Start of Impoundment at Hydropower Project in Cambodia

Erex Co., Ltd. (Headquarters: Chuo-ku, Tokyo; President and Representative Director: Hitoshi Honna; hereinafter "the Company") is pleased to announce that it has commenced impoundment (reservoir filling) for its hydropower project in the Kingdom of Cambodia, which the Company has been participating in and developing since 2019.

Impoundment is the process of storing water needed for power generation and represents the final preparation phase before the power generation facilities begin operation. As Cambodia typically experiences a rainy season from May to October, the reservoir filling will progress with rainfall, aiming for the start of commercial operations in January 2027.

1. Background and Purpose of the Project Cambodia is one of the fastest-growing economies in Southeast Asia. Backed by an abundant young workforce, it is attracting significant interest from overseas companies as a manufacturing base, and continued economic growth is expected. However, regarding the power supply that serves as the foundation for this growth, domestic generation is currently insufficient, and the country relies on imports from neighboring countries for approximately 20-30% of its needs.

This project is a hydropower development with a large reservoir capacity. Unlike the seven existing major hydropower plants in Cambodia, it features the capability for stable power generation throughout the year. Therefore, it is expected to significantly contribute to the stable supply of electricity in the country. The Cambodian government also positions this project as one of the key infrastructure initiatives to support the nation's future economic development.

2. Project Overview Location: Pursat Province, Kingdom of Cambodia Power Output: 80MW Offtaker: Electricité du Cambodge (35-year Power Purchase Agreement) Total Investment: 240 million USD Dam Type & Reservoir Capacity: Rock-fill dam, 1.2 billion cubic meters Scheduled Operation Start: January 2027

3. Future Outlook Through the steady completion and start of commercial operations of this project, the Company aims to strengthen its revenue base in the overseas power generation business. Concurrently, leveraging its expertise in power source development in Southeast Asia, the Company will continue to promote business expansion centered on renewable energy.

About Erex's Overseas Business The Company is promoting business development aimed at decarbonization, such as the construction of biomass power plants in Vietnam and Cambodia. We believe this contributes not only to the decarbonization of both countries but also to the improvement of energy self-sufficiency and the creation of jobs.