PRESS RELEASE OF THE CHAIRMAN OF THE BOARD OF DIRECTORS OF EPCG

The Board of Directors unanimously states that the letter in question, although titled as an Offer, does not meet the conditions of the Offer defined by Article 25 of the Law on Obligations and that it may be considered as Letter of Intent of UNIPROM DOO.

Namely, according to Article 25 of the Law on Obligations, the Offer is a proposal for concluding a Contract made to a certain person, which contains all the essential components of the Contract so that by accepting it, the Contract could be concluded.

According to the above, the Board of Directors states that the UNIPROM Bid, despite the public announcements of UNIPROM representatives and the urgency for submitting the Bid sent by the management of EPCG, has not been submitted yet.

Additionaly, in relation to the stated business intention of the Company UNIPROM DOO, the Board of Directors states that EPCG AD Nikšić through the current Articles of Association has not been registered to perform the activity of aluminum production.

Pursuant to Article 17, and in connection with Article 57 and 58 of the Articles of Association of Elektroprivreda Crne Gore AD Nikšić, the change of registered activities of the Company and corresponding change of the Articles of Association is not within the competence of the Board of Directors, but the Assembly of Shareholders, i.e. the majority owner whose representative is the Government of Montenegro.

For this reason, the Board of Directors will inform the majority shareholder with Letter of intent, who would express its position in relation to the subject Letter of intent through the appropriate procedure. Minority shareholders can get acquainted with the subject Letter of intent at the Company's headquarters.

Irrespective of the aforementioned, the Board of Directors expresses its readiness, having in mind the publicly expressed commitment of the majority shareholder representatives regarding the negotiation procedure between EPCG and UNIPROM, with the aim of further continuous process of primary aluminum production in Montenegro, to offer UNIPROM Company an additional incentive measure, in addition to the existing discount, that will be defined and agreed with the General Assembly of Shareholders.

The additional incentive measure mentioned in item 3 of the Conclusions of the Board of Directors can be used by UNIPROM to fulfill the payment of the gross salaries to employees in primary aluminum production.

In case of UNIPROM's business decision to suspend the production of primary aluminum, EPCG will sell on the market the quantities of electricity it was obliged to provide for production, from which funds, depending on the decision of the shareholders, a dividend can be paid, which would create the conditions of budgetary financing of liabilities to employees in the primary production of aluminum in KAP.

Also, EPCG continues to express readiness for negotiations with UNIPROM regarding the price and agreed amount of electricity for the next year.