ABOUND Declares H2si in Material Default Over Technology Licensing

ABOUND Energy Inc., a clean-energy technology company, has declared H2si Power Incorporated, Amerada R&D Ltd., and Robert McKenzie in material default of the H2si Technology Commercialization and License Agreement, dated June 27, 2026. The agreement, which closed on July 31, 2026, granted ABOUND exclusive commercialization and licensing rights to the H2si™ hydrogen technology. As part of the deal, ABOUND issued 5,000,000 common shares to H2si, with 1,000,000 delivered at closing and 4,000,000 held in escrow, to be released only if the first commercial unit (FCU) meets specified performance criteria. Amerada and Mr. McKenzie guaranteed H2si’s performance under the agreement, with Amerada responsible for 30% and Mr. McKenzie for 70%, up to an aggregate of US$5,000,000. Additionally, Amerada agreed not to support any alternative licensing of the H2si Technology.

On September 21, 2026, ABOUND delivered a notice of material default to H2si, Amerada, and Mr. McKenzie. The notice alleged that H2si failed to deliver the technical drawings and specifications required to build the FCU, despite repeated assurances that they existed. H2si’s counsel has since confirmed that the technical drawings and specifications for the H2si Technology do not exist. Furthermore, the notice claimed that Mr. McKenzie, through SiFusion Energy Inc., has been marketing technology the company believes to be the H2si Technology, or derived from it, through SiFusion and other entities. SiFusion’s website describes the technology as held under exclusive license from the inventor, refers to the same University of Saskatchewan testing previously announced by ABOUND, and describes SiFusion as affiliated with the Amerada group of companies. This conduct is alleged to breach Amerada’s covenant under the Guarantee Agreement not to support any alternative licensing of the H2si Technology.

The notice also alleged that H2si has failed to enforce and protect its intellectual property in the H2si Technology, as required under the License Agreement, by failing to take any action against Mr. McKenzie or SiFusion. Instead, Mr. McKenzie purportedly moved to remove two H2si directors who were working on behalf of H2si to cure the defaults. Both directors have since resigned, leaving Mr. McKenzie and Gary Woycenko as the remaining directors of H2si. H2si has demonstrated a persistent failure to remedy or take meaningful steps toward compliance.

Since closing of the License Agreement, ABOUND has received numerous assurances from H2si counsel that the required technical drawings and specifications would be provided and that a formal response would be forthcoming. Despite these assurances, the latest response the company has received is an unsigned letter from Mr. McKenzie dated September 22, 2026, and received on September 29, 2026, which disputed the notice without remedying the defaults or providing the requested information. Furthermore, Mr. McKenzie has refused to meet with ABOUND since August 13, 2026, failed to engage following delivery of the notice, and failed to provide a valid address for formal service. H2si has demonstrated a persistent failure to remedy or take meaningful steps toward compliance.

Two H2si directors had been working with ABOUND to cure the defaults and were the company’s principal contacts at H2si. After Mr. McKenzie purportedly moved to remove them, both directors resigned. Their departure removes the channel through which ABOUND had been working toward a resolution and leaves H2si’s counsel and its two remaining directors, Mr. McKenzie and Mr. Woycenko, as ABOUND’s only contacts at H2si. ABOUND has concluded that these matters are unlikely to be resolved cooperatively and is taking further steps to protect its rights. These developments may affect the commercialization of the H2si Technology under the company’s exclusive license, the shares issued to H2si, and the timing of the FCU.