SLC Agrícola S A : Notice to the Market - Earthsight Report

NOTICE TO THE MARKET

Earthsight Report

Investor Relations [phone] [e-mail]

SLC Agrícola S.A. (B3: SLCE3; ADR's: SLCJY; BLOOMBERG: SLCE3:BZ; Refinitiv: SLCE3.SA) ("SLC Agrícola") hereby clarifies to the market the information contained in a report produced by the NGO Earthsight, entitled "Fashion Crimes", released on April 11th and covered by the national and international press.

In recent decades, Brazil has excelled in the production of food and natural fibers, being responsible for the global production of 39% of soybeans, 13% of cotton, and 10% of corn, among others highlights, playing a strategic role in the world food supply.

Brazil has one of the most advanced environmental laws in the world, with the definition of areas for legal reserves, i.e. areas that will be permanently preserved and for which the landowner is responsible. In the case of SLC Agrícola, we have 113 thousand hectares of legal reserve, with the aim of to preserving native fauna and flora.

In this way, SLC Agrícola reaffirms its commitment to sustainable development in its business and in society. As one of the largest grain and fiber producer in the world and the largest company in the Americas with an area certified in regenerative agriculture practices (Regenagri), it values future generations, through its respect for our planet.

Regarding the report, SLC Agrícola clarifies:

1. The area in the State of Bahia, Capão Modesto region, related to the case of conflict of possession, refers to the legal reserve of an area where we operate as leaseholders and is located 40km away from the operations developed by the company. The legal reserve and permanent preservation areas are not part of the scope of the leasing agreement and are the responsibility of the landowner to maintain and preserve. When we leased the area, we assessed whether the property documentation was in order with the real state registry office, as well as its regularity for the purpose for which the area is intended as legal reserve compensation (a condition that has been maintained to date). If there is a conflict regarding the possession or ownership of the legal reserve property, as this is the responsibility of the landowner, it is up to the Brazilian Courts to judge the content of this matter.
2. SLC Agrícola points out that, in 2021, it implemented its Zero Deforestation Policy, which is being strictly complied with. The accusations of deforestation in an area of Fazenda Palmares, in Bahia, are wrong. The company demonstrated, through maps, sent to Earthsight, that the area was affected by fire in 2022. Furthermore, the company has shown, with these maps, that the area is full recovery of its native forest and biodiversity, given that Brazilian law does not allow planting in a legal reserve area.
   SLC Agrícola reinforces that all conversions of areas with native vegetation were carried out within legal limits and that it follows the determinations of state and federal environmental agencies.

3. Regarding the fines that the Ibama (Brazilian Institute of the Environment and Renewable Natural Resources) has allegedly imposed on the company for possible deforestation, SLC Agrícola informs that it has appealed all the fines administratively, presenting strong

arguments and documents contesting the alleged reasons. The fines are being processed, with no final judgment yet. The details of each fine are available for public consultation in each year's Reference Form: http://ri.slcagricola.com.br/publicacoes-edocumentos/formulario-de-referencia-e-cadastral/

4. SLC Agrícola also stands out nationally and internationally for its cotton production, based on strict quality standards. The company has several certifications, including the SAI (Abrapa Identification System), the Responsible Brazilian Cotton Program (ABR), and the Better Cotton Initiative (BCI) international certification. Currently, 99% of SLC Agrícola's cotton production is destined for export, mainly to Asian industries. The company strives to provide its customers with high quality, sustainably produced products, consolidating its global reputation.

Finally, SLC Agrícola reaffirms its commitment to transparency and respect for the environment and local communities, maintaining compliance with regulations and good social and environmental practices.

The company follows clear values and principles, which are adhered to the entire team, from management to the most recent employees. Therefore, once again, we condemn unfounded statements that seek to damage the reputation and successful track record of Brazilian agriculture and SLC Agrícola.

Porto Alegre, April 12th, 2024.

Ivo Marcon Brum

CFO & IRO