Alkemy Capital. Regulatory News (ALK)

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED IN ARTICLE 7 OF THE MARKET ABUSE REGULATION NO. 596/2014 ("MAR") AS IN FORCE IN THE UNITED KINGDOM PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT 2018. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

31 July 2025

Alkemy Capital Investments Plc

FEED Funding and Equity Funding Proposal from Ara Partners

Alkemy Capital Investments plc ("Alkemy" or the "Company") (LSE: ALK) (JV2: FRA), the holding company of Tees Valley Lithium Ltd ("TVL"), is pleased to announce that it has secured full financing for the FEED (Front-End Engineering Design Study) of its lithium refinery in Teesside and has received an indicative term sheet from Ara Partners LLC ("Ara Partners" or "Ara") for the equity participation of the US$250 million main financing (the "Term Sheet").

HIGHLIGHTS

● FEED study into the proposed 25,000 tpa refinery fully financed by a £5 million debt facility secured by Founder and Chairman Paul Atherley.

● FEED study is well advanced with Veolia and Wave International having provided initial process route design based on existing proven technology. The study is expected to be completed and final investment decision ("FID") in Q1 2026.

● Non-binding Term Sheet has been received from Ara Partners with a right of first refusal to invest circa US$100 million equity at the Tees Valley Lithium level at FID, representing 40% of the total project capital cost.

● ABG Sundal Collier has previously been engaged as Financial Adviser and to arrange circa US$150 million debt finance.

Funding Secured for FEED Study

The Company has secured a £5 million debt facility from a third party London based debt provider to fund the completion of the FEED study currently underway with Veolia and Wave International for the first 25,000 tonne per annum train of the proposed four train refinery (the "Facility").

The Facility is a drawdown facility, allowing funds to be accessed in tranches as needed and as determined by the Company, avoiding equity dilution of TVL during the FEED phase. The Facility attracts a PIK interest rate of 15% per annum.

The Facility is for a 24-month period and may be converted into Alkemy shares at a 50% premium to the prevailing share price at the time of each tranche drawdown.

The Facility has been secured by Alkemy Founder and Chairman Paul Atherley, further reinforcing the Company's commitment to advancing the project through FID while preserving shareholder value.

The Company has issued the lender 129,226 warrants, exercisable at £3.48 per share, being a 36.5% premium to the closing share price on 30 July 2025 of £2.55, with a 48-month term.

Strategic Term Sheet from Ara Partners

Following several months of detailed due diligence, Ara Partners, a global private equity firm specialising in industrial decarbonisation, has submitted an indicative term sheet to Alkemy and TVL outlining its intention to lead the equity investment at the construction stage.

Under the terms currently being finalised, Ara have requested a right of first refusal to provide 100% of the equity capital required for construction, anticipated to be approximately $100 million. The remaining ~ $150 million of total capex is expected to be financed through debt, with ABG Sundal Collier continuing to work as Alkemy's appointed debt adviser.

Whilst the terms of the Term Sheet are currently being finalised, upon signing, Ara's participation is expected to follow the successful completion of the FEED study, confirmation by the board to proceed with FID, and finalisation of technical and commercial milestones, subject to standard due diligence and internal approvals.

As part of the proposed structure, Ara would remain closely engaged with the TVL team throughout the FEED phase, working in partnership to support project readiness, de-risk key deliverables, and ensure strategic alignment ahead of construction.

Capital Structure and Development Update

The FEED funding facility enables Alkemy to finance the study without issuing equity at the TVL project level. By funding development directly, Alkemy retains full ownership of TVL through to FID, avoiding early dilution of its ownership of the project.

This approach allows Alkemy to bring in external equity only at the construction stage, once value has been established.

About Ara Partners

Founded in 2017, Ara Partners is a global private equity and infrastructure firm dedicated to decarbonizing the industrial economy. Ara seeks to build, scale, and optimize companies with significant decarbonization impact across the industrial and manufacturing, chemicals and materials, energy efficiency and fuels, and food and agriculture sectors. The company operates from offices in Houston, Boston, Dublin and Washington, D.C.. As of December 31, 2024, Ara Partners had approximately $6.2 billion of assets under management.

Alkemy Chairman Paul Atherley commented:

"As a team we are absolutely committed to this nationally significant project and personally I am very happy to be providing the necessary financial guarantee to ensure that Tees Valley Lithium gets to FID in the coming months. We are delighted with the support we continue to receive from Ara Partners and with FEED financing in place, we look forward to finalising the FEED study and confirming our view that TVL will be amongst the world's lowest capital and operating cost lithium refineries globally and will be well placed to serve Europe's rapidly growing OEM and storage markets."

Alkemy is pleased to announce that it will host an investor webinar at 12pm (BST) on Tuesday 05 August 2025 to discuss the recent announcement relating to the FEED financing and the proposed Ara Term Sheet.

The webinar will feature an update from Alkemy Chairman Paul Atherley, and TVL CEO Vikki Jeckell who will provide an update on the Company's progress and future outlook.

The event will also include a live Q&A session, offering shareholders and investors the opportunity to engage directly with the leadership team.

Webinar Details:

· Date: Tuesday 05 August 2025

· Time: 12pm (BST)

· Duration: 45 minutes

· RegistrationLink:  https://us02web.zoom.us/webinar/register/WN_L4ss1hPrQtKS_53rPp5gxA#/registration

The Company encourages both shareholders and interested parties to register and attend this informative session.

Questions can be pre-submitted via email to: info@teesvalleylithium.co.uk

Further information

For further information, please visit Alkemy's website: www.alkemycapital.co.uk or TVL's website www.teesvalleylithium.co.uk.

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ABOUT US

Alkemy Capital Investments plc: Alkemy is focused on the development of critical mineral infrastructure to support the global energy transition. Through its wholly owned subsidiary, TVL, Alkemy is leading the way in establishing Europe's first independent lithium hydroxide refinery.

Tees Valley Lithium Limited: TVL is committed to supplying battery-grade lithium chemicals to meet the growing demand of the electric vehicle supply chain in Europe. Strategically located at in Teesside, UK, TVL is developing a low-carbon, independent lithium supply chain for European battery manufacturers.

Forward Looking Statements

This news release contains forward‐looking information. The statements are based on reasonable assumptions and expectations of management and Alkemy provides no assurance that actual events will meet management's expectations. In certain cases, forward‐looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Although Alkemy believes the expectations expressed in such forward‐looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those projected. In addition, factors that could cause actual events to differ materially from the forward-looking information stated herein include changes in market conditions, changes in metal prices, general economic and political conditions, environmental risks, and community and non-governmental actions. Such factors will also affect whether Alkemy will ultimately receive the benefits anticipated pursuant to relevant agreements. This list is not exhaustive of the factors that may affect any of the forward‐looking statements. These and other factors should be considered carefully, and readers should not place undue reliance on forward-looking information.