Update : Gas Peaker Capacity Market Auction

Corcel Plc

("Corcel" or the "Company")

Update : Gas Peaker Capacity Market Auction

24 February 2022

Corcel, the natural resource exploration and development company with interests in battery metals and flexible energy generation and storage, notes the provisional results of the T-4 Capacity Market Auction for delivery in 2025/26 ("T-4 CM Auction" or "T-4 Auction"), that took place on 22 February 2022. The Company's Avonmouth gas peaking project ("Avonmouth" or the "Avonmouth Project") was successfully entered into the T-4 Auction and has been provisionally awarded a 15 year Capacity Market contract by National Grid Electricity System Operator ("National Grid" or "NGESO"). The final results of the T-4 Auction will be published by NGESO on 4 March 2022.

Highlights

· T-4 CM Auction cleared at a record high of £30.59/kW/annum

· Avonmouth gas peaking project (where the Company has rights over 100% interest subject to successfully funding the project) provisionally awarded a 15 year Capacity Market contract with National Grid providing guaranteed gross revenue of c.£1.5million per year

· Revenue projections being revised for all flexible energy projects

· Peaker portfolio fundraising progress continues with multiple parties in due diligence and potentially expected to bid during March

The Company notes the results of the recent T-4 CM Auction, that took place on 22 February 2022, where a clearing price of £30.59/kW/annum, the highest clearing price achieved to date in the UK and some 70% above last year, was achieved.

Following an application into the Capacity Market auction by FPC Electric Land Limited, the Company's partner and landlord of the site, the Avonmouth Project has been awarded a 50MW Capacity Market contract which equates to a guaranteed annual gross revenue of c.£1.5million, index-linked over a 15 year consecutive period, beginning in 2025. The Company cautions that its rights to 100% of the Avonmouth Project remain conditional on a successful completion of the existing project funding process and project construction and that commercial terms with FPC Electric Land Limited around the sharing of the benefit of the Capacity Market contract are still to be negotiated.

As a result of this year's exceptional Capacity Market clearing prices and increased energy price volatility, all of Corcel's flexible energy project economic models will be updated, and brought in line with revised industry projections.

Scott Kaintz, Chief Executive, commented: "We are delighted with the results of this year's T-4 Auction and that of our project, thanks to our partner FPC Electric Land Limited, which was able to pre-qualify and enter into the auction. The large increase in the clearing price as compared to previous years is reflective of the UK's fragile energy network, and the uncertainty of supply that has arisen, as the country transitions from primarily base load suppliers to renewable energy sources. We believe these results only serve to emphasis the importance of transitional energy assets such as our gas peaking and battery energy storage projects.

This is a highly encouraging step towards closing funding on our gas peaking projects, and means that a large part of anticipated revenues at Avonmouth are effectively guaranteed. We look forward to updating shareholders on additional progress shortly."

The Capacity Market is a mechanism used to procure capacity (by providing the necessary payments to enable plants to deploy or remain operational) to ensure total generation on the national grid is sufficient to meet security of supply standards. Further information on the Capacity Market can be accessed through the Electricity Market Reform Delivery Body's website via the following link:

https://www.emrdeliverybody.com/SitePages/Home.aspx

This announcement contains inside information under Article 7 of Regulation (EU) 596/2014.