Notice No. 02/2023 of February 9

PUBLISHED IN THE OFFICIAL GAZETTE, FIRST SERIES, NO. 28, OF FEBRUARY 9, 2023 NOTICE NO. 02/2023 SUBJECT: EXCHANGE RATE POLICY - Foreign Exchange Regime Applicable to the Mining Sector Considering the importance and benefits of greater national competitiveness in attracting domestic and foreign direct investment, aimed at the growth and development of the mining sector; And given the need to update the regulations governing foreign exchange operations of entities active in the mining sector, taking into account the publication of Law No. 31/11 of September 23, which approves the Mining Code, the complementary legislation applicable to the mining sector, as well as the significant update that has occurred in the regulation governing the operation of the national foreign exchange market; Therefore, under the combined provisions of paragraph 2 of Article 28 of Law No. 5/97 of June 27 – Foreign Exchange Law, and Article 40 of Law No. 24/21 of October 18 – Law of the National Bank of Angola, I HEREBY DETERMINE:

Article 1. (Object) This Notice establishes the foreign exchange regime applicable to the mining sector, namely to entities that carry out recognition, exploration, research, appraisal, exploitation, commercialization, cutting/polishing, processing, and refining of any type of minerals, whether through value addition or change in the tariff position of the original mineral, as well as the commercialization of minerals or products of mining origin, in accordance with the Mining Code and applicable complementary legislation.

CONTINUATION OF NOTICE NO. 02/2023 Page 2 of 7 Article 2. (Scope) This Notice covers Financial and Banking Institutions authorized to conduct foreign exchange trading, as well as the following authorized entities of the mining sector: a) Holders of mining rights for recognition, exploration, research, appraisal, exploitation, commercialization, and processing of mineral resources; b) Entities engaged in the cutting/polishing of diamonds and other precious and semi-precious stones; c) Buyers and sellers of rough diamonds or other minerals; d) Exporters of mineral resources or their cut/polished or refined derivatives; e) The public body for diamond commercialization in Angola; f) Public companies for diamonds and other mineral resources; and g) Equivalent entities that carry out mining activities aimed at the production of any mineral resource.

Article 3. (External Investor Entities) For the purposes of this Notice, external investor entities are understood as those defined in paragraph j) of Article 3 of Law No. 10/18 of June 26, Private Investment Law, by reference to Article 108, paragraph 3, of the Mining Code, including any corporate entity established abroad or within national territory, whether wholly owned or not (special purpose vehicle, in accordance with paragraph l) of Article 3 of the Private Investment Law), that acquires, directly or indirectly, any mining rights for recognition, exploration, research, appraisal, exploitation, commercialization, cutting/polishing, processing, and refining of any type of minerals permitted under the aforementioned Mining Code.

Article 4. (Export of Minerals and Products of Mining Origin)

1. The export of rough, cut/polished, or refined ore, or products of mining origin in bar, alloy, block, stone, or jewelry form, intermediate or final product, must be settled in full in freely convertible foreign currency.
2. The export revenues referred to in the preceding paragraph received by exporters must be deposited and handled as follows: a) National Investors - their total amount must be transferred to the country and deposited in a bank account titled by the exporter, in foreign currency, opened with Financial and Banking Institutions domiciled in the country, except for amounts necessary for guarantees, capital repayment, or payment of interest and charges associated with financing contracted abroad; b) External Investor Entities – their total amount may be deposited and maintained in a bank account titled by the External Investor Entities with Financial and Banking Institutions domiciled abroad, without the need for authorization from the National Bank of Angola, with amounts necessary for paying taxes and other obligations to the Angolan State, as well as for settling goods and services supplied by foreign exchange residents, being transferred to the country.

Article 5. (Purchase and Sale in the National Market of Minerals and Products of Mining Origin)

1. Payments for the operations referred to below are made, either in national currency or with own funds in foreign currency, as agreed by the parties involved in each operation or, failing agreement, in the currency determined by the seller, namely: a) Purchase by the public commercialization body from producers (industrial, semi-industrial, or artisanal); b) Purchase by national entities engaged in the processing, treatment, or cutting/polishing of mineral resources from industrial producers; c) Purchase by national entities engaged in the processing, treatment, or cutting/polishing of mineral resources from the public commercialization body, and vice versa.
2. Except for cases provided in the preceding paragraph, the purchase and sale of mineral resources between national entities must be carried out exclusively in national currency.
3. Payments for the sales referred to in the preceding paragraphs of this Article must be made exclusively through bank transfer to bank accounts denominated in the transaction currency, opened with Financial and Banking Institutions domiciled in the country, titled by the sellers, with cash withdrawals in foreign currency not permitted for this purpose.

Article 6. (Opening and Operation of Bank Accounts)

1. Entities covered by this Notice must maintain accounts in national Financial and Banking Institutions, denominated in national and foreign currency.
2. Export revenues transferred to the country under Article 4 of this Notice may be maintained in foreign currency.
3. Accounts opened with Financial and Banking Institutions domiciled in the country denominated in foreign currency may only be operated for the following purposes: a) Payment of principal, interest, and charges related to loans or foreign currency debt contracted in the country or abroad; b) Reimbursement of supplies originating from outside the country; c) Payments abroad, including settlement of imports of goods and services intended exclusively for use by the account-holding company; d) Payments to foreign shareholders, as provided in current regulations; e) Other payments that may be made in foreign currency according to prevailing national legislation; f) Sale of foreign currency and transfer of purchased national currency to their accounts denominated in national currency.

Article 7. (Contracting Financing Abroad) Entities covered by this Notice may, without the need for authorization from the National Bank of Angola: a) Contract loans abroad exclusively to finance their mining activities in the country; b) Within the framework of these loans, instruct purchasing entities for their exports to transfer part or all of the amounts payable for said exports directly to the lending Financial and Banking Institutions abroad, in accordance with the loan contracts contracted by the exporter, for debt payment, associated charges, or guarantee enhancement; c) Maintain, in accordance with loan contracts, "escrow accounts" at lending Financial and Banking Institutions domiciled abroad.

Article 8. (Procedures for the Sale of Foreign Currency) The trading and sale of foreign currency must be carried out, obligatorily, in accordance with current regulations.

Article 9. (Acquisition of Goods and Services and Other Payments) Entities covered by this Notice may only pay service providers or domestic goods suppliers in national currency, except for foreign currency payments permitted by specific legislation.

Article 10. (Capital Operations and Transfers of Profits and Dividends) Capital export and import operations carried out by entities covered by this Notice, namely the transfer of profits and dividends to non-resident foreign exchange partners or shareholders, must be carried out in accordance with current foreign exchange regulations regarding external investment, capital operations, and associated income, exempt from any authorization by the National Bank of Angola.

Article 11. (Sanctions) Violations of the provisions of this Notice are punishable in accordance with Law No. 5/97 of June 27, Foreign Exchange Law, and Law No. 14/2021 of May 19, General Regime Law for Financial Institutions.

Article 12. (Doubts and Omissions) Doubts and omissions resulting from the interpretation and application of this Notice shall be resolved by the National Bank of Angola.

Article 13. (Repeal) Notice 13/2020 of May 29 is repealed, along with all regulations that contradict the provisions of this Notice.

Article 14. (Entry into Force) This Notice enters into force the day following its publication. PUBLISHED. Luanda, on February 7, 2023. THE GOVERNOR JOSÉ DE LIMA MASSANO