ABOUND Energy Declares Material Default in H2Si Technology Agreements, Cites Lack of Drawings and Unauthorized Marketing

Richmond, BC – October 31, 2026 – Leads & Copy – ABOUND Energy Inc. (“ABOUND”) announced it has declared H2Si Power Incorporated (“H2Si”), Amerada R&D Ltd. (“Amerada”) and Robert McKenzie in material default of their H2Si Technology Commercialization and License Agreement and a related support and guarantee agreement. The company alleges that H2Si failed to deliver essential technical drawings for the first commercial unit (the “FCU”) and that Mr. McKenzie covertly marketed technology, believed to be the licensed H2Si™ technology, through another company, SiFusion Energy Inc. (“SiFusion”).

ABOUND secured exclusive commercialization and licensing rights to the H2Si™ hydrogen technology in May, June and July 2026, with the license agreement closing on July 31, 2026. In consideration, ABOUND issued 5,000,000 common shares to H2Si, with 1,000,000 delivered at closing and 4,000,000 held in escrow, contingent on the FCU meeting specific performance criteria. Amerada and Mr. McKenzie guaranteed H2Si’s obligations under the agreements, with Amerada also agreeing not to support any alternative license or disposition of the H2Si Technology. Mr. McKenzie serves as President of H2Si and is the sole director of Amerada.

The Company formally notified H2Si, Amerada, and Mr. McKenzie of the material default on September 21, 2026. Allegations include Mr. McKenzie’s failure, through H2Si, to provide the required technical drawings and specifications for the FCU, with H2Si’s counsel reportedly confirming their non-existence. Furthermore, ABOUND claims H2Si, Amerada, and Mr. McKenzie concealed Mr. McKenzie’s marketing activities of the H2Si Technology, or derived technology, through SiFusion. SiFusion’s website reportedly indicates an exclusive license from the inventor and affiliation with the Amerada group, which ABOUND contends breaches Amerada’s covenant against supporting alternative licenses.

The Company also alleges H2Si has not enforced or protected its intellectual property rights for the H2Si Technology, failing to take action against Mr. McKenzie or SiFusion. Instead, Mr. McKenzie allegedly moved to remove two H2Si directors who were working to resolve the defaults, leading to their resignations. ABOUND states H2Si and Mr. McKenzie have not cooperated in remedying the defaults, impacting the ability to resolve these issues cooperatively.

Despite assurances from H2Si’s counsel regarding the delivery of technical drawings, the Company received an unsigned letter from Mr. McKenzie disputing the notice without remedying the defaults. Mr. McKenzie has also reportedly refused meetings since August 13, 2026, and failed to provide a valid address for formal service. ABOUND has notified Amerada and Mr. McKenzie of their guaranteed obligations and issued a cease and desist demand to SiFusion.

“ABOUND entered into this transaction in good faith and secured exclusive rights to the H2Si Technology for the benefit of our shareholders,” said Keith Morlock, Chief Operating Officer. “We have worked patiently to resolve these matters directly, but recent events have made it clear that more is required. We remain committed to building the first commercial unit, and we will take every step necessary to protect our rights.”

ABOUND remains committed to completing the FCU and is pursuing all available remedies, including potential proceedings against H2Si and claims against Amerada and Mr. McKenzie under the Guarantee Agreement. The escrowed shares will not be released unless the FCU meets performance criteria, and ABOUND has requested its transfer agent to place a hold on all shares issued to H2Si. The Company is evaluating further steps to protect its rights, acknowledging that its allegations have not yet been tested in court.

ABOUND Energy Inc. is a clean-energy technology commercialization company focused on ZaeroTex™ advanced air cathodes, H2Si™ hydrogen technology, and Zaeras™ long-duration energy storage.

Source: ABOUND Energy Inc.