Tigray Resources Inc.

Climate Impact & Sustainability Data (2012, 2013)

Reporting Period: 2012

Environmental Metrics

Total Carbon Emissions:Not disclosed

Scope 1 Emissions:Not disclosed

Scope 2 Emissions:Not disclosed

Scope 3 Emissions:Not disclosed

Renewable Energy Share:Not disclosed

Total Energy Consumption:Not disclosed

Water Consumption:Not disclosed

Waste Generated:Not disclosed

Carbon Intensity:Not disclosed

ESG Focus Areas

Environmental
Social
Community

Environmental Achievements

Received an EIA certificate from the Tanzanian government for the entire Handeni Property, including the Magambazi Project on August 27, 2012.

Social Achievements

Initiated a program of environmental baseline and field studies to complete a full Environmental Impact Assessment for the project.
Engaged local leaders and initiated several community development projects including road building and refurbishment of a local community school.

Governance Achievements

Not disclosed

Climate Goals & Targets

Long-term Goals:

Further metallurgical testwork should be undertaken to investigate opportunities for reduction of cyanide consumption, incorporation of flotation in the process flowsheet and improved understanding of differences observed between composite grades predicted by drill core assays and those back-calculated from metallurgical results.
An update to the resource estimate should be carried out incorporating the 44 drillholes which occur in the resource outline but are excluded from the current resource estimation.
An Engineering and Project Assessment that involves the continuation of initial trade-off studies, evaluation and development of a program to address grade discrepancies, possible bulk sampling, and expanding land permit.

Medium-term Goals:

Two additional infill RC fences should be drilled if the initial RC drilling program results are encouraging.
Any targets that produce encouraging grades and intervals during RC drilling (Phase I) should be followed-up with a four hole diamond drill program

Short-term Goals:

Niton handheld XRF data collection on existing drill core pulps at Magambazi and Kwadijava
Three RC drilling fences (totaling 2250 m) should be drilled on the western side of Magambazi Hill

Environmental Challenges

Uncertainties related to title and surface rights to the Magambazi property
Risks related to governmental regulations, including environmental regulations
Risks related to the delay in obtaining, or failure to obtain or maintain required land access agreements and permits, or non-compliance with land access agreements and permits
Increased costs and restrictions on a Magambazi operation due to compliance with environmental laws and regulations
Risks related to reclamation activities
Risks related to political instability and unexpected regulatory change
Currency fluctuations
Difficulty in recruitment and retention of skilled, qualified personnel and management for the mineral project development and eventual operation of a mine
Project delays and operational issues
Risks related to Canaco’s ability to obtain adequate financing for further development
Commodity price fluctuations
Risks related to general economic conditions
Increased costs affecting the mineral exploration and mining industry
Risks associated with labour unrest or strikes
Risks pertaining to the sale of materials produced on site
Risks related to the taxation of profits earned at an eventual operation
Risks related to unjustified PLs and PMLs
Unpredictable risks and hazards related to the development and operation of a mine or mine property that are beyond Canaco’s control.

Mitigation Strategies

Ongoing dialogue with all stakeholders and a community relations approach
Canaco has indicated that their Executive has experience in permitting projects in developing nations, and has begun addressing this potential issue through submission of a Tanzanian EIA application
Initiated baseline environmental and socioeconomic work, with the aim of producing an EIA compatible with International Finance Committee requirements.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

Not disclosed

Transition Risks

Not disclosed

Opportunities

Not disclosed

Reporting Standards

Frameworks Used: NI 43-101, CIM Standards on Mineral Resources and Mineral Reserves

Certifications: ISO/IEC 17025:2005 (SGS Mwanza), ISO/IEC 17025:2005 (ALS Chemex Johannesburg), ISO 9001:2008 and ISO/IEC 17025:2005 (ALS Laboratory Group Vancouver), ISO 9001:2008 (ACME Analytical Laboratories Vancouver)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

Not disclosed

Not disclosed

Sustainable Products & Innovation

Not disclosed

Awards & Recognition

Not disclosed

Reporting Period: 2013