BUSINESS SUMMARY

Each of the Company’s key projects in the marine, upstream and industrial sectors continue to progress with further milestones expected to be passed in Q2 and the second half of 2023. Quadrise’s strategy remains to focus on these key projects, as detailed below, which provide the fastest and most material pathways to commercialisation. The Company still expects to deliver commercial revenues in the current financial year, although further funds will be required to see every key project through to commercialisation.

MSC

· In July, Quadrise signed a Framework Agreement with MSC Shipmanagement Limited of Cyprus (“MSC”) with a view to the commercial supply of one or both of the Company’s fuels to MSC’s global fleet.

· Discussions with feedstock suppliers continue, with the aim of securing a Tripartite Agreement between the supplier, MSC and Quadrise as soon as possible in order to commence Proof-of-Concept and Letter of No Objection trials.

· The MSC Leandra to is scheduled to dry-dock in Q2 2023 in readiness for testing in H2 2023.

· Testing of the optical combustion properties and engine wear of bioMSAR™ in December was completed by Wärtsilä Services Switzerland (“Wärtsilä”). Based on this testing, Wärtsilä recommended a further hazard identification and operability study (“HAZOP”) to assess feasibility and safe operability prior to use on a Wärtsilä 2-stroke engine.

Morocco

· Logistical challenges relating to Moroccan customs have now been overcome with both of the Company’s fuels and the trial equipment now on the client’s site.

· The Company has completed the site engineering set up and is concluding scheduling discussions with the client linked to its site production programme, with the trial now expected to commence in April 2023 and results being available shortly thereafter.

· The Company then expects to enter discussions to conclude a commercial Fuel Supply Agreement as planned, in addition to concluding agreements for testing at other client sites as required.

Utah

· Commercial discussions between Quadrise and Valkor for the supply of a license and manufacturing unit to enable Valkor to produce MSAR® and bioMSAR™ are expected to conclude shortly.

· Valkor expects drilling permits at Asphalt Ridge to be awarded in Q2 2023, with low carbon intensity, low sulphur heavy oil to be extracted and available for conversion to MSAR® and bioMSAR™ for trials during H2 2023.

· Following successful results, these trials would then be expected to lead to commercial supply of MSAR® or bioMSAR™, subject to discussions with stakeholders to finalise agreements.

Americas

· Quadrise has recently signed a Letter of Intent with a central American power provider outlining plans for a commercial test of MSAR® and bioMSAR™ at the provider’s power plant. Discussions are ongoing and the Company expects a Test Agreement to be finalised during Q2 2023 ahead of a site trial followed by entry into a Fuel Supply Agreement upon success.

· Discussions with a large refinery in the Caribbean continue to progress, subject to them obtaining an operating license.

· Efforts continue to progress activities in Mexico with the state oil company and utility operators.

bioMSAR™ & Nouryon

· In September 2022, Quadrise announced the entry of a Joint Development Agreement with Vertoro BV (“Vertoro”) to investigate the use of their crude sugar oils (CSO™) as an alternative biofuel feedstock for bioMSAR™.

· In November 2022, Quadrise announced the extension of the Exclusive Global Collaboration and Emulsifiers Sales Agreement with Nouryon for the exclusive supply of goods, services, and IP for future MSAR® and bioMSAR™ projects.

Source: Quadrise