Ncondezi Energy Limited (“Ncondezi”, the “Company” or the “Group”) (AIM: NCCL) announces its interim results for the six months ended 30 June 2020.

Operational Highlights:

Ncondezi Power Project

• Submission of tariff proposal to the Mozambican Government and Electricidade de Moçambique (“EDM”)
• Transmission integration study and Mozambican power market outlook study updates (the “Independent Studies”) commissioned following initial tariff discussions with EDM

Commercial & Industrial Solar and Battery Projects

• Relationship Agreement signed with GridX Africa Development (“GridX”) to fund a pipeline of projects in Mozambique up to a total of US$5.5 million
• Force majeure notice issued on maiden Project following travel restrictions being put in place due to the global outbreak of COVID-19. Subject to COVID-19, commissioning now targeted for Q1 2021

Financial and Corporate Highlights:

• Successful fund raising of £650,000 to finance general working capital
• CEO Hanno Pengilly, the senior management team and certain contractors and consultants agreed to defer 30% of salaries and fees until 30 November 2020
• Cash at bank of US$0.6 million (as at 30 June 2020)
• Estevão Pale resigned from the Board and his role as a Non-Executive Director in May 2020 to focus on his newly appointed role as the Chairman of Empresa Nacional de Hidrocarbonetos, Mozambique’s National Oil Company

Post period end events:

• Submission of Transmission Integration Study to EDM for the integrated Ncondezi 300MW coal-fired power project and coal mine in Tete, Mozambique (‘the Project”)
• Shareholders Agreement Term Sheet (“SHA TS”) signed with China Machinery Engineering Corporation (“CMEC”), Ncondezi to retain 40% equity in the Project
• Submission of the completed third party historical audit to CMEC for review
• Exercise of 568,000 share options and issue of 568,000 new ordinary shares of no par value (“Ordinary Shares”)

Financial highlights:

• Loss for the period: $1,216 (2019: $1,260)
• Loss per share: 0.4 cents (2019: 0.4 cents)
• Cash at bank: $592,000 ($1.79m)

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