27 May 2022

ATOME ENERGY PLC

("ATOME", "the Company", or "the Group")

Audited Results for the period ended 31 December 2021

ATOME (AIM: ATOM), the independent international company formed for the purpose of producing, marketing and distributing green hydrogen and ammonia is pleased to announce its audited results for the period ended 31 December 2021.

The financial statements presented are the inaugural group results for the ATOME Energy Group following its joining the London Stock market on 30 December 2021. The Company was formed under the umbrella of President Energy PLC and as part of the IPO process was spun out from President to be an independent company having been incorporated as a public company in October 2021.

The Company's Annual Report will be posted to shareholders in early June together with the Notice for the Annual General Meeting.

Highlights FY2021

Financial

• Whilst ATOME only joined the London Stock Market on 30 December 2021 i.e. two calendar days before the year end, the financial results are for the Group from the beginning of January 2021 as if the Group had been operating throughout this period
• The loss for the period of US$2.2 million includes US$0.7 million of listing related expenses and US$1.2 million of expenditure under agreements with founding shareholders, the majority of which was incurred prior to the spin out from President Energy PLC
• As detailed in the Admission Document, the support of founding shareholders created, incubated, financed and progressed the business to the point of the IPO and included the acquisition of operating entities in both Iceland and Paraguay
• The Group raised gross proceeds of US$7.8 million (US$7.0 million net) from the issue of new shares on admission to AIM

Peter Levine, Chairman, commented in the Chairman's Statement:

"This is the first published Annual Report and Accounts for ATOME.  It was only on 30 December 2021 that ATOME became the first green hydrogen and ammonia production company to join the London Stock Exchange and today ATOME remains the only company in such field on the market. 

The Company was formed under the umbrella of President Energy PLC and as part of the IPO process was spun out from President to be an independent company having been incorporated as a public company in October 2021.  The results for the year end 2021 are therefore somewhat of an anomaly especially as a full Admission Document on Admission to AIM (available on our website) was published in late December 2021, only shortly before the year end under report.

Since Admission at the end of 2021, the Company has made material and expeditious progress and has expanded its business and footprint above and beyond originally planned.  This progress is reflected in the statement of Olivier Mussat, our Chief Executive, contained later in the Annual Report.   In the short period since the IPO, whilst not losing focus on our core projects, we have signed a world-class scale power purchase agreement for 60 MW in Paraguay as well as creating our Mobility Division and ordered our first electrolyser.  All this means in 2023 we expect to be generating our first revenues ahead of expectation at the time of the IPO and are advancing our production plans generally.

With these projects, as well as our original core Paraguay and Iceland projects as referred to in the Admission Document, both of which are progressing as planned, we have within those few short months, placed ourselves at the forefront in our field both in scale and with proven ability to move fast and exploit opportunities as they arise.  We are building projects which will produce globally traded green commodities whilst increasing food and energy security locally. We have every confidence that ATOME will go from strength to strength and in the years to come can become one of the world leaders in production of green hydrogen and ammonia delivering capital appreciation to our shareholders and sustainable development."

Olivier Muscat, Chief Executive Officer, commented:

"Since its foundation and subsequent emergence as an independent AIM listed business ATOME has made significant operational progress and is already establishing itself as a leading international player in the field of green hydrogen and ammonia.

We came to the market through our IPO in December 2021 having become a public company two months earlier.   At the time of Admission to AIM we had our two core projects in Paraguay and Iceland, both substantive in nature and providing significant opportunity for fundamental increase in shareholder value extending into the future.  Hindsight, together with subsequent events, has fortuitously shown ATOME to be the right company at the right time for the green energy market.

I am pleased to report that since that time, ATOME through its new mobility division and Villeta PPA has also exceeded the original expectations at the time of the IPO both in scale and timing of our business.

In February of this year, we created our new mobility division set to revolutionise green energy for transport in Paraguay.  Hydrogen is the worldwide future for heavy road transport e.g. buses and trucks.  With ATOME's first order for an electrolyser made in March, and our owner's engineer appointed, ATOME expects to sell and deliver its first hydrogen for transport use in Paraguay before the end of H1 next year with already extensive end-market interest in our mobility project together with government support.

At the start of this month, being able to quickly exploit a new opportunity, ATOME entered into a 60MW power purchase agreement ("PPA") for delivery of significant green power for hydrogen and ammonia production in Villeta in Paraguay.  The scale and fast track speed of this project places ATOME at the forefront in our field and has generated significant industry and market interest.  The green power is available now, close to our end market with infrastructure in place which enables us to move expeditiously towards developing this project and revenue creation.

The Villeta PPA is in addition to the core 250-300 MW project in Paraguay, which we announced at the time of Admission, which is also in the process of planning, and we are already hard at work to bring the Villeta project on-stream within the next three years, thereby having world-scale projects of in excess of 300 MW coming on-line mid-decade from Paraguay alone.  Our Iceland project is also progressing in tandem with our work in Paraguay and is also now planned to come on-line mid-decade.

We believe ATOME is ideally placed to help decarbonise energy, transport and agriculture. Our projects will contribute significantly to fulfilling the UN's Sustainable Development Goals, particularly SDG 7, 9, 11, 12 and 13. The increase in hydrocarbon and fertiliser prices, together with the international emphasis on environmentally necessary green commodities, has provided a very fertile end market for ATOME's planned production and we have ever increasing confidence backed by industry interest in us that there will be robust demand for our production which will support strong economics for our business, with profitability and sustainability going hand in hand.

We look forward to delivering further material progress during 2022 as we move forward with bringing our projects on-line and intend to proceed to develop a pipeline of new international projects in other jurisdictions as time goes on."

For more information, please visit https://www.atomeplc.com or contact:

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations ( EU) No 596/2014 which is part of UK law by virtue of the European Union ( Withdrawal) Act 2018. Upon publication of this announcement, this inside information is now considered to be in the public domain. The person who arranged for the release of this announcement on behalf of the Company was Peter Levine, Chairman.

Notes to Editors

ATOME

ATOME Energy PLC is an AIM listed company targeting green hydrogen and ammonia production with over 400-megawatt of projects in Paraguay and Iceland, through its subsidiaries ATOME Paraguay, which is wholly owned, and Green Fuel ehf, in which ATOME Energy holds a 75 per cent interest, respectively.

Since coming to the Stock Market in December 2021 ATOME has already signed its first electrolyser purchase order for its hydrogen transport mobility division due to start generating revenue in 2023 and importantly signed a large scale 60MW power purchase agreement with ANDE, the state energy company in Paraguay for production of green hydrogen and ammonia targeted to start operations at or around end 2024.

ATOME is in the process of operational planning, sourcing and negotiations with green electricity suppliers, equipment providers and offtake partners, including signed memoranda of understanding and cooperation agreements in place with key parties, to use electricity generated from existing geothermal sources in Iceland and hydroelectric power in Paraguay. All chosen sites are located close to the power and water sources and export facilities to serve significant domestic and then international demand.

The Company has a green-focused Board which is supported by major shareholders including Peter Levine, Trafigura, one of the world's leading commodity and logistics company, and Schroders, a leading fund manager.

Detailed financial review

The financial statements presented are the inaugural group results for the ATOME Energy Group following its emergence in 2021 as an independent AIM listed business focused on producing, marketing and distributing green hydrogen and ammonia.

Whilst ATOME Energy PLC was only formed in October 2021, to bring the green energy business established by President Energy PLC to the market as an independent entity, the financial results have been prepared adopting merger accounting for the Group from 1st January 2021 as if it had been operating throughout this period. This follows established practice and is consistent with the Admission Document in December 2021.

The results therefore reflect a full year including the period when under control of President Energy PLC and show a loss US$2.2 million. In line with the Admission Document, this includes listing expenses of US$0.7 million of listing related expenses and US$1.2 million of expenditure under agreements with founding shareholders including President Energy. Without the founding shareholders' support during the incubation period, ATOME could not have achieved the significant progress before and after the IPO as reported in the Chief Executive Officer's statement and subsequent events outlined in the Directors' Report. 

The Group has assumed liabilities in the form of GBP sterling loans from President Energy and FIIP for the funding support provided. These obligations are presented as borrowings under current liabilities and have been fully settled in 2022 from the funds raised at the end of the year. On 30th December 2021, the Group raised proceeds of US$7.8 million gross (US$7.0 million net) from the issue of new shares on flotation and admission to AIM. With the late timing of the event, US$1.8 million was received in the year with US$6.1 million presented as a receivable in current assets for settlement in due course. Trade and other payables of US$1.2 million include US$0.9 million of

amounts due in settlement of the costs of the share issue. Additional financial support is available to the Group in the form of a Standby Equity Facility Agreement. Under this agreement, PLLG Investments Limited and Peter Levine, Chairman have agreed to subscribe for shares at the placing price at the option of the Company for 18 months from the AIM admission in December 2021. This makes an additional £3.0 million facility available to the Group.

In consolidating the results of the Group, we have elected to present them in US Dollars as all the Group's budgeting, cost management and future trading are in US Dollars. On translation from the functional currency of the entities all translation differences are taken to the Foreign Currency Translation Reserve on the statement of financial position.

Consolidated Statement of Comprehensive Income

Period ended 31 December 2021

Consolidated Statement of Financial Position

31 December 2021

Consolidated Statement of Changes in Equity

Period ended 31 December 2021

Consolidated Statement of Cash Flows

Period ended 31 December 2021

Notes

1.    Accounting policies and preparation

The financial information set out in this announcement does not constitute the Company's statutory accounts for the year ended 31 December 2021 but is derived from the 2021 accounts.

Statutory accounts for 2021 will be delivered in due course. The auditors have reported on those accounts; their report was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006 in respect of the accounts for 2021.

Whilst the financial statements from which this preliminary announcement has been derived have been prepared in accordance with International Financial Reporting Standards ("IFRS") and applicable law, this announcement does not itself contain sufficient information to comply with IFRS. The Annual Report, containing full financial statements that comply with IFRS, will be sent out to shareholders later in early June 2022.

The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Therefore, in the preparation of the 2021 financial statements they continue to adopt the going concern basis.

2.   Administrative expenses

Directors and staff cost as reported above are the direct cost incurred by the new parent entity ATOME Energy PLC following the transfer of the ATOME trade established in President Energy PLC. The expenditure incurred by ATOME Limited under service agreements with President Energy amounts to US$1.2 million and are consolidated in full under the merger of businesses under common control. These costs were incurred prior to the flotation of ATOME Energy on AIM and were disclosed in the Admission Document. The costs of listing for existing shares are expensed separately from the cost of issue for new shares which are included in share premium in line with accounting guidelines.

In order to reflect the merger, shares issued by ATOME Energy as part of the reorganisation have been included from the start of the period.

At 31 December 2021, 2,091,500 share option and share warrant awards were in issue that, if exercised, would dilute earnings per share in the future. No dilution per share was calculated for 2021 as with the reported loss they are anti-dilutive.

4 Notes to the consolidated statement cash flows

5 Segment reporting

Segment assets can be reconciled to the Group as follows:

-ends-