Significant events January-March 2025

In February, Minesto welcomes Faroese stakeholders, authorities as well as the public to a seminar at the Nordic House in Torshavn. CEO Martin Edlund presented the company's vision for a sustainable energy system in the Faroe Islands, a 200MW buildout roadmap. There was a strong stakeholder engagement towards Minesto's first tidal energy Dragon farm in Hestfjord, Faroe Islands.

An independent technical review of Minesto's Dragon-class technology initiated in autumn 2024 is completed by DNV - a world leader in technology assessments and certifications in the energy & maritime sectors, incl. renewable energy solutions. The successfully completed review strengthens Minesto's buildout investment case.

Minesto is selected to participate in GIA (Global Innovation Accelerator). The Global Innovations Accelerator Programme is initiated and funded by the Swedish Energy Agency, and run together with partner Business Sweden. Minesto's focus will be on strengthening business development in Asia.

Minesto is selected by renowned bearing manufacturer SKF to be part of a large-scale international marketing brand campaign. The campaign "The Faroe Islands Space Program - a space program that never leaves earth" highlights Minesto's innovative and lightweight yet powerful tidal energy kites; and the opportunity to harness "moon energy", making the most of the Earth's resources in a sustainable approach. 

After the end of the period

After the end of the period, a total of 9,906,055 warrants of series TO4 were exercised, corresponding to approximately 89.0 percent of all outstanding warrants. Guarantee commitments amounted to 1,221,727 shares, which corresponded to approximately 11.0 percent of the outstanding TO4 warrants. As a result, the warrants were exercised in full, reaching 100 percent, and the subscription price was SEK 1.54. The Board of Directors resolved on a directed issue of 1,221,727 new shares (the "Directed Issue") to the external investor Philip Ohlsson (the "Guarantor"). Through the exercise of the TO4 series warrants, Minesto receives approximately SEK 17.1 million before issuance costs. Furthermore, the Board resolved on a set-off issue of 667,666 new shares to the Guarantor as payment for the guarantee compensation.

The Group in summary 1 January-31 March 2025

• Total operating income for the period amounted to SEK 6,298 thousand (6,791) and mainly consist of capitalised development work.

• Operating loss for the period amounted to SEK 10,697 thousand (-11,794). The negative result is largely attributable to business development and administration related to technology development. During the period, personnel costs of SEK 6,298 thousand (6,712) has been capitalised as development work.

• At the end of the period, the intangible assets amounted to SEK 553,664 thousand (508,537), of which capitalised development costs amounted to SEK 536,192 thousand (492,016), and capitalised patent expenses of SEK 17,471 thousand (16,520).

• Grants of SEK 246 thousand (439) were accounted for during the period, of which SEK 246 thousand (425) has reduced the acquisition value of the capitalised development costs.

• At the end of the period, cash flow amounted to SEK -24,317 thousand (-1,844). At the end of the period, cash and cash equivalents amounted to SEK 10,334 thousand (13,595).

• At the end of the period, equity amounted to SEK 557,716 thousand (511,171) divided into 194,116,040 shares (160,732,694), of which loss for the period amounted to SEK 10 843 thousand (-11,574).

The Interim Management Statement t is available to download at Minesto's website:

www.minesto.com/investor/investor-information

CEO comment:

Record public exposure and solid progress

We have had an intense first quarter in the Faroe Islands with work on service, upgrades and onshore testing in Vestmanna. This work has included improvements to marine operation processes and maintenance work on infrastructure.  We are looking forward to relaunch of the Dragon 12 and continued electricity production to grid. This is an obvious priority.

Business development work on our major next step - Hestfjord Phase 1 of 10MW - is moving forward with progress in important areas such as environmental permitting, verifications of site measurements and outlining of manufacturing set-up to deliver multiple kites.

Notably, the energy content in the tidal flows for Hestfjord in the Faroe Islands have proven to be higher than previously predicted with flow models. This is good news from a financial perspective, since the yearly production yield will be higher.

In close dialogue with key suppliers, we have also designed a set-up for manufacturing of the first batches of multiple large scale kites including supply chain logistics, system assembly and onshore testing. We have a unique ocean renewable technology in many aspects, whereof one is the ability to rely on serial production in a manufacturing process instead of "one-off" shipyard-based build.

Our external communication has reached new record levels that safely can only be described as unique for a tech development company like ours. The collaboration with our strategic partner SKF on a "Faroe Islands space program" (www.skf.com/group/fighting-friction/01) with millions of exposures is an ongoing success. Several more complementary activities will follow, such as exposure in multi-national TV documentary, and large European daily newspapers.

In addition, we have been invited and are actively involved in three different market development programs supported by the EU and the Swedish Energy Agency in markets such as Korea, Taiwan and Indonesia. We are also proudly taking part in the Nordic official business delegation to the world exhibition in Osaka 2025 and invited to IRENA (International Renewable Energy Association) energy innovation dialogues as well as tech conferences. These are important initiatives complementary to our main work to reach a commercial breakthrough in the Faroe Islands, and to secure a substantial sales growth trajectory following the first pioneering project.

Despite all the turmoil in the world, Minesto is relentlessly determined to offer our much needed and highly competitive renewable baseload energy technology at scale. More than ever, our unique technology is demanded by nations seeking energy independence and security, as well as a resilient system of renewable, affordable and dispatchable energy.

/Martin Edlund, CEO