G-volution Update

24th January 2019

Dear Shareholders,

May I start by wishing you a happy new year, and may it be an excellent one for all of us.

I wanted to update you on the further progress made at G-volution these past months: this document sets out progress up to January 2019 against our plans in our fundraising documents. As you can see below, we now have completed our funding, and are working on developing our clear routes to market, with strong interest in US and UK in dual fuel Rail sectors (and few cost effective alternatives). 2019 is an exciting year for G-vol, and we anticipate being in a very strong position by the start of 2020. As always, your comments and feedback are welcome.

General update

Funding: we were over-subscribed by 30%, and thus are well funded to develop the technology according to our plans, albeit a bit later than expected.

Generator Set (part funded by Innovate £500k loan): there have been some delays with the delivery of the engine, which should now be arriving in Feb 2019. The reasons for the delay are: (a) longer lead time than expected (from USA); and (b) some of the work required on the engine was done by the supplier in Belgium; and (c) there are some revisions of the specification from USA and India market research. We aim to complete the development work Q2 2019’ while we continue the US and India marketing.

US Rail: This is ongoing. US Rail project now moving forward. Approval expected for further roll out in Q1 2019.

Rail Safety Standards Board (RSSB) 2 signed up: We are aiming to complete engine trials by Q3, and network demonstration Q1 2020 latest. We have an aggressive communication and sales plan for 2019.

Manchester Metropolitan University (MMU): JV now in full swing with a planned development of this unique technology through 2019. Containerships Group has, disappointingly, pulled out of the Innovate IDP 13 project, however GV has been asked formally to join the Nottingham University IDP 12 Volvo project. This will assist in MMU JV funding and showcase dual fuel.

India: GV has significant interest in Dual Fuel gensets in India and interest from Indian Rail in our application to rail. Indian DuelFuel policy in evolution, Chris Smith is monitoring. India visit planned late Q1.

H2020 Application: we have filed a £2M grant application to fund the development of a cost-effective dual fuel inland waterway or short sea vessel. We expect to hear more about this in Feb 2019.

RSSB Application (3): Feasibility study application on dual fuel in the UK Rail FREIGHT sector.

Rail de-carbonisation committee has begun work: Stephen Hammond has re-joined the Government, and thus had to step down from his recent appointment to the Board. However, given the considerable work in developing our contacts so far.

Our target is now to conclude some sales in H1 2019 in the rail and genset markets. We remain confident we will hit our budget numbers and the year has started well. We all worry about

Best wishes,

Chris Smith