ordinary shares priced at the VWAP of the 10-month period ending on the day preceding the date of the conversion notice.

Equity Placing

The Company has raised gross proceeds of £0.5 million in a Placing via the issue of 10,000,000 new Ordinary shares of 0.1 pence per share at a placing price of 5.0 pence per share (the "issue price"). The issue price represents a discount of 37.5% to the last closing bid price of the Company's shares on 19 March 2026.

An application has been made for the Placing shares to be admitted to trading on AIM ("Admission"). The Placing shares will rank pari passu with the existing ordinary shares in issue and it is expected that Admission will occur on or around 8.00 a.m. on 25 March 2026.

Following Admission of the Placing shares, the Company's issued share capital will comprise 226,154,466 Ordinary Shares of 0.1 pence each with voting rights in the Company and 2,180,000 Sanctioned Holding Shares of 1.0 pence each totalling 228,334,466 Ordinary Shares. The figure of 228,334,466 may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in the interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

Majid Shafiq, Chief Executive Officer, commented:

"The Company is pleased to have secured a combined debt and equity financing package to fund working capital requirements to first gas from the Tendrara Phase 1 project. Following an updated project timeline, first gas is now expected at the start of Q3 2026, and the financing ensures the Company remains fully funded through to this key milestone following the revised commissioning schedule. The financing will also support the development of Tayra, our solar joint venture announced today. This funding strengthens the Company's balance sheet and provides the necessary resources to advance both projects as key components of our strategy to deliver gas and renewable energy developments in Morocco."

Note regarding forward-looking statements

Sound Energy plc c/o Flagstaff Communications Majid Shafiq CEO