Coro Energy : Annual Report 2021

Supporting the regional transition to a low-carboneconomy

Annual Report and Financial Statements

For the Year Ended 31 December 2021

Stock code: CORO

CORO IS A SOUTH EAST ASIAN ENERGY COMPANY SUPPORTING THE REGIONAL TRANSITION TO A LOW-CARBON ECONOMY.

Blending a strong cash generating gas portfolio with early stage but growing renewables exposure.

www.coroenergyplc.com

INVESTMENT CASE

Blended renewables and gas portfolio underpinned by strong regional energy demand growth

Electricity demand forecast to increase 152% by 2050 ORead more in the Market Review on pages 4 to 5

Building the clean energy portfolio

Ion Ventures investment made in November 2020 - subsequent implied investment valuation increased by 300%

Acquisition of early stage Philippines renewables portfolio in March 2021

Initiation of Vietnam solar rooftop project

ORead more in the Building a Clean Energy Portfolio on page 10

Unique offering in the London marketplace

1. Revenue generating gas portfolio
2. Low-carbon investment strategy
3. Significant upside - early stage development entry point

Contents

STRATEGIC REPORT
Statement from the Chairman
and Chief Executive Officer	2
Market Review	4
Our Markets	6
Business Model	8
Our Strategy	9
Building and Developing our
Clean Energy Portfolio	10
Operational Review	12
Financial Review	15
Managing Risk	17
ESG Statement of Intent	21
ESG	22
Directors' Statement under
s.172(1) CA 2006	23
GOVERNANCE
Corporate Governance
Statement	24
Board of Directors	26
Corporate Governance
Framework	28
HSE Report	31
Directors' Remuneration Report	33
Directors' Report	35
Statement of Directors'
Responsibilities	36
Independent Auditors' Report	37
FINANCIAL STATEMENTS
Consolidated Statement of
Comprehensive Income	42
Consolidated Balance Sheet	43
Consolidated Statement of
Changes in Equity	44
Consolidated Statement of
Cash Flows	45
Company Balance Sheet	46
Company Statement of Changes
in Equity	47
Company Statement of
Cash Flows	48
Notes to the Financial
Statements	49
Company Information	82

ORead more online at

coroenergyplc.com

Annual Report and Accounts for the year ended 31 December 2021

01

Stock code: CORO

Statement from the Chairman and Chief Executive Officer

The Company is positioned for a hugely exciting 2022, with a broad opportunity set of clean energy investments and high-quality gas assets."

MARK HOOD

Chief Executive Officer

JAMES PARSONS	MARK HOOD
Executive Chairman	Chief Executive Officer

Chairman's Prelude

Coro Energy plc is a micro cap company with gas production, gas reserves and a growing clean energy portfolio. Underpinned by its strong Italian production and four institutional lenders, Coro's shareholders are uniquely exposed to a leveraged play on the oil price.

Our strategy remains to monetise the Duyung PSC, use the Italian cash flows, which more than covers the Company's G&A costs, and invest selectively in South East Asian renewables and high graded Italian production enhancement opportunities.

Recent volatility in energy markets have presented huge opportunity to Coro with the re-birth of the Italian portfolio alongside a significant uplift in the core NAV of its position in the Duyung PSC. It is in this context that we are delighted to present our annual report and accounts to shareholders.

The global energy sector continued to be disrupted by the COVID-19 pandemic throughout 2021. Although oil and gas prices recovered during the year, investor sentiment towards junior oil and gas companies lagged somewhat; however, post balance sheet end, we see that period changing and interest growing. The climate change arena, widely published during the COP26 conference in Glasgow, continued to see increased interest with the global energy transition from fossil fuels to clean energy sources taking priority.

Introduction of the Philippines renewable portfolio in Q1 2021 alongside the strategic investment in late 2020 in ion Ventures Holdings Limited ("ion Ventures"), initiated Coro's expansion to clean energy and delivered a large portfolio of early stage development clean energy assets.

It also introduced two new and exciting markets for Coro Energy: the Philippines, where we gained access to several projects including a 100 MW solar project and a

100 MW onshore wind project; and Vietnam, where we gained access

02	Coro Energy PLC

www.coroenergyplc.com

to up to 300 MW of solar projects. We were also delighted to welcome Mark Hood, Chief Executive Officer, and Michael Carrington, Chief Operating Officer, to the team.

Duyung

Global electricity demand is set to double by 2050, while regional electricity demand in Philippines, Singapore and South East Asia is currently forecast to increase by 154%, 56% and 140% respectively to 2050. Our Duyung gas asset, with its close proximity to the West Natuna Transportation System that delivers gas directly to Singapore, has the potential to play a key role in satisfying this demand.

While COVID-19 slowed progress in 2021 for the operator (Conrad Energy Asia), we expect several key commercial milestones to be delivered in 2022. These include an approval of an updated Plan of Development ("PoD") and signature of a Gas Sales Agreement ("GSA"), during 2022.

Italy

In May 2021, we signed a Sale and Purchase Agreement ("SPA") with Dubai Energy Partners, Inc., a US- based operator of producing oil and gas assets. The SPA required completion of regulatory approval within a nine-month period which expired on 26 February 2022.

In March 2022, post-period end, the final decision was made to terminate the SPA in light of strong gas prices in Italy, which rose from €0.17 per scm during the pandemic to over €1.5 per scm, due to renewed post-lockdown demand and the Russian invasion of Ukraine. As at the 31 December 2021, the Board

of Directors remained committed to the divestment and the criteria within IFRS 5 were met and the Italian business is therefore treated in the 2021 financial statements as a disposal group.

The Company's growth strategy continues to focus on energy transition opportunities, and our Italian portfolio provides a robust financial platform for future deployment into renewable assets. We predict, based upon a gas price of €1 per scm, strong returns of approximately €5m free cash flow on an annualised basis, which will support our growth opportunities in South East Asia and maximise shareholder value in the near-term.

Renewables

With the increase in the energy demand and requirement for energy security in the region, Coro made the decision to acquire an early stage portfolio of clean energy projects.

Operationally, despite COVID-19 restrictions, we managed to achieve a number of key milestones in 2021, including the incorporation of the Philippines company, completion of the desktop survey for our 100 MW wind project in the Philippines and the signature of a joint venture partnership agreement with

Vin Phuc Electrical Mechanical Installation Co Ltd. This will allow for the transfer of their project portfolio of rooftop solar in Vietnam to Coro, with the first pilot project due to be developed in 2022.

Ion Ventures

In February 2021, we saw ion Ventures, in which we have a 20.3% interest, partner with LiNA Energy, a solid-state battery technology developer, to conduct a successful trial of LiNA's proprietary solid-state sodium battery platform with a view of supporting further trials to eventually deploy the battery into the grid storage market in the coming years. In July 2021, ion Ventures formed a new partnership with GLIL Infrastructure Fund LLP, who confirmed a £150m commitment of capital into a new vehicle, Flexion Energy Holdings UK

Ltd, with ion Ventures transferring their existing UK grid scale energy storage portfolio into Flexion.

ion Ventures' successes continue to demonstrate the ability of Coro leadership to identify opportunities in the market and to act as appropriately to strengthen the portfolio and our returns.

Corporate

We raised net proceeds of US$5.5m during February and March 2021 and, as previously reported, the cash balance at the 12 of April 2022 was US$2.8m.

Outlook

2021 was a pivotal year for Coro in its ongoing transition to becoming

1. regionally focused low-carbon energy company. The diversity and breadth of assets which we now operate provides a platform from which to grow the Company and we foresee a very exciting future for Coro and its stakeholders.

As the local and global restrictions brought about by COVID-19 start to ease, we have resumed travel to our local projects to directly oversee their progress and work with the local teams to support and to share knowledge and experience.

We are all extremely confident in what we can achieve in 2022, including our first rooftop solar Project in Vietnam becoming revenue generative. We would like to thank shareholders for their support in 2021 and look forward to meeting many of you in person this year.

We wish all shareholders a safe and prosperous 2022.

JAMES PARSONS

Executive Chairman

MARK HOOD

Chief Executive Officer

REPORT STRATEGIC

Annual Report and Accounts for the year ended 31 December 2021

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