BOARD OF DIRECTORS

BOARD RESOLUTION NO. 011/2022

SUBJECT:

MONETARY OPERATIONS MANAGEMENT – APPROVE THE EXTRAORDINARY CREDIT TO YACIMIENTOS DE LITIO BOLIVIANOS (YLB) DESTINED FOR THE PROJECT: THIRD PHASE COMPREHENSIVE DEVELOPMENT OF THE SALAR DE UYUNI BRINE – INDUSTRIAL PLANT.

VIEWED:

• The Political Constitution of the State of February 7, 2009.
• Law No. 1670 of October 31, 1995, of the Central Bank of Bolivia (BCB) and its modifications.
• Law No. 211 of December 23, 2011, of the General State Budget – Management 2012.
• Law No. 396 of August 26, 2013, of Modifications to the General State Budget – Management 2013.
• Law No. 614 of December 13, 2014, of the General State Budget – Management 2015.
• Law No. 928 of April 27, 2017, of the National Strategic Public Enterprise (EPNE) of Yacimientos de Litio Bolivianos (YLB).
• Law No. 1356 of December 28, 2020, of the General State Budget – Management 2021.
• Law No. 1413 of December 17, 2021, of the General State Budget – Management 2022.
• Board Resolution No. 128/2005 of October 21, 2005, which approves the Statute of the BCB and its modifications.
• Board Resolution No. 019/2016 of February 2, 2016, which approves the Regulations of the Central Bank of Bolivia for the approval of credits to National Strategic Public Enterprises within the framework of the General State Budget Laws.
• Note YLB-PEE-979/2021 of December 15, 2021.
• Report BCB-GOM-SOSP-DCE-INF-2022-3 of January 7, 2022, from the Monetary Operations Management.

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Report BCB-GAL-SANO-DLBCI-INF-2022-3 of January 7, 2022, from the Legal Affairs Management.

CONSIDERING:

• That numeral 10, paragraph I of article 158, of the Political Constitution of the State, establishes that the Plurinational Legislative Assembly has the attribute to approve the contracting of loans that commit the general revenues of the State.

• That paragraphs I and II of article 322 of the Political Constitution of the State determine that the Plurinational Legislative Assembly will authorize the contracting of public debt. Likewise, that public debt will not include obligations that have not been expressly authorized and guaranteed by the Plurinational Legislative Assembly.

• That article 44 of Law No. 1670 establishes that the highest authority of the BCB is its Board of Directors, which is responsible for defining its policies, specialized regulations of general application, and internal rules; as well as for establishing administrative, operational, and financial strategies of the BCB, approving their respective short and medium-term programs.

• That subsection a) of article 54 of Law No. 1670 establishes that the Board of Directors has the attribute to issue regulations and adopt general decisions that are necessary for the Central Bank of Bolivia to fulfill the functions, competencies, and powers assigned to it by this Law.

• That articles 57 and 59 of Law No. 1670 provide that the President is the first executive authority of the Institution and exercises its legal representation, without prejudice to its powers of delegation according to Law.

• That Article 33 of Law No. 211, modified by article 9 of Law No. 396 of August 26, 2013, authorizes the Central Bank of Bolivia (BCB) to grant an extraordinary credit of up to Bs5,332,050,000.- (Five Billion Three Hundred Thirty-Two Million Fifty Thousand 00/100 Bolivianos), in favor of the Bolivian Mining Corporation (COMIBOL), on concessional terms, with the object that its National Management of Evaporitic Resources invest in the research, development, and transfer of technologies in laboratories and research centers, pilot plants, production, and industrialization of Lithium Carbonate, Potassium Chloride, derived and intermediate salts, and other products of the evaporitic chain, Lithium batteries and their components; whether as direct investment or capital contribution through associations with companies that contribute technology, for the manufacture of cathodic, anodic, electrolytic materials, Lithium batteries and their components; and others that are in accordance with the object of this credit. For this purpose, the Central Bank of Bolivia (BCB) is exempted from the application of Articles 22 and 23 of

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Law No. 1670 of October 31, 1995. Likewise, it authorizes the Ministry of Economy and Public Finance (MEFP), through the General Treasury of the Nation (TGN), to issue and grant Non-Negotiable Treasury Bonds in favor of the BCB, to guarantee the amount of the credit granted.

• That article 12 of Law No. 614 establishes that any authorization established by Law of the General State Budget, for the BCB to grant extraordinary credits, as well as the authorizations to the MEFP, to issue and grant Non-Negotiable Treasury Bonds through the TGN as backing for the aforementioned extraordinary credits, will not require any other legal authorization for their compliance, understanding that they remain in force until the complete execution of the credit.

• That the Sole Article of Law No. 928 creates the National Strategic Public Enterprise of Yacimientos de Litio Bolivianos - YLB, under the tutelage of the Ministry of Energy, currently the Ministry of Hydrocarbons and Energy, in substitution of the National Management of Evaporitic Resources, dependent on the Bolivian Mining Corporation (COMIBOL). Likewise, paragraph I of the Third Final Provision provides that the credits authorized by the General State Budget Laws to the Central Bank of Bolivia, in favor of COMIBOL, destined for evaporitic resources, shall be assumed by Yacimientos de Litio Bolivianos – YLB.

• That the Ninth Final Provision, in subsection n) of Law No. 1356 and the Second Final Provision, subsection n) of Law No. 1413, provide that article 12 of Law No. 614 of December 13, 2014, remains in force for its application for the 2021 and 2022 management periods, respectively.

• That the Statute of the BCB, in numeral 1) of article 11, provides that the Board of Directors of the BCB has the attribute to approve general decisions that are necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by the Law.

• That article 26 of the Statute of the BCB provides that the Board of Directors pronounces itself on matters within its competence through resolutions or decisions that shall be expressly recorded in the minutes. Every draft Board Resolution must be motivated and justified by a technical report from the Management or Managements to which the subject matter of the resolution corresponds and by a report from the Legal Affairs Management (GAL).

• That through Board Resolution No. 019/2016, the BCB approves the Regulations of the Central Bank of Bolivia for the approval of credits to National Strategic Public Enterprises within the framework of the General State Budget Laws.

• That through Note YLB-PEE-979/2021, YLB requests the BCB to grant an extraordinary credit on concessional terms for an amount of Bs793,585,934.00 (Seven Hundred Ninety-Three Million Five Hundred Eighty-Five Thousand Nine Hundred Thirty-Four 00/100 Bolivianos), destined for the project "Third Phase Comprehensive Development of the Salar de Uyuni Brine – Industrial Plant".

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• That the Monetary Operations Management, through Report BCB-GOM-SOSP-DCE-INF-2022-3, states that having received YLB's conformity on the financial conditions approved by the BCB Board of Directors in point 5 of Minute No. 093/2021 of the Extraordinary Board of Directors session, the GOM recommends the approval of the extraordinary credit to YLB for the project: "Third Phase Comprehensive Development of the Salar de Uyuni Brine – Industrial Plant", prior to the issuance of the legal criterion of the Legal Affairs Management.

• That the Legal Affairs Management, through Report BCB-GAL-SANO-DLBCI-INF-2022-3, concludes that YLB has complied with the presentation of the documentation provided for in the Regulations of the Central Bank of Bolivia for the approval of credits to National Strategic Public Enterprises within the framework of the General State Budget Laws, recommending to the Board of Directors the approval of the granting of the Extraordinary Credit according to the financial conditions established in the Board of Directors Minute No. 093/2021 of December 30, 2021, and authorizing the Interim President of the BCB to sign the respective contract.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Approve the granting of an Extraordinary Credit in favor of Yacimientos de Litio Bolivianos, for the Project: "Third Phase Comprehensive Development of the Salar de Uyuni Brine – Industrial Plant" under the following terms and conditions:

Concept	Detail
Currency:	Bolivianos.
Total Credit Amount:	Bs793,585,934.00 (Seven Hundred Ninety-Three Million Five Hundred Eighty-Five Thousand Nine Hundred Thirty-Four 00/100 Bolivianos).
Term (*):	20 years.
Grace Period for Principal:	5 years.
Interest Rate (**):	1.90% (One point nine percent) annual.

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Concept	Detail
Payment Method:	Constant amortization.
Deadline for Disbursements:	October 30, 2023.
Guarantees:	Non-Negotiable Treasury Bonds.
Payment Frequency:	Annual.

(*) The term is calculated from the first disbursement.
(**) The interest calculation considers a 30/360 basis and the term for their payment will be calculated taking into account 365 days.

Article 2.- Authorize the Interim President of the BCB to sign the extraordinary credit contract destined for the Project "Third Phase Comprehensive Development of the Salar de Uyuni Brine – Industrial Plant".

Article 3.- The Presidency and the General Management are in charge of the execution and compliance of this Resolution.

La Paz, January 18, 2022

SIGNED. ROGER EDWIN ROJAS ULO, Oscar Ferrufino Morro, Gabriel Herbas Camacho, Gumerindo Héctor Pino Guzmán, Diego Alejandro Pérez Cueto Eulet.