Quantum Data Regulatory News (MAST)

Mast Energy Developments PLC

(Incorporated in England and Wales)

(Registration Number: 12886458)

Share code on the LSE: MAST

ISIN: GB00BMBSCV12

("MED" or "the Company")

06 May 2021

Mast Energy Developments Plc ("MED" or "the Company")

 Operational Update

Mast Energy Developments Plc, the UK-based multi-asset operator in the rapidly growing Reserve Power market, is pleased to provide a first operational update, following its successful listing on 14 April 2021 and commencement of trading of its ordinary shares on the Official List for listed securities of the London Stock Exchange plc ('LSE') under the ticker MAST ('Admission').

In the runup to the listing of MED, the MED board and management also focussed on a rigorous review and evaluation of its available pipeline of sites to ensure successful and timely delivery of the business strategy stated in the Company Prospectus. Latest progress in this regard is set out below.

1. Immediate and Short-term Focus (As stated in Company Prospectus)

Target 1: Bordesley 5 Mw base case with upward optimization capability of 19.12 Mw

Despite Covid-19 restricting physical access to the site, MED progressed the Bordesley project by, amongst other development work such as EPC Scope of Works, entering into a 20-year tenancy agreement with two 5-year extension periods with the landlord. This term is synchronous with gas reciprocating engine life expectancy and optimizes commercial and technical outcomes. Bordesley now has numerous optimization options to develop as a Reserve Power generation hub by virtue of shared infra-structure with Target 2, power generation off-take by proxy sales and economy of scale due to two close-by Reserve Power sites totalling 14.12 Mw of generating capacity which culminates in EPC and Balance of Plant ("BOP") economy of scale project costs and timelines. Updated EPC proposals are expected in early May 2021, which will enable MED to assess final project capital costs and to report on the final timeline to commence construction and ultimately commissioning and steady state production during this year.

Target 2: Site capacity 9 Mw

During the period leading up to and subsequent to the listing of MED, the MED board and management advanced the SPA for the acquisition of the Target 2 site to signature ready status and MED expects the SPA to be finalized within the next 10 working days. As previously announced this site has instantaneous revenue creation capability with Blue Chip Original Manufacturer gas reciprocating engines in situ, connected to both gas and grid connections and in live status. Inking the SPA will be a milestone in the development of MED's portfolio as it will trigger an immediate phased in approach to operate the engines on load with 24/7 availability (subject to planned maintenance) to be synchronous with the terms of the power off-take agreement, and be installed as operational in steady state status, thus creating instantaneous revenue which in turn will bolster the financial health of the Working Capital Budget. MED expect GBP 42,500 per month in revenue from this site as soon as the full site achieves steady state production.

Target 3: West Midlands-Birmingham Rd 6 Mw - update

The Target 3 site already has planning consent with the capability to be developed as a Reserve Power Gas Reciprocating facility, a hybrid Reserve Power ("RP") and battery site or preferably as a long duration battery storage site due to its unique location with access to both District Network Operator ("DNO") and Private Wire. Commercial and technical solution timelines are currently being evaluated in line with the 6 months option agreement which will enable site construction and commercial commissioning within 10 months.

2. Target sites in operational status

The site(s) referred to below are not available to a wider selection of potential buyers and are on offer to MED as the direct result of MED's relationships with credible reserve power developers who view MED as a preferred counterparty. Non-Disclosure and Non-Circumvention agreements have been exchanged and the market will be updated in due course on the findings of the due diligence investigations currently underway.

Operational site- Range 3.6 to 4.4 Mw capacity (Phase 1)

MED has entered into negotiations to procure an RP site as a step-in target site that is fully operational and currently revenue generating. The target acquisition price will be accommodated within the Working Capital Budget stated in the Company Prospectus.

Operational Site- Range 16.20 Mw to 19.80 Mw capacity (Phase 2)

This site is associated to the previously mentioned Phase 1 site which MED is considering as medium-term priority for possible acquisition to satisfy the second stage of the Company's current site rollout strategy towards achieving its stated ultimate production capacity.

3. Strategy to roll out the target 300 Mw capacity

MED is currently engaging with a number of Reserve Power site developers and has access to sites of varying capacity totalling circa 166 Mw. MED, in conjunction with the relevant vendors are now ranking the sites in tandem with MED's site roll out strategy and site acquisition plans. All these sites can be developed at pace allowing a phased Due Diligence approach, optimised commercial and technical solutions and subsequent transactional engagement. 

Louis Coetzee, Non-Executive Chairman said: "We are delighted with the progress we have made since announcing the successful IPO of MED and the fact that we are on schedule to deliver in accordance with the various targets set out in the Company Prospectus. We are, in particular, pleased with the fact that we remain confident that all the projects identified in the company's working capital budget, as stated in the Company Prospectus, can be delivered within the said budget."

Paul Venter, CEO of MED said: "MED's executive management and project team on the ground are experienced operators with a track record capable to deliver tangible outcomes based on experience in multiple jurisdictions. The building blocks of the platform and launching pad to achieve MED's operational and commercial success in future are in place and MED's team can now get on with the task in hand. Having raised and received £5.54 million with key institutions and retail investors who have recognised the opportunity, we now look forward towards successful delivery of the projects in our project pipeline and imminent revenue generation."

Further information on the Company, including the prospectus published in conjunction with Admission, can be found on the Company's website: www.med.energy

This announcement contains inside information for the purposes of the UK version of the Market Abuse Regulation (EU No. 596/2014) as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR"). Upon the publication of this announcement, this inside information is now considered to be in the public domain.

ENDS

For further information please visit www.med.energy or contact: