Quarterly Report December 2024

Quarterly Report December 2024

Summary:

Exploration at Conchas Project

Subsequent to the end of the quarter, Berkeley Energia Limited (Berkeley or Company) announced the results of the recent reverse circulation (RC) and diamond drilling program completed at the Conchas project (Conchas Project), as part of its ongoing exploration initiative targeting critical minerals in Spain. Highlights included:

• Assay results demonstrate shallow, thick zones of lithium and rubidium mineralisation, hosted within a muscovitic leucogranite, intersected in all 33 RC holes.
• Drill intercepts include:

o 14m @ 0.95% Li 2 O & 0.39% Rb 2 O (from 40m)

o 18m @ 0.55% Li 2 O & 0.23% Rb 2 O (from surface)

o 61m @ 0.50% Li 2 O & 0.21% Rb 2 O (from surface)

o 27m @ 0.44% Li 2 O & 0.21% Rb 2 O (from surface)

o 56m @ 0.48% Li 2 O & 0.21% Rb 2 O (from surface)

• Samples collected from an additional three diamond holes completed in the drill program have been sent for preliminary metallurgical test work with results anticipated in the current quarter.
• Next steps include 3D modelling of the drilling data and completion of the preliminary metallurgical test work program.
• International Arbitration against Spain

As part of its Request, BEL alleges that Spain's actions against BME and the Salamanca project (Salamanca Project) have violated multiple provisions of the Energy Charter Treaty (ECT), and that BEL is seeking preliminary compensation in the order of US$1 billion (US$1,000,000,000) for these violations.

During the quarter, the Registration of the Arbitration was published on the ICSID website and the proceedings advanced to the current phase which involves tribunal members being selected and appointed, thereby formally establishing the tribunal.

Global Nuclear Power and Uranium Market:

The uranium spot price weakened during the quarter and closed down at US$73 per pound. The two longer term uranium price indicators also weakened in the quarter as the 3-yr Forward price decreased to US$88.00 per pound while the 5-yr Forward Price declined to US$95 per pound. The Long-Term Price remained fairly stable at US$79.00 per pound.

The outlook for nuclear power and the uranium market continued to strengthen during and subsequent to the end of the quarter, with a number of important recent developments, including:

Spain - Demonstrations

o According to figures from Spain's Civil Guard, approximately 7,000 people attended a demonstration against the planned closure of the Almaraz nuclear power plant in Extremadura as part of the country's nuclear phase-out policy.

The demonstration was called by the municipalities in the area of influence of the Almaraz nuclear power plant and the citizens' platform "Yes to Almaraz, Yes to the Future" to demand the continuation of the activity of the Extremadura plant in light of the closure planned by the central government.

The Mayor of Almaraz was quoted as saying the nuclear plant is the "most necessary industry in Extremadura", while insisting that "not a minute can be wasted in defending its continuity [if you want to avoid job loss and increased depopulation]." "Today the fight begins, and I ask the Government of the nation to rectify it, because it is brave to recognise mistakes," the Mayor said about the plant.

Spain - Nuclear Power Plant Continuation

o One of Spain's nuclear operators, said it has received notification of the ministerial order extending the operating permit for the Trillo nuclear power plant until November 2034. The Ministry for Ecological Transition and the Demographic Challenge (MITECO) had considered the favourable report issued on by the Nuclear Safety Council (NSC) in its decision to grant the operating extension.

Google

o Google and Kairos Power, a nuclear technology, engineering and manufacturing company focused on commercialisation of the fluoride salt-cooled, high-temperature reactor, executed a Master Plant Development Agreement for the deployment of advanced nuclear power projects totalling 500 MW by 2035.

Amazon

o Amazon agreed to anchor a Series C-1 financing round of ~US$500 million to support the completion of X-energy's reactor design and licensing, as well as fund the first phase of the TRISO-X fuel fabrication facility. In addition, the two companies are collaborating to bring more than 5 GW of new power projects online across the U.S. by 2029.

Facebook

o Facebook owner Meta seeks up to 4 GW nuclear capacity. Meta is the latest tech company to seek nuclear as an energy source for its growing data needs as it seeks proposals for as much as 4 GW of nuclear capacity in the U.S. by the early 2030s.

• U.S.

o Constellation Energy (Constellation) will supply U.S. federal sector nuclear power under a record contract. The ten-year, US$840 million contract to supply electricity to 13 federal facilities is the first-ever long-term multi-agency purchase of electricity by the U.S. General Services Administration, and will support licence extensions and capacity uprates at Constellation's nuclear plants.

o Constellation will also sell the power to Microsoft, for its artificial intelligence (AI) data centres as part of a 20-year power deal with the tech company. Constellation plans to invest US$1.6 billion to restart a reactor for this purpose.

Russia

o In November 2024, the Russian Federation government passed a decree rescinding TENEX's (Russian nuclear fuel export agency) general license to export low enriched uranium (LEU) to the U.S, effective through December 2025; reportedly in retaliation for the U.S. legislation signed into law (H.R. 1042 "Prohibiting Russian Uranium Imports Act"; August 2024). This decree bans the importation of Russian-sourced LEU subject to U.S. Department of Energy waivers, which may be granted through December 2027 when the ban will be fully enforced.

TENEX is now required to apply for specific export licenses issued by the Federal Service for Technical and Export Control, which may be on a case-by-case basis under the current suspension.

International Atomic Energy Agency (IAEA)

o IAEA published a new report, Climate Change and Nuclear Power 2024, which focused on the financial requirements to pursue increased nuclear power capacity. The report concluded that in order to reach the 2050 high case nuclear capacity forecast (2.5 times current global nuclear capacity) contained in the agency's recent projection, the annual global investment in nuclear power reactor maintenance and new build would need to increase from the average of US$50 billion/year experienced 2017-2023, up to US$125 billion/year. Tripling current nuclear capacity would necessitate annual investment of US$150 billion.

United Nations Climate Change Conference (COP29)

o COP29 convened in Baku, Azerbaijan during November 2024. The IAEA reported that nuclear power was highlighted during the gathering observing that "Reaching global decarbonisation targets by 2050 will require a significant expansion of nuclear power." During the international conference, an additional six countries added their support to the Declaration to Triple Nuclear Energy, bringing the total to 31 signatory countries.

Balance Sheet

The Company is in a strong financial position with A$79 million in cash reserves and no debt.

Figure 1: Location of the Salamanca Project, Spain

Salamanca Project Update

External audits of the Company's Environmental Management System according to ISO 14001 Standards, and Sustainable Mining Management System according to UNE 22470/80 Standards, were completed by independent consultant AENOR during the quarter. No non-compliance issues were identified during the audit and the final report noted that BME continues to improve its climate change and sustainability processes. AENOR concluded that the Environmental Management System and Sustainable Mining Management System meet the requirements of the Standards and the audit criteria.

The Company was also certified under the ISO 45001:2023 its Occupational Health and Safety Management System during the quarter. The Company has as one of its fundamental pillars the search for excellence in the execution of its activities, which go beyond strict regulatory compliance. In the past the Company was certified in OSHA:18001 for the Health and Safety Management System but has now obtained certification under ISO 45001:2023, its successor, which demonstrates the Company's commitment to continuous improvement. The certificate has been issued by AENOR.

Regarding CO2 footprint, the Company submitted all the required documentation for the Registration of Berkeley's Carbon Footprint for 2023 to MITECO. The objective of this registration is to get the "Calculo y Reduzco" ("I measure and reduce") stamp for 2023.

Exploration

During the quarter, the Company continued with its exploration program focusing on critical minerals in Spain. The exploration initiative is targeting lithium, rubidium, tin, tantalum, niobium, tungsten, and other battery and critical metals, within the Company's existing tenements in western Spain that do not form part of Berkeley's main undertaking being the development of the Salamanca Project.

Conchas Project

Figure 2: IP Conchas Location Plans and Geology / Drill Hole Location Plan

The drill program comprised five broad spaced RC holes for a total of 282m. Anomalous results for lithium (Li), tin (Sn), rubidium (Rb), cesium (Cs), niobium (Nb) and tantalum (Ta) obtained from multi-element analysis of drill samples were reported in April 2023, demonstrating Conchas' exploration potential for several critical and strategic raw materials included in the European Commission's Critical Raw Materials Act (CRMA). The drill results included 25m @ 0.56% Li2O and 0.22% Rb2O from surface (CCR0002).

2024 Drilling Program

• the mineralised muscovite leucogranite is very homogeneous in terms of mineralogy
• the southern zone of mineralisation contains the highest grades overall, with individual assay values exceeding 2.5% Li2O. In this area, all holes penetrated the host muscovitic leucogranite and ended in the underlying regional granite (Figure 3)

Figure 3: IP Conchas 4,492,225 North Cross Section

Figure 4: IP Conchas 4,492,925 North Cross Section

Next Steps

Representative samples obtained from the three diamond core holes drilled in the 2024 program have been sent to the Oviedo School of Mines' laboratory for preliminary metallurgical test work.

The metallurgical testwork program has been designed to assess the potential recovery of Li, Rb and the other elements of economic interest, and will comprise crushing and grinding (bond index calculation), gravity (jigs, shaking tables and multi gravity separator), high intensity wet and dry magnetic separation on the concentrates, froth flotation, and characterisation of the samples.

3D modelling of the drilling data will also be undertaken to refine the geological interpretation and assess volumes, average grades and grade distributions for the Li and Rb mineralisation at different cut-offs.

Rubidium1,2,3,4,5

Rubidium is a critical raw material with growing significance in advanced technology and industrial applications, including in the defence and military, aerospace, communications, biomedical and renewable energy sectors.

Oliva and La Majada Projects

The birdlife study at the La Majada Project has been completed and the Exploration Program is currently being updated to align it to new legislation recently introduced for the Castilla La Mancha Region. This documentation will be submitted to the relevant authorities in the coming quarter.

International Arbitration Dispute

In May 2024, the Company's wholly owned subsidiary, Berkeley Exploration Limited (BEL), filed a Request for Arbitration (Request) for its investments in Spain through its Spanish subsidiary, Berkeley Minera España SA (BME), initiating arbitration proceedings against the Kingdom of Spain (Spain) before International Centre for Settlement of Investment Disputes (ICSID).

As part of its Request, BEL alleges that Spain's actions against BME and the Salamanca Project have violated multiple provisions of the Energy Charter Treaty (ECT), and that BEL is seeking preliminary compensation in the order of US$1 billion (US$1,000,000,000) for these violations.

The Request was jointly submitted by specialist teams at Herbert Smith Freehills Spain LLP and Riano Abogados (previously LCS Abogados) who are representing BEL in the arbitration proceedings.

BEL has received the Notice of Registration from ICSID, and during the quarter, the Registration of the Arbitration was published on the ICSID website. The proceedings have now advanced to the current phase which involves tribunal members being selected and appointed, thereby formally establishing the tribunal.

Background to Dispute

The Company's wholly owned subsidiary, BME, 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.

Additional Information on the Global Nuclear Power and Uranium Market

The outlook for nuclear power and the uranium market continued to strengthen during the quarter, with several other important recent developments in the sector, including:

• UK government considering a role for small modular reactors in AI expansion. A new AI Energy Council is to be established to study the opportunities for "renewable and innovative energy solutions, including small modular reactors" as part of the UK government's plan for AI.
• Orano announced that the SOMAIR / Arlit uranium mine in Niger, majority-owned (63.4%) and operated by the company would suspend operations as of the end of October due to escalating project-related financial issues. Orano has been unable to export the facility's production subsequent to the military coup in Niger (July 2023) and that SOPAMIN, the shareholder representing the State of Niger (36.6%), had failed to pay any of its project-related debts.
• The Nuclear Energy Institute (NEI) convened its annual industry conference, "International Uranium Fuel Seminar - 2024" in October 2024 in Kansas City, Missouri. The gathering drew about 200 participants principally focused on the U.S. nuclear utility sector but with representatives from the global nuclear fuel supply chain in attendance

Several presenters summarised issues in the current and projected global nuclear fuel markets including the UxC Executive V.P., International, who presented a detailed assessment of the current situation with Russian nuclear fuel and concluded that "Russia urgently needs to secure uranium going forward."

Additionally, Kazatomprom's Managing Director, Sales, provided an update on the company's uranium production and transport but also an overview of long-term supply / demand dynamics containing the observation "new potential production is not sufficient to cover demand post-2030."

• Japan's Nippon.com reports that the Tohoku Electric Power Company brought the number 2 reactor at Onagawa Nuclear Power Station back online, 13 years after the plant was shut-down following the March 2011 Great East Japan Earthquake and subsequent Fukushima Daiichi Nuclear Power Station accident. The reactor initially entered commercial operation in July 1995.
• Korea Hydro & Nuclear Power (KHNP) initiated construction of the Shin Hanul 3 & 4 reactors in South Korea during the quarter. KHNP applied for construction licenses in 2016 with projected operation in 2022-2023. However, the election of President Moon Jae-in and the government's nuclear phase-out policy resulted in the units being suspended. South Korea's Nuclear Safety and Security Commission issued construction licenses for the reactors in September 2024.
• Vietnam's National Assembly approved the resumption of the delayed Ninh Thuan Nuclear Power Project. Initially approved in 2005, a siting study resulted in the selection of a coastal site in Ninh Thuan Province for the two-reactor development; however, the government suspended the project in 2016 due to safety, funding and technical issues.
• Sweden is considering taking a stake in the new nuclear power plants it wants the private sector to construct over the coming decades to meet an expected surge in demand for fossil-free electricity. The government wants the equivalent of two large-scale reactors built in the next decade, which will cost ~US$37 billion. A government-appointed commission said the government should be ready to provide loans to cover 75% of the total amount and to guarantee prices for 40 years.

Further, the government inquiry recommends lifting Swedish uranium ban. Sweden should remove its prohibition on uranium mining to allow it to be exploited like other natural resources regulated under the Swedish Minerals Act, a government inquiry has concluded.

• Romania is resuming uranium production to power its own nuclear reactors as part of the country's energy strategy for 2025-2035 with production of electricity from renewable and nuclear sources for Romania's "green transition".
• Kazatomprom released its 3Q 2024 operations and trading results on 1 November 2024, reporting that aggregate uranium production for the three months ending 30 September rose 16% year-on-year, reaching 15.3Mlb in 3Q 2024. Total uranium output for the first nine months of 2024 rose to 43.6Mlb, an increase of 9% over the comparable period of 2023.

Full year guidance for uranium production remained at 58.5-61.1Mlb, at an all-in sustaining cost (AISC) of US$27.75-29.25 per pound, which was a slight increase from the 2Q 2024 estimate of US$26.00-27.50 per pound. Both capital expenditures and AISC estimates rose due to changes in the construction schedules of new facilities, including increased development costs for infrastructure at three development projects, coupled with increased prices of construction services and drilling materials.

Further, Kazatomprom announced in the quarter JV partner changes from Russian to Chinese partners. Rosatom sold it's 49.98% share in Zerechnoye (9Mlb in Reserves, completes in 2028) to State Nuclear Uranium Development Co (China). Uranium One is expected to sell it's 30% interests in JV Korasan (86Mlb in Reserves with life until 2038) and Kyzylkum (processing facility) to China Uranium Development.

· Cameco reported the company's Q3 2024 results on 7 November 2024. Uranium production is now expected to total 37.0Mlb (100%), while Cameco's share should equate to up to 23.1Mlb. The principal contribution to the incremental increase is the anticipated output of the Key Lake mill, which is now forecast to reach 19.0Mlb, as compared to the previous planned 18.0Mlb. However, Cameco now expects that its purchases from JV Inkai (Kazakhstan) will be incrementally reduced as the project appears to be operating below its planned output of 8.3Mlb (100% basis) due to "the differences in the annual mine plan, a shift in acidification schedule for new wellfields, and unstable acid supply throughout the year."

For the first nine months of 2024, Cameco reports an increase in average realised sales price year-on-year, which rose from US$48.62 per pound in 2023 to US$58.28 per pound in 2024.

Competent Persons Statements

References

1 www.mordorintelligence.com/es/industry-reports/rubidium-market

2 www.straitsresearch.com/report/rubidium-market

3 www.marketresearchfuture.com/reports/rubidium-market-27298

4 U.S Geological Survey, Mineral Commodity Summaries, January 2024 - Rubidium

5 www.usgs.gov/news/national-news-release/us-geological-survey-releases-2022-list-critical-minerals

Appendix 1: Mineral Resource at Salamanca

Appendix 2: Summary of Mining Tenements

As at 31 December 2024, the Company had an interest in the following tenements:

^The Company has applied for an Exploitation Concession from the existing IP Almendro.

**Exploracion de Recuros Minerales S.L.U (ERM), a wholly owned subsidiary of the Company, has entered into a Tenement Sale and Purchase Agreement and Royalty Deed to acquire IP Los Bélicos, IPA Ampliación Los Bélicos, and IPA La Majada.

Appendix 3: Related Party Payments

During the quarter ended 31 December 2024, the Company made payments of $82,000 to related parties and their associates. These payments relate to existing remuneration arrangements (director and consulting fees plus statutory superannuation).

Appendix 4: Exploration and Mining Expenditure

During the quarter ended 31 December 2024, the Company made the following payments in relation to exploration and development activities:

Appendix 5B

Mining exploration entity or oil and gas exploration entity

quarterly cash flow report

Name of entity

Berkeley Energia Limited

Answer: Not applicable

Answer: Not applicable

Answer: Not applicable

Compliance statement

2 This statement gives a true and fair view of the matters disclosed.

Date: 31 January 2025

Authorised by: Company Secretary

(Name of body or officer authorising release - see note 4)

Notes