Mr. Dan Sutton reports

INDEPENDENT REVIEW OF SYNTHOLENE FACILITY CONFIRMS WORLD CLASS PROOF-OF-PERFORMANCE, SUPPORTS POTENTIAL FOR COST-COMPETITIVE SYNTHETIC AVIATION FUEL

Syntholene Energy Corp. has released the results from the previously announced independent technical review by Prof. Nigel Brandon of Imperial College London, of the operating data from Syntholene's geothermally integrated solid oxide electrolyzer cell (SOEC) demonstration facility in Husavik, Iceland (the demonstration facility). Prof. Brandon presented the findings of the independent review in a written report dated Oct. 19, 2026. The independent review was undertaken via Imperial Consultants and financed by Syntholene.

The report concluded that: "The Syntholene Iceland demonstration facility has achieved proof-of-performance for its geothermally integrated SOEC. The results represent world class efficiency, operation on fully green power and heat, and the opportunity to produce cost competitive green aviation fuel given favourable commercial operating conditions."

"It is no secret that synthetic fuels have a cost problem. Syntholene has now demonstrated a pathway to overcoming that problem," said Dan Sutton, chief executive officer. "With demonstration-scale proof-of-performance now established, our focus shifts to commercial operations that can increasingly challenge the economics of conventional fossil fuels."

Key technical achievements confirmed by the independent review

• World-class electrical efficiency: Average stack electrical consumption of 34.90 kilowatt-hours per kilogram of hydrogen (kWh/kg H2), equivalent to 95.5-per-cent electrical efficiency on a lower heating value (LHV) basis. Reported stack and SOEC auxiliary electrical consumption excluding steam generation was 38.60 kWh/kg H2.
• Sustained performance: The efficiency results were demonstrated and achieved over the 713 phase 2 high-load hours. The wider campaign comprises 2,520 hourly records, including commissioning and shutdowns, a longest uninterrupted selected-load run of 795 hours, and a total selected-load runtime of 1,478 hours over the two phases.

Further performance metrics based on Syntholene internal analysis

• Baseload production consistency: Hydrogen production exceeded 90 per cent of the defined high-load reference output during 97.7 per cent of the 732-hour phase 2 observation period. The coefficient of variation in hourly mean voltage across the nine active stacks was 0.248 per cent, indicating the geothermal power supply was stable, uninterrupted and robust at baseload consistency.
• Improving performance over time: The demonstration facility produced approximately 60-per-cent higher hydrogen output and 10.5-per-cent lower system electricity consumption per kilogram of hydrogen during phase 2 compared with phase 1.

Implications of key technical achievements

The independent review confirmed that over the course of the effects testing campaign, the demonstration facility achieved stack electrical consumption of just 34.90 kilowatt-hours per kilogram of hydrogen produced (kWh/kg H2), equivalent to 95.4-per-cent electrical efficiency on a lower heating value (LHV) basis, across its high-load operation phase.

The independent review also confirmed that the demonstration facility recorded SOEC system electrical consumption of 38.60 kWh/kg H2 excluding steam generation, which represents electrical efficiencies competitive with the highest of all identified systems with publicly available and sufficiently comparable performance data.

In the report Prof. Brandon concluded that the results from the effects testing campaign at the demonstration facility represent proof-of-performance of Syntholene's thermally integrated hydrogen production architecture in the field. Prof. Brandon's independent review further confirmed that, by combining high-efficiency solid oxide electrolysis with geothermal heat and electricity, Syntholene has demonstrated reduced electrical energy consumption and favorable hydrogen production costs under field operating conditions.

The company believes that the independent review provides empirical support for Syntholene's structural cost advantage compared with traditional electrolysis pathways, and represents a significant step in the company's journey to becoming a leading low-cost producer of hydrogen and synthetic fuels.

Sytholene's structural cost advantage

Prof. Brandon's independent review provides further support for Syntholene's planned approach to hydrogen and synthetic fuel production. Syntholene believes its ability to integrate geothermal heat and electricity with hydrogen and synthetic fuel production can provide multiple complementary advantages. These advantages include substituting geothermal heat for electricity, accessing reliable baseload energy to support high plant utilization, reducing or eliminating costly battery and hydrogen buffer storage requirements, and utilizing otherwise stranded geothermal resources that may offer power at competitive rates while generating accretive revenue for existing geothermal powerplant operators.

These advantages are inherent to the company's production architecture. Thus they provide an empirical technical foundation for a structural cost advantage, not reliant on government subsidies, prevailing electricity prices or rebates, over hydrogen and synthetic fuels produced with intermittent renewables or grid power integrated to traditional low temperature electrolysis.

The extent to which these advantages translate into lower capital expenditures, commercial operating efficiencies and improved synthetic fuel production unit economics will depend on a number of factors including site-specific conditions, commercial arrangements and successful scale-up.

The company intends to preserve and extend these demonstrated advantages through commercial-scale deployment and integration into downstream synthetic fuel production. The company anticipates that further efficiencies can be realized as commercial production architecture builds on the learnings from the effects testing campaign.

Technical basis and scope of independent review

The independent review was undertaken by Prof. Nigel Brandon, OBE, FREng, FRS, professor of sustainable development in energy, and previous Dean of the faculty of engineering, at Imperial College London, via Imperial Consultants and financed by Syntholene. The independent review examined approximately 2,520 hours of performance data gathered from the demonstration facility's effects testing campaign, which commenced on June 22.

Syntholene engaged Imperial Consultants, a wholly owned subsidiary of Imperial College London, to conduct an independent technical review of operational data from its demonstration facility, for a fixed cash fee of 27,500 pounds sterling, consistent with customary industry rates for comparable technical consulting services. Neither Imperial Consultants nor Prof. Brandon received any shares, stock options, warrants, performance-based compensation or other incentives in connection with the engagement. Compensation was limited to the agreed fixed fee and was not contingent upon the findings or conclusions of the review.

During the independent review, Prof. Brandon examined, among other things, the electrical consumption per kilogram of hydrogen produced, projected commercial system efficiency including balance-of-plant electrical loads, operational stability, capacity factor and variability. Prof. Brandon also examined whether there was evidence of degradation in the SOEC stack and heat-exchange system over the available operating period.

The independent review was completed via a comprehensive review of the stack and system performance data collected by the company during the effects testing campaign, a review of various concept design reports made available by the company, virtual meetings between Prof. Brandon and members of the company's management team, and a virtual inspection of the demonstration facility. Such inspection showed all the sub-system components in operation.

Hydrogen production was calculated from recorded net current, assuming 100-per-cent Faradaic efficiency, rather than independently metered product flow. Electrical efficiency is reported on a lower heating value (LHV) basis and excludes thermal energy inputs. The reported 38.60 kWh/kg H2 SOEC system consumption excludes steam generation and geothermal circulation requirements, which are not anticipated for commercial deployment.

Production continuity was assessed by the time spent at the controlled-current operating point: 90 Amps per stack in phase 1 and 160 Amps per stack in phase 2. On this basis, production continuity was 795 hours in phase 1 and, at the time of report writing, 735 hours in phase 2.

The review found no degradation in the stack voltage data. Separately, SOEC vendor Dynelectro reported a stack durability record of 0.05 per cent degradation per 1,000 hours over a 25,000-hour laboratory testing campaign (Nature), which the report identified as "impressive performance".

The independent review also identified stable geothermal heat-exchanger performance, with no evidence of fouling or material performance loss.

The independent review establishes technical proof-of-performance and identifies a potential pathway to cost-competitive synthetic aviation fuel. Its economic analysis indicates that hydrogen and carbon dioxide feedstock costs could fall sufficiently below conventional fossil jet fuel prices to accommodate additional direct operating expenses under favourable commercial conditions. Management believes industrial-scale deployment, geothermal integration and potential non-dilutive capital funding could further strengthen this advantage.

The report is an independent technical report and should not be used as the basis for any investment decisions. The observations and conclusions in the Report are the author's own and do not represent the views of Imperial College London. Actual commercial production costs remain subject to a number of factors, including engineering, operating conditions and successful scale-up.

About Syntholene Energy Corp.

Syntholene is actively commercializing its novel hybrid thermal production system for low-cost clean fuel synthesis. The target output is ultrapure synthetic jet fuel, which the company seeks to manufacture as a low-cost producer leveraging its unique and structural cost advantage. Founded by experienced operators across advanced energy infrastructure, nuclear technology, low-emissions steel refining, process engineering and capital markets, the company's mission is to be the first to deliver high performance, low-cost and carbon-neutral synthetic fuel at an industrial scale, thereby unlocking the potential to produce clean synthetic fuel at lower cost than fossil fuels.

Syntholene achieved proof of performance at the world's first geothermally integrated high-temperature electrolysis demonstration facility in Husavik, Iceland, in Q4 2026. An independent review of the facility's operating data supports the potential for Syntholene to achieve lower direct production costs than conventional fossil-derived fuels under favourable commercial operating conditions.

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