Berkeley Reports $8.7 Million Loss and Maiden Lithium-Rubidium Resource at Conchas Project

$1.25 Billion ICSID Arbitration Against Spain

Berkeley Energia Limited (ASX:BKY) remains locked in a high-stakes legal battle with the Kingdom of Spain over its flagship Salamanca Uranium Project. In February 2026, the company’s wholly owned subsidiary Berkeley Exploration Limited filed a Memorial of Claim with the International Centre for Settlement of Investment Disputes (ICSID), alleging that Spain’s actions have violated provisions of the Energy Charter Treaty (ECT). Berkeley is seeking compensation of approximately US$1.25 billion for alleged breaches related to permitting delays and regulatory obstacles.

The arbitration proceedings have been bifurcated into two phases: the first addressing jurisdictional objections concerning denial of benefits, and the second focusing on the merits and quantum of damages. A hearing for the jurisdictional phase is scheduled for mid-2027, following exchanges of written submissions. Despite the dispute, Berkeley remains committed to the Salamanca Project and open to constructive dialogue with Spanish authorities to find an amicable resolution.

Salamanca Uranium Project Progress and Challenges

The Salamanca Project, located in a historic mining region in western Spain, holds a substantial Mineral Resource of 89.3 million pounds of uranium, with over two-thirds classified as Measured and Indicated. A 2016 Definitive Feasibility Study positioned Salamanca as one of the world’s lowest-cost uranium producers, capable of generating strong after-tax cash flows. The project aims to supply more than 10% of Europe’s uranium demand, supporting Spain’s energy security and the EU’s zero-carbon goals.

However, the project faces ongoing permitting hurdles. In 2021, the Spanish Ministry for Ecological Transition and Demographic Challenge (MITECO) rejected Berkeley’s application for a key Nuclear Safety Council (NSC) license (NSC II), based on an unfavorable NSC report. Berkeley contests the decision as arbitrary and lacking technical and legal merit. The company has submitted appeals and is pursuing legal recourse through the ICSID arbitration and contentious-administrative appeals before Spanish courts.

Additional permits, including the Authorization for Exploitation and Uranium License, have been challenged and revoked by regional courts, complicating the regulatory landscape. Berkeley has engaged advisors on a fixed and success fee basis to assist with securing or re-securing all necessary permits for construction. The company cautions that failure to obtain these permits could materially impact the project’s viability and shareholder value.

Maiden Critical Minerals Resource at Conchas Project

Expanding beyond uranium, Berkeley is advancing its Critical Minerals Exploration Initiative in Spain. Subsequent to the fiscal year end, the company announced a maiden Inferred Mineral Resource Estimate (MRE) for its 100%-owned Conchas Project near the Portuguese border. The resource totals 11.8 million tonnes at 0.41% lithium oxide (Li2O) and 0.21% rubidium oxide (Rb2O), equating to approximately 49,000 tonnes of contained lithium oxide and 25,200 tonnes of rubidium oxide.

The Conchas resource lies near surface in thick, shallow zones amenable to bulk-tonnage open-pit mining. Preliminary metallurgical testing demonstrated strong recoveries of lithium and rubidium using flotation and magnetic separation techniques. Rubidium is a critical raw material with strategic applications in defence, aerospace, communications, and renewable energy sectors, while lithium remains central to battery manufacturing and decarbonisation efforts in the EU.

Berkeley plans further infill drilling to upgrade resource classification and additional metallurgical test work to optimise processing. The company has also applied for exploration rights on the interpreted extension of the Conchas deposit into Portugal, covering 219 square kilometres.

Financial Performance and Corporate Developments

Berkeley reported a net loss after tax of $8.7 million for the year ended 30 June 2026, compared to a $5.4 million loss in the prior year. Key contributors to the increased loss included higher arbitration expenses of $4.7 million and a foreign exchange loss of $3.4 million, partly offset by a non-cash share-based payment reversal of $1.4 million.

The company ended the year with cash reserves of $62.4 million, down from $73.6 million the previous year, reflecting ongoing operational and legal expenditures. Berkeley remains debt-free and maintains a strong financial position to support its development and exploration activities.

In a strategic move to strengthen its Spanish presence and energy sector expertise, Berkeley appointed José Bogas Gálvez, former CEO of Endesa S.A., as a Non-Executive Director in July 2026. Bogas brings over 40 years of experience in the Spanish and European electricity and nuclear sectors, enhancing Berkeley’s influence amid ongoing regulatory challenges.

Sustainability and Community Engagement

Berkeley continues to prioritise sustainability, achieving its carbon footprint goal for 2024 and completing its 2024–2025 Sustainable Performance Report. The company has defined 2026 sustainability goals aligned with updated ISO and UNE standards and conducted an internal audit confirming compliance with environmental and mining management systems.

Berkeley also renewed its cooperation agreement with the Municipality of Retortillo, focusing on social and infrastructure projects including water and sanitation upgrades, health centre rehabilitation, and waste management initiatives. These efforts aim to deliver tangible benefits to the local community in a region affected by economic challenges.

Outlook and Risks

Berkeley’s strategic focus remains on resolving permitting issues for the Salamanca Project, advancing critical minerals exploration, and pursuing business development opportunities in clean energy and battery metals. The company acknowledges significant risks including the uncertainty of arbitration outcomes, regulatory approvals, commodity price volatility, and the inherent challenges of mine development.

While the arbitration process offers a legal avenue to protect shareholder interests, the timing and success of claims remain uncertain. The company’s ability to secure necessary permits will be a critical determinant of its path to production and value creation. Meanwhile, the maiden Conchas resource highlights Berkeley’s potential to diversify into strategic critical minerals, responding to growing demand across technology and energy sectors.