Circa : Company Presentation May 2024

Company Presentation

Circa Group

Changing Chemistry for Good

May 2024

Important information and disclaimer

This presentation and its appendices (collectively, the "Presentation") has been prepared by Circa Group AS (the "Company", and together with its subsidiaries the "Group") and is not an offer to sell or a solicitation of an offer to purchase securities of the Company or any other entity or to engage in any other transaction and does not include such information as would normally appear if it was an offer under any relevant securities laws and regulations. The Presentation does not purport to be all-inclusive and statements made herein are not investment, tax, accounting or legal advice.

This Presentation contains certain forward-looking statements relating to the business, financial performance and results of the Group and/or the industry in which it operates. Forward- looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", "will", "should", "may", "continue" and similar expressions. The forward-looking statements contained in this Presentation, including opinions and views of the Company or cited from third party sources, are based on various assumptions. The forward-looking statements are solely opinions and forecasts, and are subject to risks and uncertainties which are difficult or impossible to predict and are beyond the Company's control. Forward-looking statements are not guarantees of future performance, and risks, uncertainties and other factors could cause the actual results of operations, financial condition and liquidity of the Group or the industry to differ materially from the expectations expressed or implied in this Presentation by such forward-looking statements. You are cautioned not to place any undue importance on any forward-looking statement.

The distribution of this Presentation may be restricted by law in certain jurisdictions and persons into whose possession this Presentation comes should inform themselves about, and observe, any such restriction. Any failure to comply with such restrictions may constitute a violation of the laws of any such jurisdiction. The Company has not authorized any offer to the public of securities or has undertaken any action to make an offer of securities to the public requiring the publication of an offering prospectus, in any member state of the European Economic Area.

This Presentation is updated as of the date hereof. The Company does not undertake any obligation to update this Presentation or any information. The information contained in this Presentation should be considered in the context of the circumstances prevailing at the time and has not been, and will not be, updated to reflect developments that may occur after the date of this Presentation.

This Presentation is subject to Norwegian law, and any dispute arising in respect of this Presentation is subject to the exclusive jurisdictions of Norwegian courts.

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Circa Management

Bertel Karlstedt	Tone Leivestad	Dr. Alessandro Napoli	Philipp Morgenthaler
CEO	CFO	VP Product Development	VP Manufacturing

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Circa is pioneering sustainable specialty chemicals

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Circa has fine-tuned and patented a scalable production platform for high value low-toxicity biochemicals made from wood (the world's only scalable LGO platform)

LGO (levoglucosenone) is a highly versatile platform chemical, while CyreneTM is a solvent and is Circa's first commercially available LGO derivative

Global demand for sustainable materials and chemicals, backed by strong regulation, creates a large market for such sustainable alternatives

Current capacity reservations for CyreneTM significantly exceed the 1,200t ReSoluteTM nameplate capacity, while FC5 (~10t) is currently serving the market and new high-margin derivatives

Highly experienced senior management and board with industry background from large companies like Valmet, Huntsman, BASF and Solvay

Strong and growing network of technology partners, clients, and end users

Source: Company information.

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Current financing status and update to business plan

Summary

• To enable continued operations, Circa is undertaking a capital raise of up to EUR 10m to address the funding situation. The company has ongoing dialogues with several players related to funding and expects better visibility on external financing during H2'24
• In the meantime, Circa is looking to raise up to EUR 10m
• • EUR 5m is expected to finance Circa through Q3'24, providing visibility on specific dialogues related to bank financing and soft financing of ReSoluteTM. While a EUR 8 -10m raise is expected to provide runway through FY'24 / Q1'25, respectively. Providing additional feedback on several strategic and commercial dialogues expected to result in increased revenues from FC5 and potential offtake agreements with blue-chip chemicals distributors.
• In response to the need for additional capital, management has made amendments to the business plan to support the success of the business
• The ReSoluteTM project will be put on hold until the funding situation is resolved, and the environmental permit is secured
• • EUR ~4m of the funding to be raised will be applied towards ReSoluteTM contracts already in place
  • Circa currently has equipment related to ReSoluteTM in storage, purchased for EUR > 20m in total
• The product portfolio based on FC5 and ResoluteTM output will also be recalibrated
• • Plant output will be rebalanced across LGO, CyreneTM, and other derivatives based on profitable and sustainable market potential. This will reduce the dependency on large volume transactions to deliver the necessary profitability to the business through increasing derivative sales
• Underpinning this process over the next few months will be several key focus areas
• • Market: Rigorously identify, qualify and accelerate sales opportunities with key customers
  • Product development: Identify and commercialize high-margin derivatives
  • Customers: Continue shipping samples to existing customers that are developing applications
  • Volume: Sensibly increase FC5 volumes through optimization
  • Funding: Secure alternative and non-dilutive sources of financing to progress ReSolute
  • Environmental Permit: Securing the ReSoluteTM environmental permit

Sources and uses under the updated business plan

Sources	EURm
Cash as of Q1'24	6.1
Grants received in April '24	4.1
New capital	5.0 - 10.0
Total sources	~15 - 20
Potential grants, subject to ReSolute progress	4.6

Uses	EURm
Capex Q2'24 - Q3'24	12.0
Opex Q2'24 - Q3'24	3.2
Total uses	~15

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Long-term potential intact while near-term values are covered

Long-term ambition and value potential remains intact, as the market continues towards stricter regulation with demand for Circa's products

• ReSoluteTM will be a game changer for Circa, enabling positive EBITDA. The project will continue when the funding situation is resolved, and the environmental permit is secured.
• On the current business plan and amended product mix, ReSoluteTM is expected to generate EUR ~7m in EBITDA on a stand-alone basis in steady state
• Several clients are already using CyreneTM from the FC5 plant in Australia in their development work, leading to several identified opportunities for CyreneTM and other high-margin derivatives
• Circa has received ~5x the ReSoluteTM capacity in reservations for CyreneTM, from Tier 1 counterparties, and more than 40 patents have been filed
• Once ReSoluteTM is fully operational, Circa will have increased financial flexibility, and additional plants to be constructed based on future market development

The adjusted business plan allows for significant value creation by extending the runway from minimized cash burn

• Total ReSoluteTM project CAPEX is estimated to EUR 73.0m, of which EUR 40.0m is already spent. The Company has a remaining CAPEX funding need of EUR ~33.0 million, and has several ongoing funding initiatives (non-equity) pending to finance part of the funding requirement
• The Company has received indicative terms for a EUR 20 million loan from Finnvera, the Finnish Export Credit Rating Agency, subject to satisfactory third-party guarantee
• The Company is also in discussions with several French banks regarding additional financing, and expects feedback on key dialogues around summer 2024
• Further, Circa is also in discussions with several strategic players and sharing product samples from the FC5 facility, with the target to result in firm offtake agreements
• The Company also has several projects related to joint product development and distribution with blue-chip chemicals players globally
• By raising between EUR 5 - 10m, the Company expects to be able to deliver on several key milestones and get visibility on ongoing specific dialogues with banks and dialogues related to soft funding

Circa "as is" should provide backing and comfort supporting shareholder values

• Since inception, more than EUR 60m has been invested into Circa Group, with the primary part of proceeds being invested after 2021
• Circa has paid for and received equipment related to ReSoluteTM (all equipment is 100% owned) for a total of more than EUR 20m, and the equipment is currently in storage. The company currently has no long-term debt, and no lenders have pledge in the inventory
• Further, the Company has an existing facility in Tasmania (FC5), producing around ~10 tonnes of product per year
• The Company has a suite of patents related to their unique FuracellTM technology and their proprietary solvent, CyreneTM

- Circa further has a network of clients and partners built from more than 10 years of R&D

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Overview of ongoing commercial initiatives - Q1'24

Green solvent applications

• Specific dialogues with both direct customers and via chemical distributors related to CyreneTM
• Various applications, including cleaning, lubrication, and lens manufacturing
• Indicative discussions for ~25 tonnes per year from 2025, with volumes expected to grow
• Additional CyreneTM discussions related to flavor & fragrance and specialty chemicals with volumes up to 55 tonnes p.a. and EUR ~1m of revenues p.a.

Intermediates for flavor and fragrance specialties

• Specific customer discussion for up to 100 tonnes of LGO derivatives per year
• Can potentially generate EUR 3.2m of annual revenue

Intermediates for pharmaceutical active ingredients

• Two specific customer discussions for a total of up to 8 tonnes of LGO derivatives per year, potentially generating EUR ~1m annual revenue

Intermediates for agrochemical active ingredients

• Specific customer discussion for up to 100 tonnes LGO / LGO derivatives per year, potentially generating EUR ~2.2m of annual revenue

Other professional and consumer markets

• Several additional high margin opportunities within various cleaning and home products

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COMPANY INTRODUCTION

MARKET

MANUFACTURING

BUSINESS PLAN AND FINANCIALS

APPENDIX

RISK FACTORS

Converting abundant biomass into high value biochemicals

Sustainable

feedstocks input

Biomass is an

abundant renewable natural bio resource

FC5 currently producing

Patented production process

Standard processing

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FuracellTM is Circa's			LGO1 is a platform	Circa's product portfolio
patented production process			chemical enabling the	comprises of several
(developed together with			production of a range	biochemicals, of which
industrial partner Norske			of high value	CyreneTM has progressed the
Skog), which enables large			biochemicals	most commercially to date
scale production of LGO1
For ReSolute and FC6,		Biochar is a valuable by-
biochar will provide the		product from production
majority of energy			and will be used for
requirements			industry and energy

Distribution

• Pharmaceuticals
• Agrochemicals
• Electronics and graphene
• Coatings and adhesives
• Flavours and fragrance

 Polymers

Global chemical distributors purchasing and reselling Circa biochemicals (Circa also engaged in direct sales) towards a wide range of applications

Source: Company information. 1) LGO = Levoglucosenone.

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Circa has produced LGO and CyreneTM for >10 years

Stable production for several years

FC5 facility continues to produce LGO and CyreneTM

	Start of operations	2017
	Development partner	Norske Skog
	Location	Norske Skog paper mill site in
	Boyer, Australia, Australia
	Annual CyreneTM output	8 - 15 tonnes

Demonstrated production process and growing distribution network

• Chemicals sold to >1,500 industrials and researchers
• Currently supplying 1,000+ kg deliveries to European customers
• Optimisation activities and data provide valuable input for ReSolute plant development
• Largest supplier apart from Circa Group: ~20 kg per year LGO

Circa is well positioned for commercial scaling

Circa holds pole position with…

Extensive research	Patented FuracellTM	Leading process
and development	technology1	know-how
Major global	Head start in	Extensive commercial
technology partners	capital expenditure	and market work

Source: Company information. 1) Patents PCT/AU2010/000811, PCT/AU2019/000096 (June 2010 - Method for converting lignocellulose materials into useful chemicals. August 2018 - Thermochemical treatment of cellulosic materials).

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