Circa Group AS

Regulatory Filings • Oct 14, 2021

circa Group AS - Update on Resolute Project

circa Group AS - Update on Resolute Project

Oslo, 14th October 2021

Update on ReSolute project

Reference is made to the second quarter press release dated 26 August 2021 on Euronext Growth Oslo

(Ticker: CIRCA) where the company informed that an update on the Resolute project costings would be

made in advance of 3rd quarter financial reporting. The company is in a process to review cost budget

implications on the ReSolute project following output from the basic engineering study and ongoing

discussions regarding key equipment suppliers. These processes have not been concluded, but the

company has deemed it prudent to update the market on current findings which will require an material

increase in the budget for construction (Capex) and some operating costs (Opex) in 2022 and H1 2023 of

the ReSolute commercial demonstration plant in Northern France.

As foreshadowed in the Q2 presentation there has been considerable disruption due to covid impacts on

supply chains which have led, in some cases to unprecedented cost increases. The company’s current

estimate is that the ReSolute project costs overall will increase from earlier estimates of €32m to an

estimated range of EUR 50-55 million which is subject to the continuing cost mitigation project work. In

addition, among other due to the need for further plant design optimization work to enable cost

reductions, the commissioning of the ReSolute plant is expected to be delayed by 6 months into Q3 2023.

The above updated estimates for the ReSolute project are largely a result of output from the basic

engineering work by Wood plc and revised estimates received from suppliers of equipment. Both have

been materially impacted by recent global increases in raw material costs, transportation costs, energy

supply and general upwards pressure on civil construction costs.

The ReSolute plant is an initial commercial operation showcasing Circa’s proprietary technology and

Furacell™ process. It is our aim to use this opportunity, along with FC5 operations in Tasmania, to continue

to optimise the technology to gain efficiencies and scale future plants more quickly. The key objectives are

to retain revenue levels, margins and timelines for large scale plants according to previously communicated

plans.

The company is well-funded following the approximately EUR 52 million capital raising in March 2021,

and the company’s projections indicate a long financial runway. The company will continue to work to

optimise the Resolute plant, while exploring grant and vendor financing opportunities to ensure that the

ReSolute project remains well capitalised.

“We are putting all efforts into cost mitigation work with additional resources being brought in with our

consultants Technip Energies. I also wish to highlight that there is strong and increasing market interest in

Cyrene and other LGO-based biochemicals, and their commercial potential remains tremendous”, says

Tony Duncan, CEO of Circa Group.

A 30 min Q&A with Circa Group AS CEO - Tony Duncan - is arranged for 08.30CET, please copy and paste the attached link to your browser to attend the meeting https://teams.microsoft.com/l/meetup-join/19%3ameeting_NDQxZmVhZGUtMzBjNC00YTIzLWEwZjItN2Q5ZjI0NmQ3MmY3%40thread.v2/0?context=%7b%22Tid%22%3a%227fe83212-6533-49bf-96c7-1c50525cb252%22%2c%22Oid%22%3a%22f67bd991-335f-4ec8-84cc-fb1277f5d110%22%7d

About Circa

Established in 2006, Circa Group converts waste, non-food biomass into advanced bio-based chemicals

with its proprietary Furacell™ process. Its developing product portfolio includes flavours, biopolymers, and

bio-solvents including Cyrene™, an alternative to traditional polar aprotic solvents, which is produced in

one step from platform biomolecule Levoglucosenone. By creating novel and replacement chemicals from

renewable feedstocks, Circa is both extracting value from non-food, waste biomass, and addressing

growing market demands for bio-based alternatives that are driving a more sustainable economy.

www.circa-group.com

Investor and Market Contact

Ms Tone Leivestad

Chief Financial Officer

Tone.leivestad@circa-group.com