Subject: Soil and Water Sampling to Determine Baseline Conditions on 33 Parcels Owned by Rio Sava Exploration d.o.o. as Part of Ongoing Monitoring

Dear Sir or Madam,

We are writing in reference to information relayed to us yesterday afternoon and this morning by Mr. Dragan Karajčić, President of the Local Communities of Gornje Nedeljice, Brezjak, and Slatina, as well as to your email regarding the ongoing soil and shallow groundwater sampling activities on 33 parcels owned by our company. These activities are being carried out from May 28 to 30 by the certified and accredited laboratory of the Jaroslav Černi Institute for Water Management.

In accordance with your request, which we honoured, a representative of your association, “Ne damo Jadar,” was present during the field sampling on May 28, 2025. At your request, the engineers and technicians conducting the sampling also provided your representative with a copy of each collected sample. We note that this individual identified himself both as a member of your association and as a member of the local community council.

It was our understanding that representatives of your association intended to be present throughout the sampling process and to receive copies of any additional samples collected going forward, which we accepted. However, following this, during a phone call, Mr. Karajčić informed us that your association decided to withdraw from the arrangement and will no longer participate in field activities. He further indicated that you intend to block these activities, effectively preventing us from fulfilling our legal obligations.

We would like to reiterate that these activities are a legal obligation and are fully aligned with the laws of the Republic of Serbia and the requirements of the relevant authorities, including the Republic Water Directorate. All sampling is being conducted exclusively on company-owned land.

Mr. Karajčić informed us that your reason for withdrawing is the use of the term “baseline condition” in our letter dated May 28, 2025, which outlines the details of the ongoing activities. You have stated that you consider this term inappropriate, given that geological exploration was previously conducted on the subject parcels. This was also reflected in your email.

We regret that you have chosen to disregard the fact that our letter clearly and explicitly states that the purpose of sampling is to determine the current quality of soil and water at these locations for comparative analysis with previously obtained results, as part of regular environmental monitoring. The term “baseline condition” is used in accordance with the water management requirements issued by the Republic Water Directorate, which provide the legal basis for these activities. The term “baseline condition” refers to the environmental conditions at the time of testing. It is used solely for the purpose of documenting and assessing the current state and does not alter the fundamental nature of the activity, which is to measure soil and water quality in areas where geological exploration has taken place. Prior measurements are taken into account and used for comparison, enabling the tracking of any changes over time.

In the interest of full transparency, the results of the research conducted by Rio Sava Exploration d.o.o. will be published on the company’s official website.

Sincerely,

Chad Blewitt
Managing Director – Jadar Project