ATOME Energy : Annual Report and Accounts 2022

REPORT AND

CONSOLIDATED

FINANCIAL STATEMENTS

2022

ATOME ENERGY PLC

AN INDEPENDENT, INTERNATIONAL COMPANY FORMED FOR THE PURPOSE OF PRODUCING,

MARKETING AND DISTRIBUTING GREEN HYDROGEN AND AMMONIA.

Building a platform for a cleaner, more sustainable future for our planet in recognition of the climate change imperative driving nations and industries around the world to "green" their infrastructure, operations, and products.

02	Chairman's Statement	25	Consolidated Statement of Changes in Equity
03	Chief Executive Officer's Statement	26	Consolidated Statement of Cash Flows
05	Strategic Report	27	Notes to the Consolidated Accounts
10	Directors' Report	45	Company Financial Statements
12	Directors' Remuneration Report	47	Notes to the Company Accounts
15	Corporate Governance Statement	51	Glossary
18	Statement of Directors' Responsibilities	52	Corporate Information
19	Independent Auditor's Report	53	Notice of Annual General Meeting

1. Consolidated Statement of Comprehensive Income
2. Consolidated Statement of Financial Position

ATOME Energy PLC | Annual Report and Accounts 2022

01

Chairman's Statement

Summary

This is the first Annual Report and Accounts for ATOME following a full year of activity and project development. It was only on 30 December 2021 that ATOME became the first green hydrogen, ammonia, and fertiliser project development company to join the London Stock Exchange's AIM market and today ATOME remains the only pure play company in the field on the London market.

Since Admission at the end of 2021, the Company has made material and rapid progress and has expanded its business and footprint above and beyond what was originally planned. In the short period since the IPO, whilst not losing focus on our core projects, we have signed world scale power purchase agreement for our Phase One 120 MW in Paraguay, progressing our

300 MW Phase Two Project in that country, created our Mobility Division, ordered its first electrolyser due for delivery later this year, progressed our Icelandic project and entered Costa Rica with a substantial local partner. Further, in May 2023, we welcomed Baker Hughes as a strategic technological partner and investor in the Company.

Following the success in securing significant baseload renewable power supply in Paraguay, ATOME commenced FEED studies and financing negotiations for its first green fertiliser project in Villeta for which there is a significant market demand. Maintaining our fast-track schedule, we expect our first phase flagship project to progress to Final Investment Decision in Q4 2023, with the start of full industrial scale production targeted to commence in 2025. Significantly, our target of commencing full production of green fertiliser places us front and centre at the forefront of the industry.

We are building projects which will produce globally traded green commodities whilst increasing food and energy security locally. We have every confidence that ATOME will go from strength to strength and in the years ahead become one of the world leaders in the production of green hydrogen, ammonia, and fertiliser, delivering capital appreciation to our shareholders from sustainable growth whilst being an important contributor to the drive for global net zero in the food and agriculture industries as well as mobility.

Financial

The financial statements present group results for the ATOME Energy Group for its first full year of independent operations, following its debut in 2021 as an independent AIM listed business focused on producing, marketing, and distributing green hydrogen and ammonia.

Total comprehensive loss for the year ended

31 December 2022 was US$5.9 million (2021:

US$2.2 million), in line with expectations, reflecting the increased level of activity and fast track development throughout ATOME's project portfolio.

Sustainability

ATOME acknowledges and respects the increasing emphasis on climate change around the world.

The Company aims to build a platform for a cleaner, more sustainable future for our planet in recognition of the climate change imperative driving nations and industries around the world to "green" their infrastructure, operations, and products.

I would like to close by thanking all my colleagues throughout the company for their contribution to the success of ATOME. We are looking forward to another year of great achievement and progress.

Peter Levine

Chairman

26 June 2023

02	ATOME Energy PLC | Annual Report and Accounts 2022

Chief Executive Officer's Statement

Since its foundation and subsequent emergence as an independent AIM listed business ATOME has made significant operational progress and is already establishing itself as a leading international developer in the field of green hydrogen and ammonia. ATOME's strategy has been clear since day one: accelerate the development of sustainable and profitable green hydrogen and ammonia by looking for reasonably sized projects that can leverage existing infrastructure in order to be first to market producing green molecules at the lowest cost possible near markets with existing demand.

We listed in London through our IPO in December 2021 having become a public company two months earlier. At the time of Admission to AIM we had our two core projects in Paraguay and Iceland, both substantive in nature and providing significant opportunity for significant increases in shareholder value, extending into the future. Hindsight, together with subsequent events, has fortuitously shown ATOME to be the right company at the right time for the green energy and fertiliser markets.

I am pleased to report that since that time, ATOME through its new Mobility Division in Paraguay, the signing of the Villeta PPA, and the formation of a new JV in Costa Rica has also exceeded our original expectations at the time of the IPO both in scale and the time frame of our business. The market has recognised the delivery of our strategy with the ATOME share price significantly outperforming most of our peers since our listing.

A new division, ATOME Mobility was created in February 2022, dedicated to providing a clean energy solution for heavy road transport and shipping, two hard-to-abate industries where battery alternatives cannot provide effective solutions using present technology. Over the past year, a number of significant technology milestones have been reached in both hydrogen-based mobility and shipping. These place ATOME Mobility in a prime position to leverage its early investments as our initial focus will be on hydrogen energy supply to the road transport sector in the most populous areas of Paraguay.

This new division runs in parallel with the planning for ATOME's large scale green hydrogen, ammonia and fertiliser businesses in Paraguay and Iceland.

The most significant event for ATOME during the year was in May 2022, when we signed a long term 60MW Power Purchase Agreement ("PPA") with ANDE, the national electricity supply and distribution company of Paraguay, further increased to 120 MW in

November 2022. This is the largest single PPA ever signed between ANDE and an industrial user. Since then, we have bought the land for the site, engaged Urbas Energy, one of the leading hydrogen and power EPC contractors, in co-operation with Casale, one of the world's oldest ammonia and complex fertiliser technology companies, to lead the front-end engineering and design (FEED) study for Villeta, with Natixis Bank and the InterAmerican Development Bank working with us on structuring the financing package for the project.

In January 2023, we created National Ammonia Corporation S.A (NAC), a joint venture with Cavendish, the renewable energy arm of the Quirós family-owned Grupo Purdy S.A., one of the largest corporations in Costa Rica, to pursue renewable energy generation and green ammonia production. Similar to Paraguay, Costa Rica is one of the greenest countries in Latin America with a significant agricultural sector, presenting a great opportunity to leverage all the work we are currently doing in Paraguay.

In May 2023, we took the decision to explore the options for developing Villeta as a producer of green fertiliser (Calcium Ammonium Nitrate, or CAN) as the most value accretive option for the production facility, supplying to the fast-growing agricultural market in Mercosur and worldwide. We have also entered into the strategic partnership with Baker Hughes who invested in the Company and with whom we have agreed the right of first offer (ROFO) for the supply of compressor and other equipment to our projects.

Our Iceland project is also progressing in tandem with our work elsewhere and is now planned to come on-linemid-decade.

We believe ATOME is ideally placed to help decarbonise energy, transport, and agriculture. Our projects will contribute significantly to fulfilling the UN's Sustainable Development Goals (SDGs), particularly SDG 7, 9, 11, 12 and 13 which cover affordable and clean energy; industry, innovation, and infrastructure; sustainable cities and communities; responsible consumption and production, and: urgently combating climate change.

The increase in hydrocarbon and fertiliser prices, together with the international emphasis on environmentally necessary green commodities and security of supply, has provided a very fertile end market for ATOME's planned production. We have

ATOME Energy PLC | Annual Report and Accounts 2022

03

Chief Executive Officer's Statement

continued

ever increasing confidence, backed by industry interest in us, that there will be robust demand for our production which will support strong economics for our business, with profitability and sustainability going hand in hand.

We look forward to delivering further material progress during the balance of 2023 as we move forward with bringing our projects on-line with FID on Villeta projected for Q4 this year and production targeted to commence in 2025. We intend to develop a pipeline of new international projects in other jurisdictions as we become increasingly recognised as a leading first-mover developer in green hydrogen and ammonia.

Olivier Mussat

Chief Executive Officer

26 June 2023

04	ATOME Energy PLC | Annual Report and Accounts 2022