We understand that a deferral to a DFS is usually considered a...

We understand that a deferral to a DFS is usually considered a negative matter, but in this case, we consider it to be for a positive result, particularly as the Prunéřov site is currently home to the Prunéřov Power Plant, and the permitting can now be advanced in a more timely manner with the cooperation of the local, regional and federal governments.

What has been clear in this process is the importance placed on this project by the community and Czech Government at all levels. In the European Union's Critical Raw Materials Act ("CRMA") environment, the coming together of both the Cinovec project joint venture partners and the Czech Government in the decision-making process with regards of the selection of the Prunéřov site provide a very strong foundation for our upcoming application for Strategic Project status under the CRMA."

Ladislav Štěpánek, Chairman of the Board of Directors of Geomet, stated: "Prunéřov is a suitable place for our project. It is an industrial location at a greater distance from populated areas where a lignite power plant is already operating. Building a processing plant in Prunéřov fulfils our philosophy of coal transformation, as it would provide enough jobs for the employees of the gradually closing coal mines and power plants located in the vicinity. Only an ore loading facility will be built at the original site at Dukla, from where we will transport the ore by rail to Prunéřov. I am glad that we have found an agreement with the municipalities and the region and can continue with the project at Prunéřov."

Jan Losenický, Mayor of Kadaň, added: "We welcome the plan of ČEZ and Geomet to build a lithium plant in Prunéřov. People from our town who currently work in coal-fired power plants or mines, but which will be gradually downsized and closed, could find employment in the processing plant. The investor has promised to invest in the training and retraining of current employees so that they can be employed in the new sophisticated plant. We are glad that ČEZ will not leave the region with the end of coal but will remain one of the largest investors and employers in the region, also thanks to the lithium park project.

This announcement has been approved for release by the Board.