Mr. Frederick Wong reports

CF ENERGY STATUS UPDATE

CF Energy Corp. has provided an update.

Incorporate electrochemical storage technology into energy solution services

In the first quarter of 2024, CF Energy incorporated electrochemical storage technology into its battery swap station, which will help reduce the cost of service for the battery swap stations, and further lowered the carbon footprint of the operation.

CF Energy entered into a letter of intent to jointly invest in regional electrochemical energy storage and peak sharing stations

CF Energy has engaged in a letter of intent with the Zi Gong, Gongjin district, government in Sichuan province to jointly plan the investment in regional electrochemical energy storage and peak sharing stations (virtual power plants) and industrial and commercial energy storage projects, as well as the construction of regional energy storage stations and industrial and commercial energy storage facilities. Based on actual conditions such as urban planning, land use, power grid structure and market demand, a layout plan for regional energy storage stations and industrial and commercial energy storage facilities will be formulated.

Purchase of biogas

In the first quarter of 2024, CF Energy signed a letter of intent to purchase biogas to further decarbonize its overall natural gas distribution business of operations.

36-million-renminbi loan discharge agreement dispute

The company wants to update on the status of its efforts to enforce its rights under the terms of the loan discharge agreement dated May 25, 2017, among the company, Sanya Changfeng Offshore Natural Gas Supply Co. Ltd. and Huajun Lin to require the estate of Mr. Lin to invest an aggregate amount of 36 million renminbi in common shares of the company at a price of 68 cents (being the 30-day volume-weighted average trading price of the common shares of the company preceding June 28, 2019).

On June 21, 2021, the company together with CF China filed a contract dispute case against the estate in the Sanya Intermediate People's Court, Sanya city, Hainan province, China, to enforce the execution of the loan discharge agreement and the investment. The Sanya court declined to take jurisdiction over the dispute. The company appealed from that decision to the Hainan Provincial High People's Court, which dismissed the company's appeal on Sept. 5, 2022. The company applied for a retrial on the basis of new evidence, and this application was rejected on Feb. 24, 2023. On Oct. 30, 2023, the company filed the claim in the Sanya Suburban People's Court. The claim was dismissed by the Sanya Suburban People's Court on Dec. 7, 2023.

A beneficiary of the estate (Mingfei He) applied to the court in China for distribution of certain funds from the estate. The court approved the distribution of funds to Ms. He and other beneficiaries. The company is exploring its options, if any, to compel the return of all funds distributed to the beneficiaries of the estate so that the estate can comply with the loan discharge agreement. If no reasonable options are available to the company, the company will cease to pursue enforcement of the loan discharge agreement.

About CF Energy (previously known as Changfeng Energy Inc.)

CF Energy is a Canadian public company trading on the TSX Venture Exchange under the stock symbol CFY. It is an integrated energy provider and natural gas utility/distribution company in the People's Republic of China. CF Energy strives to combine leading clean energy technology with natural gas usage to provide sustainable energy for its customer base in the PRC.

We seek Safe Harbor.