MEMORANDUM OF UNDERSTANDING SIGNED BETWEEN EPCG AND LNG ALLIANCE

Consequently, in order to maintain the stability of the power system, and stability and reliability in the supply of end consumers, our company, on December 8, 2021, signed a Memorandum of Understanding (MoU) with LNG Alliance Pte Ltd. On behalf of EPCG, MoU was signed by the Chief Executive Officer (Nikola Rovčanin), and on behalf of LNG Alliance by the Chief Executive Officer (Muthu Chezhian).

LNG Alliance Pte Ltd is a company with serious experience in developing energy projects in the gas and liquefied natural gas (LNG) sector. This company, as a service provider of a fully integrated “turnkey” solution - from defining the concept, through project development and execution, to ownership of tangible assets and business for infrastructure for LPG and electricity production from gas - practices ensuring the overall development of import terminals projects for LPG, integration of electricity production from gas and gas distribution.

The Memorandum of Cooperation envisages that LNGALL, in cooperation with EPCG, conducts a detailed feasibility study and Environmental and Social Impact Study, i.e. to develop possible options, in order to finally define an appropriate technical solution in the context of considering the idea of installing gas power plants in Bar and Podgorica.

If an appropriate model is found, LNG Alliance would try to provide the necessary conditions for investment in the development of gas power plants, which would be the subject of further discussions and plans, not only EPCG but also the state of Montenegro, in terms of providing the necessary infrastructure for the construction of gas power plants for the production of electricity. If the conditions for the realization of the project were created, gas fuel for both power plants would be procured from the dedicated import terminal of LNG in the Port of Bar, for the construction of which the company LNGALL would be in charge. In this regard, several different LNG/gas transport options from the Port of Bar to Podgorica would be checked, including a gas pipeline.

Gas-fired thermal power plants would use European technology and equipment, and the management of these plants would be 100% entrusted to Elektroprivreda Crne Gore, whose staff would be trained for this task in a timely manner.

In the upcoming period, many business challenges await us, and this document is an indicator of a strong will to find a sustainable solution for the Company's development projects through the cooperation with respectable international partners.

We invest in new projects and develop partnerships for the future. Good energy!