VLS.L Regulatory News (VLS)

News release

Velocys plc

("Velocys" or "the Company")

16 December 2019

Grant of Share Options to Directors

Velocys plc (VLS.L), the sustainable fuels technology company announces that it has been notified on 13 December 2019 by Henrik Wareborn, Chief Executive Officer and a director of the Company, and Andrew Morris, Chief Financial Officer and a director of the Company, that they were granted options ("Option Grants") on 13 December 2019 under the Velocys 2012 Share Option Scheme (as amended) over the Company's Ordinary shares of £0.01 each ("Ordinary Shares"). The Option Grants, which have been made under the Rules of the Velocys 2012 Share Option Scheme and follow discussions with major shareholders, were as follows:

Following these notifications:

(i) Henrik Wareborn is interested in 1,666,666 Ordinary Shares and Options over 10,250,000 Ordinary Shares of the Company, together representing 1.85% of the present issued share capital of the Company.

(ii) Andrew Morris is interested in 433,333 Ordinary Shares and Options over 9,625,000 Ordinary Shares of the Company, together representing 1.56% of the present issued share capital of the Company.

The Option Grants are in addition to one-off Special Awards of share options over 16,700,000 Ordinary Shares (representing 2.59% of the present issued share capital) to Velocys' other key staff to compensate for an absence of share awards in recent years, and of share options over 15,250,146 Ordinary Shares (representing 2.37% of the present issued share capital) to Velocys' other key staff in respect of share awards for the 2019 financial year.

The above options are subject to terms for Malus and Clawback and may not in any event be exercised later than the day immediately preceding the tenth anniversary of the date of grant.

Note 1: Commencement awards vest as to two-thirds on the date of grant and as to the balance on 4 December 2020.

Note 2: Performance Awards are only exercisable subject to the weighted average share price of an Ordinary Share being equal to or more than £0.15 measured during specified periods within the performance period which expires on 31 December 2022.

Note 3: Annual awards vest as to:

(i) 50% on the third anniversary of the date of grant and

(ii) 50% on the third anniversary of the date of grant subject to the weighted average share price of an Ordinary Share being equal to or more than £0.045 during the month preceding the third anniversary of the date of grant.

- Ends -

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