The Board of High Peak Royalties Limited announced that on 5 July 2021 it entered into a Memorandum of Understanding for Investment and Royalty Rights ("the Agreement") with ScimTek Hydrogen Pty Ltd. ("ScimTek"). The Agreement is intended to be legally binding and provides certain rights to High Peak in exchange for a purchase price of $300,000, which includes a 1% royalty on the sales of ScimTek Hydrogen products capped at $30 million. The agreement also entitles HPR to a first right of refusal to participate in future funding of the project of pilot and commercial scale plants. The acquisition of the ScimTek royalty and investment rights is consistent with HPR's business strategy of acquiring royalties over quality energy projects. Key terms of the agreement are: Acquisition price of $300,000; Establishment of a Gross Sales Royalty which is calculated as 1% of the sales of products by ScimTek to other parties, up to a maximum amount of $30,000,000, for 10 years from the date of the Agreement; Royalties are to be calculated on standard accounting periods of a 6 month period ending on 30 June and 31 December; High Peak has a right of audit and inspection over the royalty calculations; Establishment of a Right of First Refusal ("ROFR") for commercialisation whereby Scimtek must not undertake a capital raise without first providing notice to High Peak and a period of first offer for High Peak's consideration.