DIRECTORS’ REPORT
30 JUNE 2025
(Continued)
12 BERKELEY ENERGIA LIMITED
OPERATING AND FINANCIAL REVIEW (Continued)
Business Strategies and Prospects for Future Financial Years (Continued)
• The Company may not successfully acquire new projects – In conjunction with seeking to overturn the negative
MITECO decision through international arbitration, the Company is also searching for and assessing other new
business opportunities at the Salamanca Project, as well as new business opportunities in the resources sector
which could have the potential to build shareholder value. These new business opportunities may take the form of
direct project acquisitions, joint ventures, farm-ins, acquisition of tenements/permits, or direct equity participation.
The Company’s success in its acquisition activities depends on its ability to identify suitable projects, acquire them
on acceptable terms, and integrate the projects successfully, which the Company’s Board is experienced in doing.
However, there can be no guarantee that any proposed acquisition will be completed or be successful and the
Directors are not able to assess the likelihood or timing of a successful acquisition. If a proposed acquisition is
completed the usual risks associated with a new project and/or business activities will remain. Further, any new
acquisition may require the establishment of a new business. The Company’s ability to generate revenue from a
new business will depend on the Company being successful in exploring, identifying mineral resources and
establishing mining operations in relation to a new project. Whilst the Directors have extensive industry experience,
there is no guarantee that the Company will be successful in exploring and developing a new project.
• The Company’s activities are subject to Government regulations and approvals – The Company’s exploration and
any future mining activities are dependent upon the maintenance and renewal, from time to time, of the appropriate
title interests, licences, concessions, leases, claims, permits, environmental decisions, planning consents and other
regulatory consents which may be withdrawn or made subject to new limitations. The maintaining or obtaining of
renewals or attainment and grant of title interests often depends on the Company being successful in obtaining and
maintaining required statutory approvals for its proposed activities. The mining licence for the Salamanca Project
was granted in April 2014 and is valid until April 2044 (and renewable for two further periods of 30 years each).
Given the current permitting situation at the Salamanca Project, the Company applied for, and has been granted a
temporary suspension of activity work at the Retortillo mining licence by the regional mining authorities, whilst the
NSC II related and abovementioned appeals processes are ongoing.
The Company closely monitors the status of its mining and exploration permits and licences and works closely with
the relevant government departments in Spain (as discussed above) to ensure the various licences are maintained
and renewed when required. However, there is no assurance that such title interests, licenses, concessions, leases,
claims, permits, decisions or consents will not be revoked, significantly altered or not renewed to the detriment of
the Company or that the renewals and new applications will be successful.
If such title interests, licences, concessions, leases, claims, permits, environmental decisions, planning consents
and other regulatory consents are not maintained or renewed then this could have a material adverse effect on the
Company’s financial performance and the price of its Ordinary Shares.
There can also be no assurances that the Company’s interests in its properties and licences are free from defects.
The Company has investigated its rights and believes that these rights are in good standing. There is no assurance,
however, that such rights and title interests will not be revoked or significantly altered to the detriment of the
Company.
In April 2021, the parliament in Spain (the Spanish Parliament) approved an amendment to the draft climate
change and energy transition bill relating to the investigation and exploitation of radioactive minerals (e.g. uranium).
The Spanish Parliament reviewed and approved the amendment to Article 10 under which: (i) new applications for
exploration, investigation and direct exploitation concessions for radioactive materials, and their extensions, would
not be accepted following the entry into force of this law; and (ii) existing concessions, and open proceedings and
applications related to these, would continue as per normal based on the previous legislation. The new law was
published in the Official Spanish State Gazette and came into effect in May 2021.
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. This could create uncertainty and pose a risk on future applications, renewals or proceedings the Company
may have to make in the future at the Salamanca Project or elsewhere, which if unfavourable could have a
detrimental effect on the viability of the Salamanca Project or the Company’s pursuit of other development
opportunities.
Therefore, there can be no assurances that the Company’s rights and title interests will not be challenged or
impugned by third parties or governments in the future. To the extent that any such rights or title interests are
revoked or significantly altered to the detriment of the Company, then this could have a material adverse effect on
the Group’s financial performance and the price of its ordinary shares.
