Vow Green Metals today announced results for the second half of 2023 demonstrating significant strategic achievements and progress in key industrial projects. Main developments: o The early production line at Hønefoss: First biocarbon successfully produced in November o Regional energy producer Vardar committed to a strategic investment ofNOK 100 million in Vow Green Metals split equally between the project company for the local large-scale project at Hønefoss and the listed parent company o Hønefoss large-scale phase 1 and 2 (20,000 tons in total): o The project is progressing well with infrastructure and related excavation work completed in December o Governmental enterprise Siva will invest NOK ~152 million in Vow Green Metals' large-scale biocarbon production at Hønefoss with the signing of a forward contract for the purchase of buildings and infrastructure, and related leaseback agreement o Additional agreement for the delivery of pyrolysis technology signed with technology partner,Vow ASA . New total contract value isNOK 332 million oNOK 7,841,779 of the ENOVA grant was drawn inJuly 2023 (NOK 34,422,711 remaining for the large-scale facility at Hønefoss under the ENOVA grant) oViken Park (30,000 tons): Project moving forward according to plan with the commencement of a pre-study for a plant with potential production capacity of 30,000 tons oJan Halvard Aas Møller was appointed new CFO of Vow Green Metals inDecember 2023 , effective fromFebruary 2024 . In addition, Vow Green Metals has strengthened its metallurgical competence with two new hires and bolstered the Company's ability to develop projects and maintain efficient operations of its plants with four new hires including operative staff and managing director of biocarbon projects inNorway Subsequent events: o Long-term supply agreement for the annual delivery of 15,000 tons of biocarbon signed withElkem 4 January 2024 "We are looking back at some extraordinary months, probably the most demanding and rewarding half-year we have had so far. Thanks to our dedicated team we have managed to reach significant strategic milestones, most notably the signing of our first large-scale supply agreement, the entering of strategic financial partnerships while at the same time ensuring industrial progress with a successful first biocarbon production at Hønefoss," said Chief Executive Officer of Vow Green Metals,Cecilie Jonassen . "During the fall of 2023 we noted a shift in the interest for biocarbon from the metallurgical industry with large contracts being signed by several key industrial players in the Nordics. When building a new green industry, speed and scale are determining factors. We believe in collaboration as one of the key strategic levers to rapidly scale up the biocarbon industry and are happy to see that commercial partnerships across value chains are bearing fruits,". Second half 2023 financials Vow Green Metals recorded an operating loss for 2023 ofNOK 23.9 million , with employee- and other operating expenses being the material items. Employee costs wereNOK 18.2 million for the period, of whichNOK 8.7 million were capitalized as directly attributable to project under development, giving a net employee expense ofNOK 9.4 million recorded in the profit and loss statement. Other operating expenses wereNOK 14.5 million , of whichNOK 8.8 million were to consultants. Consultants were used as a transitory measure to cover key positions. Total assets wereNOK 183.2 million , of whichNOK 126.2 million relates to the biocarbon plant at Hønefoss. Cash and cash equivalents wereNOK 41.3 million , with an unused bank overdraft ofNOK 10.0 million . ENDS The half-year 2023 report and presentation are attached, and also available on www.vowgreenmetals.com/investors/results-and-presentations Vow Green Metals' Chief Executive Officer,Cecilie Jonassen and Chief Financial Officer,Jan Halvard Aas Møller will host an online presentation of the main developments in the second half of 2023 today at08:30 CET . Webcast link: https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20240215_21 For further information, please contact: Mathias Nilsen Reierth, Director of Corporate Affairs and Commercial,Vow Green Metals AS Tel: + 47 988 05 724 Email: mathias.reierth@vowgreenmetals.com About Vow Green Metals Vow Green Metals' strategy is to be a leading producer of biocarbon and other carbon neutral products that enables the green transition in hard-to-abate industries. We are on a mission to accelerate the world's transition to renewable materials by offering green alternatives to replace fossil reduction agents in the metallurgical industry. The core of our business is to build, own and operate biocarbon production plants using state-of-the-art pyrolysis technology to turn biomass and biomass waste-streams into our core product, biocarbon. Our biocarbon production process also creates other valuable products like bio-oil and bioenergy. With our standardized solutions, unique access to proprietary technology, and a growing global pipeline of projects, we are upholding our first mover position in a growing market where speed and scale will be determining factors. Vow Green Metals is building a new biocarbon industry on the shoulders of its main owner and technology partner,Vow ASA , which provides access to competence and capabilities acquired through decades of industrial innovation. This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
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