AIX: KAP, KAP.Y (GDR)

LSE: KAP (GDR)

27 January 2025, Astana, Kazakhstan

Kazatomprom 4Q24 Operations, Trading and JV Inkai Production Update

National Atomic Company "Kazatomprom" JSC ("Kazatomprom", "KAP" or "the Company") announces the following operations and trading update for the fourth quarter and year ended 31 December 2024.

This update provides a summary of recent developments in the uranium and nuclear industries, as well as provisional information related to the Company's key fourth quarter and 2024 operating and trading results, and 2025 non-financial guidance. The information contained in this Operations and Trading Update may be subject to change.

Market Overview

The 29th United Nations Climate Change Conference COP29, held in November, expanded the list of nations backing nuclear power. During the event, six more countries - Kazakhstan, Kenya, Kosovo, Nigeria, Turkey and El Salvador - joined the Net Zero Nuclear declaration, which calls for tripling global nuclear capacity by 2050. The declaration was first initiated at COP28 in 2023 and signed by 25 countries with existing and emerging nuclear programs.

At the same time, the Idaho National Laboratory (INL) convened the leaders of major technology corporations, such as Meta, Amazon, and Google, alongside financial institutions, including Goldman Sachs, Morgan Stanley, and BlackRock, at the Nuclear Investor Day. This event, organised in collaboration with the U.S. Department of Energy (DOE), united 26 participants representing more than 1 trillion US dollars in assets under management. Key topics of the event were risk and supply chain management, and potential replacement of decommissioned coal plants with nuclear. A few weeks later, Meta announced its intention to issue a Request for Proposals to construct 1 - 4 GW of new nuclear capacity in the United States, starting in early 2030s, to power future data centers.

On 4 November, the French government approved a new 10-year Energy Plan in which nuclear power plays a key role. The plan includes the construction of six new EPR2 reactors, with the possibility of building eight more, as well as extending the operational lifetime of existing nuclear power plants (NPP) to 50-60 years (subject to meeting safety standards and regulations). The strategy also envisages a phased transition to a closed nuclear fuel cycle, the deployment of small modular reactors (SMRs), further research into fast-neutron reactor technology, and the establishment of a European Fuel Supply Chain.

On 12 November, the U.S. President Administration introduced a comprehensive program "Safe and Responsible Expansion of U.S. Nuclear Energy: Deployment Goals and Action Framework". The program is outlining a roadmap to triple national nuclear capacity by adding 200 GW of new nuclear power by 2050. The framework emphasises that expanding nuclear energy will bolster national security, improve energy reliability and restore the United States' global leadership in the nuclear sector.

On 14 November, Russia imposed restrictions on exporting enriched uranium product (EUP) to the United States in response to the earlier enactment of the Public Law No. 118-62 (H.R.1042), which bans imports of Russian EUP to the United States starting 2028. These restrictions are applicable to direct shipments of uranium to the country and to exports conducted under agreements with entities registered in the United States. However, deliveries under one-time licenses issued by the Federal Service for Technical and Export Control remain permissible.

Early December, Japan's Ministry of Economy, Trade and Industry published a draft of the country's new Energy Plan, which excludes the post-Fukushima commitment to "reduce dependence on nuclear power". The revised policy stipulates that nuclear energy will account for 20% of Japan's energy mix by 2040 through both the restart of previously suspended NPPs and the construction of new capacities.

Meanwhile, Sweden signalled that it may lift its ban on uranium mining under the Mineral Act. Exploration and extraction of uranium have been prohibited in Sweden since 2018, but based on the Government's latest assessment, recommendations have been made for a legal framework that would allow uranium mining at economically viable deposits. The corresponding legislation is expected to be effective staring from 1 January 2026. Official estimates indicate that the country's largest Häggån deposit contains approximately 800 million pounds of U₃O₈ (307,718 tU), sufficient to meet more than 300 years of Sweden's current uranium requirements.

Eastern European countries have also contributed to the positive industry developments. The Government of Serbia has lifted a 35-year moratorium on nuclear energy, originally introduced following the Chernobyl accident in 1986. Based on the Government estimates it could take up to two decades to build and commission the first planned NPP in the country. Romania government approved a new Energy Strategy for 2025-2035 intended to resume uranium mining to enhance the country's energy security and gradually reduce reliance on imports.

Early January, President of the Republic of Kazakhstan Kassym-Jomart Tokayev in an interview to the Kazakh newspaper "Ana Tili" mentioned that the Government expects to conduct tender procedures in 2025 to finalise its decision on members of international consortium for building the country's first NPP. Furthermore, in light of Kazakhstan's growing economy, the President has outlined the possibility of a second or even a third NPP construction in near future.

According to the draft of Thailand's new Electricity Power Development Plan for 2024-2037, the country may build and commission two SMRs with a capacity of 300 MW each. Furthermore, on 14 January 2025 Thailand and the United States signed an Agreement for Cooperation in Peaceful Uses of Nuclear Energy (the "123 Agreement"), which enables transfer of nuclear materials and technology between the countries.

On 15 January, Sweden commenced the construction of the world's second Deep Geological Repository (DGR) for Spent Nuclear Fuel (SNF). The facility, located in Forsmark, will accommodate 12,000 tonnes of SNF at a 500 meters-depth. Construction is expected to be completed in the 2030s, with final expansion scheduled for the 2080s. Currently, a similar DGR is under construction in Olkiluoto, Finland.

Turning to demand-related developments, the following are worth mentioning:

·      China's first Guohe One (CAP1400) reactor with a capacity of 1,400 MW was connected to the grid at Huaneng Group's Shidaowan NPP on 4 November. The CAP1400 is a scaled-up version of the CAP1000 reactor based on the AP1000 design developed by the Westinghouse.

·      On 21 November, Brazil's National Nuclear Energy Commission extended Eletronuclear's operating license for Unit 1 of the Angra NPP by 20 years, now valid until 2044.

·      In December, EDF Energy announced extensions to the operational life of 4 nuclear power sites in the United Kingdom. Heysham 1 and Hartlepool Advanced Gas Cooled Reactor have been authorised to continue operating until March 2027, while Heysham 2 and Torness AGR plants will operate until March 2030.

·      Swiss utility Axpo announced its decision to secure the operation of the Beznau NPP by investing CHF 350 million (USD 400 million), thus extending the operations of the Unit 2 until 2032 and Unit 1 until 2033.

·      Chugoku Electric Power Co. announced the restart of Unit 2 at the Shimane NPP in Japan, following a 12-year shutdown after the Fukushima accident in 2011.

·      EDF reported that Flamanville 3, featuring a 1,630 MW EPR reactor, initially slated for commercial start-up in 2013 has been finally connected to the French grid.

·      Tohoku Electric Power Co. announced that Unit 2 at the Onagawa NPP has commenced commercial operation, marking it the first BWR restarted in Japan since the Fukushima accident in 2011.

·      Ontario Power Generation (OPG) announced that Unit 4 of the Pickering NPP, with a 500 MW CANDU reactor, was permanently shut down after more than 50 years of operation. Simultaneously, OPG is working on refurbishment of the Pickering Units 5-8 to bring them back online by the mid-2030s.

·      On 2 January, China National Nuclear Corporation announced that Zhangzhou NPP Unit 1, with a capacity of 1,000 MW, entered commercial operation just over five years after the start of construction. It is the first of six Chinese-designed Hualong One (HPR1000) reactors planned at the site.

On the supply side:

·      Paladin Energy Ltd. announced revised production plans for its Langer Heinrich mine in Namibia for 2025. Following ongoing challenges and operational variability, the company lowered its 2025 output forecast from 4.0-4.5 million lbs U₃O₈ to 3.0-3.6 million lbs U₃O₈.

·      Canadian GoviEx Uranium, along with its subsidiary GoviEx Niger Holdings Ltd., commenced legal action against the Government of the Republic of Niger regarding the revocation of its mining license at the Madaouela deposit. The lawsuit was filed under the Convention on the Settlement of Investment Disputes between States and Nationals of Other States.

·      On 20 December, Orano confirmed that the ruling Government of the Republic of Niger had taken control of SOMAÏR, in which French company owns a 63.4% share and runs the Arlit uranium project. Another Orano asset in Niger had been facing challenges since June 2024, when the local government revoked Orano's mining license for Imouraren, one of the world's largest uranium deposits. In response, the French company initiated an arbitration procedure against the State of Niger late December. Furthermore, on 21 January, Orano has also initiated a second arbitration procedure against the State of Niger regarding the loss of operational control over SOMAÏR.

·      After a five-year suspension, operations resumed at the Lance in-situ recovery (ISR) uranium mine in Wyoming, USA starting 21 December. The project is owned by Australia's Peninsula Energy Ltd. through its U.S. subsidiary, Strata Energy Inc. The first batch of yellowcake from the site is expected in March 2025. Upon completion of construction, the mine's production capacity is projected to reach 2 million lbs U₃O₈ (769 tU) per year.

·      On 27 December, the Government of Mongolia announced that France's Orano Mining Group had submitted a preliminary development plan for the Zuuvch Ovoo ISR deposit. Initial investment in the project is estimated at USD 500 million, with total investment estimated at up to USD 1.6 billion. The preparatory stage is scheduled until 2027, with the first production expected in 2028 reaching its peak production of 2,600 tU (6.76 million lbs U₃O₈) by 2044.

·      On 10 January, the China Geological Survey announced that following extensive geological exploration activities carried out since 2021 a substantial uranium deposit was discovered in the Ordos Basin in the Jingchuan region. The discovery will significantly increase and enhance the security of China's uranium resources.

Market Pricing and Activity

* Average of UxC and TradeTech reported prices

In October, the spot price held firm in the low-$80s/lb U₃O₈. As November began, the spot price dropped below the $80.00/lb U₃O₈ level rebounding at $82.00/lb U₃O₈ in the middle of the month and decreasing to $77.25/lb U₃O₈ at the month-end. In December, the spot price continued to experience a downward pressure demonstrating the year's lowest point at $71.13/lb U₃O₈ during the holiday season. The average price for the year resulted in $86.28/lb U₃O₈.

According to third-party market data, a total of 36.75 million pounds U₃O₈ (~14,135 tU) were transacted at an average weekly spot price of US$86.28/lb U₃O₈ in 2024, compared to 42.8 million pounds U₃O₈ (~16,400 tU) at an average weekly spot price of US$60.53/lb U₃O₈ in 2023. Overall, spot market activity in terms of volume transacted in 2024 was almost 14% lower than in 2023.

In the long-term market, 2024 contracting activity was notably lower than in the previous year, with the third-party data indicating that contracted volumes totaled about 106 million pounds U₃O₈ (~40,800 tU) throughout 2024, compared to about 160 million pounds U₃O₈ (~61,500 tU) in 2023. Despite the tangible decline in contracted volume, the average long-term price indicator has increased by US$12.50/lb U₃O₈ year-over-year to US$80.50/lb U₃O₈ by the end of 2024.

Company Developments

ESG score update from S&P Global

S&P Global, an international rating agency, has assigned the Company a Corporate Sustainability Assessment (CSA) score of 48/100, with a total ESG score of 50/100 on 6 December 2024. Kazatomprom's CSA score is 7 points higher compared to the previous year, and almost twice the industry average, which confirms the success of the Company's sustainable development strategy. An improvement of the ESG score by S&P Global reflects Kazatomprom's effective ESG management practices and indicates the Company's strong commitment to developing responsible business. The full ESG Evaluation report from S&P Global Ratings is available at: https://www.spglobal.com/esg/scores/results?cid=4351546.

In January, Fitch Ratings has affirmed Kazatomprom's credit rating at "BBB", outlook Stable.

The rating reflects Company's strong financial position due to its conservative financial policy and low-cost position on the global cost curve. It also highlights Kazatomprom's global leader position in uranium production and contracted production volumes along with long-term relationships with utilities.

Fitch's publication can be accessed at the following link: https://www.fitchratings.com/research/corporate-finance/fitch-affirms-jsc-national-atomic-company-kazatomprom-at-bbb-outlook-stable-15-01-2025.

KASE Bond redemption

Kazatomprom announced full redemption of its ISIN KZ2C00006153 bonds that were excluded from the Kazakhstan Stock Exchange's official list due to reaching their maturity on 28 October 2024. Total payments for these bonds amounted to KZT 87,791,666,666.67.

AIX Bond Placement

On 2 December, Kazatomprom's ISIN KZX000003371 bond issuance was admitted to the Astana International Exchange (AIX), admission type - "Exempt", segment - "Main". The placement took place the same day on the unorganised securities market of AIX through a targeted bond purchase and sale transaction between Kazatomprom as the "Seller" and "Samruk-Kazyna" JSC as the "Buyer". Total bond issue volume amounted to USD 200 million with maturity period of 2 December 2024 - 2 December 2027. The purpose of this bond issue is to replenish working capital.

EGM Results

As announced on 15 November 2024, Kazatomprom's Extraordinary General Meeting of Shareholders approved to conclude the spot contract for the sale and purchase of natural uranium concentrates between Kazatomprom and CNNC Overseas Limited and the long-term agreement for the sale and purchase of natural uranium concentrates between Kazatomprom and China National Uranium Corporation Limited.

Severnoye exploration license

In November, the Company has obtained the subsoil use license for uranium exploration at Severnoye block of Budenovskoye deposit, located in the Shu-Sarysu uranium province of Turkestan region, for a period of 6 years with a possibility of a 5-year extension. Subsoil use license for uranium exploration at this block is exclusive to Kazatomprom. Preliminary data shows that inferred uranium resources in categories P1 and P2 are estimated at more than 100 thousand tonnes, and indicate significant prospects for detailed exploration.

Change of the partners in some JVs

As was previously announced, in December, Uranium One Group JSC, a subsidiary of the Rosatom State Corporation, has sold its 49.979% share in JV Zarechnoye JSC to SNURDC Astana Mining Company Limited, the ultimate beneficiary of which is State Nuclear Uranium Resources Development Co., Ltd. (China). Kazatomprom's equity stake in this joint venture remains unchanged at 49.979%.

The Company also reported that Uranium One Group JSC had plans to sell its 30% equity stake in the charter capital of JV Khorasan-U LLP and the 30% equity stake in the charter capital of Kyzylkum LLP to China Uranium Development Company Limited, the ultimate beneficiary of which is China General Nuclear Power Corporation (CGN, China).

As of today, the abovementioned deal is closed by the parties. Following the deal closure, JV Khorasan-U LLP was renamed into Turanium LLP effective 22 January 2025. Kazatomprom's shares remain unchanged and the Company continues to hold 50% in Turanium LLP (former JV Khorasan-U LLP) and 50% (indirectly) in Kyzylkum LLP.

Updated Development Strategy for 2025 - 2034

As a result of the early achievement of key strategic goals set for 2018 - 2028 and fundamental changes in the nuclear industry the Company's Board of Directors has approved the updated Development Strategy for the years 2025 - 2034. The Strategy defines the Company's mission, vision, and strategic objectives for the next 10 years, aiming to sustainably strengthen the Company's position and use arising opportunities amid new nuclear renaissance.

Kazatomprom's 2025 - 2034 Strategy remains committed to the "Value over Volume" principle, further reflecting changes in the nuclear fuel market and addressing the growing demand for both uranium products and rare and rare-earth metals.

The Company's Board of Directors has identified the following strategic objectives for 2025 - 2034:

•     Enhance focus on uranium mining as our core business, with efforts concentrated on replenishment and efficient use of resource base;

•     Expand our footprint in the nuclear fuel cycle, given the arising opportunities, substantiated by economic value;

•     Develop and expand rare and rare-earth metals segment under the critical minerals agenda;

•     Continue to diversify sales and further enhance trading function;

•     Improve and strengthen leading business and ESG practices in order to ensure and uphold integrity of business.

Update on JV Inkai Operations

As was announced on 2 January, JV Inkai LLP had to temporarily suspend its production activity at block No. 1 of Inkai deposit since 1 January due to absence of required approvals from the state authorities, resulted from delayed submission of the corresponding documentation.

As of the publication date of this report, JV Inkai LLP has resolved the approval issue and has resumed its mining operations at block No. 1 of Inkai deposit. Potential impact of JV Inkai's production suspension on Kazatomprom's 2025 production plans is currently being assessed.

Kazatomprom remains fully committed to fulfilling contractual obligations towards all existing customers and has sufficient level of inventories to comfortably manage its deliveries throughout 2025.

Kazatomprom's Fourth-Quarter and 2024 Operational Results¹

¹ All values are preliminary.

² U₃O₈ Production volume (100% basis): Amounts represent the entirety of production of an entity in which the Company has an interest; it therefore disregards the fact that some portion of that production may be attributable to the Group's joint venture partners or other third party shareholders. Precise actual production volumes remain subject to converter adjustments and adjustments for in-process material.

³ Production volume U₃O₈ (tU) (attributable basis): Amounts represent the portion of production of an entity in which the Company has an interest, corresponding only to the size of such interest; it excludes the portion attributable to the JV partners or other third-party shareholders, except for JV Inkai LLP, where the annual share of production is determined as per Implementation Agreement. JV Inkai LLP's 2024 annual production was lower than expected, altering the attribution ratio. Q4 and 12 months' attributable production figures use the corrected attribution ratio that corresponds to JV Inkai LLP's actual annual production volume in 2024. Adjusted Q1, Q2 and Q3 production volumes on attributable basis for 2024 will be disclosed along with FY2024 financial results.

⁴ Group U₃O₈ sales volume: includes the sales of U₃O₈ by Kazatomprom and those of its consolidated subsidiaries (companies that KAP controls by having (i) the power to direct their relevant activities that significantly affect their returns, (ii) exposure, or rights, to variable returns from its involvement with these entities, and (iii) the ability to use its power over these entities to affect the amount of the Group's returns. The existence and effect of substantive rights, including substantive potential voting rights, are considered when assessing whether KAP has control over an entity). For consistency, Group U₃O₈ sales volumes do not include other forms of uranium products (including, but not limited to the sales of fuel pellets and enriched uranium product (EUP)). Yet, some part of Group U₃O₈ production goes to the production of EUP, fuel pellets and fuel assemblies (FA) at Ulba-FA LLP.

⁵ KAP U₃O₈ sales volume (incl. in Group): includes only the total external sales of U₃O₈ of KAP HQ and Trade House KazakAtom AG (THK). Intercompany transactions between KAP HQ and THK are not included.

⁶ Group average realized price (USD/lb U₃O₈): average includes Kazatomprom's sales and those of its consolidated subsidiaries, as defined in parenthesis in footnote 4 above.

⁷ KAP average realized price (USD/lb U₃O₈): the weighted average price per pound for the total external sales of KAP HQ and THK. The pricing of intercompany transactions between KAP HQ and THK are not included.

⁸ Source: UxC LLC, TradeTech. Values provided are the average of the month-end uranium spot prices quoted by UxC and TradeTech, and not the average of each weekly quoted spot price throughout the month. Contract price terms generally refer to a month-end price.

* For some JVs the Company has a right to purchase additional volumes beyond its attributable share if the JV partner chooses to forgo its entitled share.

** For JV Budenovskoye LLP, 100% of the 2024-2026 annual production is fully committed for supplying the needs of the Russian civil nuclear energy industry, under an offtake contract at market-related terms.

*** Please note the conversion of kgU to pounds U3O8 is 2.5998.

Kazatomprom's 2024 production results were within the guided ranges. Production volumes on a 100% basis and on attributable basis were slightly higher throughout 2024 compared to 2023 due to an increase in the production plan in accordance with the commitments under the Subsoil Use Agreements.

Group and KAP sales volumes were guided lower in 2024 in comparison to 2023 due to higher sales of EUP to "Ulba-FA" LLP for subsequent production of fuel assemblies and Company's efforts to ensure sufficient level of inventories for the future periods. That said, in 2024, both Group and KAP sales volumes slightly exceeded guidance due to an increase in physical deliveries associated with additional requests from customers to flex up their annual delivery quantities within the frame of existing contracts, as well as due to prior periods' adjustments associated with conversion facility certification and weighing procedures.

Average realized prices for both the fourth quarter and throughout 2024 were higher compared to the same periods in 2023 due to higher uranium spot prices. The Company's current contract portfolio pricing correlates with the spot uranium prices, however some deliveries in 2024 were made under long-term contracts, which include fixed pricing components, including price ceilings that were negotiated during a comparatively lower price environment.

Kazatomprom's 2025 Production and Sales Guidance

¹ Production volume U₃O₈ (tU) (100% basis): Amounts represent the entirety of production of an entity in which the Company has an interest; it disregards that some portion of production may be attributable to the Group's JV partners or other third-party shareholders. Precise actual production volumes remain subject to converter adjustments and adjustments for in-process material.

² Production volume U₃O₈ (tU) (attributable basis): Amounts represent the portion of production of an entity in which the Company has an interest, corresponding only to the size of such interest; it excludes the portion attributable to the JV partners or other third-party shareholders, except for JV Inkai LLP, where the annual share of production is determined as per Implementation Agreement. Precise actual production volumes remain subject to converter adjustments and adjustments for in-process material.

³ Group sales volume: includes the sales of U₃O₈ by Kazatomprom's sales and those of its consolidated subsidiaries (companies that KAP controls by having (i) the power to direct their relevant activities that significantly affect their returns, (ii) exposure, or rights, to variable returns from its involvement with these entities, and (iii) the ability to use its power over these entities to affect the amount of the Group's returns. The existence and effect of substantive rights, including substantive potential voting rights, are considered when assessing whether KAP has power to control another entity). For consistency, Group U₃O₈ sales volumes do not include other forms of uranium products (including, but not limited to, the sales of fuel pellets and EUP).

⁴ KAP sales volume: includes only the total external sales of U₃O₈ of KAP HQ and THK. Intercompany transactions between KAP HQ and THK are not included.

* For some JVs, the Company has a right to purchase additional volumes beyond its attributable share if the JV partner chooses to forgo its entitled share.

** For JV Budenovskoye LLP, 100% of the 2024-2026 annual production is fully committed for supplying the needs of the Russian civil nuclear energy industry, under an offtake contract at market-related terms.

*** Please note that the conversion of kgU to pounds U₃O₈ is 2.5998.

Kazatomprom's 2025 uranium production volume is expected to be in the range of 25,000 - 26,500 tU on a 100% basis and 13,000 - 14,000 tU on an attributable basis.

As was disclosed earlier, it is expected that in 2025 mining entities will have different percentage rate decreases compared to the levels stipulated in the Subsoil Use Agreements within the acceptable 20% deviation. If changes to Subsoil Use Agreements of certain mining entities are approved and corresponding amendments to Subsoil Use Agreements are signed, these entities are expected to be producing at a 100% level of their revised Subsoil Use Agreements.

For 2025, the Group's sales volume is expected to be in the range of 17,500 - 18,500 tU, including KAP sales volume in the range of 14,000 - 15,000 tU.

Financial guidance for 2025 will be published in the FY2024 Operating and Financial Review.

Conference Call Notification - FY2024 Operating and Financial Review

Kazatomprom expects to schedule a conference call to discuss the FY2024 financial results after they are released on Wednesday, 19 March 2025. Further details will be provided closer to the date of the event.

For further information, please contact:

Investor Relations Inquiries

Botagoz Muldagaliyeva, Director, Investor Relations

Tel: +7 7172 45 81 80/69

Email: ir@kazatomprom.kz

Public Relations and Media Inquiries

Altynay Karibzhanova, Chief Expert, Public Relations

Tel: +7 7172 45 80 63

Email: pr@kazatomprom.kz

A copy of this announcement is available at www.kazatomprom.kz.

About Kazatomprom

Kazatomprom is the world's largest producer of uranium with the Company's attributable production representing approximately 20% of global primary uranium production in 2023. The Group benefits from the largest reserve base in the industry and operates, through its subsidiaries, JVs and Associates, 27 deposits grouped into 14 mining assets. All of the Company's mining operations are located in Kazakhstan and extract uranium using ISR technology with a focus on maintaining industry-leading health, safety and environment standards (ISO 45001 and ISO 14001 certified).

Kazatomprom securities are listed on the London Stock Exchange and the Astana International Exchange. Kazatomprom is the national atomic company in the Republic of Kazakhstan, the Group's primary customers are operators of nuclear generation capacity, the principal export markets for the Group's products are China, South and Eastern Asia, Europe and North America. The Group sells uranium and uranium products under long-term contracts, short-term contracts as well as in the spot market, directly from its headquarters in Astana, Kazakhstan, and through its Switzerland-based trading subsidiary, Trade House KazakAtom AG (THK).

For more information, please see the Company website at www.kazatomprom.kz.

Forward-looking statements

All statements other than statements of historical fact included in this communication or document are forward-looking statements. Forward-looking statements give the Company's current expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance and business. These statements may include, without limitation, any statements preceded by, followed by or including words such as "target," "believe," "expect," "aim," "intend," "may," "anticipate," "estimate," "plan," "project," "will," "can have," "likely," "should," "would," "could" and other words and terms of similar meaning or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company's control that could cause the Company's actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which it will operate in the future.

THE INFORMATION WITH RESPECT TO ANY PROJECTIONS PRESENTED HEREIN IS BASED ON A NUMBER OF ASSUMPTIONS ABOUT FUTURE EVENTS AND IS SUBJECT TO SIGNIFICANT ECONOMIC AND COMPETITIVE UNCERTAINTY AND OTHER CONTINGENCIES, NONE OF WHICH CAN BE PREDICTED WITH ANY CERTAINTY AND SOME OF WHICH ARE BEYOND THE CONTROL OF THE COMPANY. THERE CAN BE NO ASSURANCES THAT THE PROJECTIONS WILL BE REALISED, AND ACTUAL RESULTS MAY BE HIGHER OR LOWER THAN THOSE INDICATED. NONE OF THE COMPANY NOR ITS SHAREHOLDERS, DIRECTORS, OFFICERS, EMPLOYEES, ADVISORS OR AFFILIATES, OR ANY REPRESENTATIVES OR AFFILIATES OF THE FOREGOING, ASSUMES RESPONSIBILITY FOR THE ACCURACY OF THE PROJECTIONS PRESENTED HEREIN.

The information contained in this communication or document, including but not limited to forward-looking statements, applies only as of the date hereof and is not intended to give any assurances as to future results. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to such information, including any financial data or forward-looking statements, and will not publicly release any revisions it may make to the Information that may result from any change in the Company's expectations, any change in events, conditions or circumstances on which these forward-looking statements are based, or other events or circumstances arising after the date hereof.