President Energy (AIM: PPC), the energy company with a diverse portfolio of production and exploration assets, is pleased to announce significant new developments with regards to Atome, the Company's newly-established hydrogen and ammonia production subsidiary.

Highlights

• Atome has entered into a co-operation agreement with the innovation arm ("Techco") of a government-owned green electricity generator ("Genco"), located in a democratic and economically open country in the Americas

• The agreement relates to the proposed production, sale and distribution by Atome of green hydrogen, ammonia and the associated oxygen by-product initially for the local market and thereafter for export ("the Project")

• The co-operation agreement provides for assistance by Techco in the procurement of a suitable power purchase agreement ("PPA") from the national electricity supplier who takes their power from Genco and the provision of suitable land for the Project by Genco/Techco in close proximity to the power source

• If implemented, it is intended that the Project (which will be the first of its kind in the country) will commence with a pilot production programme and followed by industrial production to be spooled up by the mid/late 2020's to have an output capacity of some 30,000 MT (metric tons) of Hydrogen per year which can if required generate some 180,000 MT (metric tons) of green ammonia per year utilising 200MW (megawatts) of electricity

• The country in question has significant current and future green power capacity to fulfil the anticipated demand as and when the project progresses

• Atome will be the owner, funder and operator of the Project with Techco and its other innovation projects benefiting from the profits of the venture in due course in consideration of its co-operation

• This represents an important initial step by Atome in pursuit of its stated business objective to become a large scale hydrogen and ammonia producer during this decade. Further announcements will be made in due course both as to the Project and other hydrogen-associated ventures which are under discussion

• Atome has appointed Strand Hanson Limited ("Strand Hanson") to act as financial advisor in relation to the proposed listing of Atome's shares on the standard list of the London Stock Exchange ("Listing"), which is currently expected to take place later this year

• The Company intends to invite shareholders of President on a record date to be defined to participate in the Listing alongside new investors

• The Listing is expected to facilitate a distribution in specie of shares in Atome to President shareholders

• A separate listing of Atome will broaden the scope of opportunities available to its hydrogen and ammonia business to a completely separate audience decoupled from the valuation metrics of the Company's current Argentina-centric core hydrocarbon business

• President continues to finance Atome's working capital from its own resources. The listing will allow Atome to raise finance to fund the Project and any future initiatives in its own right thereby negating any potential dilution for President shareholders

Co-operation agreement

Atome, a hydrogen and ammonia business in which President has an 85 per cent shareholding has entered a co-operation agreement with the innovation arm of a state-owned power generation company located in a country in the Americas whose identity shall remain undisclosed at present due to commercial sensitivity.

The country is a stable, western facing, economically open democracy which has a stated objective to de-carbonise its economy and promote sustainability in line with the sentiments of the Paris Agreement of 2015 as well as in accordance with that country's own national strategic energy plan. The fiscal and taxation policy provide incentive for inward investment in this regard. The country generates green electricity and has available capacity to provide Atome in due course with the necessary power to fulfil its business objectives.

The objective of Atome, benefiting from the international expertise, financial support and footprint of President and its leading shareholders, is to become the first industrial scale hydrogen and ammonia producer in the country helping to promote the relevant government objectives to de-carbonise its economy by 2050.

Whilst the Project is at an early stage, the current business plan calls for a progressive ramp up of production of hydrogen, ammonia and oxygen from a pilot programme to full industrial production and storage. The Company envisages eventual production capacity of 30,000 MT of hydrogen per year allowing for the generation if required of up to 180,000 MT of green ammonia per year as well as 266,000 MT of oxygen per year utilising 200MW of power by mid/late 2020's. Atome considers that, with hydrogen increasingly considered as a power source including for heavy goods transport, and the potential for ammonia in the fertiliser and maritime sector, there will be significant demand to facilitate rapid growth in Atome's hydrogen and ammonia business - both locally and internationally.

The success of the project is subject, inter alia, to a satisfactory PPA being signed covering both supply and pricing. Techco and Atome are co-operating in this regard pursuant to the agreement now signed.

Whilst at an early stage the progress made by Atome so far is viewed optimistically as an important first step towards Atome's business objective. Negotiations are also in progress in relation to a second new and prospective green hydrogen and ammonia production business in a European Northern Hemisphere country.

Further information can be found on Atome's separate website: www.atomeplc.com

Spin-off and new listing on the London Stock Exchange

In parallel with the above, Atome has appointed Strand Hanson as its financial advisors in relation to the proposed listing of Atome's shares on the standard list of the London Stock Exchange, which is currently expected to take place later this year.

It is considered that an aggressively growing and substantive green energy business is not compatible with the existing business model of a listed hydrocarbon business with often distinctly different investor audience and valuation metrics. It is intended that Atome will, on listing, have a Board with green credentials appropriate to and reflective of its type of business and the Company is progressing the appointment of Chief Executive Officer as well as certain other key management personnel.

In order to recognize the support of existing investors in President, shareholders on record at a certain date to be defined will be offered the opportunity to participate in Atome shares on Listing alongside new investors. Furthermore, in due course, subject inter alia to valuation, President will have the ability to declare, as may be appropriate, an in specie dividend/distribution of shares in Atome to its shareholders.

Background of Hydrogen and ammonia

Hydrogen is a future fuel and whilst its properties have been known for many years it is now coming into its own as a key component in the World's toolkit to achieve net zero carbon emissions by 2050.

When hydrogen is used as a fuel source, the only product is water. It increasingly powers industrial processes and machinery, heavy transport vehicles, agricultural equipment and cars. Hydrogen has significant benefits over batteries including packing much more punch for the volume allowing longer use and does not use valuable rare earth materials.

Ammonia, created by interacting nitrogen with hydrogen not only is the preferred form to efficiently transport hydrogen but in its own right is used widely and increasingly in the fields of agriculture, chemical and industrial processes with significant future potential to power the heavily carbon-emitting marine industry using green energy.

Currently some 95% of all hydrogen is made through processing hydrocarbons as part of the process, namely natural gas, oil and coal. Hydrogen produced from renewable energy is therefore one of the key components of the holy grail to achieve the objectives of governments around the World to be carbon zero by 2050.

Peter Levine, Chairman, commented

"The announcement today marks an important development for President and its group. Our Company must evolve, recognise investor sentiment and the need to protect the environment. The commencing of concrete steps together with the intention to spin off Atome into a separate stock market entity with its own distinct valuation and investor audience is a radical, bold and forward-thinking move.

"At President we recognise that the spin-off provides Atome the most fertile ground to grow exponentially as a distinct entity. We are optimistic as to the prospects for Atome and see an increasingly intensive work stream encompassing not just the initial country in which we have commenced work but others where management can leverage their extensive networks and experience.

"The spin-off leaves a still successful President core business which has created and will retain a major shareholding interest in Atome with itself significant potential to grow its profits and cash flow whilst retaining the ability to consider the manner and course of its future as a publicly listed company. President investors can be assured that the Company will continue to be laser focused and committed to its ongoing hydrocarbon projects.

"Thus since the start of the year, President has announced the successful drilling of three gas wells in Rio Negro, Argentina on time and budget, the soon to be successfully completed new oil treatment plant also in that province likewise currently on time and budget, the soon to start three well drilling programme and seismic data acquisition in Salta Province, Argentina and the long anticipated successful farm-out of the high impact exploration interests in Paraguay with drilling to commence next year.

"Finally, it is important to recognise and respect loyal shareholders of President and as such we intend as part of the listing process to invite shareholders on the record at a date to be defined to participate in the listing of Atome and through, as may be appropriate, distributions in specie by President in shares of Atome"

President Energy Provides Update on Hydrogen and Ammonia Subsidiary Atome