Mr. Dan Sutton reports

SYNTHOLENE ENERGY CORP SECURES EXPRESSION OF INTEREST FROM ICELANDAIR FOR 250 MILLION LITERS OF SYNTHETIC SUSTAINABLE AVIATION FUEL (ESAF) OVER 10 YEARS

Syntholene Energy Corp. has signed a non-binding expression of interest with Icelandair, Iceland's leading hub carrier. The agreement outlines Icelandair's interest in purchasing 20,000 tonnes (approximately 25 million litres) of synthetic sustainable aviation fuel annually over 10 years, upon upscaled production and given competitive pricing, reinforcing the airline's commitment to reducing its carbon footprint and advancing global aviation sustainability.

"The transition to sustainable aviation fuel will only happen if production is scaled up and competitive pricing ensured," said Icelandair chief executive officer Bogi Nils Bogason. "Working with Syntholene aligns with our focus on proportionately reducing carbon emissions while meeting regulatory SAF mandates."

"Iceland is one of our key regions as we work with leaders across their energy sector to deliver local production of synthetic fuels for their domestic and future export markets," stated Syntholene chief executive officer Dan Sutton. "We are proud to be working with Icelandair to support its commitment to work towards sustainable development of aviation. With eSAF mandates accelerating in pivotal markets such as the EU Economic Zone and U.K., partnerships like this are key to meeting rising demand."

The EOI represents a commercial validation for Syntholene and its opportunity to meet the European Union's commitment to decrease aviation emissions, showcasing the demand for its low-cost eSAF and its ability to deliver scalable, sustainable fuel solutions to meet industry needs in aviation and beyond.

The European Union Aviation Safety Agency published market reference eSAF pricing of an average of 7,695 euros ($9,065 (U.S.)) per tonne, or 6.16 euros ($7.26 (U.S.)) per litre, in its 2024 report aviation fuel reference prices for ReFuelEu Aviation.

The EU has also announced an eSAF subsidy of up to six euros per litre (Reuters) for airlines which purchase eSAF to meet the mandated consumption amount of 1.3-per-cent eSAF in 2030, escalating to 10 per cent by 2040 and 35 per cent by 2050.

Pricing between Syntholene and Icelandair has not been established under this expression of interest. Any future pricing or commercial terms, if agreed, would be subject to further negotiation and the execution of a definitive fuel purchase agreement.

According to S&P Global, more than 60 airlines have set specific SAF targets for 2030. This alignment across the global aviation sector reinforces the significance of the agreement as sustainable fuel alternatives are becoming increasingly important to airlines' decarbonization strategies.

About Syntholene Energy Corp.

Syntholene is actively commercializing a new production pathway for low-cost clean fuel synthesis. The target output is ultrapure synthetic jet fuel, manufactured at 70 per cent lower cost than the nearest competing technology. The company's mission is to deliver the world's first truly high performance, low-cost and carbon-neutral synthetic fuel at an industrial scale.

Syntholene's power to liquid strategy harnesses thermal energy to power proprietary integrations of hydrogen production and fuel synthesis. Syntholene has secured 20 megawatts of dedicated energy in Iceland to support the company's coming demonstration facility and commercial scale-up.

Founded by experienced operators across advanced energy infrastructure, nuclear technology, low-emission steel refining, process engineering and capital markets, Syntholene aims to be the first team to deliver a scalable modular production platform for cost-competitive synthetic fuel, thus accelerating the commercialization of carbon-neutral e-fuels across global markets.

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