AFC's KORE Fuel Cell System Delivers Power

5 October 2015

AFC Energy PLC

("AFC" or the "Company")

AFC's KORE Fuel Cell System Achieves First Delivery of Power into the German Grid

Highlights

· Successfully delivered first power into the grid from AFC fuel cell facility in Stade, Germany

· AFC remains on target to achieve first full commercial scale operability of KORE module (final Milestone 11) in late 2015

AFC Energy plc (AFC.L), the industrial fuel cell power company, is pleased to announce that it has successfully delivered its first power into the German power grid, as part of the planned trials of the power electronics connected to its first commercial scale KORE fuel cell system.

This achievement is the final test stage of proving and providing electricity to the German grid from the KORE system and confirms that AFC remains on target to deliver the world's largest alkaline fuel cell system operating at an industrial facility later this year.

In the final stages of the power electronics tests, completed in collaboration with Siemens AG, power was delivered into the local grid at between 5.9 - 7.4kW, for a period of approximately one hour. This has generated test data which is required in preparation for the operation of at least 40kW from 8 cartridges, comprising milestone 10 of the 11 point plan, scheduled for 2015.

Mr Adam Bond, AFC's Chief Executive Officer, said: "With the KORE system successfully commissioned in July and the 8 cartridges required for the delivery of Milestone 10 now having arrived in Stade, the trialling of the power electronics and connection to the power grid was one of the final stages of testing required before we deliver an initial 40kW from 8 cartridges within the KORE system. We look forward to providing further updates when Milestone 10 is achieved."

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About AFC Energy

AFC Energy plc is fast approaching commercialisation for its proven low-cost alkaline fuel cell system ("KORE"), which converts hydrogen into 'clean' electricity. AFC's key project POWER-UP will demonstrate the world's largest alkaline fuel cell system at Air Products' industrial gas plant in Stade, Germany. The date for the demonstration of the 240kW KORE system has been fast tracked to December 2015, representing the final phase of AFC's pre-commercialisation technical development programme and creating the platform for the Company's global commercial fuel cell deployment. For further information, please visit our website: www.afcenergy.com