Update on the Litigation Process

Emmerson PLC is pleased to provide an update on the latest step in the litigation process.

In May 2026, Morocco applied to the Tribunal to have certain jurisdictional objections bifurcated, i.e., addressed by the Tribunal in a separate, preliminary phase, before evaluating the merits of the Claimants' claims in the arbitration. The Claimants opposed that application and the Tribunal held a hearing on 19 June 2026, during which the parties made oral submissions regarding whether the Tribunal should grant Morocco's application.

On 17 July 2026, the Tribunal issued its decision on bifurcation. It rejected Morocco's application. This means that the Tribunal will address Morocco's objections at the same time as it analyses the merits of the case.

The timing of the next steps in the process up to and including the hearing to address both the jurisdictional element and the merits is yet to be confirmed. The Company will update on this when the timeline is confirmed.

Background:

On 30 April 2025, the Company's direct and indirect subsidiaries Khemisset UK Ltd. and Potasse de Khemisset S.A. (the "Claimants") filed a Request for Arbitration ("RFA") with the International Centre for Settlement of Investment Disputes ("ICSID"). The ICSID Secretary-General registered the RFA on 23 May 2025. The Claimants filed their Memorial in the arbitration, together with documentary, witness and expert evidence, on 27 March 2026.

The Claimants seek compensation (US$1.215bn net of local taxes and including interest) for the loss and damage they sustained as a result of Morocco's breaches of its obligations under the Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Kingdom of Morocco for the Promotion and Protection of Investments (the "BIT"), including (i) Morocco's expropriation of the Project in violation of Article 6(1) of the BIT, and (ii) Morocco's breach of its obligations to accord the Claimants fair and equitable treatment, to provide full protection and security to the Claimants and their investments, and to refrain from impairing the Claimants' investments by discriminatory measures under Article 2(2) of the BIT.

There can be no certainty as to the outcome of the Company's treaty claims.