Mr. Dan Sutton reports

SYNTHOLENE COMPLETES CONSTRUCTION OF ICELAND DEMONSTRATION FACILITY SIX MONTHS AHEAD OF SCHEDULE, COMMENCES OPERATIONS

Syntholene Energy Corp. has completed construction of its geothermal-integrated solid oxide electrolyzer cell (SOEC) demonstration facility in Husavik, Iceland, approximately six months ahead of the company's original development schedule and under budget.

"Completing a first-of-its-kind energy facility ahead of schedule and under budget is rare," stated Dan Sutton, chief executive officer of Syntholene. "Achievement of this milestone reflects the quality of our engineering team, project partners and execution discipline. Syntholene has now graduated from concept and prototyping into real-world operations. Over the next few months of effects testing, we seek to demonstrate practically that geothermally integrated SOEC hydrogen production can materially improve the economics of synthetic fuel."

The demonstration facility represents the first fully integrated field deployment of Syntholene's thermal-hybrid architecture and is expected to serve as the foundation for operational testing, systems validation and real-world performance data collection. The company expects effects testing and data gathering at the demonstration facility to commence shortly and continues to target publication of its initial efficiency and techno-economic results as early as Q4 2026.

Construction of the demonstration facility took just 69 days from announcement of permit issuance and involved the fabrication, delivery, installation and integration of critical systems. These systems included Syntholene's proprietary thermal coupling heat exchanger system, SOEC module, water treatment systems, instrumentation and controls, and balance-of-plant infrastructure.

Notably, fabrication of the company's thermal coupling heat exchanger system was completed in just 42 days. Factory acceptance and operational commissioning of the SOEC module were also completed substantially ahead of the company's original project schedule.

The demonstration facility has been designed to demonstrate potential cost and energy efficiencies of integrating geothermal heat with high-temperature electrolysis for the production of low-cost hydrogen, the principal feedstock required for synthetic fuel production. The company believes that this approach has the potential to significantly reduce required electricity consumption relative to conventional electrolysis pathways, by replacing a portion of the required electrical energy input with geothermal heat.

Testing at the demonstration facility is intended to validate continuous operational integration between geothermal heat infrastructure, SOEC hydrogen production, thermal energy recovery systems and supporting balance-of-plant equipment. Syntholene expects that data generated from the demonstration facility will be used to evaluate future engineering optimization, techno-economic analysis, commercial project development, strategic partnerships and project financing initiatives.

Mr. Sutton continued: "Syntholene's next objective is to generate operational data from this real geothermally integrated infrastructure, validating the impact of low-cost geothermal heat integration with high-temperature electrolysis. If successful, we believe this could represent a meaningful advancement toward cost-competitive synthetic aviation fuel."

About Syntholene Energy Corp.

Syntholene is actively commercializing its novel thermal hybrid production system for low-cost clean fuel synthesis. The target output is ultrapure synthetic jet fuel, which the company seeks to manufacture at 70 per cent lower cost than the nearest competing technology today. The company's mission is to deliver the world's first truly high-performance, low-cost and carbon-neutral synthetic fuel at an industrial scale, unlocking the potential to produce clean synthetic fuel at lower cost than fossil fuels, for the first time.

Syntholene is now operating the world's first geothermally integrated high-temperature electrolysis demonstration facility in Husavik, Iceland.

Founded by experienced operators across advanced energy infrastructure, nuclear technology, low-emissions steel refining, process engineering and capital markets, Syntholene aims to be the first team to deliver a scalable modular production platform for cost-competitive synthetic fuel, thus accelerating the commercialization of carbon-neutral e-fuels across global markets.

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