Angus Energy : Interim results 31 March 2022

Chairman's Statement

Dear shareholders,

I am pleased to share with you the interim results for the six months ended 31 March 2022.

Operational Highlights

Saltfleetby

On 24 May 2022, the Company executed a share purchase agreement to acquire the entire issued share capital of the Company's current joint venture partner in the Saltfleetby Project (the "Project"), Saltfleetby Energy Limited, which owns a 49% working interest in the Project thereby giving Angus Energy a 100% interest in the Project.

With all equipment necessary to export gas now on site, the process has been handed over to commissioning specialists. With the leak testing complete, commissioning is expected to take between one and two weeks with a target date for first gas export (ie sales) between the 7th and 12th July.

Angus looks forward to providing updates via Twitter, Linked-In and RNS Reach on detailed progress through the remainder of the commissioning sequence.

Geothermal

The Company continues to progress its ambitions of becoming a low-cost UK producer of baseload geothermal power. The Company previously completed a desk top based study which identified an area with the highest heat flow in SW England. In July 2021 the company acquired radiometric data over the area of interest. Austinbridgeporth Limited, in conjunction with Imperial College successfully carried out a land gravity and radiometrics survey over a 35km2 area of interest. The gravity data was recorded at 200m intervals along the survey lines with spacing of 250m and a total of circa 700 stations were acquired. The newly acquired data has an increased coverage of data points compared to available data and therefore a more accurate representation of the subsurface. On the back of these results the company has entered discussions with five landowners progressed to negotiating draft heads of terms to enter into land leases.

Brockham

The application to the Environment Agency for permission to re-inject formation water to maintain pressure in that reservoir to gain maximum hydrocarbon recovery was issued on 02 March 2022. Subsequently the Company has recommenced oil production and water reinjection in the Portland reservoir. Current average rates of production from the BRX2-Y well are 50 barrels of oil per day (net 40 bopd to Angus) with an approximately equal amount of formation water produced and reinjected daily into BRX3.

Plans for a reperforation of the BRX4-Z well in the Portland reservoir, which would also involve abandonment of the Kimmeridge layer in that well, for which planning permission was recently obtained, are being discussed with our other regulators.

Balcombe

Despite the West Sussex County Council Planning Officer's decision to recommend approval of the Company's application for a one year extended well test at the Company's oilfield site at Balcombe the West Sussex County Council's Planning Committee has rejected the Company's planning application for an Extended Well Test. Angus strongly disagrees with their opinion and an application to appeal was submitted in October 2021. Amongst other things, the appeal references the local and national planning policies referred to by the Planning Committee and why both Angus and the Planning Officer believe the development is acceptable when it is considered against the development plan and any relevant material considerations. In summary the principle of the development has been previously accepted, the site selection represents the best environmental option and is safeguarded, energy Policy states that the domestic oil and gas industry has a critical role in maintaining the country's energy security and is a major contributor to our economy and minerals are given great weight with the extraction of hydrocarbons seen as central to the UK energy policy in the immediate and long-term future. In light of the above and the current energy crisis we find ourselves in, the Angus management team are confident that the appeal will be overturned.

Lidsey

The Company completed the reprocessing and reinterpreting of the Lidsey seismic data. One of the conclusions of the work is that previous seismic mapping both underestimated the aerial extent of the reservoir and most

importantly its shape. The Company therefore acquired a new line of seismic data and reprocess the existing seismic lines.

The Company's seismic reinterpretation of the Lidsey field was completed and, has been subject to rigorous third party verification. The new mapping shows there to be a significant structure not dissimilar in area to the original structure considered by the previous Competent Person's Report, which continues to support a commercially significant estimate of oil in place. However, the interpretation does allow Angus to narrow its field of focus in target selection and explore low-cost options for remediation of the field's productivity centre around the reuse, workover or side-tracking of the existing wells and these will be considered with our partners in the next stage of the work.

Financial Highlights

The Group recorded a loss of £31.750m for the period, which included an unrealized loss of £30.459m in relation to the derivative instrument, resulting in an adjusted loss of £1.291m (2020: £1.479m). As per note 3(e) in the Audited Annual Accounts to 30 September 2021, the Group uses derivative financial instrument, to hedge its commodity price risk, such as commodity swap contracts. The Group has elected not to apply the hedge accounting on this derivative. Derivative financial instruments are recognized at fair value on the date on which the contract is entered into and subsequently measured at fair value. Derivatives are carried as financial assets when the fair value is greater than its initial measurement and financial liabilities when fair value is negative. Any gains or losses arising from the changes in fair value of the derivatives are recognised in the statement of profit and loss and other comprehensive income, as recorded in this period and further detailed in note 11 below.

On 20 October 2021, and further to the RNS of 20 April 2020, detailing the terms of a £1.4m Convertible Loan Note repayable on 17 April 2022, the Company announced that the holder, Knowe Properties Limited, had agreed to extend the final mandatory repayment date by a further 12 months until 17 April 2023.

The Note, which was otherwise convertible at 1p per ordinary share from 17 February 2022, will now only be convertible at the earliest of 17 July 2022. Additionally, the Company retains the right to repay the Note at any time with the additional grant of warrants at 1.3p per share as detailed in the RNS of 20 April 2020. All other terms of the Note remain the same. In consideration for this extension the Company issued to the Noteholder 11,200,000 ordinary shares (the "Shares") in the Company for nil consideration.

On 3 December 2021, the Company raised gross proceeds of £750,000 through the placing of 115,384,611 Ordinary Shares to certain institutional and other investors at a price of 0.65 pence per share.

On 6 January 2022, the Company announced that it was undertaking a review of the strategic options. These options include, but were not limited to, a sale of the Company which will be conducted under the framework of a "formal sale process" in accordance with the Takeover Code.

On 4 February 2022, the Company raised gross proceeds of £1,400,000 through the placing of 175,000,000 Ordinary Shares to certain institutional and other investors at a price of 0.8 pence per share.

On 9 March 2022, and further to the announcement of 9 June 2021, the Company announced that it had reached a settlement agreement with a financial services provider (not being the Company's broker or Nomad) with whom it has been in dispute relating to the Saltfleetby Loan Facility. As part of this settlement agreement the Company issued 39,200,000 ordinary shares.

On 8 April 2022, the Company announced that whilst it will continue its strategic review at the asset level only, it has ended the "formal sale process" of the Company which it had commenced previously in accordance with Rules 2.4 and 2.6 of the Takeover Code. Accordingly, the Company is no longer in an offer period as defined by the Takeover Code.

On 11 April 2022, the Company raised gross proceeds of £675,000 through the placing of 61,363,634 Ordinary Shares to certain institutional and other investors at a price of 1.1 pence per share.

On 24 May 2022, the Company announce that it has executed a share purchase agreement to acquire the entire issued share capital of the Company's current joint venture partner in the Saltfleetby Project, Saltfleetby Energy Limited, which owns a 49% working interest in the Project thereby giving Angus Energy a 100% interest in the Project. To fund the Acquisition and other working capital requirements, the Company had concurrently

arranged a direct subscription with affiliates of Aleph International Holdings (UK) Limited pursuant to which Aleph has subscribed for a total of 546,000,000 Ordinary Shares in the Company at a price of 1.0989011 pence, being £6,000,000 (Direct Subscription) split into an initial unconditional tranche of £3,000,000 and a second tranche of £3,000,000 conditional on Shareholder approval.

Summary of the Acquisition

The Company has executed a share purchase agreement to acquire the entire issued share capital of the Target from Forum Energy Services Limited. The total effective consideration payable pursuant to the SPA is the sum of £15,452,000, which comprises:

• £250,000 to be paid in cash at Completion;
• the issue of 91 million Ordinary Shares at 1.0989011 pence per share at Completion;
• the issue and allotment of the 546,000,000 Ordinary Shares at a price of 1.2 pence per Ordinary Share at Completion; and
• up to £6,250,000 in deferred consideration to be paid in instalments from net cash payments to Angus Energy from the Project through to 31 March 2025 (and subject to an upward or downward net cash adjustment) as and when those payments would have been available to SEL under the Company's Senior Debt Facility of May 2021.

Following completion of the Acquisition, the Group now owns a 100% working interest in, and will continue to be the operator of, the Saltfleetby Licence.

As at 31 March 2022, Angus Energy recognised 100% of the liabilities of the Debt Facility and Derivative Liability relating to the Saltfleetby Field, thereby reporting liabilities of £12 million owed under the Debt Facility and a Derivative Liability of £85.493 million. Angus Energy recognised a debtor of £6.372 million and £41.892 million in respect of these last two amounts, thereby accounting for SEL's 49% interest. Following completion of the Acquisition, Angus Energy will recognise 100% of the Project revenues, costs and liabilities with no farmee interest represented.

As at 31 March 2022 the Group had cash of £1,441,340.

Outlook

With the Saltfleetby project shortly to be flowing gas, we look forward to steady production before the drilling on the SF7 Sidetrack. As we continue to work hard to achieve this, we remain focused on delivering value from all the assets in our portfolio, which includes our Geothermal project. Together with our funding partners we are well placed to take the Company forward and achieve our objectives.

Lord Clanwilliam

Non-Executive Chairman

29 June 2022

ANGUS ENERGY PLC

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the period ended 31 March 2022

ANGUS ENERGY PLC

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 31 March 2022