Villeta Update - Response to Media Coverage

For immediate release

9 October 2026

ATOME PLC

("ATOME" or the "Company")
Villeta Update - response to media coverage

ATOME (AIM: ATOM), provides comment on recent media coverage in Paraguay regarding the Villeta Project ("Villeta" or "Project").

Media Reports

ATOME notes recent incorrect and/or misleading media statements and coverage in Paraguay regarding the Villeta Project which it believes are either materially incorrect or misleading, in respect of the matters surrounding the Notice of Dispute and Intent to Submit a Claim to Arbitration ("the Notice") under the UK-Paraguay Bilateral Investment Treaty ("BIT").

Accordingly, ATOME is clarifying certain key points for the avoidance of doubt. ATOME remains in good faith open to an amicable resolution of the dispute in accordance with the BIT and feels that it is not productive for the facts to be mischaracterised publicly in the media.

In particular:

1)   ATOME's position is that the Republic of Paraguay has violated the BIT through its acts and omissions, including by ANDE and other organs of the State. ATOME has the right to submit claims under the BIT to arbitration at the International Centre for Settlement of Investment Disputes ("ICSID") in Washington D.C. ATOME will not pursue its BIT claims in any venue or court in Paraguay.

2)  There have been misrepresentations in the media of the factual and legal basis of ATOME's claims. For example, media reports to the effect that there was no reason for ATOME to have expectations as to particular tariffs mischaracterise the basis of ATOME's legitimate expectations and its rights as a matter of international law. ATOME reserves the right to publish the Notice if the facts continue to be mischaracterised.

3)  ATOME invested in Paraguay based on unequivocal, concrete guarantees and assurances by the Paraguayan State that it would provide hydropower for the Project at a pre-determined and financially investable tariff. Among other things, Paraguay established a regulatory framework specifically designed to induce investment by known, pre-determined and bankable tariffs. Further, pursuant to that framework, the Ministry of Industry and Commerce issued Resolution No. 356/2026, formally accrediting ATOME to receive hydropower at the tariff laid down by and through Decree Nos. 5306 and 5307, before which, in April 2026, ANDE and the Company agreed on a new power purchase agreement ("PPA") that was to be entered into under the applicable framework. As Paraguay itself made clear in issuing Decree Nos. 5306 and 5307, "highly technically complex industries require predictable, stable, and long-term regulatory frameworks that provide sufficient certainty for the realisation of large-scale productive investments."

4)  Villeta was and still is envisioned as a world-leading, US$665 million green fertiliser production facility - the largest foreign investment in the history of Paraguay. Thanks to ATOME's significant efforts and investment over the last five years, the Project had the support of internationally renowned Development Finance Institutions that signed legally binding commitments to fund the Project, premised on the understanding that the Project would have such above tariff to ensure viability, as Paraguay unambiguously and repeatedly continued to guarantee to ATOME and its stakeholders.

5)   In June 2026, when the Project was at the point of commencing construction, Paraguay repealed, without any notice or in ATOME's belief lawful excuse, the regulatory framework, thereby reneging on its commitments on which ATOME had relied. While ATOME has subsequently sought to engage in good faith in discussions with Paraguay to find ways to ensure that the Project could continue to be viable, Paraguay has not to date proposed or agreed any terms, despite having negotiated, prior to the relevant revocation, a new PPA between ATOME and ANDE that ensured the Project would be funded.

6)   Paraguay's current position has left ATOME with no choice but to serve Paraguay with the Notice. Since that time, ATOME has continued seeking to engage with Paraguay and has made proposals intended to amicably resolve the dispute. In particular, ATOME had some time previously proposed, subject to there being a swift resolution, a long-term PPA with a tariff of US$35/MWh for the initial five years of production after a build period of four years, stepping up to US$37/MWh for the next five years of production and thereafter at the standard industrial tariff. However, ANDE and the Government have in effect publicly rejected that proposal for a swift resolution which is now no longer workable. As timing is absolutely critical, ATOME awaits, without prejudice or limitation to its rights under the BIT, a counter-proposal that ensures viability and bankability of the Project combined with an urgent resolution.

7)  Many critical months have now passed since inter alia the revocation of the relevant Decree, at a time when this fully funded and committed Project was ready to start construction and there is still no visibility on reaching a solution. In the meantime, ATOME has continued to incur significant costs and losses due to delays in finding a resolution, further jeopardising the options available. Achieving a viable and swift solution under the existing funding, construction and offtake arrangements has been prejudiced. If a viable, bankable and financially acceptable solution cannot now be agreed, ATOME, albeit reluctantly, will have no alternative but to resort to submitting the claim to arbitration with a very significant demand for damages, i.e., well into nine figures in US dollars.

Subject to that, ATOME assures Paraguay that it remains, in good faith, committed to doing what it can and working with all relevant parties to find a solution recognising the importance of this Project to Paraguay and all stakeholders.

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

ATOME PLC                                                                 +44 (0) 113 337 2210

Nikita Levine, Investor Relations                                     [email protected]

FTI Consulting (Communications Adviser)               +44 (0) 20 3727 1000

Elizabeth Adams, Ben Brewerton                                   [email protected]

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