Mr. Dan Sutton reports

SYNTHOLENE COMPLETES PHASE ONE OF EFFECTS TESTING AT ICELAND DEMONSTRATION FACILITY, ADVANCES TO HIGH-POWER OPERATIONS

Syntholene Energy Corp. has successfully completed phase 1 of its effects testing at its geothermally integrated solid oxide electrolyzer cell (SOEC) demonstration facility in Husavik, Iceland. The company has now initiated high-power operations in its phase 2 testing.

"Phase 1 successfully operated the integrated system for an extended period and generated novel real-world data required to characterize its performance," stated Dan Sutton, chief executive officer of Syntholene. "With that phase complete, our focus now shifts to high-power operations. Phase 2 is intended to characterize the system at higher operating loads and provide a second operating data set from which we can evaluate the wider capability of our thermal-hybrid architecture."

Phase 1 focused on sustained operation and data collection across the demonstration facility's integrated SOEC, proprietary thermal coupling heat exchanger and balance-of-plant systems. The testing program has generated a substantial operating data set across the integrated system, providing the company with an initial basis for evaluating system efficiency, thermal integration, operational stability and other performance characteristics relevant to its anticipated commercial architecture.

Phase 2: high-power operations

Syntholene is now operating the demonstration facility in the second phase of its effects testing program, which is expected to include sustained operation at or near the facility's full available power capacity.

The company expects phase 2 to generate additional operating data concerning electrical efficiency, hydrogen production, thermal integration, system stability and performance under higher-load conditions. Together with the phase 1 data set, these results are intended to provide a broader characterization of the demonstration facility across multiple operating conditions and inform subsequent engineering optimization, techno-economic analysis and commercial-scale project development.

The staged testing program reflects the company's approach to progressively characterizing the performance of the integrated system before drawing conclusions regarding its potential commercial applications.

"We are seeking to understand if Syntholene's geothermal integration can reduce or eliminate the need for battery electric and/or hydrogen storage, how effectively geothermal heat can displace electrical energy in hydrogen production, and what those results could ultimately mean for the economics of hydrogen and synthetic fuels," stated Mr. Sutton. "High-power operations are an important next step in establishing that operating envelope."

The company expects to complete phase 2 high-power operations in the coming months and submit the data for independent validation by a credible third party capable of analyzing the data with relevant subject matter expertise.

About Syntholene Energy Corp.

Syntholene is actively commercializing its novel thermal hybrid production system for low-cost clean fuel synthesis. The target output is ultrapure synthetic jet fuel, which the company seeks to manufacture at 70 per cent lower cost than the nearest competing technology today. 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, unlocking the potential to produce clean synthetic fuel at lower cost than fossil fuels, for the first time.

Syntholene operates the world's first geothermally integrated high-temperature electrolysis demonstration facility in Husavik, Iceland. It is currently producing 99.99-per-cent-purity hydrogen.

Founded by experienced operators across advanced energy infrastructure, nuclear technology, low-emissions 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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