Fund Grant

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED.  ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

2 December 2022

NARF INDUSTRIES PLC

US DEPARTMENT OF ENERGY GRANT

Narf Industries plc ("Narf", the "Company", or the "Group") (LSE: NARF)(OTCQB: NFIN.F) the cybersecurity group specialising in high-end threat intelligence and critical infrastructure security, is pleased to announce it has signed an agreement with New York University ("NYU") to develop new electric grid cyber defence solutions within an initial two-year, $1.9 million, competitive grant funded by the US Department of Energy ("DoE"). The grant is part of a larger $45 million funding project to create, accelerate, and test technology that will protect the US electric grid from cyber-attacks and  accelerate the migration to clean renewable energy in the US (see https://www.energy.gov/articles/doe-announces-45-million-next-generation-cyber-tools-protect-power-grid)

Work on this electric grid cybersecurity research and development project has already begun leveraging TIGR, Narf's flagship power grid cybersecurity product. The Narf team will work with NYU to enhance TIGR with cyber physical and artificial intelligence ("AI") models that automate defence against dangerous power flows created by hackers that attempt to physically damage the power grid. These autonomous defence capabilities will accelerate the rollout of TIGR appliances across US substations and relieve overburdened grid operators by understanding and responding to attack attempts within substations.

New York Power Authority, the official power authority of the State of New York ("NYPA") and Consolidated Edison Inc., whose electric, gas, and steam services provides energy for 10 million people in the US ("ConEd") are also partners on the project, helping drive testing and acceptance of the developed software solutions.

Automated Cybersecurity incident identification and response is essential to an evolving power grid, which must incorporate renewables, and is only safely managed through extensive automation.  Both state-sponsored (see https://www.bbc.com/news/technology-61085480) and financially motivated attackers (see https://www.nytimes.com/2021/05/13/climate/pipeline-ransomware-hack-energy-grid.html) have shown the ability to compromise critical grid systems both in Ukraine and the US.

CEO, Steve Bassi, said: "We all know cybersecurity talent is in short supply and the power grid is critical to us all. I'm excited that our team spearheading our flagship TIGR product have the opportunity to codify decades worth of cybersecurity response knowledge into TIGR's software during this DoE programme. If we're going to win against attackers, we need to give an overworked cybersecurity labour force access to better automation and AI that speeds their defence. It is especially exciting that this R&D work will involve real-world defenders, ConEd and NYPA, who keep the lights on in the Big Apple."

ENDS

For further information on the Group please visit www.narfgroup.com or www.narfindustries.com or contact:

About NARF Industries plc

Narf Industries (LSE: NARF)(OTCQB: NFIN.F) is a US based cyber security group specialising in high-end threat intelligence with a focus on critical infrastructure. The Group leads commissioned cyber security R&D and is commercialising a portfolio of products including a US government backed product called TIGR that can be used by utilities and cyber first responders to restore power to electric grids and protecting other key infrastructure that have suffered a cyber-attack.  The Group aims to further strengthen its portfolio organically and via acquisition; its team of highly qualified cyber security experts is well placed to identify opportunities.

Important notice

The content of this announcement has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (FSMA). This announcement has been issued by and is the sole responsibility of the Company. The information in this announcement is subject to change. This announcement is not an offer of securities for sale into the United States. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the Securities Act), and may not be offered or sold, directly or indirectly, in or into the United States, except pursuant to an applicable exemption from registration. No public offering of securities is being made in the United States. This announcement is not for release, publication or distribution, directly or indirectly, in or into Australia, the Republic of South Africa, Japan or any jurisdiction where to do so might constitute a violation of local securities laws or regulations (a Prohibited Jurisdiction). This announcement and the information contained herein are not for release, publication or distribution, directly or indirectly, to persons in a Prohibited Jurisdiction unless permitted pursuant to an exemption under the relevant local law or regulation in any such jurisdiction.