ECHO.L Regulatory News (ECHO)

21 December 2023

Echo Energy plc

("Echo" or the "Company")

Issue of Convertible Loan Note

Echo Energy PLC (Company), announces a £500,000 unsecured convertible loan note funding facility (the "Facility") with a UK based alternative asset management and investment firm (the "Investor"). The Company has drawn down an initial £65,000 of gross proceeds under the Facility to support its working capital requirements and immediate work programme (the "Initial Drawdown").

Facility - Key Terms

· The £500,000 Facility is structured as an initial tranche of unsecured convertible loan notes of £65,000 and up to a further £435,000 available to be drawn down at any time over the next 6 months, subject to mutual agreement between the Company and the Investor.

· A 5% fee on the amount drawn down is payable to the Investor upon each draw down.

· Echo will pay the legal fees for the implementation of the Facility, which have been capped at £15,000 and deducted from the Initial Drawdown.

· All Loan notes, once drawn, are repayable 24 months from the date of the first draw-down. The Loan notes are zero-coupon/interest free but are issued at 92% of Par Value.

· Each tranche of the Facility is convertible into new ordinary shares of the Company ("Ordinary Shares") at the Investor's election at any time prior to repayment, at the lesser of: (i) 150% of the Company's closing bid price on the trading day immediately prior to the date of draw-down of the relevant tranche; or (ii) 90% of the lowest closing bid price in the five trading days immediately preceding the date of conversion (the "Conversion Price").

· The loan notes are redeemable in cash by the Company, all or in part, at Par Value at any time after draw down, or in the event of a change of control of the Company, at 110% of Par Value. If the Company notifies the Investor of an intended redemption of any loan notes, the Investor shall have two trading days to elect to convert some or all of outstanding amounts or accept the early redemption. In the event of default, loan notes will be redeemable immediately at 110% of par value of outstanding loan notes.

This announcement contains inside information as stipulated under the UK version of the Market Abuse Regulation No 596/2014 which is part of English Law by virtue of the European (Withdrawal) Act 2018, as amended.

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