New Report from KBR Supports Potential for US$1.75/kg Hydrogen from

Syntholene Energy Corp. (TSXV: ESAF) (FSE: 3DD0) (OTCQB: SYNTF) (“Syntholene” or the “Company”) announced today an independent technical and economic review evaluating Syntholene’s geothermal-integrated hydrogen production platform and its potential application to low-carbon fuels, including synthetic sustainable aviation fuel (“eSAF”).

Figure 1. Regional Hydrogen Production Cost Comparison (per kilogram)

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Kellogg Brown and Root LLC (NYSE: KBR) (“KBR”) was engaged by the Company to provide an analysis and opinion of high level technical and cost review of the Company’s hydrogen technology that can be applied to eSAF deployments (the “Report”). The Report assessed Syntholene’s levelized cost of hydrogen (“LCOH”) methodology and conducted sensitivity analysis across key cost variables. KBR concluded that Syntholene’s likely LCOH is approximately US$1.75/kg H2 under best-case Iceland geothermal scenarios and approximately US$2.10/kg H2 under broad deployment.

Hydrogen is the dominant cost in synthetic aviation fuel production (IEA), and generating it at low cost is central to achieving cost competitive synthetic fuel. Recent unsubsidized estimates of comparable green hydrogen price averages across Europe were ~€$6.71/kg H2 ($US7.66) (EHO).

Notably, Syntholene’s LCOH target is lower than the most recent regionally comparable European benchmark for unabated fossil hydrogen produced with traditional Steam Methane Reforming (“SMR”), of which the European Hydrogen Observatory stated “the levelized production costs of hydrogen by SMR in Europe were, on average, ~€3.33/kg H2 (US$3.80) of hydrogen. (EHO)” when including the current cost of the European Carbon Price (ETS), this fossil derived Hydrogen benchmark increases the cost of SMR with carbon capture to ~€4.12/kg H2 (US$4.70).

The review further states that successful operation at Syntholene’s demonstration facility in Húsavík, Iceland (the “Demonstration Facility”) would provide key operating data related to efficiency, thermal integration, reliability and stack degradation.

The findings in the Report are based on a number of key assumptions using modelling and sensitivity analysis rather than commercial operating data or executed contracts. These assumptions include the Company’s access to advantaged geothermal resources and successful thermal integration. In addition, Syntholene’s LCOH estimate was based on 1200 kW size with US$1.2 million of capital expenditures, and an assumed electricity price of US$30/MWh. The Report also identifies primary risks, including electricity price variability, long-duration SOEC degradation, stack life assumptions, project-specific capital cost, and operating cost validation.

The Report identified several potential technical and commercial differentiators for Syntholene, including:

• Integration of low-carbon geothermal electricity…