SolGold PLC announced the signing of a Memorandum of Understanding (MOU) with Grupo Empresarial Semaica and Enerhydra, whose partners have participated in large projects throughout Latin America, and have developed seven hydroelectric projects in Ecuador, and Constructora Nacional S.A. This collaboration aims to spearhead a significant hydro-solar initiative to power SolGold's Cascabel Project ("Cascabel") in Northern Ecuador. The MOU delineates the shared objectives and responsibilities of each party towards the development of a sustainable Power Project ("Project") that will deliver approximately 200 megawatts of clean, renewable energy to the Cascabel site. The MOU encompasses key considerations such as a potential Power Purchase Agreement (PPA), financing arrangements, construction responsibilities, technical aspects, project operation, and the ultimate end-user of generated energy.

This agreement sets the stage for further technical assessments, facilitating progress toward a more definitive agreement while concurrently advancing Cascabel. SolGold will not be directly responsible for financing, building, or operating the power project; instead, its role will focus on leveraging its position as an end-user to qualify for discounted power rates upon Project completion. Additionally, SolGold is committed to supporting its partners in fundraising efforts.

Importantly, all terms of the agreement align with the shared commitment of both parties to environmental stewardship and sustainable economic development. It is envisioned that the Project's financing will be secured through a combination of sources, including international financial institutions and other global entities specializing in sustainable energy investments. These partnerships could provide the necessary capital to fund construction and operational expenses, ensuring the Project's successful implementation.

The utilization of hydroelectric and solar power sources offers the Project significant potential cost savings over traditional energy sources, ensuring long-term operational efficiency and sustainability. These renewable energy sources provide a reliable and consistent power supply, minimizing the risk of disruptions and enhancing operational stability. Furthermore, this initiative is expected to have a profound positive impact on local communities surrounding the Cascabel.

Through job creation, skill development, and infrastructure improvements, the Project will support economic growth and enhance the overall quality of life for residents in the region. The Project will adhere to stringent regulatory standards and environmental safeguards throughout every development phase. By fully complying with local and international regulations, the partners are committed to ensuring that the Project is developed responsibly and ethically.

Recognizing the importance of stakeholder engagement, the partners will actively involve local communities, government agencies, and environmental organizations in the Project's planning g and implementation. By fostering open dialogue and addressing concerns, the partners aim to build trust and create shared value for all stakeholders.