(via TheNewswire)

Richmond, BC – TheNewswire - October 30, 2026 - ABOUND Energy Inc. (“ABOUND” or the “Company”) (CSE: ABND) (FSE: 0E9) announces that it has declared H2Si Power Incorporated (“H2Si”), Amerada R&D Ltd. (“Amerada”) and Robert McKenzie in material default of the H2Si Technology Commercialization and License Agreement dated June 27, 2026 (the “License Agreement”) and the related support and guarantee agreement (the “Guarantee Agreement”). Among other things, the Company alleges that H2Si failed to deliver the technical drawings required to build the first commercial unit (the “FCU”), and that Mr. McKenzie concealed from the Company that he has been marketing, through another company, SiFusion Energy Inc. (“SiFusion”), technology that the Company believes is the H2Si™ technology for which it holds an exclusive license.

Background

As announced on May 7, June 30 and July 31, 2026, ABOUND obtained exclusive commercialization and licensing rights to the H2Si™ hydrogen technology (the “H2Si Technology”) under the License Agreement, which closed on July 31, 2026. As consideration, the Company issued 5,000,000 common shares to H2Si, of which 1,000,000 were delivered at closing and 4,000,000 are held in escrow under a pooling and escrow agreement, to be released only if the FCU meets specified performance criteria. Under the Guarantee Agreement, Amerada and Mr. McKenzie guaranteed the performance of all of H2Si’s obligations under the License Agreement, as to 30% and 70% respectively, up to an aggregate of US$5,000,000, and Amerada agreed not to directly or indirectly support any alternative licence or disposition of the H2Si Technology. Mr. McKenzie is the President of H2Si and the sole director of Amerada.

Material Default

On September 21, 2026, the Company delivered a notice of material default (the “Notice”) to H2Si, Amerada and Mr. McKenzie. The Company alleges, among other things, that:

(a)        Mr. McKenzie, through H2Si, failed to deliver the technical drawings and specifications required under the License Agreement to build the FCU, despite repeated assurances that they existed, and H2Si’s counsel has since confirmed that the technical drawings and specifications for the H2Si Technology do not exist;

(b)        H2Si, Amerada and Mr. McKenzie concealed from the Company that Mr. McKenzie, as President and Chief Executive Officer of SiFusion, has been marketing technology the Company believes to be the H2Si Technology, or derived from it, through SiFusion and other entities. SiFusion’s website describes the technology as held under exclusive license from the inventor, refers to the same University of Saskatchewan testing previously announced by the Company, and describes SiFusion as affiliated with the Amerada group of companies. The Company alleges that this conduct breaches Amerada’s covenant under the Guarantee Agreement not to support any alternative licence of the H2Si Technology;

(c)        H2Si has failed to enforce and protect its intellectual property in the H2Si Technology, as required under the License Agreement, by failing to take any action against Mr. McKenzie or SiFusion. Instead, Mr. McKenzie purportedly moved to remove two H2Si directors who were working on behalf of H2Si to cure the defaults. Both directors have since resigned, leaving Mr. McKenzie and Gary Woycenko as the remaining directors of H2Si; and

(d)        H2Si and Mr. McKenzie have failed to cooperate with the Company to remedy the defaults.

The Company has also notified Amerada and Mr. McKenzie that this conduct falls within the obligations they guaranteed under the Guarantee Agreement and has delivered a cease and desist demand to SiFusion.

Failure to Remedy to Date

Since closing of the License Agreement, the Company received numerous assurances from H2Si counsel that the required technical drawings and specifications would be provided and that a formal response would be forthcoming. Despite these assurances, the latest response the Company has received is an unsigned letter from Mr. McKenzie dated September 22, 2026, and received on September 29, 2026, purportedly on behalf of H2Si, Amerada, and Mr. McKenzie, which disputed the Notice without remedying the defaults or providing the requested information. Furthermore, Mr. McKenzie has refused to meet with the Company since August 13, 2026, failed to engage following delivery of the Notice, and failed to provide a valid address for formal service. H2Si has demonstrated a persistent failure to remedy or take meaningful steps toward compliance.

Two H2Si directors had been working with the Company to cure the defaults and were the Company’s principal contacts at H2Si. After Mr. McKenzie purportedly moved to remove them, both directors resigned. Their departure removes the channel through which the Company had been working toward a resolution and leaves H2Si’s counsel and its two remaining directors, Mr. McKenzie and Mr. Woycenko, as the Company’s only contacts at H2Si. The Company has concluded that these matters are unlikely to be resolved cooperatively and is taking further steps to protect its rights. These developments may affect the commercialization of the H2Si Technology under the Company’s exclusive license, the shares issued to H2Si, and the timing of the FCU.

“ABOUND entered into this transaction in good faith and secured exclusive rights to the H2Si Technology for the benefit of our shareholders,” said Keith Morlock, Chief Operating Officer. “We have worked patiently to resolve these matters directly, but recent events have made it clear that more is required. We remain committed to building the first commercial unit, and we will take every step necessary to protect our rights.”

Next Steps

The Company remains committed to completing the FCU, and the steps it is taking are directed toward that objective. The Company has not terminated the License Agreement and is evaluating all remedies available to it, including proceedings against H2Si and claims against Amerada and Mr. McKenzie under the Guarantee Agreement. The escrowed shares will not be released unless the FCU achieves the specified performance criteria, and the Company has asked its transfer agent to place a hold on all shares issued to H2Si. The Company’s allegations have not been tested in any proceeding. The matters described in this news release are not exhaustive. Additional claims may arise as the Company continues its review, and nothing in this news release limits or waives any of the Company’s rights, claims or remedies, all of which are expressly reserved.

About ABOUND Energy Inc.

ABOUND Energy Inc. is a clean-energy technology commercialization company building a diversified Energy Solutions Platform across ZaeroTex™ advanced air cathodes, H2Si™ hydrogen technology and Zaeras™ long-duration energy storage.

Keith Morlock, Chief Operating Officer

Email: Investors@Abound.Energy

Ph: +1 604-822-9082

Forward-Looking Information

This news release contains forward-looking information within the meaning of applicable Canadian securities laws, including statements regarding the Notice, the cure period under the License Agreement, the Company’s rights and remedies and any proceedings it may commence, the release of the escrowed shares and the hold on the shares issued to H2Si, and the Company’s plans to complete the FCU. Forward-looking information is based on assumptions management considers reasonable, including that the Company’s rights under the License Agreement and the Guarantee Agreement will be upheld, that the transfer agent will maintain the hold on the shares issued to H2Si, and that the technical information required to build the FCU can be obtained or developed. It is subject to risks that may cause actual results to differ materially, including that the Company’s allegations may not be upheld, the outcome of any dispute or proceedings with H2Si, Amerada, Mr. McKenzie or SiFusion, the costs and timing of enforcing the Company’s rights, the ability to recover amounts under the Guarantee Agreement, delays in or the inability to complete the FCU, and the potential loss of the Company’s rights to the H2Si Technology. Readers are cautioned not to place undue reliance on forward-looking information. Except as required by applicable securities laws, the Company undertakes no obligation to update it.

The Canadian Securities Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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