Verde Clean Fuels, Inc.

From time to time, we may be subject to various claims, lawsuits and other legal and administrative proceedings that may arise in the ordinary course of business. Some of these claims, lawsuits and proceedings may involve highly complex issues that are subject to substantial uncertainties, and could result in damages, fines, penalties, non-monetary sanctions or relief. Other than as described below, we are not currently a party to any known claim, lawsuit or proceeding.

On February 27, 2026, Five Star Clean Fuels filed an original petition against the Company in the Business Court of Texas, Eleventh Division, seeking a declaratory judgment that a letter agreement between a subsidiary of the Company, Bluescape Clean Fuels, LLC ("Bluescape Clean Fuels"), and a predecessor of Five Star Clean Fuels constituted a binding contract that effectuates a grant to Five Star Clean Fuels of certain non-exclusive rights to utilize the STG+® technology. On October 7, 2026, Five Star Clean Fuels filed an amended petition that added claims for breach of contract associated with the letter agreement and added Bluescape Clean Fuels as a defendant. The Company believes the claims are without merit and intends to defend its position against the claims. At this time, the Company is unable to reasonably estimate a possible financial loss or range of financial loss, if any, that may be incurred to resolve this matter. See Note 7 in the accompanying unaudited condensed consolidated financial statements for further information.