Corporate Update and Proposed Fundraising

THIS ANNOUNCEMENT, INCLUDING THE APPENDIX AND INFORMATION CONTAINED HEREIN, IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM THE UNITED STATES, CANADA, JAPAN, AUSTRALIA, NEW ZEALAND, THE REPUBLIC OF SOUTH AFRICA, THE REPUBLIC OF IRELAND, ANY MEMBER STATE OF THE EEA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION. PLEASE SEE THE IMPORTANT NOTICES AT THE END OF THIS ANNOUNCEMENT.

THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND SHALL NOT CONSTITUTE AN OFFER TO SELL OR ISSUE OR THE SOLICITATION OF AN OFFER TO BUY, SUBSCRIBE FOR OR OTHERWISE ACQUIRE ANY NEW ORDINARY SHARES OF CPH2 IN THE UNITED STATES, CANADA, JAPAN, AUSTRALIA, NEW ZEALAND,  THE REPUBLIC OF SOUTH AFRICA, THE REPUBLIC OF IRELAND, ANY MEMBER STATE OF THE EEA OR ANY OTHER JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED IN ARTICLE 7 OF THE MARKET ABUSE REGULATION EU NO. 596/2014, AS RETAINED AND APPLICABLE IN THE UK PURSUANT TO S3 OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

31 July 2025                                                                                                                                

Clean Power Hydrogen plc

("CPH2", the "Company" or the "Group")

Operational & Strategic Update and Proposed Fundraising

CPH2, the UK-based green hydrogen technology and manufacturing company that has developed the IP-protected Membrane-Free Electrolyser ("MFE"), is pleased to provide an update on current operational activities and strategy.

CPH2 has made significant technical progress in recent months, culminating in the announcement of the successful completion of the Site Acceptance Test ("SAT") for its MFE110 electrolyser ("MFE110") at Northern Ireland Water's ("NIW") site in Belfast. The final stage of the SAT was completed and independently witnessed by Lagan MEICA Limited ("Lagan"), the principal contractor, and ARUP, representing NIW. Lagan has subsequently noted the benefits of using high purity oxygen as part of a project which incorporates an MFE in wastewater treatment, observing a 15% reduction in aeration time, a 31% increase in ammonia removal, and a 13% reduction in energy consumption, amongst other efficiency gains.

The Company recently released a technology white paper that further outlines the advantages of MFE green hydrogen and oxygen production which can be accessed on our website here: https://bit.ly/4fppkL9.

Alongside these technical milestones, the Company has continued to develop commercial traction with its pipeline, including the signing of a non-binding Memorandum of Understanding with Constant Energy Ltd, an Irish-based energy developer involved in the Killala Energy Hub in County Mayo, Ireland. Richard Scott joined the Company as Chief Commercial Officer to lead the acceleration of CPH2's Commerciality Phase, driving licensee activation and building the commercial pipeline further within the growing market space of 'mission critical' applications that have a need to decarbonise and ensure energy resilience, where electrification is compromised. These include reliable clean water supply, data centre uptime, electricity grid support and renewable energy asset enhancement, life sciences and medical uses, and biomass plant efficiency. In these sectors CPH2 has a demonstrable and patent protected technology solution.

Four MFE220 electrolyser ("MFE220") units have already been sold to three key customers with £5m of revenue contracted. The MFE220 is considered the Company's first commercial product and is a cost and design enhanced version of the MFE110 currently deployed to NIW, built on the same technology and with the same user benefits. The Company is currently focused on building its first MFE220 unit for NIW and is expecting Factory Acceptance Test ("FAT") in Q4 2025 / Q1 2026 with SAT expected to be achieved in H1 2026.

In addition, CPH2 has licence agreements in place with Fabrum Solutions Limited ("Fabrum"), Lisheen H2 Energy Park Limited (trading as "Hidrigin") and Kenera Energy Solutions Limited ("Kenera"), a subsidiary of Helmerich & Payne Inc., which enable CPH2 to rapidly scale up to meet demand for its MFE technology across multiple geographies. The licences for Hidrigin and Kenera are now activated, with each in receipt of manufacturing and design license documentation for the MFE220.

A copy of the Company's latest corporate presentation is available on the Company's website at www.cph2.com/investors/.

Proposed Fundraising

The Company's board of directors has been actively monitoring the delivery of the Group's strategy and the associated capital requirements against the funding available to the Company. Accordingly, management continues to actively explore strategic partnerships with industry and government stakeholders in additional to non-dilutive funding aligned with economic impact and energy transition objectives.

In order to fund its short-term objective of finalising the commercialisation of its unique and highly scalable MFE product, the Company is proposing to raise a minimum of £6.5m by way of a fundraising (the "Fundraising") of new ordinary shares in the capital of the Company (the "New Shares") at a proposed price of 5 pence per New Share (the "Issue Price"). The Issue Price represents a discount of 3.3 per cent. to the volume weighted average price of the Company's shares in the 20 trading days prior to 30 July 2025 (being the last business day prior to this announcement) and a discount of 1 per cent. to the closing middle market price of 5.05 pence on that date.

The Fundraising is expected to be carried out by way of a subscription, a placing (by way of an accelerated book build process) and a retail offer via the Bookbuild platform in order to enable the Company's retail shareholder base to participate and to continue to support its growth strategy (the "Retail Offer"). Further details of the Fundraising will be announced in due course.

The Company has received expressions of interest to participate in the Fundraising from, and on behalf of, certain existing shareholders and other investors, including West Hill Capital, Kenera and a number of the directors of CPH2. Since the Group was founded in 2012, West Hill Capital introduced investors have invested approximately £18 million to support the development of CPH2's MFE technology.

The net proceeds of the Fundraising will be used to fund the Group's working capital requirements through to the SAT of its first commercial MFE220 unit and to accelerate commercial pipeline growth and drive new product sales.

Any additional proceeds raised pursuant to the Fundraising will provide additional working capital support and further strengthen the balance sheet.

Whilst the Company has received non-binding indications of interest, there can be no certainty at this time that the Fundraising will complete on the proposed terms or at all. Shareholders should note that, in the event that the Fundraising is not successful and alternative funding is not available on suitable terms or at all, the amount of working capital available to the Company will be severely limited. Accordingly, in light of the Company's existing cash position, the Company would have to severely restrict its costs, impacting its ability to progress its growth strategy and continue its operations beyond the end of September 2025.

Accordingly, in advance of completion of the Fundraising and pending the successful SAT of the MFE220, CPH2's CEO, Jon Duffy has agreed to receive 20% of his salary in New Shares ("Salary Sacrifice Shares") at the Issue Price in lieu of cash remuneration in order to preserve capital and ensure funds are directed towards project activities.

Jon Duffy, CEO of Clean Power Hydrogen, commented:

We are at a pivotal point for the Company and the commercialisation of our technology and capital is the single biggest constraint we face as a business. With the appropriate level of further funding, we are confident we will be able to finalise and deliver the first of our commercial MFE220 units and, thereafter, accelerate the roll out of our technology to our core target sectors, driving not only revenues but also shareholder value. In parallel, we will continue to foster potential strategic partnerships that may bring additional capital as well as scaling and market penetration expertise.

ENDS

For more information, please contact:

To find out more, please visit: https://www.cph2.com

Overview of CPH2

CPH2 is the holding company of Clean Power Hydrogen Group Limited which has almost a decade of dedicated research and product development experience. This experience has resulted in the creation of simple, safe and sustainable technology which is designed to deliver a modular solution to the hydrogen production market in a cost-effective, scalable, reliable and long-lasting manner. The Group's strategic objective is to deliver the lowest LCOH in the market in relation to the production of green hydrogen. CPH2 is listed on the AIM market and trades under the ticker LON:CPH2.

Forward-Looking Statements

This announcement contains forward-looking statements. These statements relate to the Group's future prospects, developments and business strategies. Forward-looking statements are identified by their use of terms and phrases such as "potential", "estimate", "expect", "may", "will" or the negative of such terms and phrases, variations or comparable expressions, including references to assumptions. The forward-looking statements in this announcement are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements. These forward-looking statements speak only as at the date of this announcement. No statement in this announcement is intended to constitute a profit forecast or profit estimate for any period. No representation or warranty is given as to the completeness or accuracy of the forward-looking statements contained in this Announcement.  Neither the Directors nor the Company undertake any obligation to update forward-looking statements other than as required by the AIM Rules or by the rules of any other securities regulatory authority, whether as a result of new information, future events or otherwise.

Market Abuse Regulation

Market soundings, as defined in MAR, were taken in respect of the Fundraising, with the result that certain persons became aware of inside information, as permitted by MAR. That inside information is set out in this announcement and has been disclosed as soon as possible in accordance with paragraph 7 of article 17 of MAR. Therefore, those persons that received inside information in a market sounding are no longer in possession of inside information relating to the Company and its securities.