Karlsruhe, May 27th 2025. Vulcan Energy is pleased to announce that Vercana, its 100%-owned drilling subsidiary, commenced drilling the first new well for the Phase One Lionheart Project at the Schleidberg site near Landau, Germany. This marks the start of the first phase of the “Lionheart” project, part of Vulcan’s combined project to produce climate-neutral lithium and renewable heat and energy from deep geothermal energy in the Upper Rhine Graben. The first phase of the project involves the construction of five new drilling sites with up to 24 additional production and reinjection wells. In combination with the four existing wells at the company’s two geothermal plants in Landau and Insheim, this will create larger, integrated renewable energy and sustainable lithium project. The goal of the first phase of the Lionheart project is to produce 24,000 tons of lithium hydroxide monohydrate per year for the European automotive and battery industries and to provide climate-neutral heat for the region. With the first new well, Vulcan is taking a decisive step toward increasing geothermal heat and energy production, while also laying the foundation for future commercial lithium production. Marco Köpsel, Managing Director of drilling company Vercana, says: “With the successful commissioning of the V20 electric drilling rig and the start of drilling operations, we have taken an important step closer to our goal of future lithium production and the utilization of deep geothermal energy. The crew on site is very proud of this contribution to the region.“ Thorsten Weimann, Managing Director of Vulcan Energie Ressourcen GmbH, says: ”With the new well, Vulcan is expanding its geothermal capacity and thus the possibility of supplying heat to the city of Landau and the region. Our team has carried out all the preparatory work with great care, obtained the necessary permits from the authorities, and successfully completed all safety tests. The local population and interest groups were involved in the entire project development at an early stage, and the feedback received was consistently positive. This development brings us a significant step closer to our goal: a reliable, base-load-capable supply of renewable heat and the establishment of a sustainable, European lithium value chain for the production of batteries for electric vehicles.”

Climate-friendly district heating from geothermal energy is flowing again in Landau: Vulcan’s geothermal heating plant resumed supplying heat to EnergieSüdwest (ESW) on Monday morning, April 28. To start with, the plant is supplying up to two megawatts of heat depending on demand – enough to supply households in the south of Landau with renewable energy. With the gradual expansion of capacity, the district heating network should be operated almost climate-neutrally by 2026/27. From 2027, there are also plans to connect parts of the city center to the network. Until now, the area has mainly been heated with gas – the switch to geothermal energy will significantly reduce CO₂ emissions. Landau’s Lord Mayor Dominik Geißler spoke of an important step in the municipal heating transition: “The fact that heat is flowing from the depths again is a strong signal for our energy future.” Mayor Lukas Hartmann also emphasized the importance of local, CO₂-neutral solutions. As part of the HEAT4LANDAU project, which is being funded by the federal government with up to 100 million euros, Vulcan is planning to build further drilling sites around Landau. In addition, the thermal water will also be used for lithium extraction in the future – a contribution to regional value creation and the European battery industry.

Following last year’s huge success, the Natürlich Insheim geothermal power plant is once again opening its doors to interested visitors. Insheim – On Saturday, May 17, Vulcan Energie Ressourcen GmbH and its partners are once again inviting visitors to an open house at the Natürlich Insheim geothermal power plant. From 11 a.m. to 4 p.m., guests can expect an exciting and informative program on topics related to heat and electricity generation from deep geothermal energy and green lithium extraction. Last year, more than 200 interested visitors took the opportunity to take a look behind the scenes of the plant and learn first-hand about the climate-neutral project of the Karlsruhe-based company. This year, Vulcan experts will once again be on hand to answer questions and give guided tours providing insights into the technical functioning of the geothermal power plant and the climate-friendly extraction of lithium from deep thermal water. They will also provide information on the current status of the Schleidberg drilling site in Insheim, where the modern V20 drilling rig has already been set up and drilling is about to begin – a significant step toward a sustainable energy future for the region. In addition to the experts from Vulcan, representatives from EnergieSüdwest (ESW) and Thüga Energie will also be on site to provide information about the planned climate-neutral district heating supply in the region. Refreshments will of course be available: The Insheim rural youth association will welcome guests with food and drinks in an inviting atmosphere. The archers of ESV Landau will provide sporting entertainment, giving visitors the opportunity to try their hand at archery under expert guidance. Admission is free and registration is not required. For more information, visit: www.natuerlich-pfalz.de

David, you manage the Schleidberg drilling site – can you briefly introduce yourself? David Morgner: I am 37 years old, I was born and grew up in Delmenhorst in Lower Saxony, near the Hanseatic city of Bremen. I started my career in 2008 in the natural gas and oil industry, where I also completed my training as a mechatronics engineer at ExxonMobil until 2011. I then switched to workover drilling operations, where I trained until 2012. My original plan was to work as a mechatronics technician after my A-levels and then study petroleum engineering. But then the company offered me an alternative route to becoming a drilling supervisor, which really appealed to me. I already had my first insights into drilling operations during my apprenticeship, and ExxonMobil was looking for junior staff at the time. So I started the drilling master school in Celle in 2012 and graduated as a technician in 2014. Between 2020 and 2022, I worked in drilling operations on the Sakhalin Peninsula in Russia, both onshore and offshore. I finally joined Vercana in July 2024. Did you like digging and drilling in the sandpit as a child? David Morgner: As a child, I didn’t have any particular drilling ambitions, although I come from a mining family. My grandfather lived in Castrop-Rauxel and was the manager of a coal mine, while my father worked underground as an electrician – an almost traditional line of work in the Ruhr area (laughs). However, my father later decided to take a different path and studied electrical engineering. So although I come from a mining family, I chose my own path and didn’t allow myself to be influenced by my father’s or grandfather’s professions. Everything I’ve achieved, I’ve worked for myself. You said that you actually come from the natural gas and oil industry. What fascinates you personally about geothermal energy and why did you decide to switch to this field? David Morgner: The project at Vulcan is extremely exciting and fits perfectly into today’s world, especially with the use of deep geothermal energy to generate heat for entire neighborhoods and industry. The combination with lithium extraction is particularly interesting. The Lionheart project, which comprises several drilling sites, is a unique part of a field development – I have never experienced anything like it in my career. Technically, there is little difference between drilling natural gas or oil wells and drilling a geothermal well. The biggest difference is that geothermal wells are deliberately drilled into geological fault zones, as these offer high flow rates and flow velocities. Such zones are avoided in natural gas and oil drilling. Overall, the project is very exciting and I hope to be able to develop personally through the challenges. Explain in simple terms how a borehole is constructed. David Morgner: Wells have a telescopic structure. The largest diameters start at the top of the well. We start with 26 inches. This corresponds to around 66 centimeters. Then we continue with a 17.5 inch section. Then we go to 12 ¼ inches and end at 8.5 inches in the reservoir area. This is the area where the well reaches the geological layers in which the geothermal energy is stored. The telescopic design makes technical sense as the highest pressures occur at the bottom, which leads to higher flow rates. In order not to lose this flow energy on the way up, the wells have the smallest diameter at the bottom. Another advantage of the telescopic structure is the stability of the well, so that it does not collapse and there are several barriers to the earth’s surface. What safety measures do you take when drilling to protect the environment? David Morgner: A drilling rig is a complex system with two main safety features: primary and secondary wellbore protection. The primary backup uses the drilling fluid to create a hydrostatic back pressure that stabilizes the borehole and prevents it from collapsing. Secondary protection is provided by a blowout preventer (BOP), which closes the borehole when the pressure rises, thus preventing uncontrolled gas or liquid leaks. To secure the groundwater-bearing layers, we use a standpipe tour down to a depth of 150 meters. Our first pipe run has a diameter of 20 inches. It is also known as an anchor pipe. The so-called wellhead is installed on it, which is crucial for securing the well during the drilling and production phase. You have a lot of responsibility. What do you like about your job as a drilling supervisor? David Morgner: The daily challenges are what make the job so exciting. There is no fixed routine because the borehole dictates the tasks. Of course, you can optimize the planning with the right data and comparative drilling, but even with the best preparation there are always unexpected challenges. This is exactly what makes the work so varied and interesting. You are constantly challenged both physically and mentally. That’s what makes this job truly unique. How important is teamwork in your job? David Morgner: Teamwork is crucial – you can’t do it without it. You work closely with fluid engineers, wellsite engineers, tool pushers, drillers and other experts. Everyone is an important part of the big picture, like a cog in a clockwork mechanism. If one component fails, everything comes to a standstill. That’s why teamwork is essential. It’s not just about the head driller, it’s about the whole team working well. Apart from working at the drilling site, would you like to tell us what you do in your free time to relax and recharge your batteries? David Morgner: “I’ve been an absolute mountain fan since I was a child. Although I originally come from the flatlands, I learned to ski at the age of three – I’m very proud of that (laughs). Today I live in the beautiful mountains and enjoy nature to the fullest. In winter I’m often on the ski slopes, in summer I like mountain biking and even take part in races. I also spend a lot of time in nature and enjoy hiking. Thank you very much for taking the time to talk to us!

Vulcan is pleased to announce that the first project phase “Lionheart” for the combined production of climate-neutral lithium and renewable energy has been classified by the European Commission as a “Strategic Project” under the Critical Raw Materials Act (CRMA). The European Critical Raw Materials Act came into force in May 2024 and aims to secure a sustainable supply chain for critical raw materials, including lithium, in Europe. It sets clear targets for increasing domestic capacity to build strategic raw material supply chains, improving access to finance and ensuring compliance with the highest social and environmental standards. Under this regulation, projects that can increase the EU’s capacity to extract, process and recycle strategic raw materials and diversify the EU’s supply of raw materials from third countries are declared “strategic projects”. By obtaining Strategic Project status, Vulcan’s Lionheart project is recognized as contributing to the achievement of these objectives. Strategic Project status under the Critical Raw Materials Act will assist Vulcan in the continued implementation of the Lionheart project. For example, a meeting of the CRMA funding sub-group may be requested to discuss solutions and advice on finalizing Vulcan’s project funding, taking into account private and public funding sources. This sub-group includes well-known national promotional banks, the EIB, the EBRD and private financial institutions. The status also ensures that regional and national authorities can provide financial resources from the European Development Fund and the Cohesion Fund to support the Lionheart project. As part of the application phase for Strategic Project status, 170 applications were submitted to the European Commission. Each application was reviewed by at least four external experts selected by the Commission, whose combined expertise covers the areas of technology, finance, environmental and social standards (ESG) and the international classification of raw material deposits (UNFC). Of the applications received, 47 projects were awarded strategic project status. Vulcan is aiming to produce 24,000 tons of lithium hydroxide monohydrate annually for the European automotive and battery industry with the first project phase Lionheart. In addition, renewable energy will be generated from deep geothermal energy, which will be made available to the surrounding communities in the project region in the form of green electricity or heat. This innovative, combined approach from Europe, for Europe formed the basis for Vulcan’s application for Strategic Project status under the Critical Raw Materials Act. Cris Moreno, Managing Director and CEO of Vulcan Energy, comments: “Receiving Strategic Project status from the European Commission underlines the importance of our project to the European industry and further drives the establishment of the first fully domestically produced and sustainable lithium value chain in Europe. The Critical Raw Materials Act plays a crucial role in driving change in Europe and emphasizes the importance of domestic and sustainable extraction of raw materials. With access to Europe’s largest lithium resource in the Upper Rhine Graben, Vulcan’s project is strategically positioned to support the objectives of the Critical Raw Materials Act and diversify the EU’s lithium supply from third countries.”

At the end of January, German Chancellor Olaf Scholz, accompanied by Rhineland-Palatinate Minister President Alexander Schweitzer, visited our Landau lithium extraction plant and the adjacent geothermal power plant, which we acquired from the IKAV Group in November 2024. He was informed about our CO2-neutral process for extracting energy and lithium from the thermal water of the Upper Rhine Graben. Scholz emphasized the importance of such projects for the green energy transition and independence from raw material imports. He particularly emphasized Germany’s great potential in geothermal energy and lithium extraction, which is of crucial importance for the future of the country and Europe. “What we are seeing here is a good message for the future of Germany and Europe,” he said, expressing his enthusiasm for the potential of geothermal energy. This could not only secure the energy supply, but also enable the extraction of raw materials for electric vehicles right on our doorstep. “We have the foundations to produce the raw materials ourselves. This is the basis for our future and for Europe’s independence,” he concluded.

At the beginning of February, we began setting up our “V20” drilling rig at the Schleidberg drilling site near Insheim. The work is being carried out by our own drilling company Vercana. This step is an important part of our project to extract renewable energy and climate-neutral lithium from deep geothermal energy. The construction at Schleidberg thus marks the start of our first project phase “Lionheart”. During the approximately two-week transportation phase, there will be increased truck traffic through Offenbach. We have organized the transports in close consultation with the relevant authorities in order to keep the disruption to residents and road users to a minimum. The drilling rig will be visible in large parts of the Southern Palatinate with a height of around 40 meters. The drilling rig has an output of 2,500 HP and is equipped with a powerful pumping system. Its hook load capacity is 550 tons – roughly equivalent to the weight of 275 full-grown elephants. The actual drilling work is planned for the second quarter of 2025, once the drilling rig has been completed and successfully tested.

Karlsruhe, 12 November 2024 – Vulcan Energy receives a government funding commitment of up to 100 million euros for the HEAT4LANDAU project, which aims to decarbonize the district heating networks in Landau, Rhineland-Palatinate. The project includes the construction of the infrastructure to generate and provide up to 255 MW of geothermal energy. The funding was approved by the German Federal Ministry for Economic Affairs and Climate Protection (BMWK) and the European Recovery and Resilience Facility (ARF). These are provided via the German Recovery and Resilience Plan (DARP) as part of the guidelines for federal funding for efficient heating networks (BEW). The BEW funding will be paid out in proportion to the total eligible expenditure: around 22 million euros in 2026 and a further 78 million euros in 2027. “This government funding is important news for us, the city of Landau and the people in the region, because the HEAT4LANDAU project will support Landau on its way to sustainable, renewable district heating and create an important locational advantage. The German government and the European Union are thus sending a strong signal for our project and our goal of soon supplying Landau with geothermal energy,” says Thorsten Weimann, Managing Director of Vulcan Energy. “We are planning to provide renewable heat from deep geothermal energy in the 2024-2025 heating period and to expand this project in 2026,” adds Weimann. As part of the HEAT4LANDAU project, Vulcan is aiming to provide the town of Landau with renewable energy from geothermal energy. To this end, the two company-owned geothermal plants in Landau and Insheim are being expanded to include five new drilling sites with a total of 24 wells. These will supply renewable heat for EnergieSüdwest AG’s district heating network. The HEAT4LANDAU project is therefore an integral part of the company’s first “Lionheart” project phase. “Securing this government funding represents an important milestone for Vulcan because it allows us to put our commitment to decarbonizing the German energy landscape into action. By providing sustainable, renewable geothermal energy to Landau and surrounding communities, we are making a significant contribution to a climate-neutral district heating network. This project is a prime example of how geothermal energy can drive Europe’s green transformation,” says Cris Moreno, Managing Director and CEO of parent company Vulcan Energy.

The heating team from Thüga Energie and Thüga Energienetze GmbH visited the Naturally Insheim geothermal power plant and the lithium extraction optimization plant (LEOP) in Landau as part of a personal and professional exchange on the topics of heat supply and the energy transition. The 13 participants from Rhineland-Palatinate, Baden-Württemberg and Bavaria were given an expert insight into the power plant and plant operation, including the process of extracting lithium from the thermal water of the Upper Rhine Graben using direct lithium extraction by adsorption. During the meeting, Vulcan employees also reported on the current status of their project. Thüga Energienetze supplies around 130 municipalities in Rhineland-Palatinate, Baden-Württemberg and Bavaria with heat, electricity and gas. The company’s aim is to provide cities and municipalities with efficient and sustainable energy networks as a basis for implementing the energy transition.