Information as of September 23, 2020 - Seite 2

1. Development of the insolvency procedure of Weser-Metall GmbH

The German company Weser-Metall GmbH, which operates the Nordenham lead smelter and is Recylex S.A.'s main customer, has just completed the preliminary phase of its insolvency procedure under German law which was started on May 14, 2020. At the end of this phase, Recylex was informed that only one potential buyer of the assets of Weser-Metall GmbH remained in the running, namely Glencore International AG.

Consequently, Recylex is closely monitoring developments in this procedure, which is being conducted independently by the insolvency administration who currently manages Weser-Metall GmbH. According to the information available to Recylex, no date has been set for the finalization of the discussions in this procedure.

In this context, Recylex S.A. is continuing to deliver recycled materials to Weser-Metall GmbH with prepayments. However, Recylex S.A.'s going concern requires it to secure a long-term horizon in terms of outlets for its materials.

Recylex S.A. is therefore continuing to look for other customers in Europe and is awaiting the outcome of the insolvency proceedings of Weser-Metall GmbH, and in the event of a positive outcome, to be able to enter into longer-term commercial negotiations with the new shareholder of Weser-Metall GmbH.

2. Update on the financial situation

As of August 30, 2020, the Group's net debt (new scope of consolidation¹) amounted to €42.6 million (€53.2 million gross debt) and consisted mainly of:

• The €16.0 million loan (fully drawn down) concluded in 2014 by Recylex S.A. with Glencore International AG and accrued interest of €0.8 million over the period,
• The remaining balance of the fine imposed on the Group in 2017 by the European Commission in the amount of €24.4 million,

• Rescheduled liabilities from the continuation plan (finalized in 2015) and the amount of the claw back clause, for a total of €12.0 million.

To these debts should be added⁴ provisions for the rehabilitation of L’Estaque site and former mines in the amount of €9.0 million and a provision for contingencies of €4.0 million for litigation relating to claims for damages by 546 former employees of Metaleurop Nord S.A.S³.