Atome Plc Regulatory News (ATOM)

26 September 2022

ATOME ENERGY PLC

("ATOME", "the Company", or "the Group")

Unaudited Half Year Results for the Six Months Ended 30 June 2022

Current Trading Update

ATOME Energy (AIM: ATOM), the only pure international green hydrogen and ammonia production company on the London Stock Exchange, with large-scale projects of over 500MW in South America and Europe concentrating on energy and food security, together with hydrogen mobility projects, is pleased to announce its unaudited results for the six-month period ended 30 June 2022 which are set out below together with a current trading update.

H1 2022 Highlights:

· Operating loss in period US$2.5 million in line with expectations with costs of projects to be capitalised only after they reach final investment decision stage, financed from available funds from flotation

· Since listing on AIM on 30 December 2021, ATOME Energy Group (ATOME or the "Group) in less than 9 months has achieved the following key milestones on its roadmap to developing its projects:

· Signed a long-term 60MW industrial scale Power Purchase Agreement securing baseload 24/7 electricity supply for the Group's Phase 1 Villeta project in Paraguay in addition to the now enlarged 300MW Paraguay project referred to at the time of flotation the latter of which is progressing positively with concrete discussions taking place with relevant authorities and stakeholders

· Appointed the Multinational Engineering Consultancy, AECOM, a US Fortune 500 Company, as the Owner's Engineer for its current Paraguay projects

· Purchased a 75-acre site for the Phase 1 facility in Villeta adjacent to both the newly built Villeta sub-station and near our customers with the benefit of navigable river access for export

· Appointed a local experienced FEED contractor for the electromechanical work at the Villeta sub-station with environmental, water, soil and groundwork studies in hand

· Tender in progress with qualified reputable international contractors for the full project FEED contract for Villeta project - results of tender expected in next 4 weeks, FID targeted by end Q1 2023 with construction commencement projected mid 2023

· Appointed Natixis Corporate Investment Bank, one of the global leaders in hydrogen and energy infrastructure funding, as ATOME's financial advisor to structure and secure financing for the Villeta project through to construction

· Commenced discussions with multi-lateral funding institutions with take-on KYC in process and significant interest being shown in our project in both industry and financial communities

· Entered into memoranda of understanding with the National Civil Aviation Authority of Paraguay and the Paraguay Barge Association regarding the potential use and benefit of hydrogen and ammonia

· Ordered a 1MW electrolyser unit and commenced site preparation work for ATOME Mobility Division in Paraguay in co-operation with the Concrete-Mix and Automotor Group, respectively owners of the largest cement facilities in Paraguay and the oldest Hyundai and Isuzu vehicle dealer in South America

· Notwithstanding the current well-known issues in the power sector in Europe the Iceland project continues step by step with discussions centred on the power suppliers and key stakeholders with Green Fuel ehf, ATOME's Icelandic subsidiary, having secured a grant for ISK 25,000,000 (approximately USD$175,000) from F.h. Orkusjóður, the government-led Energy Fund

· ATOME is furthermore increasingly active in developing future growth opportunities for the Company, including new projects and partnership opportunities in Latin America, the Mediterranean and Eastern Europe

Current Trading Update

ATOME continues to make progress on its projects with Paraguay in particular running ahead of expectation in accordance with the goals set by the Directors.

In the next 6 months, ATOME is targeting the following milestones for its projects:

· Extended Power Purchase Agreements in Paraguay

· Site clearance, preparation of land at Villeta with completion of relevant land, water, soil, social and environmental studies

· Start of physical electromechanical works in Villeta pursuant to the FEED currently in progress

· Appointment of main facility FEED contractor for Phase 1 Villeta with receipt of the study in Q1 2023

· Procurement and selection of the main equipment suppliers

· Appointment of EPC contractor with main sub-packages to be identified and to be tendered

· Final Investment Decision on Villeta Project

· With ATOME's financial adviser, complete the project funding package with significant interest already being shown on a project level from multi-laterals and green infrastructure funds

· Shortlisting long term offtakers for production from Villeta

· Ordering of fueller for its mobility division and bringing into Paraguay first vehicles

· Maturing power supply negotiations in Iceland to PPA stage

· The addition of new country entries expanding ATOME's footprint beyond the current geographic portfolio

Phase 1 of Villeta is on track to commence main site construction by mid-2023 with a view to commissioning of the facility by end 2024/first part 2025. The Group is also in advanced discussions with global off-takers for its hydrogen and ammonia, with good interest shown in all of ATOME's prospective Paraguay production.

The Group is on the ground in Iceland via its Green Fuel subsidiary, in detailed discussions with all the major power providers, and is receiving broad political support for Green Fuel's hydrogen and ammonia projects with Group also exploring potential international new markets for its next growth phase.

ATOME's new mobility division is progressing on track with its first 1MW electrolyser currently being built in the UK and scheduled for commissioning by the end of Q1 2023, with first revenues projected in that year.

We view the future with increasing confidence as we concentrate on maintaining the momentum shown since we came to the market together with seeking to expand our current portfolio of interests.

Peter Levine, Chairman and Olivier Mussat, CEO, jointly commented: "These maiden half year results as a publicly traded green hydrogen and ammonia production company demonstrate the underlying progress achieved by ATOME in the space of under 9 months.

"Since the start of the year we have added a significant industrial scale project in Villeta, Paraguay, to our portfolio of projects of now some 500MW in potential size, signing a landmark power purchase agreement giving us 24/7 baseload electricity at prices that allow us to compete on a worldwide stage, as well as creating a separate mobility division with electrolyser ordered with first revenue scheduled for 2023. At the same time our management roster and expertise has necessarily expanded whilst always keeping an eye on costs.

"We are at the forefront of our industry, delivering large scale projects realistically able to be brought into production on a fast-track, at a world leading low cost of production, thanks to the present availability of economical baseload 24/7 stable 100% renewable power, with existing infrastructure and near end customers making our project very attractive globally.

"Energy and food security is not only in clear focus in the turbulent present times but will be a priority for decades to come as it is recognised that energy transition is a necessity and not a luxury and is of pressing strategic need evidenced by world events as well as for the all-important environmental reasons. ATOME's business model and the demonstrable progress we are rapidly making puts us at the forefront of our industry as we are providing the solutions now to the key issues of our times of energy and food security.

"We view the future of ATOME with increasing confidence".

The 2022 Half Year Report and Financial Statements will be made available at https://www.atomeplc.com/

There will be an analyst call today at 0930h BST. Those analysts wishing to join the call should register to receive an invitation by contacting atome@tavistock.co.uk

There will also be a presentation for investors today at 1300h GMT on the Investor Meet Company platform.  Investors can sign up to Investor Meet Company for free and add to meet ATOME ENERGY PLC via: https://www.investormeetcompany.com/atome-energy-plc/register-investor

For more information, please visit https://www.atomeplc.com or contact:

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon publication of this announcement, this inside information is now considered to be in the public domain. The person who arranged for the release of this announcement on behalf of the Company was Peter Levine, Chairman.

About ATOME

ATOME Energy PLC is an AIM listed company focusing on green hydrogen and ammonia production with over 500-megawatt of projects in Paraguay and Europe and through this addressing the important questions of energy and food security.

Since its admission to AIM in December 2021 ATOME has signed its first electrolyser purchase order for its hydrogen transport Mobility Division due to start generating revenue in 2023 and signed a world scale 60MW power purchase agreement with ANDE, the state energy company in Paraguay for production of green hydrogen and ammonia targeted to start operations at or around end 2024.

ATOME is in the process of operational planning, sourcing and negotiations with green electricity suppliers, equipment providers and offtake partners, including signed memoranda of understanding and cooperation agreements in place with key parties, to use electricity generated from existing geothermal sources in Iceland and hydroelectric power in Paraguay. All chosen sites are located close to the power and water sources and export facilities to serve significant domestic and then international demand.

The Company has a green-focused Board which is supported by major shareholders including Peter Levine, Trafigura, one of the world's leading commodity and logistics company, and Schroders, a leading fund manager.

Financial Review to 30 June 2022

The condensed financial statements present the interim results for ATOME Energy for the first full six months of operations as an independent AIM-listed business focused on producing, marketing and distributing green hydrogen and ammonia.

Operating loss for the Group in line with expectations totalled US$2.5 million for the 6 months ended 30 June 2022. No costs incurred in relation to the Company's projects during this period have been capitalised. Costs incurred in relation to the projects will be capitalised once they reach final investment decision stage.

The comparative results for the six months ended 30 June 2021 and year ended 31 December 2021 relate to activity under control of President Energy PLC, with a total loss of US$0.6 million for the six months ended 30 June 2021 and a loss of U$2.2 million for the year ended 31 December 2021, including IPO costs.

Net cash used by operating activities totalled US$3.7 million for the 6 months ended 30 June 2022 (US$2,000 and US$24,000 received from operating activities for 6 months ended 30 June 2021 and year ended 31 December 2021, respectively).

The comparative amounts include receipt of short-term facility loans from President Energy PLC and FIIP a member of the Peter Levine group of investment companies, totalling US$0.6 million and US$1.4 million in the 6 months ended 30 June 2021 and year ended 31 December 2021, respectively, fully repaid, and included in the net cash used in operating activities for 6 months ended 30 June 2022.

Operating deficit generated in the six months ended 30 June 2022 was financed primarily by the receipt of net proceeds received from issue of shares at Admission totalling US$3.7 million in six months ended 30 June 2022 (US$0.001 million in six months ended 30 June 2021 and US$1.8 million in the year ended 31 December 2021).

Additional financial support is available to the Group in the form of an Unconditional Standby Equity Facility Agreement whereby Peter Levine, Chairman and one of his investment vehicles, PLLG Investments Limited, have agreed to subscribe for shares at the placing price of 80p per share at the call option of the Company at no cost and at any time during the period to end June 2023. This provides an additional £3.0 million facility available to the Group should it so require after considering other forms of financing available.

The results of the Group are presented in US Dollars as all its budgeting, cost management and future trading is or will be denominated in US Dollars. The foreign exchange gains and losses arising from translation from the Group entities functional currency to US Dollars are taken to the Translation reserve on the statement of financial position.

Condensed Consolidated Statement of Comprehensive Income

Condensed Consolidated Statement of Financial Position

Condensed Consolidated Statement of Cash Flows

Six months ended 30 June 2022

Notes to the Financial Statements

Six months ended 30 June 2022

1. Nature of operations and general information

ATOME Energy PLC (the Company) is a public company limited by shares and incorporated in England in the United Kingdom under the Companies Act 2006. The address of the Company's registered office is Carrwood Park, Selby Road, Leeds, LS15 4LG. The Company's and its subsidiaries' (the Group) operations and principal activities include planning, development and execution of the projects to produce hydrogen and green ammonia using renewable energy. The Company is quoted on the AIM market of the London Stock Exchange (ticker: ATOM), and is headquartered in Leeds, UK, with offices in Asunción, Paraguay and Akureyri, Iceland.

These condensed consolidated interim financial statements (the interim financial statements) have been approved for issue by the Board of Directors on 20 September 2022. The financial information for the year ended 31 December 2021 set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The financial information for the six months ended 30 June 2022 and 30 June 2022 was neither audited nor reviewed by the auditor. The Group's statutory financial statements for the year ended 31 December 2021 have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498(2) or (3) of the Companies Act 2006

2. Basis of preparation

The interim financial statements do not include all the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 December 2021, which have been prepared in accordance with UK adopted International Accounting Standards.

These financial statements have been prepared under the historical cost convention, except for any derivative financial instruments which have been measured at fair value. The accounting policies adopted in the 2022 interim financial statements are the same as those adopted in the financial statements for the year ended 31 December 2021, as included in the 2021 Annual report.

10. Capital commitments

The Group's outstanding capital commitments in relation to its projects totalled US$1.5 million as at 30 June 2022 and US$2.4 million as at the date of this report.

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