AFC Energy Regulatory News (AFC)

10 September 2015

AFC Energy PLC

("AFC" or the "Company")

Progress Update

Highlights

· AFC remains on target to deliver on each of its two final Milestone's at Stade, namely Milestones 10 and 11, in accordance with earlier timeframes

· The Company continues to develop its commercial pipeline of opportunities with its current and prospective partners internationally

AFC Energy plc (AFC.L), the industrial fuel cell power company, is pleased to announce the following progress update. AFC can confirm that at this time, following the successful commissioning of the KORE system in Stade, Germany on 31 July 2015 and the associated power output achieved at the time of commissioning, it remains on target to achieve Milestones 10 and 11 of the 11 Milestone programme announced to the market on 8 December 2014. These Milestones, including the generation and sale of power into the German electricity grid, and for the first time, generation of the full nameplate capacity of the KORE system (240kW), are expected to be achieved in accordance with earlier announced timeframes in 2015. The Company's staff and subcontractors are currently on site in Stade finalising works necessary to deliver Milestone 10 and at this time, there is no reason to suspect this will not be achieved within the announced timeframe.

The Company also wishes to confirm that it continues to make progress in the development of its fuel cell catalyst and at this time, has seen further recent improvements in the power output generated from the cells as compared with that currently being trialled in Stade; this provides further confidence that the AFC fuel cell will be in a position to achieve its targeted capacity output of the KORE by the end of 2015.

Furthermore, ongoing dialogue is occurring with existing and prospective commercial partners and at present, we hope to be able to make further updates to the market on the progress across these opportunities over the coming months. We remain confident that the scope of the Company's pipeline, being an expected 1GW of capacity under development or in operation by the end of 2020 will be delivered and indeed, most likely exceeded.

Mr Adam Bond, AFC's Chief Executive Officer, said: "At this time, we wish to reassure shareholders that AFC remains on target to deliver on its key milestones announced in December 2014. We will provide further updates to the market on the KORE system at Stade and other commercial developments in the near future."

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About AFC Energy

AFC Energy plc is fast approaching commercialisation for its proven low-cost alkaline fuel cell system ("KORE"), which converts hydrogen into 'clean' electricity. AFC's key project POWER-UP will demonstrate the world's largest alkaline fuel cell system at Air Products' industrial gas plant in Stade, Germany. The date for the demonstration of the 240kW KORE system has been fast tracked to December 2015, representing the final phase of AFC's pre-commercialisation technical development programme and creating the platform for the Company's global commercial fuel cell deployment. For further information, please visit our website: www.afcenergy.com