1414 Degrees Raises Capital by Issuing 41.9 Million Shares Under Section 708A to Boost Clean Energy Growth

Overview of 1414 Degrees’ Silicon-Based Energy Storage Technology and Market Position

1414 Degrees Limited operates a diversified clean-energy and industrial decarbonisation platform focused on silicon-based technologies and materials engineering. Its proprietary platforms include SiBrick® (silicon-based thermal energy storage media), SiBox® (industrial heat-as-a-service long-duration energy storage), SiPHyR® (silicon-based methane pyrolysis reactor for low-emissions hydrogen production), and SiNTL™ (silicon-enhanced anode material to boost lithium-ion battery energy density). These technologies utilize a unified silicon materials platform to store, convert, and enhance energy across grid-scale storage, industrial heat, hydrogen production, and advanced battery materials sectors.

The company’s strategy balances near-term infrastructure revenue with scalable technology commercialization, delivering cash-generative projects while advancing proprietary solutions for industrial decarbonisation. This integrated silicon systems approach differentiates 1414 Degrees from competitors that typically focus on single-domain energy storage or hydrogen technologies.

Aurora Energy Precinct and Stage 1 Battery Energy Storage System Expansion

1414 Degrees owns and is developing the Aurora Energy Precinct, a 16 square kilometre energy and industrial site within the Upper Spencer Gulf Renewable Energy Zone in South Australia. The precinct is development-ready, with secured grid access, approved development permits, and proximity to fibre infrastructure enabling global connectivity. It is designed to meet firmed renewable electricity demands and accommodate co-located high-demand users such as data centres and energy-intensive industries requiring reliable, low-emissions power.

The initial Stage 1 development features a 140 MW / 280 MWh Battery Energy Storage System (BESS), representing a near-term revenue opportunity. Expansion potential aligns with customer demand, offering a scalable infrastructure pathway to meet growing grid and industrial energy storage needs in South Australia. The site’s location within a designated renewable energy zone and existing grid infrastructure enhances connection reliability and operational stability, critical for attracting industrial customers.

Share Issuance Under Section 708A Relief and Regulatory Compliance

On 28 July 2026, 1414 Degrees issued 41,900,375 fully paid ordinary shares under Section 708A(5)(e) of the Corporations Act 2001 (Cth), exempting the company from preparing a disclosure document under Part 6D.2. This regulatory pathway permits share issuance without a prospectus or product disclosure statement if continuous disclosure and financial reporting obligations are met. The company filed the required Appendix 2A notice with the ASX concurrently with the announcement.

1414 Degrees confirmed compliance with Chapter 2M, sections 674 and 674A of the Corporations Act, which govern continuous disclosure and substantial shareholder notifications. The company also stated no excluded information exists as defined in sections 708A(7) and 708A(8), fulfilling the requirements under Section 708A(11). These confirmations provide shareholders assurance that the share placement was conducted within the legal framework protecting investors.

Capital Management Strategy in the Energy Technology Sector

This share placement acts as a capital management mechanism supporting 1414 Degrees’ technology commercialization and infrastructure development across its clean-energy platform. Although the announcement does not specify capital allocation or share pricing, the timing and size suggest funding for operational needs, technology advancement, or precinct infrastructure. Capital raises via placements are common in the energy storage and industrial decarbonisation sectors to finance pilot projects, demonstration facilities, manufacturing scale-up, or grid-scale infrastructure.

Utilizing Section 708A relief instead of a fully underwritten public offering indicates reliance on existing investor relationships or institutional participation. The share issuance was authorized by Executive Chairman Dr Kevin Moriarty and the Board, ensuring governance compliance with ASX listing rules for material capital transactions.

Industrial Decarbonisation and SiBox® Commercial Deployment

1414 Degrees’ SiBox® technology targets industrial decarbonisation by converting low-cost renewable electricity into dispatchable high-temperature heat via long-duration energy storage. Industrial heat contributes significantly to global emissions, especially in sectors like chemicals, minerals processing, refining, and food production. SiBox® delivers dispatchable thermal energy enabling industrial operators to reduce emissions while maintaining operational flexibility and reliability.

Its capability to provide high-temperature heat above 150°C meets industrial process requirements that cannot be easily electrified, offering a competitive advantage over simple battery storage. The technology’s commercial deployment spans multiple energy-intensive sectors facing regulatory and sustainability pressures.

SiPHyR® Methane Pyrolysis Technology and Green Hydrogen Market Potential

1414 Degrees developed SiPHyR®, a silicon-based methane pyrolysis reactor integrating thermal storage to produce low-emissions hydrogen and solid carbon using renewable energy. Methane pyrolysis offers an alternative to steam methane reforming by generating solid carbon instead of CO2 and leveraging existing natural gas infrastructure. Thermal storage integration enables flexible hydrogen production aligned with demand rather than continuous renewable supply.

The expanding green hydrogen market, driven by industrial users, refineries, chemical manufacturers, and fuel cell applications, presents significant opportunity. Government hydrogen strategies and corporate net-zero goals support technologies producing competitively priced renewable hydrogen. SiPHyR® positions 1414 Degrees to serve industrial hydrogen supply, energy carrier needs, and emerging hydrogen export markets.

SiNTL™ Advanced Battery Materials Enhancing Energy Density

1414 Degrees’ SiNTL™ is a silicon-enhanced anode material designed to boost lithium-ion battery energy density while maintaining compatibility with existing manufacturing processes. Silicon anodes offer higher theoretical energy density than graphite, addressing growing demand in electric vehicles, grid storage, and portable electronics. SiNTL™’s compatibility reduces barriers compared to novel anode chemistries requiring manufacturing changes.

With sustained lithium-ion battery demand driven by EV adoption and energy storage deployment, SiNTL™ represents valuable intellectual property. The company’s dual role as a battery materials developer and grid-scale battery system operator at Aurora Energy Precinct creates synergies for internal use and external licensing or supply partnerships.

Strategic Location in Upper Spencer Gulf Renewable Energy Zone with Grid Access

The Aurora Energy Precinct’s location within South Australia’s Upper Spencer Gulf Renewable Energy Zone offers strategic benefits for energy infrastructure. The zone’s government designation supports renewable projects, with secured grid access and development approvals minimizing execution risks. Proximity to fibre infrastructure enables global connectivity, attracting data centres and energy-intensive industries.

South Australia’s electricity market features high renewable penetration, variable generation, and increasing industrial energy demand, creating favorable conditions for battery storage and industrial heat solutions. These locational advantages position Aurora to attract anchor tenants seeking reliable, low-emissions power within a supportive regulatory environment.

Integrated Silicon Materials Platform Driving Cross-Sector Technology Synergies

1414 Degrees’ technology portfolio unifies SiBrick®, SiBox®, SiPHyR®, and SiNTL™ around a single silicon-based materials platform. This approach fosters synergies in R&D, manufacturing, supply chains, and customer relationships, enabling cross-sector deployments. Unlike competitors with siloed technologies, 1414 Degrees leverages silicon’s availability, cost, thermal properties, and materials science maturity for large-scale deployment advantages.

The company’s expertise in energy-dense silicon systems supports operational margin improvements and competitive differentiation as commercialisation scales across multiple sectors.

Forward-Looking Statements and Sector Risks

1414 Degrees’ update includes forward-looking statements subject to risks and uncertainties that may cause actual outcomes to differ materially. The company acknowledges factors beyond management control inherent in technology commercialization, infrastructure development, and clean-energy markets. It disclaims any obligation to update these statements post-announcement, consistent with ASX disclosure practices.

Key risks include technology commercialization challenges, grid infrastructure and regulatory changes, market adoption competition, capital intensity of infrastructure projects, competition from established energy firms, and reliance on renewable energy availability and favorable electricity market conditions. These factors may impact the company’s long-term value creation.