Eqtec Regulatory News (EQT)

GENERAL TEXT AMENDMENT

The following amendment has been made to the 'Strategic Partnerships Update' announcement released on 16 December 2021 at 7:00 am under RNS No 8082V.

The number of New Ordinary Shares that will rank pari passu with the existing Ordinary Shares has been corrected to 35,600,000.

All other details remain unchanged.

The full amended text is shown below.

16 December 2021

EQTEC plc

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

Strategic Partnerships Update

EQTEC plc (AIM: EQT), a world-leading technology innovation company enabling the Net Zero Future through advanced solutions for hydrogen, biofuels, SNG and other energy production, is pleased to provide the following update on new and existing Collaboration Framework Agreements ("CFAs").

H2 Energy Solutions

The Company is entering into a CFA with H2 Energy Solutions Ltd ("H2"), a hydrogen technology investment and project development business headquartered in Germany. The Company and H2 (together, the "Parties"), will collaborate to develop opportunities for deployment of waste-to-hydrogen capabilities and other opportunities, particularly in Germany and Turkey (the "Territory").

The announcement comes as the Company pursues growing demand for a range of offtake applications based on EQTEC's versatile synthesis gas ("syngas"). The Company recently announced exploration of new offtake potential at its Billingham, Teesside project and at its Deeside, Flintshire project, with the latter focused on feasibility for hydrogen production. On 26 November 2021, the Company announced a Strategic Collaboration Agreement with engineering leader Wood for joint development of go-to-market technology solutions for synthetic natural gas ("SNG") and hydrogen production.

Highlights:

· The objectives of the CFA with H2 include joint sourcing of project opportunities and collaborative development of projects in the Territory, as well as consideration of other commercial opportunities beyond the Territory;

· The CFA does not specify commercial terms, but a joint strategic intent with supporting governance; any project developed through the collaboration would be subject to commercial terms and contracts common in the sector and appropriate to the relevant jurisdiction(s);

· The Parties will focus their efforts on a select project portfolio in the Territory toward integration of EQTEC's Advanced Gasification Technology for Combined Cooling Heat and Power and syngas-to-chemical (e.g., hydrogen, SNG) applications;

· For the Company, H2 will be a go-to-market partner in the Territory, with a particular focus on on-premise, industrial solution opportunities;

· EQTEC will provide project development, technology solutions, engineering and technical design services as well as commercial modelling for solution types; and

· As immediate pursuits, the Parties have identified two opportunities in Germany and are qualifying them now.

The Company will provide further updates as opportunities progress through the collaboration.

MetalNRG

The Company is pleased to announce an enhancement to its existing Framework Partnership Agreement ("FPA") with MetalNRG plc (LON:MNRG) ("MetalNRG"). The FPA was announced on 22 March 2021 with the Company's proposed acquisition of £500,000 worth of MetalNRG shares, which completed in May 2021. On 21 June 2021, MetalNRG was confirmed by the Company as a consortium partner with EQTEC and two other investors for repowering, owning and operating the Italia MDC biomass-to-energy plant in Tuscany, Italy.

Highlights:

· In a share-for-share exchange, MetalNRG will issue 100,000,000 MNRG shares to EQTEC which, at the mid-market closing price of MetalNRG shares on 15 December 2021, equates to a consideration of £295,000. In return, the Company will issue 23,600,000 new ordinary shares in the Company ("Consideration Shares") to MetalNRG which, at the mid-market closing price of EQTEC shares on 15 December 2021 equates to a consideration of approximately £295,000;

· MetalNRG will issue EQTEC with 50,000,000 warrants with an exercise price of 0.45p and a maturity date three years from the date of issue;

· Once completed, the share swap between the Parties will see the Company's investment in MetalNRG increase to 160,606,061 shares, representing 14.1% of MetalNRG's issued share capital; and

· The Company continues to retain its right to appoint a director to the MetalNRG Board of Directors and expects to exercise that right in the first half of 2022.

This expanded arrangement strengthens ties between the Parties, as MetalNRG continues to invest, develop and deliver sustainable, shovel-ready green energy projects, with a specific focus on biomass and waste-to-energy projects in the UK and Europe, to reduce CO2 emissions and contribute to the achievement of 2050 Net Zero goals, whilst working with EQTEC as a leading technology and innovation partner.

Exercise of warrants, Admission and total voting rights

Warrants over 12,000,000 New Ordinary Shares have been exercised ("Warrant Shares"). The aggregate gross proceeds of these exercises receivable by the Company amount to £30,000.

The Company will make an application to the London Stock Exchange plc for the Warrant Shares and the Consideration Shares, being in aggregate, 35,600,000 new Ordinary Shares, to be issued and allotted set out above, to be admitted to trading on AIM ("Admission"). It is expected that Admission will become effective and dealings will commence on or around 21 December 2021. The 35,600,000 New Ordinary Shares will rank pari passu with the existing Ordinary Shares.

Following Admission, there will be 8,599,024,926 Ordinary Shares in issue. This number may be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company.

David Palumbo, CEO of EQTEC, commented:

"Throughout 2021, the importance of forming and working within robust, strategic collaboration agreements has been a key enabler of EQTEC's strategic growth. These agreements have and will continue to deliver investment, new opportunities and capabilities with financing, complementary technologies, and EPC, allowing us and our partners to explore, qualify and launch in new markets. I look forward to our strengthened working relationship with MetalNRG as they support us with identifying and qualifying new projects and I am eager to collaborate with H2 to expand the geographical reach and application breadth for our highly versatile, waste-to-syngas capabilities for hydrogen and beyond."

More information

This announcement contains inside information as defined in Article 7 of the EU Market Abuse Regulation No 596/2014 and has been announced in accordance with the Company's obligations under Article 17 of that Regulation.

ENQUIRIES

About EQTEC plc

As one of the world's most experienced gasification technology and engineering companies, with a growing track record of delivering operational and commercial success for transforming waste-to-energy through best-in-class technology innovation, engineering and project development, EQTEC brings together design innovation, project delivery discipline and solid commercial experience to add momentum to the global energy transition. EQTEC's proven, proprietary and patented technology is at the centre of clean energy projects, sourcing local waste, championing local businesses, creating local jobs and supporting the transition to localised, decentralised and resilient energy systems.

EQTEC designs, supplies and builds advanced gasification facilities in the UK, EU and US, with highly efficient equipment that is modular and scalable from 1MW to 30MW. EQTEC's versatile solutions process over 50 varieties of feedstock, including forestry wood waste, vegetation and other agricultural waste from farmers, industrial waste and sludge from factories and municipal waste, all with no hazardous or toxic emissions. EQTEC's solutions produce a pure, high-quality synthesis gas ("syngas") that can be used for the widest range of applications, including the generation of electricity and heat, production of synthetic natural gas (through methanation) or biofuels (through Fischer-Tropsch, gas-to-liquid processing) and reforming of hydrogen.

EQTEC's technology integration capabilities enable the Group to lead collaborative ecosystems of qualified partners and to build sustainable waste reduction and green energy infrastructure around the world.

The Company is quoted on AIM (ticker: EQT) and the London Stock Exchange has awarded EQTEC the Green Economy Mark, which recognises listed companies with 50% or more of revenues from environmental/green solutions.

Further information on the Company can be found at www.eqtec.com.