Share Incentive Plan – Allocation of Share

Surface Transforms plc

("Surface Transforms" or "the Company")

Share Incentive Plan - Allocation of Ordinary Shares

Surface Transforms (AIM:SCE), manufacturers of carbon fibre reinforced ceramic automotive brake discs, announces the allocation of 21,462,860 ordinary shares of 1p each in the Company ("Ordinary Shares") (the "SIP Shares"), pursuant to the Company's Share Incentive Plan (the "SIP").

The SIP was established to incentivise employees through the acquisition (or issue) of Ordinary Shares, with individual contributions ranging between £10 and £150 per month, together with a discretionary award of bonus shares (known as Matching Shares in the SIP Agreement) up to a 2:1 basis with the paid-for Ordinary Shares.

This is the first award under the SIP, which was approved by shareholders at the Company's AGM on 27 June 2023. The paid-for SIP Shares and discretionary award of matching Ordinary Shares, on a 1:1 basis have been acquired at an average price of 0.3206 pence per Ordinary Share. Accordingly, employees paid in aggregate £34,405 which was matched by the Company with respect to the discretionary award.

The SIP Shares have been allocated to 37 participating employees, including the following individuals, who are Persons Discharging Managerial Responsibilities ("PDMRs"):

Further information is set out in the PDMR Dealing table at the end of this announcement.

Following this announcement, the Board confirms it has launched the second accumulation period under the SIP.

Total voting rights

Following the allocation of the SIP Shares, the total number of voting rights in the Company remains unchanged at 1,302,072,638. Shareholders may use this figure as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules.

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About Surface Transforms

Surface Transforms plc. (AIM:SCE) develops and produces carbon‐ceramic material automotive brake discs. The Company is the UK's only manufacturer of carbon‐ceramic brake discs, and only one of two mainstream carbon ceramic brake disc companies in the world, serving customers that include major OEMs in the global automotive markets.

The Company utilises its proprietary next generation Carbon Ceramic Technology to create lightweight brake discs for high‐performance road and track applications for both internal combustion engine cars and electric vehicles. While competitor carbon‐ceramic brake discs use discontinuous chopped carbon fibre, Surface Transforms interweaves continuous carbon fibre to form a 3D matrix, producing a stronger and more durable product with improved heat conductivity compared to competitor products; this reduces the brake system operating temperature, resulting in lighter and longer life components with superior brake performance. These benefits are in addition to the benefits of all carbon‐ceramic brake discs vs. iron brake discs: weight savings of up to 70%, longer product life, consistent performance, reduced brake pad dust and corrosion free.

The Company holds the London Stock Exchange's Green Economy Mark.

For additional information please visit www.surfacetransforms.com

Notification and public disclosure of transactions by Persons Discharging Managerial Responsibilities ("PDMR") and persons closely associated with them ("PCA")