Communicators

Berkeley completes strategic investment of up to US$120m with Oman sovereign wealth fund and appoints Non-Executive Director

Berkeley Energia is pleased to announce that shareholders have voted to approve the strategic investment agreement with the sovereign wealth fund of the Sultanate of Oman.

All Conditions Precedent have been met and the Company has now received the initial US$65m tranche of funding.

The investment comprises an interest-free and unsecured loan of US$65 million which can be converted into ordinary shares at 50 pence per share upon commissioning of the mine, as well as an options package exercisable at an average price of 85 pence per share contributing an additional US$55 million if exercised.

The receipt of this first US$65m fully funds the capital costs for production at the Salamanca project, the only uranium mine under construction in the world today.

With the funding now approved, the Company will award the major construction and mining contracts and commence major earthworks early in the new year.

Mr Deepankar Panigrahi (age 38), Investment Manager in the Private Equity division of the State General Reserve Fund (“SGRF”) of Oman will join the Board as a Non-Executive Director effective immediately.

Mr Panigrahi has extensive experience across a variety of sectors and geographies covering all stages of the private equity process, including post investment management. Mr Panigrahi holds an Undergraduate and Master’s degree in Economics with Distinction and Honours from the University of Michigan followed by an MBA from Cambridge University.

Managing Director, Paul Atherley, commented:

“We are delighted to have now closed the Oman financing transaction, which fully de-risks the capital costs required to bring the Salamanca mine into production. We welcome the Oman fund as a strategic, long term investor and shareholder in the Company and we welcome Mr Deepankar Panigrahi to our Board.

With the funding in place we will now award the main EPC and mining contracts and begin major earthworks in the new year, focusing first on the installation of the crushing circuit.

Spot uranium prices have risen sharply since the announcement in early November by Cameco that it has temporarily suspended production from the McArthur River due to continued uranium price weakness.

Over the coming months, we expect more supply to be removed from global markets as higher cost operations are forced into closure when historical sales contracts roll off.

The Salamanca mine, with some of the lowest operating costs globally, is being constructed at the bottom of the uranium price cycle and when production commences the market is expected to be dominated by US utilities looking to re-contract, who will at the same time be competing with Chinese and Japanese reactor demand.”

For further information please contact:

Paul Atherley 

Managing Director 

Hugo Schumann

Chief Commercial Officer

+44 203 903 1930  

info@berkeleyenergia.com

Buchanan Communications Ltd.

Bobby Morse 

Senior Partner 

Anna Michniewicz

Account Director

+44 207 466 5000  

BKY@buchanan.uk.com

There are no other matters which are required to be announced pursuant to paragraph (g) of Schedule 2 of the AIM Rules.