Mast Energy Developments PLC

(Incorporated in England and Wales)

(Registration Number: 12886458)

Share code on the LSE: MAST

ISIN: GB00BMBSCV12

("MED" or "the Company")

03 November 2022

Mast Energy Developments PLC ("MED" or "the Company")

 Further Funding Secured

Mast Energy Developments PLC, the UK-based multi-asset owner and operator in the rapidly growing Reserve Power market is pleased to announce that it has entered into arrangements in respect of the provision of a new loan facility for up to £2.25 million (the "Loan Facility") with a total committed advance of £475,000 (the "Committed Advance"), of which the first £300,000 is to be received by the Company on the date of execution of the loan agreement (the "Initial Advance"). The key terms of the Loan Facility are provided below.

The Committed Advance will predominantly be used to fast-track the development of MED's current projects, most notably the most recent acquisitions, Hindlip Lane and Stather Road (see RNS dated 5 October 2022).

Loan Facility

MED has been approached by various institutional investors and lenders which were interested in providing MED with project development funding, in order for MED to fast track the development of its projects to get to financial close and into construction and production. The approaches received included the same institutional investor led group ("Institutional Investor") with which MED entered into a loan agreement recently to acquire its most recent two new projects (see RNS dated 5 October 2022). After due and careful consideration, MED decided to accept the Institutional Investor's funding offer, which shows their continued belief and commitment in MED, its business model and potential.

Key Terms:

·    New unsecured loan facility of up to £2.25 million with a commitment period of three years led by an institutional investor (the "Institutional Investor");

·    The Loan Facility may be drawn down in multiple instalments, subject to the mutual agreement of the parties and the satisfaction of certain customary conditions precedent;

·    The Initial Advance of £300,000 is to be paid to the Company on the date of execution of the loan agreement, with the Company being able to request from the Institutional Investor up to £175,000 in a single further tranche (together with the Initial Advance, the "Committed Advance"), and any further advances to be agreed between the Institutional Investor and the Company at the relevant time;

·    The Company will pay a fixed annual interest coupon to the Institutional Investor on a quarterly basis calculated as 10% of the value of each principal advance of the Loan Facility;

·    Each principal advance of the Loan Facility will have a maturity date of 18 months (the "Term") from the date of advance (the "Maturity Date") with repayments of any outstanding balances repaid in cash on the Maturity Date;

·    It is MED's intention that the principal is to be repaid in cash from existing revenue streams, however MED and the Institutional Investor may agree that the Company satisfies any payment of the amounts due under the Loan Facility agreement by the issue of ordinary shares in the capital of the Company ("Ordinary Shares");

·    If such settlement is agreed by the parties, the value of Ordinary Shares the Institutional Investor will receive being settled in lieu of repayment of the debt will be the lowest of the:

o Fixed Premium Placing Price - being at a 30% premium to the average daily VWAP for each of the five consecutive trading days preceding the drawdown date of each advance of the Loan Facility, or

o Variable Placing Price - being at 90% of the average of the lowest daily VWAP of the 10 daily VWAPs preceding each relevant conversion notice.

·    The Company will comply with any requirements under the Prospectus Regulation Rules with regard to share capital headroom, including if required issuing a prospectus;

·    In consideration for providing the Loan Facility the Institutional Investor shall receive warrants equal to 40% of each drawdown advance divided by the average of the daily VWAP for each of the five consecutive trading days immediately prior to the applicable drawdown date (the "Reference Price"), with a 36-month term to expiry from the date of issuance;

·    The warrants are exercisable at a subscription price being equal to a 30% premium of the then prevailing Reference Price;

·    All warrants exercised will be a cash injection into the Company if exercised or set-off against outstanding principal of the Loan Facility, to reduce cash repayment balances; and

·    With regards to the Committed Advance, the Institutional Investor will receive 4,686,868 warrants, and such warrants will be granted on the earlier date that the Company has an approved prospectus or when its share capital headroom refreshes annually under its listing rules.

Pieter Krügel, MED CEO, commented: "Pursuant to our development process, we are pleased to have secured additional funding by way of a further loan with competitive commercial terms. The loan and cash injection will assist MED to fast-track the development of its current portfolio of projects under development in order to get each project into production as soon as possible, and to increase MED's participation in and benefit of the current and ongoing unprecedent energy market prices. We are also continually looking to further grow the portfolio to get to the first 100 MW and then the ultimate strategic intent of a 300 MW portfolio.

We look forward to providing the market with further updates in due course as we progress."

ENDS

This announcement contains inside information for the purposes of the UK version of the Market Abuse Regulation (EU No. 596/2014) as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR"). Upon the publication of this announcement, this inside information is now considered to be in the public domain.

For further information please visit www.med.energy or contact: