9 January 2023

Molecular Energies PLC

("MEN" or the "Company")

Operations and Strategic Update

Molecular Energies PLC (AIM: MEN), the international energy company provides an operations and strategic update.

Hydrocarbon operations

Argentina

On 14 November, the Company issued a brief summary of the auditor reviewed financial results for Q3 2022 ("the November announcement"). The November announcement stated that the turnover for the first 9 months for the year was in excess of US$ 26 million with profit before tax, subject to and as strictly defined in the November announcement, of US$ 16.9 million. The Argentine auditor reviewed results for Q4 2022 are due to be released by mid-March 2023 and are expected to show continued operational profitability, at which stage an operational review will be released for the full year 2022.

In Rio Negro, a programme of well interventions is due to commence shortly in the next two months to boost production. In Salta, a like programme is getting underway as well as opening up a number of old shut-in wells to identify any residual oil left where possible artificial lift may sweep hydrocarbons to the surface due to insufficient energy in the wells to produce oil to surface naturally. In both areas, further sub-surface analysis is currently ongoing with potential new drilling prospects highlighted which will be matured in H1 2023.

The drilling of a high impact gas exploration well at the Martinez del Tineo field in Salta is on the programme for H2 2023 which will also target proven oil reserves in that field. An appropriate drilling rig has been identified and, to maximise economies of scale with regard to future drilling in Salta, advanced negotiations are in progress with regard to the drilling rig being based at the Puesto Guardian Concession on a medium to long-term basis from mid-2023.

Steps are being taken to further reduce opex in both operational areas including the investigation of replacing diesel power generation with own generated solar, a project which is intended will be further developed this year subject to the results of a promising preliminary feasibility study already undertaken being confirmed.

Corporate bonds in Argentina

President Argentina has successfully converted the corporate bonds, due to mature in 2023, to a new issue of bonds in the total amount of US$ 10.8 million in aggregate at an interest rate of 4 % per annum with a final maturity date now extending over 36 months to December 2025. These bonds have been awarded investment grade credit rating of A- by Fix SCR, the Argentine affiliate of the international credit agency Fitch.

Paraguay

MEN has been informed that the designated drilling contractor expects to complete the procurement of the drilling rig in Paraguay in the middle of next week and the drilling contract is being signed in anticipation subject to completion of formalities.

The necessary repairs and inspections referred to in the Company announcement on 7 December 2022, are expected to commence next week with the objective of the spudding of the well by the end of Q1 2023. The Company will advise the market as to progress at the end of January 2023.

Louisiana

Both the Triche and Simmons wells are producing. Gross aggregate December sales delivered to the refinery was 4,300 barrels of oil. Production in January has started materially slower than in December and is expected to continue at lower levels with further natural declines due to the characteristics of the newly perforated reservoir now becoming evident.

It is therefore inappropriate, whilst still profitable, that such a small-scale production asset remains in the Group. Contingent liabilities relating to the future plug and abandonment of wells and facility will nevertheless have a cash-flow negative effect in the fullness of time. Accordingly, this asset, together with the contingent liabilities, is intended to be dispensed with in Q1 2023 so that MEN can concentrate its resource and direction in other areas.

Green House Capital, MEN's alternative energies division ("GHC")

GHC is pursuing an increasing number of opportunities in the sphere of alternative energies.

Lithium

Further to the announcement made by MEN on 25 July 2022, discussions remain ongoing with the Argentina State-owned company for managing the energy and mining resources of the Salta Province. At the same time, GHC is considering other areas in connection with Lithium. Notwithstanding the ongoing work, this is expected to be a relatively slow burner.

Dual Fuel

Reference is made to the announcement of MEN made on 5 January 2023 in this regard.

MEN regard this active opportunity as very prospective and synergetic with that of Atome Energy PLC, in whom MEN has currently a 25.2% shareholding.

Shareholders can expect further announcements in this regard during H1 2023.

Other opportunities

MEN is currently pursuing a number of other opportunities under GHC and expects to be able to advise the market positively in regard to certain of these also during H1 2023. The objective is to mix near term income generative business with those with excellent prospects but on a longer lead time.

Strategic

The Company is taking decisive actions to reposition and transition the Group whilst not neglecting its hydrocarbon business. The forthcoming intended disposal of non-core Louisiana assets is indicative of this and will be the first of other housekeeping actions to be taken during the course of this year.

In Q1 2023, MEN will be taking steps to meaningfully reduce and right-size both the interest burden on the Company as well as capital monies due under of the shareholder loan provided to MEN by IYA, a company beneficially owned by MEN's largest shareholder and Chairman, Peter Levine. IYA has indicated that it is both sympathetic and supportive of the desirability to significantly reduce the interest and debt at the parent company level in the interests of the Company as a whole and its future expansion.

Discussions are underway between the Company and IYA with a view to such reduction whilst retaining the benefit of an underpinned, robust, and time extended line of credit from IYA in favour of the Company supporting working capital for the repositioned group.

Whilst no guarantee as to the outcome can be given, the parties are working towards finalising these discussions with a view to implementing a strategy beneficial to the Company before the end of Q1 2023 and expect to be able to inform shareholders of the plans during that timeframe.

Contact:

Molecular Energies PLC                                               +44 (0)20 7016 7950

Nikita Levine, Investor Relations                                     info@molecularenergiesplc.com

finnCap (Nominated Advisor and broker)                      +44 (0)20 7220 0500

Christopher Raggett, George Dollemore

Tavistock (Financial PR & IR)                                       +44 (0)20 7920 3150

Simon Hudson, Nick Elwes, Charles Baister

Notes to Editors

Molecular Energies PLC is an AIM listed company at the forefront of energy development and has interests across the energy spectrum, from oil and gas projects to subdivisions in the green and alternative energy sub-sectors.

The Company has oil and gas production in two geographical markets: Argentina and the United States, as well as exploration assets in both Argentina and Paraguay. The Company also has two separate subdivisions which are focused on early-stage opportunities in the green and/or alternative energy sub-sector.

Activities in the green and alternative energy space are being carried out under the Green House Capital brand and through AIM listed ATOME Energy PLC operating in Paraguay and Iceland, producing green hydrogen and ammonia for use in fuels.

With a strong strategic and institutional base of support, an in-country management team as well as the Chairman whose interests as the largest shareholder are aligned to those of its shareholders, Molecular gives UK investors access to an energy growth story combined with world class standards of corporate governance, environmental and social responsibility.

[The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR"). The person who arranged for the release of this announcement on behalf of the Company was Peter Levine, Chairman.]

-ends-

.