Press Release

Statement by the Executive Management of SN Nuclearelectrica SA regarding the Summary of the Report of the Control Body of the Prime Minister of Romania

Bucharest, July 28, 2026

S.N. Nuclearelectrica S.A. provides the following technical and institutional clarifications regarding the issues included in the summary of the Prime Minister’s Control Body Report, published by the issuer, to supplement the detailed information presented in the Current Report submitted to the Bucharest Stock Exchange.

The company values the role of institutional oversight mechanisms and believes that strategic projects of national importance must be analyzed in light of their specific technical, economic, and regulatory characteristics.

SNN believes that investors and the public should have a complete picture of a strategic project that is in a complex stage of development.

1. Regarding the status of the SMR (Small Modular Reactor) Project

The SMR Project development schedule was developed in collaboration with technology partners NuScale and Fluor, based on the information available at the time the project was initiated, and was, from the outset, an estimated schedule, subject to updates as engineering, permitting, and technology maturation activities progressed.

Regarding the difference between the initial estimated timeline and the project’s current progress, it should be noted that the SMR Project represents the first European implementation of this technology (“first-of-a-kind”), and its development is contingent upon the completion of successive stages of design, engineering, and technical validation. In this context, updating schedule estimates is an inherent feature of such projects and does not constitute a deviation from assumed obligations, given that the documents approved within the project do not establish firm and binding contractual deadlines.

The engineering phase serves to objectively document and validate technical solutions, costs, and the implementation schedule, and it forms the foundation for all subsequent development phases.

2. Regarding the site selection

The Doicesti site was selected based on technical studies and analyses. The site selection was independently evaluated by the IAEA (the UN’s International Atomic Energy Agency) through a series of assessment missions, and Nuclearelectrica’s decision has been made public (https://www.iaea.org/newscenter/news/iaea-seed-follow-up-mission-highlights-good-progress-in-smr-site-selection-in-romania).

The first IAEA SEED mission took place in August 2022 and was intended to verify the SMR site selection study in Romania. A series of recommendations was formulated. After all recommendations were addressed, a follow-up IAEA SEED mission (April 2024) confirmed that all recommendations had been fulfilled and concluded that the site selection had been conducted in accordance with international standards (i.e., in full compliance with IAEA standards).

In May 2025, another IAEA SEED mission reviewed sections of the Initial Nuclear Safety Assessment Report (ISAR) and the methodologies to be used for detailed studies related to external hazards that could affect the site, including the hazard associated with the presence of natural gas. The results of this IAEA mission confirmed all the methodologies and steps taken and proposed by RoPower to complete the detailed site-specific studies.

Beyond compliance with specific nuclear safety requirements, the Doicești site offers objective advantages stemming from the existence of an already developed energy and industrial infrastructure—a characteristic specific to a brownfield site—which has a favorable impact on both the implementation timeline and project costs compared to development at a greenfield site.

Furthermore, the alternative Iernut site presents additional constraints stemming from the legal status of the land, which is owned by a very large number of owners (over 100) and classified as agricultural land—factors that would have required complex procedures to consolidate ownership and, consequently, entailed additional risks regarding implementation time and costs.

Therefore, the site selection was conducted correctly in terms of the analyses, their independent verification, and the evaluation of the differences compared to the first-choice site.

Regarding the establishment of the project company— the selection of the joint venture partner for this project was made, primarily, objectively, based on the site criterion. The structure of the project company was designed to allow for the phased development of the investment and the subsequent attraction of new investors, in accordance with practices applicable to large-scale nuclear projects. The conclusions of the Prudent Private Investor Test (PPIT) confirmed that the investment structure and the decisions adopted are consistent with how a private investor in similar circumstances would have acted to develop a comparable project. To finance the Project, the intention was to bring in new shareholders to the Project Company (RPN) at a later stage.

The obligations assumed by SNN in relation to NPG are specifically designed to protect the Project Company’s best interests, namely to prevent—given the strategic importance of the investment—NPG from transferring its receivables to any party on the open market. These clauses, approved by the investors/shareholders, were adopted to protect the interests of the Romanian State as a shareholder, through the Ministry of Energy, and constitute an advantage for the State—which is why the Extraordinary General Shareholders’ Meeting resolution approving the Investors’ Agreement (dated September 2022) was adopted.

3. Regarding the project company’s acquisition of the site-The structure of the transaction for the acquisition of the site was determined based on a prudent and phased analysis, conducted with reference to the specific nature of the nuclear project, the available assessments, and the need to protect SNN’s interests.

The site has distinct strategic significance and was analyzed not only from the perspective of a standard real estate transaction but also in light of the specific requirements for developing a nuclear project, including the work, conditions, and technical details necessary for preparing such a project.

The land was acquired at market value, in accordance with applicable legal provisions—specifically, the lowest market value as determined by various appraisal reports, with some valuations reaching 60 million euros. SNN (which is not a party to the transaction) cannot investigate or question the market value established by the appraiser, as this is the exclusive professional prerogative of the authorized appraiser, based on the applicable legal framework and professional standards.

In the same context, to date, no payment has been made under the Rebilling Agreement, precisely as an expression of the prudent approach adopted by the company to protect the interests of the company and its shareholders. The steps initiated and supported by SNN’s executive management regarding the conduct of a forensic audit prior to the completion of the CCPM report are also in line with this approach. Consequently, to date, SNN has not approved the method of capitalizing or financing these activities through loans; such approval will be granted only after obtaining the necessary assurance that the respective amounts are fully documented, justified, and consistent with the nature of the transaction regarding ownership of the site, thereby protecting SNN from any potential risks arising from the transaction.

Upon completion of the forensic audit, SNN will act in accordance with the audit’s findings.

The SMR project in Doicesti was developed in compliance with legal provisions, based on considerations related to the development of a strategic project for Romania—one that would enable long-term associated development. The position expressed by S.N. Nuclearelectrica is based on the project’s technical documentation, independent assessments conducted by international organizations, corporate governance mechanisms, and the applicable legal framework.

The SMR project in Doicești represents one of Romania’s strategic investments in the energy sector and aims to strengthen energy security, develop a competitive nuclear industry, and position Romania as a regional hub for small modular reactor technology.

S.N. Nuclearelectrica reaffirms its commitment to developing the project in accordance with the law, with transparency, sound technical foundations, prudent decision-making, and good corporate governance, for the benefit of its shareholders, the national energy system, and the public interest.

When undertaking the SMR project, SNN’s vision was (and continues to be) to become a regional hub, which is why SNN has taken action toward this goal. SNN’s status as a regional hub entails, among other things:

• Romania will achieve a leading position and numerous socioeconomic benefits, including a hub to support the production and assembly of SMR components, a training and education center for future operators and specialists, as well as a catalyst for SMR implementation in the region and a preferred operator for future SMR projects;
• Romania’s opportunity to become a regional hub by developing the capacity to manufacture, assemble, and maintain SMR components, as well as the importance of developing the Romanian nuclear industry’s supply chain;
• It offers the opportunity to become the regional leader in the operation and development of nuclear technologies and to support Romania’s goals of becoming a regional leader in the nuclear industry. Thus, the development of projects similar to the one in Doicesti—from the perspective of revitalizing decommissioned traditional sites—can be achieved through the development of hybrid nuclear-renewable energy platforms, an approach considered to have a significant impact in such areas and supported by the EU. The program could revitalize affected areas economically, support new and state-of-the-art technologies, and establish a national and international operations center in the country.

Detailed information is available in the current report submitted by Nuclearelectrica to capital market institutions, accessible at: https://www.bvb.ro/FinancialInstruments/SelectedData/NewsItem/SNN-Punctul-de-vedere -from-SNN-executive-management-regarding-the-contents-of-the-CCPM-report/4C1DB