Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• environmental liabilities associated with artisanal and small-scale mining activity

Mitigation Strategies

• initiated reclamation activities on some of the historical disturbances including reclaiming and recontouring all pre-2012 trenches, drill stations, and non-essential drill access roads. Sulphide-bearing muck extracted from the decline was placed in lined and covered trenches, now fully recontoured, according to an approved reclamation plan.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: CIM Definition Standards for Mineral Resources and Mineral Reserves (May 2014), CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines (November 2003)

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Inferred Resources are inherently risky, speculative, and do not have demonstrated value.
• The PEA mine plan has been tailored to specific circumstances unique to Golden Minerals that involve leasing equipment from other wholly-owned subsidiaries and toll milling. If equipment availability and toll mill capacity change, the results of the PEA could be adversely affected.
• This PEA is not intended to be used as an operating plan and is only intended for understanding relevant factors that could lead to potential economic viability.
• Santa María Resource expansion is limited by the concession boundaries, but additional land acquisition has opened potential to increase Resources with exploration and development of other identified mineralized structures, such as the Santa María 2, Norte and Cervantes.
• At present, there is insufficient data to suggest water produced from dewatering the mine will require treatment. Samples collected in existing workings indicate treatment is not required. Samples have not been collected from deeper extents of the Resource.
• It is crucial that achievable concentrate grades are marketable. Recoveries for Ag and Au have been adjusted based on the metallurgical testing to meet generalized minimum concentrate grade requirements, but a contract is not currently in place.

Mitigation Strategies

• Capital has been accounted for in the PEA to allow for a lined settling pond but not a mechanical treatment system. To fully understand the risks if water quality is such that treatment is required, it is recommended that Golden Minerals collect samples from deeper within the Resource, analyze the potential water quality, and engage a local environmental consultant to estimate the cost of a passive treatment system using locally sourced labor and materials.
• Further optimization of recovery, concentrate grade and associated penalties should be conducted.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: NI 43-101

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• A site visit, conducted by SEMARNAT as part of the permit application in 2017, determined that the surface disturbances caused by historical mining activities, were “not significant”, and Golden Minerals are not liable for any rehabilitation of those surface disturbances.

Social Achievements

• Golden Minerals has built a good relationship with the San Francisco de Yoquivo community, has employed local workers as casual labourers, has employed local contractors for road repair and drill platform construction, and has locally hired water trucks to transport water to the drill sites.

Governance Achievements

• All payments of mining duties and taxes for the concessions are up to date, and the required proof of annual labour forms have been filed for the concessions.

Climate Goals & Targets

Environmental Challenges

• Risks at this stage of Project development primarily relate to the ability to continue good relations with the local ejidos such that surface rights and access to water for drill programs can continue.
• Metallurgical tests completed to date are sufficient to indicate the potential recoverability of silver and gold to support Inferred Mineral Resource estimates. However, more detailed investigations, including variability tests, may result in changes to the assumed metallurgical recoveries used to support the estimate.
• No testwork has been completed as to whether potentially deleterious elements are present in the mineralization.

Mitigation Strategies

• Golden Minerals is currently negotiating a new access agreement with the ejido to allow a continuation of exploration activities.
• More detailed metallurgical investigations, including variability tests, are recommended.
• Further metallurgical and comminution testwork is planned to determine if deleterious elements are present.

Supply Chain Management

Responsible Procurement

• Local contractors for road repair and drill platform construction

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: S-K 1300

Certifications: ISO/IEC 17025:2017, ISO 17025:2017, ISO 9001:2015

Third-party Assurance: Mine Technical Services Ltd (MTS)