Orano - Annual Activity Report 2024 25 SITUATION AND ACTIVITIES OF THE COMPANY AND ITS SUBSIDIARIES DURING THE PAST FINANCIAL YEAR 2 Highlights of the financial year ● In December 2024, Orano Mining, AREVA and the French National Financial Prosecutor’s Office (PNF) agreed to end investigations with AREVA concerning activities in Mongolia prior to 2015. The Public Interest Judicial Agreement (CJIP) signed by Orano Mining concludes the proceedings initiated by the PNF. It confirms the strengthening of the implementation of the group’s compliance plan, acknowledges Orano’s collaboration with the legal authorities and ends investigations concerning the activities of the former AREVA group, without acknowledging any liability. 2.1.2.2 Front End ● In 2024, the continued growth of price indicators reflects the tension in the enrichment and conversion markets since the beginning of the Russia-Ukraine conflict. The SWU Spot benchmark price rose from 157 USD/SWU at the end of 2023 to 192.5 USD/SWU at the end of 2024, while the conversion spot price went from 46 USD/kg U at the end of 2023 to 96.5 USD/kg U at the end of 2024 (average of the UxC and TradeTech indicators). According to the same sources, the long-term SWU price increased from 151 USD/SWU at the end of 2023 to 166 USD/SWU at the end of 2024, and the longterm conversion price increased from 34.3 USD/kg U at the end of 2023 to 49.8 USD/kg U at the end of 2024. ● In the global geopolitical context and the consequences of the Russian-Ukrainian conflict, many Western utilities wish to reduce their dependence on Russian supply, particularly in terms of enrichment services. As part of the REPowerEU program, Europe has indicated that it wishes to reduce the share of Russian supplies. The United States, which already had uranium import quotas, introduced legislation in May 2024 on the end of Russian imports of enriched uranium from 2028. These events are coupled with a renewed interest in nuclear energy at the global level, implying in particular an increase in forecasts of global needs for enrichment services. In order to offer its customers an alternative to Russian uranium and enable them to meet their long-term commercial commitments, from 2028, Orano will increase its uranium enrichment capacity by increasing the production capacity of its Georges Besse II plant on the Tricastin site by more than 30%. This project includes the construction of four additional modules identical to the fourteen existing modules. They will be equipped with the same ultra centrifuge technology, which is recognized, proven and has a reduced environmental footprint. With modular commissioning, the extension’s full production capacity is scheduled for 2030. After approval by its Board of Directors and the completion of regulatory steps, including the organization of a consultation in 2023 and 2024 under the aegis of the National Commission for Public Debate (CNDP) and a public inquiry in the spring of 2024, Orano has launched its project to increase production at the Georges Besse II plant. The total amount of the investment is nearly 1.7 billion euros. The building permit was issued by the Prefect of the Drôme in June 2024, the preparatory work for the site including the erection of the cranes carried out during the summer of 2024, and the civil engineering work began in September 2024. A groundbreaking ceremony was organized at the Orano Tricastin site on October 10, 2024, in the presence of international customers and numerous elected officials and economic players in the region. ● In parallel with the decision to end Russian imports of enriched uranium, the US Department of Energy (DOE) issued two calls for proposals in November 2023 and then in January 2024 to secure a domestic supply of HALEU-type uranium. This fuel, enriched to a uranium-235 content of 20%, is intended to supply certain advanced reactor technologies. A third call for proposals was issued in May 2024 to support the development of new enrichment capacity in the United States, in particular through commitments to purchase LEU materials by the DOE. The total maximum amount allocated to these calls for proposals is 3.4 billion dollars. With the necessary technologies and know-how, Orano responded to the three calls for proposals of the DOE and offered its enrichment expertise for grades of up to 5% and 19.75%, and in uranium chemistry for transformation of HALEU-type fuel into an appropriate solid chemical form (oxide or metal). The DOE notified Orano and the other winning companies of their selection in October 2024 for the HALEU calls for proposals and in December 2024 for the LEU calls for proposals. Each will benefit from at least one contract worth 2 million dollars over a maximum period of ten years. ● In addition to the project to extend the Georges Besse II plant and in line with the requests of the US Department of Energy (DOE), Orano plans to increase its capacity with a new ultracentrifuge enrichment facility in the United States. This project will contribute to the long-term relationship between Orano and its American customers to safely and reliably secure their supplies to provide low-carbon energy. In September 2024, Orano and the State of Tennessee announced that they were entering into exclusive discussions for the location of this plant at the Oak Ridge site belonging to the DOE. This announcement is a first step in the selection of a host site but does not constitute an investment decision to date. The teams are now preparing the next stages of the project: obtaining financial support from the US government, securing customer commitments, submissions and then awarding a license to the U.S. Nuclear Regulatory Commission (NRC), and approval of the project by the Board of Directors of Orano. ● In 2024, production at the Georges Besse II enrichment plant continued uninterrupted with a yield of over 99%. In addition, Orano has continued the necessary steps to be able to produce uranium enriched to more than 5% (LEU+) in the coming years in order to meet the changes in potential demand for power reactors in the United States. Orano will thus be ready to produce uranium enriched up to 6% by 2025. The production of higher grades (between 6 and 8%) requires a longer regulatory procedure (around three years in France from the decision), so potential customers will need to clarify their requirements. ● The ramp-up of the Philippe Coste conversion plant continued in 2024. The project phase has been completed and production is gradually increasing. 10,625 metric tons of UF6 were produced in 2024 compared to 10,060 metric tons in 2023. ● Commercial qualification of the production of the new uranium dioxide powder production facility (UO2) at the Malvési site (Aude) was reached in October 2024. This workshop will allow - as soon as the MOX fuel using this UO2 will be qualified - to supply the Melox plant (Gard), which is one of the possible recoveries of the depleted uranium from enrichment operations. All types of recoveries envisaged by
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