Commencement of Arbitration against Spain

Berkeley to Commence International Arbitration against Spain

Berkeley Energia Limited (Berkeley or the Company) advises that the Company, through its wholly owned subsidiary, Berkeley Exploration Limited (BEL), will refer its investment dispute with the Kingdom of Spain (Spain) to international arbitration under the International Centre for Settlement of Investment Disputes (ICSID).

In November 2022, BEL submitted a written notification of an investment dispute to the Prime Minister of Spain and the Ministry for the Ecological Transition and the Demographic Challenge (MITECO) informing them of the nature of the dispute and the Energy Charter Treaty (ECT) breaches, and that it proposed to seek prompt negotiations for an amicable solution pursuant to article 26.1 of the ECT. At the date of this announcement, the Spanish government has not engaged in any discussions related to the dispute and Berkeley has had no option but to take action and enforce its rights at the Salamanca project through international arbitration. BEL has engaged specialist teams at Herbert Smith Freehills Spain LLP and LCS Abogados to jointly prepare and submit the 'Request for Arbitration' to the ICSID, and represent it in these proceedings.

Notwithstanding the investment dispute, Berkeley remains committed to the Salamanca project and continues to be open to a constructive dialogue with Spain. Berkeley is ready to collaborate with the relevant Spanish authorities to find an amicable resolution to the permitting situation and remains hopeful discussions can take place in the near term.

The Company will continue to update the market in relation to this matter as required.

The Company currently holds legal, valid and consolidated rights for the investigation and exploitation of its mining projects, including the 30-year mining licence (renewable for two further periods of 30 years) for the Salamanca project, however any new proceedings opened by the Company is now not allowed under the aforementioned new law.

In November 2021, the Company received formal notification from MITECO that it had rejected NSC II at the Company's Salamanca project following and unfavourable report for the grant of NSC II issued by the Board of the Nuclear Safety Council (NSC) in July 2021.

Berkeley strongly refutes the NSC's assessment and, in the Company's opinion, the NSC adopted an arbitrary decision with the technical issues used as justification to issue the unfavourable report lacking in both technical and legal support.

In April 2023, the Company's wholly owned Spanish subsidiary, Berkeley Minera Espana (BME) submitted a contentious-administrative appeal before the Spanish National Court in an attempt to overturn the MITECO decision denying NSC II.

Further, the Company also received formal notifications in December 2023 which upheld appeals submitted by a non-governmental organisation, Plataforma Stop Uranio, and the city council of Villavieja de Yeltes (the appellants) to revoke the first instance judgements related to the Authorisation of Exceptional Land Use (AEUL) and the Urbanism License (UL), which annuled both the AEUL and UL

The AEUL and the UL were granted to the Company in July 2017 and August 2020 by the Regional Commission of Environment and Urbanism, and the Municipality of Retortillo respectively (Regional Government).

The Company strongly disagrees with the fundamentals of the TSJ's judgement and having submitted cassation appeals against the TSJ judgements before the Spanish Supreme Court, the Company has now withdrawn the appeals to preserve its rights under international arbitration.