Velocys plc announced that, by mutual consent of the parties, Shell International Petroleum Company Limited ("Shell") has withdrawn from the Altalto Joint Development Agreement. The Altalto project has no immediate funding calls and will continue according to its existing development plan. Velocys and British Airways plc ("British Airways") will continue to work together in order to secure finance for the Altalto Immingham plant, and will continue the discussions with potential sources of finance for the project, which have been underway for several months and indicate strong interest in this sector. Velocys, British Airways and Shell are continuing to work with HM Government on policy development to support Sustainable Aviation Fuel ("SAF") production in the UK. Velocys and British Airways are grateful for Shell's support during the initial stages of the Altalto project. As the project progresses, Velocys, British Airways and potentially other new partners will focus on the next stages. Preparations are underway to apply for significant government funding for the Immingham project. Whilst there is no guarantee that such an application would be successful, the Company believes that the project is well placed to achieve this. Following the changes above, Shell will no longer have an option over shares in Altalto Limited, nor any rights or obligations in relation to the Altalto project. There is no direct financial impact on Altalto or Velocys as a result of these changes.