Recommendation of Selvita S.A. project for co-funding under the FENGprogram

The Management Board of Selvita S.A., with its registered office inKrakow (the "Company" or the "Issuer"), hereby informs that on September19, 2025, it was notified that the project entitled "Increasing thepotential and competitiveness of the Polish economy in the field ofinnovative therapies and medicines of the future, through thedevelopment of the Research and Development Center and the developmentof research methods and tools, as a response to social needs in the areaof public health" (the "Project") has been placed on the list ofprojects selected for co-funding under the call FENG.01.01-IP.01-003/24- SMART Path - European Funds for a Modern Economy 2021-2027 - PriorityI, organized by the National Centre for Research and Development (pol.Narodowe Centrum Badań i Rozwoju).The Project consists oftwo modules: an infrastructure module and a research module, the latterto be implemented by the Issuer in collaboration with the JagiellonianUniversity Collegium Medicum ("JU CM"). The total net eligible cost ofthe Project is estimated at PLN 199,617,486.75, of which the co-fundingamounts to PLN 91,775,532.92. The Project implementation period willcover the years 2025-2029.

1. Co-funding of the infrastructure module - expansion of Selvita S.A.Research and Development Center

The development of research infrastructure is one of the key factors forthe Company's further growth. In the opinion of the Management Board,the next laboratory building, following the first proprietary laboratoryfacility in Krakow launched in Q1 2023 ("RDC 1" or "Hexagon 1"), willprovide the Company with opportunities to further strengthen thecompetitiveness of the Issuer's offering and drive organic growth byexpanding the scale of research activities and broadening the portfolioof services in the area of drug discovery and development, in particularin the field of new advanced modalities such as antibody-drug conjugates(ADC).

The new Research and Development Center building ("RDC 2" or "Hexagon2") will be constructed in Krakow, at Podole Street. Securingnon-dilutive financing at this stage constitutes an importantreinforcement of the Issuer's medium-term capacity for organic growth inKrakow. Hexagon 2 will provide laboratory space for approximately 250scientists.

The total value of eligible costs for the infrastructure module isestimated at PLN 152,638,160.00, of which the co-funding, amounting to40%, equals PLN 61,055,263.60. The remaining amount will be financedwith the Company's own funds and debt capital. The first tranche of theloan is expected to be drawn not earlier than six months after the startof construction. The value and schedule of subsequent tranches will bealigned with the investment expenditure, the majority of which isexpected towards the end of the investment process.

Construction is expected to commence no later than the end of 2027, withlaboratories to be operational by the end of 2029. Any earliercommissioning will depend on the pace of business growth. In thebaseline scenario, the Issuer will gradually increase demand for newlaboratory space for research and development activities, however, theCompany does not exclude further optimization of the proportion betweenowned and leased space.

2. Co-funding of the research module

Within the research module, the Project will cover studies aimed atdeveloping methods and research tools for drug discovery anddevelopment, including the implementation of state-of-the-art solutionsbased on artificial intelligence (AI) and machine learning (ML). Theresearch module comprises two innovations (the "Innovations"), the firstof which will be implemented in a consortium with JU CM.

First Innovation involves research on the application of a novel elementwith high therapeutic potential in the drug discovery process. TheInnovation is focused on developing a pioneering research methodologyenabling the generation of compounds of significant therapeutic value,particularly in oncology, inflammatory, and autoimmune diseases, withstrong patentability potential. The methodology to be developed willencompass synthesis, purification, activity evaluation, as well aspharmacokinetic and toxicity profiling.

The eligible cost of the first Innovation amounts to PLN 18,390,774,with co-funding for the Company of PLN 6,922,781 and co-funding for JUCM of PLN 5,334,081.

Second Innovation involves the development of the GENAI-inDD technologyplatform, supporting de novo drug design and the optimization ofabsorption, distribution, metabolism, and excretion (ADME) properties,with the objective of creating three AI models:

1. AI-ADME model - to improve the effectiveness of generatingsynthesizable compounds with high purity.

2. AI-DeNOVO model - to enhance the uniqueness of generated compounds.

3. AI-OPT model - to enable multi-parameter optimization of thedeveloped lead compound.

In the Company's proposed solution, by combining in a single platformdata analysis and prediction using AI with an experimental componentapplying such analysis, the Company will acquire a tool streamlining theprocess from concept-prototype to a compound with designed properties.

Implementation of the GENAI-inDD platform will enable the Company todiscover new drugs more effectively, both in terms of cost and time.

The eligible cost of the second Innovation amounts to PLN 28,872,342,with co-funding for the Company of PLN 18,463,407.

The final amount of co-funding may be subject to minor adjustmentsduring the preparation of documentation for the relevant agreement. TheCompany will report the signing of the agreement in a separate currentreport.Disclaimer: This English language translation hasbeen prepared solely for the convenience of English speaking readers.Despite all the efforts devoted to this translation, certaindiscrepancies, omissions or approximations may exist. In case of anydifferences between the Polish and the English versions, the Polishversion shall prevail. Selvita S.A., its representatives and employeesdecline all responsibility in this regard.