THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU NO. 596/2014) AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR").

27 April 2023

MOLECULAR ENERGIES PLC

("Molecular" or the "Company")

BUSINESS UPDATE

Molecular Energies PLC (AIM: MEN), the international energy Company with both hydrocarbon and alternative energy divisions, provides an update on its Green House Capital alternative Energy Division.

Green House Capital

Green House Capital is a 75% owned subsidiary of Molecular Energies PLC ("Molecular") which acts as an incubator to promote and develop green and new-energy related business. By way of example, Molecular has had recent success in incubating and spinning out the London Stock Exchange (AIM) listed company ATOME Energy PLC ("ATOME"), in which the Company retains a 25% shareholding.

Dual Fuel ("DFL")

Molecular Energies PLC is firmly of the view that hydrogen fuel is the best solution to decarbonise long-haul land transport in the global energy transition.

The use of hydrogen fuel for mobility applications will not be an overnight revolution. Near-term adoption rates of brand new hydrogen powered vehicles (either fuel cell or hydrogen internal combustion engines) are likely to be low. This is due to the high purchase cost for the vehicles and limited production runs, despite fiscal incentives which are, in any event, increasingly costly to governments and taxpayers alike.

Molecular is focusing on engineering a dual fuel solution, enabling the use of both diesel and hydrogen fuels simultaneously in long haul vehicles at up to a 50% fuel blend. This will materially reduce vehicle emissions and extend vehicle range whilst allowing vehicles to still run on diesel only for maximum flexibility and performance. DFL aims to convert existing vehicles within a matter of days at a low, commercially justifiable cost without requiring users to buy brand new, expensive, hydrogen long haul vehicles with long lead times.

DFL is a 50:50 joint venture between Green House Capital and G-volution Ltd, a leading UK based dual fuel technology company. DFL is undertaking engineering work in a test cell environment, and a prototype vehicle engine has already been identified which is one of the most common for long haul transport in Paraguay which is where DFL will test prototypes on the road. As a sparsely populated agriculturally based economy with surface area larger than the size of Germany, Paraguay is reliant on road transport and barges to move all its heavy loads, making it a prime location for DFL's first operations.

DFL is already in advanced discussions with its first lead customer and others have been identified to follow in due course. The objective is to have the prototype vehicle in trial operation at or around the end of 2023 with batch conversions starting in 2024. The vehicles will run on hydrogen supplied by the Mobility Division of Molecular's former subsidiary, ATOME Energy, whose 1MW mobility electrolyser is due to start producing hydrogen before the end of the year. It is intended that users are offered an attractive package of conversion and guaranteed fuel supply at fixed cost. The package will be complemented by an innovative refueling method originated by Molecular of which is more is set out below.

On successful trial, it is intended that DFL will be swiftly rolled out in other countries as the engineering works already underway are aimed to satisfy international standards.

HYSO

Although the current refueling of hydrogen vehicles is handled much like the refueling of diesel and petrol vehicles, the refueling infrastructure is costly due to the requirement of specialist equipment with long lead times. Further, these refueling methods will inevitably lack good economics until there is a wider availability of hydrogen vehicles which, for the above reasons, is unlikely to be soon.

Green House Capital, via its 100% subsidiary, HYSO, is developing an innovative solution which provides flexible hydrogen refueling. This seeks to provide the optimum location and environment in which to refuel which avoids the need for expensive fixed hydrogen infrastructure. Preliminary concept designs have been prepared and discussions are taking place with leading automotive engineering consultants with the objective of providing an internationally usable solution to be trialed at or around the end of this year, initially complimenting DFL's operations in Paraguay.

Whilst the intended solution is focused on DFL, the future objective is to extend this to hydrogen only vehicles on an international basis. Further announcements will be made in due course.

ATON 6 PLC

Molecular and ATOME Energy, in which the Company currently has a 25% holding, are both involved in businesses where the generation of carbon credits is a natural possibility for their business models.

The markets for origination, development and sale of carbon credits are fast-developing, although far from mature and demand for quality assured, responsibly sourced credits is fast expanding. ATON 6 has been created as a 100% subsidiary of Green House Capital to become a part of this increasing area of business.

ATON 6's proposition is to benefit from pre-purchasing carbon credits from within the Molecular family of companies and intends to responsibly source quality assured voluntary carbon credits. These credits will then be held and/or sold to third parties/retail market.

Extensive contacts and experience of the Molecular group of family companies in South America places the Company in a fertile position to develop a long-term pipeline of credits, supplemented by buying verified, readily available carbon credits for trading. Molecular is taking steps to rapidly commercialise ATON 6 during this year and further announcements will be made in due course.

Other Projects

The Company is in various discussions regarding further projects into which Green House Capital may invest. The focus is on businesses with strong economic potential and a positive environmental impact. Lithium projects within Green House Capital remains a work in progress.

Peter Levine, Chairman, commented: "The direction of Molecular's mobility divisions is clear, with the intent, as a disruptor, to break the glass ceiling of the current predominant views on hydrogen mobility and infrastructure rollout by offering cost effective carbon reduction solutions and a user friendly, scalable hydrogen refueling approach.

"We believe our focus on green and alternative energy projects will create significant value for our public company investors whilst we consider options for our hydrocarbon business in Argentina.

"We anticipate saying more on this subject at or around the announcement of our annual results in a month or so time".

For further information, please visit www.molecularenergiesplc.com or contact:

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.

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