Mast Energy Developments PLC

(Incorporated in England and Wales)

(Registration Number: 12886458)

Share code on the LSE: MAST

ISIN: GB00BMBSCV12

("MED" or "the Company")

16 December 2022

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

 Pyebridge SPA Deferred Consideration Settlement

Mast Energy Developments PLC, the UK-based multi-asset owner and operator in the rapidly growing Reserve Power market announces that it has agreed a settlement ("Settlement Agreement") with regards to the deferred consideration owing under the Sale and Purchase Agreement ("SPA") to the vendor, Apex Energy Ltd ("Apex") of its current flagship producing asset, the 9 MW Pyebridge Synchronous Gas-powered Flexible Generation Facility (the "Site" or "Pyebridge"), further to its initial announcement related to the acquisition of the Site (see RNS dated 12 August 2021). An overview of the key highlights with regards to the Settlement Agreement is provided below.

Settlement Agreement Highlights

·    Under the initial terms of the SPA, the Site's acquisition consideration was £2,500,000 - an initial £1,500,000 paid in cash at completion during August 2021 and deferred consideration of £1,000,000 ("Deferred Consideration") to be paid in two equal tranches 8 months and 12 months respectively from the date of completion.

·    Since acquisition to date, MED has made payments totalling £600,234 toward the Deferred Consideration, consisting of a cash payment to Apex of £198,366 and qualifying costs totalling £401,868 under the SPA, with a balance of £399,766 remaining ("Remaining Deferred Consideration").

·    Due to MED's own optimisation of the Site during the months following acquisition in order to get the Site to perform in line with initial expectations (see RNS dated 5 July 2022), it has now negotiated and agreed a settlement with Apex with regards to the Remaining Deferred Consideration, whereby the Remaining Deferred Consideration is waived, with neither party having any further claims in this regard.

·    The foregoing settlement means that the total purchase consideration of Pyebridge will effectively be reduced to a total of c. £2.1m compared to the initial total purchase consideration of £2.5m under the SPA, resulting in a cash saving to MED of c. £400k.

·    The new effective purchase consideration and associated saving will further enhance the Pyebridge Site's economics, profitability, and investment return, most notably:

o  Purchase consideration per installed MW at c. £233k compared to c. £278k at acquisition and compared to a typical new build site in the range of c. £600k to £700k, and

o  Capital investment payback period reduced to c. 4.2 years and unlevered internal rate of return ("IRR") increased to c. 24%, based on the Site's current independent base case financial modelling and expected performance.

Pieter Krügel, MED CEO, commented: "We are very pleased with the settlement agreement negotiated that resulted in a direct cash saving to MED of c. £400k which is in fact an additional amount of cash available to the Company, and the positive effect thereof on the Site's economics, profitability, and investment return.

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: