Half-yearly report H1 2025

This 2025 Half Year Report (the "Report") is produced by Pryme N.V. (the "Company" or "Pryme") and contains several forward-looking statements relating to the business, financial performance and results of

Pryme, its subsidiaries and/or the industry in which it operates. Forward-looking statements concern future

circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "forecasts", "anticipates", "targets", "will", "should", "may", "continue" and similar expressions.

Forward-looking statements include statements regarding objectives, goals, strategies, outlook and growth prospects; future plans, events or performance and potential for future growth; liquidity, capital resources and capital expenditures; profit; margin, return on capital, cost or dividend targets; economic outlook and industry trends; developments of the Company's markets; the impact of regulatory initiatives; and the strength of the Company's competitors.

The forward-looking statements contained in this Report, including assumptions, opinions and views of the Company, are based upon various assumptions, including without limitation, management's examination of historical operating trends, data contained in the Company's records and other data available from third party sources. Although the Company believes that these assumptions were reasonable when made, the statements provided in this Report are solely opinions and forecasts that are uncertain and subject to risks, contingencies and other important factors which are difficult or impossible to predict and are beyond its control.

A number of factors can cause actual results to differ significantly from any anticipated development expressed or implied in this Report. No representation is made that any of these forward-looking statements or forecasts will come to pass or that any forecast result will be achieved and you are cautioned not to place any undue reliance on any forward-looking statement. The information obtained from third parties has been

accurately reproduced and, as far as the Company is aware and able to ascertain from the information

published by that third party, no facts have been omitted that would render the reproduced information to be inaccurate or misleading.

Dear Shareholders and Stakeholders,

As we close the first half of 2025, I am pleased to share an update on our progress, challenges, and focus for the remainder of the year.

The first six months were marked by both setbacks and forward steps. Two incidents involving localized loss of containment on the reactor - first in January, then in April - led to extended downtime. In both cases, flames were quickly extinguished without injury or significant material damage, and we have since implemented

technical and procedural improvements to prevent recurrence.

Despite these interruptions, we resumed operations in March and again in June, producing 313 tons of

pyrolysis oil in total. April inspections showed a noticeable reduction in equipment fouling following recent process adjustments. June production exceeded expectations, with improved yield and oil quality, and an

encouraging signal of process stability.

Beyond production, we installed and commissioned odor-control systems, validated a higher-quality

feedstock, and renewed our ISCC PLUS certification. We also launched a cybersecurity awareness program and initiated regulatory steps toward co-registration of our oil on another existing REACH product.

In Q3, we will prioritize conducting optimization tests and addressing key bottlenecks - particularly the

reactor's reaction rate, which may require a short production stop for upgrades or inspections. At the same time, we will continue improving reliability, oil quality, and feedstock flexibility.

While challenges remain, we are entering the second half with greater insight, stronger systems, and growing confidence. Thank you for your continued trust as we build Pryme into a key player in the circular economy.

Sincerely,

Benoît Morelle CEO

• Safety Performance: No Lost Time Injuries (LTIs) or First Aid Injuries (FAIs) were recorded during the first half year. The most significant incidents involved two loss-of-containment (LoC) events on the

  reactor in January and April. Both briefly caused a flame, which was promptly extinguished.

• Production Volume: Pryme produced 313 tons of pyrolysis oil in the first half of 2025, of which 159 tons in Q2. Q2 volumes picked up but remained somewhat shy of the revised expectations for production of up to 250 tons of pyrolysis oil communicated in the Q1 2025 report. Pryme One update Production

  During the first half of 2025, Pryme focused on validating the plant's revised capacity estimate of 16,700 tons per year. Efforts were concentrated on improving plant reliability, increasing production efficiency, and

  enhancing the quality of pyrolysis oil. Although both Q1 and Q2 were affected by leaks that led to extended downtime, the operational activity yielded valuable insights. Further testing, optimization, and

  debottlenecking are still required.

  Following a reactor leak in early January, production was paused for repairs, delaying the testing plan.

  Operations resumed on March 11, resulting in the production of 154 tons of oil before another temporary

  shutdown due to vibrations. Despite limited runtime, progress was made on the commissioning of a second

  extruder and adjustments to reactor temperature and feed strategy, laying the groundwork for more productive runs in Q2.

  In Q2, inspections of the reactor confirmed that the vibrations were not caused by major mechanical damage. Routine inspections and cleaning of other key process equipment revealed reduced fouling in several areas -an encouraging result linked to recent changes in operating parameters and equipment. Odor-control systems were also installed to reduce emissions, reinforcing Pryme's environmental commitment.

  Production resumed on April 28 but was interrupted the following day - after 10 tons of pyrolysis oil were produced - due to a localized loss of containment near the reactor's discharge valve, which ignited. The flame

  was quickly extinguished without injury or significant damage. A thorough root cause analysis was carried out in collaboration with the reactor manufacturer. Mitigation measures - including equipment modifications and procedural improvements - were implemented to prevent recurrence.

  Production resumed on June 18, with 149 tons of pyrolysis oil produced by the end of the month. Preliminary results from this two-week run were positive: no recurrence of the discharge valve issue was observed, yields exceeded business plan hypotheses, and initial oil samples showed marked improvements in quality.

  Efforts to determine the plant's true capacity advanced during Q2, with several optimisation tests successfully completed, leading to measurable gains in productivity. However, some critical tests - such as those involving higher reactor fill levels - have yet to be conducted. As a result, a degree of uncertainty around the plant's

  actual capacity remains.

  In Q3, Pryme will prioritize reducing this uncertainty by conducting further optimization tests and evaluating technical solutions to debottleneck the reactor.

  In parallel, focus will remain on improving reactor sealing systems to enhance reliability, confirming yield performance at higher production volumes and with new feedstock types, and commissioning process changes aimed at further enhancing oil quality.

  Sales

  Most of the oil volumes produced before June 2025 - approximately 275 tons - were sold and delivered during Q2 at an average price of € 1,050 per ton. For future deliveries, sales prices are expected to rise significantly, reflecting the improved quality of the oil. Additionally, higher production volumes should enable more frequent sales.

  Feedstock supply and safety stock

  Pryme aims to source mixed plastic waste - primarily composed of polyethylene (PE) and polypropylene (PP)

  - from a diverse range of suppliers. In Q2, a new feedstock was successfully tested and will continue to be used in Q3. Concurrently, Pryme will diversify its feedstock sources to evaluate the impact on yield and oil quality, strengthen supply resilience, and reduce procurement costs.

  Other notables and further descriptions of activities and accomplishments for the reporting period:

• Sales Contract Update

  As disclosed in prior updates, Pryme is actively renegotiating elements of its primary sales contract.

  Discussions focus on pricing and product specifications, reflecting the current higher market prices and the financial implications of revised capacity expectations. These negotiations progressed well during the first half year but have not yet been finalized.

• Funding and issuance of shares

  In February and May 2025 Pryme completed the issue of new shares in the private placements of 16 December 2024 and 10 April 2025, at gross proceeds of € 4 million and € 7 million respectively.

  The private placement of 16 December 2024 with gross proceeds of € 4 million for 26,936,041 new shares issued on 4 February 2025 was made at the subscription price of NOK 1.7340 per share (equalling € 0.1485), a premium of 17% over the closing price on 16 December 2024.

  On 3 March 2025, Pryme consolidated its shares: each ten (10) old shares gave one (1) new share. The share consolidation took effect after the end of trading on Euronext Growth Oslo on 3 March 2025 and before

  commencement of trading on 4 March 2025.

  The private placement of 10 April 2025 with gross proceeds of € 7 million for 5,655,652 new shares issued on 14 May 2025 was made at the subscription price of NOK 15.00 per share (equalling € 1.2377), lower than the market price on 10 April 2025. To offer shareholders the opportunity to acquire shares at the same terms as the subscribers to the private placement of 10 April 2025, at a subscription price of NOK 15.00 per share, Pryme launched a subsequent offering for up to 1,233,208 new shares on 30 May 2025 for a subscription period that ended on 17 June 2025. Pryme received subscriptions for 417,399 shares at the subscription price of NOK

  15.00. Gross proceeds of the subsequent offering amount to approximately € 530 thousand. The 417,399 new shares were issued on 26 June 2025.

  The issuance of shares in fulfilment of the private placements of December 2024 and May 2025, and in the fulfilment of the subsequent offering in June 2025, have brought the total number of issued shares to 14,883,495 at the end of the reporting period of 30 June 2025.

  As part of the private placement of 16 December 2024, Pryme granted 40,404,062 options to the subscribers to acquire up to 40,404,062 shares in the Company at a price of € 0.1485 per share (investor call options), and to accept up to 40,404,062 put options affording the Company the right to sell up to 40,404,062 shares to the subscribers in the private placement of 16 December 2024 at a price of € 0.1485 per share, subject to

  conditions to be met (company put options). Pursuant to the 10-for-1 share consolidation on 4 March 2025, the maximum number of investor call options and company put options was adjusted by a factor 10 to 4,040,406 and the exercise price was adjusted by a factor 10 to € 1.485. As the Company did not meet the

  operational milestones for the company put options, the put options have not been exercised and expired on 30 June 2025. The investor call options issued in conjunction with the 16 December 2024 private placement have not been exercised by the private placement investors and thus have also expired. Consequently, there are no

  outstanding options related to the 16 December 2024 private placement, as Pryme published on 1 July 2025.

• IMPACT/ ESG

Pryme operates in a hazardous petrochemical environment where safety remains a top priority. During the first half of the year, there were no Lost Time Injuries (LTIs) or First Aid Injuries (FAIs). However, two significant incidents involving a loss of containment (LoC) on the reactor did occur, both resulting in a flame that was swiftly extinguished without further consequences. The first incident occurred in January and was resolved by