Electromagnetic Geoservices ASA

AGM Information • Jan 2, 2026

EMGS: Going Concern & Capital Structure

EMGS: Going Concern & Capital Structure

Reference is made to the stock exchange announcement published by

Electromagnetic Geoservices ASA's (the "Company" or "EMGS") on 5 November 2025

and to the Company's interim financial report for the third quarter of 2025. As

announced, EMGS expects to require additional funding within the near term to

sustain operations, and the Company is evaluating several alternatives to

preserve value for its stakeholders, including restructuring options.

The Company has retained an external advisory firm to support in the ongoing

evaluation of all available options to preserve and maximise value for its

shareholders and other stakeholders.

The Company has interest-bearing debt of USD 19.5 million outstanding under the

convertible bond issue Elec ASA 18/25 FRN USD FLOOR STEP C CONV ("EMGS03").

Based on current activity levels and the Company's outlook, the existing capital

structure is not considered sustainable.

One of the potential options the Company is therefore evaluating, is a partial

or complete conversion of the convertible bonds under EMGS03 into new equity in

the Company. It is expected that any such conversion, if implemented, would be

carried out at or below the current market price of the Company's shares. A full

conversion at or below the current trading price for the Company's shares would

result in significant dilution for existing shareholders.

The Company continues to assess all available strategic and financial

alternatives. Should EMGS elect to pursue a full conversion of the EMGS03 Bonds,

there can be no assurance that the Company will be able to obtain the requisite

consent from a sufficient majority of bondholders to pass the bondholders'

resolution(s) required to effect such conversion. Furthermore, even if a

conversion is successfully completed, there can be no assurance that this alone

will be sufficient to establish a financially sustainable long-term solution for

the Company.

Further updates will be provided as appropriate.

Contact

Anders Eimstad, Chief Financial Officer, +47 948 25 836

This information is published in accordance with the Norwegian Securities

Trading Act § 5-12.

About EMGS

EMGS, the marine EM market leader, uses its proprietary electromagnetic (EM)

technology to support oil and gas companies in their search for offshore

hydrocarbons. EMGS supports each stage in the workflow, from survey design and

data acquisition to processing and interpretation. The Company's services enable

the integration of EM data with seismic and other geophysical and geological

information to give explorationists a clearer and more complete understanding of

the subsurface. This improves exploration efficiency and reduces risks and the

finding costs per barrel. CSEM technology can also be used to detect the

presence of marine mineral deposits (primarily Seabed Massive Sulphides) and in

other offshore construction and exploration activity.