Issue of Equity

20 January 2020

AFC Energy plc

("AFC Energy" or "the Company")

Subscription of 5,882,353 Ordinary Shares to raise £1,000,000

AFC Energy (AIM: AFC), a leading provider of hydrogen power generation technologies, is pleased to announce that it has raised, from a single shareholder, £1,000,000 before expenses by way of a subscription of 5,882,353 ordinary shares of 0.1 pence each ("Ordinary Shares") at 17 pence per Ordinary Share (the "Issue Price") ("the Subscription Shares") (the "Subscription").

Following the successful launch of AFC Energy's H-Power Electric Vehicle Charger in December 2019, the Company has commenced conversations with several prospective customers, including fleet operators, Councils and retailers. These discussions have confirmed interest in our technology and ratified our strategy to introduce 160kW and 480kW units at the earliest opportunities.

To this end, the net proceeds of the Subscription are expected to contribute towards the manufacture of AFC Energy's largest EV charger unit with a nameplate of 160kW to support demonstration and commercial activity in 2020. This new system, capable of delivering up to 3.8MWh of clean off grid energy per day, will sit alongside the existing 20kW EV charger system launched in December 2019.

The Issue Price represents a discount of 20 per cent to the VWAP of 21.28 pence on 17 January 2020. The Subscription is not being underwritten and is conditional on admission of the Subscription Shares to trading on AIM. The Subscription is being conducted pursuant to the existing authorities granted to the Directors of the Company at its annual general meeting on 30 April 2019. The Subscription Shares represent approximately 1.3 per cent. of the Company's issued share capital as enlarged by the Subscription Shares.

Application has been made to the London Stock Exchange for the Subscription Shares to be admitted to trading on AIM ("Admission") and it is expected that such Admission will occur at 8.00 a.m. on 23 January 2020. The Subscription Shares will be issued credited as fully paid and will rank in full for all dividends and other distributions declared, made or paid after the admission of the Subscription Shares, respectively and will otherwise be identical to and rank on Admission pari passu in all respects with the existing Ordinary Shares. The Subscription Shares are not being made available to the public and are not being offered or sold into any jurisdiction where it would be unlawful to do so.

Following Admission, the Company will have 456,470,143 Ordinary Shares in issue, none of which will be held in treasury. Accordingly, the total number of voting rights in the Company will be 456,470,143 and shareholders may use this figure as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.

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About AFC Energy

AFC Energy plc is commercialising a scalable alkaline fuel cell system, to provide clean electricity for on and off grid applications. The technology, pioneered over the past twelve years in the UK, is now being deployed in electric vehicle chargers, off-grid decentralised power systems and industrial gas plants as part of a portfolio approach to the decarbonisation of local electricity needs.