Climate Change Data

Euro Sun Mining Inc.

Climate Impact & Sustainability Data (2023-01-01 to 2023-06-30, 2023-03-31, 2024)

Reporting Period: 2023-01-01 to 2023-06-30

Environmental Metrics

Waste Generated:Approximately 43 million tonnes or 19% less waste material expected to be mined resulting in a 1.45:1 strip ratio over LOM

ESG Focus Areas

  • Environmental Permitting
  • Community Engagement
  • Environmental Compliance

Environmental Achievements

  • Renewal of Certificate of Urbanisation for two years (July 2023)
  • Dry stack tailings and cyanide-free operation at Rovina Valley Project

Social Achievements

  • Proactive local stakeholder engagement program including community meetings, public information center, and partnerships with NGOs
  • Good relations with the community allowing unhindered surface access for drilling

Governance Achievements

  • Appointment of Kenny Choi as Corporate Secretary (January 31, 2023)
  • Cluj County court dismissed grounds for suspension of environmental license (later overturned on appeal)

Climate Goals & Targets

Short-term Goals:
  • Complete remaining two approvals for the PUZ approval process

Environmental Challenges

  • Legal challenge to environmental license (Asociatia Declic)
  • Challenging market conditions to raise finance for development stage mining projects
  • Potential revocation or change in permit requirements and project approvals
Mitigation Strategies
  • Filed evidence with Cluj County court to respond to action for annulment of environmental license
  • Continuing fundraising efforts
  • Diligent work with local and national authorities for timely approval of PUZ and EIA permits

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: NI 43-101

Reporting Period: 2023-03-31

Environmental Metrics

Waste Generated:Approximately 43 million tonnes or 19% less waste material expected to be mined resulting in a 1.45:1 strip ratio over LOM

ESG Focus Areas

  • Environmental Permitting
  • Community Engagement
  • Environmental Impact Assessment

Environmental Achievements

  • Completed updated Definitive Feasibility Study incorporating dry stack tailings and cyanide-free operation; advancing Environmental Assessment studies for land re-zoning and environmental permitting

Social Achievements

  • Maintains proactive local stakeholder engagement program including community meetings, public information center, and partnerships with local NGOs and community leaders.

Governance Achievements

  • Appointment of Kenny Choi as Corporate Secretary; Cluj County court dismissed grounds for suspension of environmental license (later overturned on appeal, but the company will continue to protect its rights).

Climate Goals & Targets

Short-term Goals:
  • Complete remaining approvals for PUZ approval process

Environmental Challenges

  • Legal challenge to environmental license resulting in temporary suspension; challenging market conditions to raise finance for development stage mining projects; International conflict and geopolitical uncertainty impacting commodity prices and supply chains.
Mitigation Strategies
  • Filing evidence with Cluj County court to respond to action for annulment of environmental license; pursuing fundraising to support permitting, operations, and engineering; monitoring the situation and adapting to the evolving geopolitical landscape.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: NI 43-101

Reporting Period: 2024

Environmental Metrics

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Low-impact mining approach with concurrent revegetation, minimizing environmental impact. 300% more forest to be planted than legally required.
  • Cyanide-free processing, reducing chemical use and mitigating impurity penalties.

Social Achievements

  • Local community buy-in at all administrative levels; local communities actively involved in mining license design.
  • Most current vendors and consultants from the local community and county.
  • Company actively supports healthcare and physical activity within the local population.
  • Commitment to improving gender equality across the mine life.

Governance Achievements

  • Executive team and Board with extensive global mining experience.
  • Clear ESG commitments aligned to the United Nations Sustainable Development Goals.
  • Mining license ratified by the national government.

Climate Goals & Targets

Long-term Goals:
  • Potential for 30-35 year mine life (including Ciresata)
Short-term Goals:
  • First production in 2026/2027

Environmental Challenges

  • Potential for supply chain disruptions (implied by discussion of sourcing responsible alternatives outside of China and DRC)
  • Fluctuations in gold and copper prices
  • Exploration and development risks
  • Environmental liabilities and regulatory requirements
Mitigation Strategies
  • Low-impact mining approach to minimize environmental impact
  • Cyanide-free processing to reduce environmental risks
  • Strong stakeholder support due to best-practice local community engagement
  • Compliance with EU regulations and Romanian mining law

Supply Chain Management

Responsible Procurement
  • Most current vendors and consultants from local community and county

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Sustainable Development Goals