Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Community Development
• Safe and Transparent Employment

Social Achievements

• Commitment to building a legitimate 'social license to operate' in the communities and countries in which it operates. Community development initiatives supported across community infrastructure, sustainable livelihoods and economic development.

Climate Goals & Targets

Environmental Challenges

• Political and economic uncertainties in emerging markets (South Africa and Namibia)
• Uncertainty of title to concessions
• Intense competition in the petroleum industry
• Risks inherent in oil and gas exploration and development (fire, explosion, blowouts, etc.)
• Capital requirements for future operations
• Dependency on partners
• Risks relating to concessions, licenses, and contracts
• South African regulations (Liquid Fuels Charter, MPRDA)
• Climate change legislation and public opposition
• Environmental regulations
• Availability of equipment and personnel
• Reliance on operators or key personnel
• Fluctuations in oil and natural gas prices
• Early stage of development
• Global financial conditions
• Foreign currency exchange rate risk
• Liquidity risk
• Credit risk
• Conflicts of interest
• Anti-bribery and anti-corruption laws
• Information system risks
• Limitation of legal remedies
• Issuance of debt
• Industry regulatory changes
• Significant shareholder influence (Africa Oil)
• Share price volatility
• Risks related to dividends
• Risks related to illiquid trading and First North listing

Mitigation Strategies

• Conducting title reviews prior to acquiring interests
• Actively monitoring liquidity and adjusting exploration pace
• Contractual provisions to mitigate joint venture partner defaults
• Compliance with anti-bribery and anti-corruption laws
• Application of technical and process controls to protect IT infrastructure
• Private Placement to secure funding
• Dialogue and engagement with key stakeholders

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Evolving climate change policies and regulations
• Public opposition to fossil fuels

Reporting Standards

Frameworks Used: NI 51-101

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Policies
• Corporate Responsibility

Environmental Achievements

• Established a safety and environmental policy aiming to meet or surpass statutory requirements and best practice, and operating the Company’s business to ensure proactive risk mitigation.

Social Achievements

• Commitment to providing a safe, healthy, and transparent environment for employment, production, and sharing of the economic benefits that flow from its regional presence. Committed to building a legitimate ‘social license to operate’ in the communities and countries in which it operates. Ongoing stakeholder engagement led by country teams in each of its exploration theatres, community development initiatives reflecting local priorities would be identified and supported across three key areas: community infrastructure, sustainable livelihoods and economic development.

Governance Achievements

• Anti-corruption policy in place for its personnel, and consultants. Company personnel annually complete an anti-bribery and anti-corruption compliance training program.

Climate Goals & Targets

Environmental Challenges

• International Operations (political and economic uncertainties)
• Uncertainty of Title
• Financial Statements Prepared on a Going Concern Basis
• Different Legal System and Litigation
• Risks Inherent in Oil and Gas Exploration and Development
• Capital Requirements
• Shared Ownership and Dependency on Third Parties and Joint Venture Partners
• Risks Relating to Concessions, Licenses and Contracts
• Risks Relating to South African Regulations
• Climate Change Legislation
• Environmental Regulation
• Availability of Equipment and Personnel
• Reliance on Key Personnel
• Prices, Markets and Marketing of Crude Oil and Natural Gas
• Early Stage of Development
• Current Global Financial Conditions
• Global Health Emergency
• Foreign Currency Exchange Rate Risk
• Liquidity Risk
• Credit Risk
• Conflict of Interests
• Anti-Bribery and Anti-Corruption Laws
• Information Systems
• Limitation of Legal Remedies
• Issuance of Debt
• Risks Related to the Shares
• Share Price Volatility
• Selling Off of Shares
• Dilution
• Risks related to illiquid trading
• INDUSTRY REGULATORY

Mitigation Strategies

• Focus on operations in stable countries with good commercial terms.
• Conducts title reviews prior to acquiring an interest in a concession.
• Equity financing, partial divestiture and farmout agreements.
• To mitigate some of this risk, the Company focuses on operations in stable countries with good commercial terms.
• Experience, knowledge and careful evaluation.
• External financing (equity, debt, farm-out agreements).
• Contractual provisions allowing the Company to default joint venture partners who are non-performing and reacquire any previous farmed out working interests.
• Careful review of concessions, licenses and contracts.
• Compliance with South African laws and regulations.
• Monitoring and adapting to evolving climate change policies.
• Compliance with environmental regulations.
• Leasing drilling rigs, proactive personnel management.
• No key person insurance mentioned.
• Hedging strategies not mentioned.
• Careful selection of acquisition targets.
• Active monitoring of liquidity and adjusting exploration pace.
• Contractual provisions for partner defaults.
• Disclosure of conflicts of interest, adherence to BC BCA.
• Anti-corruption policy and training.
• Technical and process controls to protect information, assets and systems.
• Not specified.
• Not specified.
• Not specified.
• Not specified.
• Not specified.
• Not specified.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: NI 51-101

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Responsibility
• Social Responsibility
• Community Engagement

Environmental Achievements

• Established a safety and environmental policy aiming to meet or surpass statutory requirements and best practice, and operating the Company’s business to ensure proactive risk mitigation.
• Commitment to minimizing environmental impact

Social Achievements

• Commitment to providing a safe, healthy, and transparent environment for employment, production, and sharing of the economic benefits that flow from its regional presence.
• Commitment to building a legitimate ‘social license to operate’ in the communities and countries in which it operates.
• Ongoing stakeholder engagement led by country teams in each of its exploration theatres, community development initiatives reflecting local priorities will be identified and supported across three key areas: community infrastructure, sustainable livelihoods and economic development.

Governance Achievements

• Anti-corruption policy in place for its personnel, and consultants. Bi-annual anti-bribery and anti-corruption compliance training program for personnel.

Climate Goals & Targets

Environmental Challenges

• International Operations: Political and economic uncertainties in emerging markets.
• Uncertainty of Title: Risk of unforeseen defects in title to concessions.
• Financial Statements Prepared on a Going Concern Basis: Dependence on equity financing and future funding.
• Different Legal System and Litigation: Differences in legal systems and potential for costly disputes.
• Risks Inherent in Oil and Gas Exploration and Development: Uncertainties in exploration and production.
• Capital Requirements: Need for external financing.
• Shared Ownership and Dependency on Third Parties and Joint Venture Partners: Reliance on partners' performance.
• Risks Relating to Concessions, Licenses and Contracts: Interpretation and enforcement challenges.
• Risks Relating to South African Regulations: Changes in South African laws and regulations.
• Climate Change Legislation: Scrutiny from governments and activists regarding greenhouse gas emissions.
• Environmental Regulation: Compliance costs and potential penalties.
• Availability of Equipment and Personnel: Logistical challenges and competition for skilled personnel.
• Reliance on Key Personnel: Risk of losing key personnel.
• Prices, Markets and Marketing of Crude Oil and Natural Gas: Price volatility.
• Early Stage of Development: Limited information for evaluating prospects.
• Current Global Financial Conditions: Volatility in financial markets.
• Global Health Emergency: Impact of pandemics on demand and operations.
• Foreign Currency Exchange Rate Risk: Exposure to exchange rate fluctuations.
• Liquidity Risk: Ability to meet financial obligations.
• Credit Risk: Risk of counterparty defaults.
• Conflict of Interests: Potential conflicts of interest among directors and officers.
• Anti-Bribery and Anti-Corruption Laws: Compliance challenges.
• Information Systems: Dependence on IT infrastructure and security risks.
• Limitation of Legal Remedies: Difficulty in collecting judgments from directors outside Canada.
• Issuance of Debt: Potential increase in debt levels.
• Risks Relating to the Shares: Significant shareholder influence.
• Share Price Volatility: Factors affecting share price.
• Selling Off of Shares: Potential oversupply and price decline.
• Dilution: Issuance of additional shares.
• Risks related to illiquid trading: Difficulties in selling shares.

Mitigation Strategies

• Focus on operations in stable countries with good commercial terms.
• Conducting title reviews prior to acquiring an interest in a concession.
• Actively monitoring liquidity and adjusting exploration activities.
• Contractual provisions allowing the Company to default joint venture partners who are non-performing and reacquire any previous farmed out working interests.
• Anti-corruption policy and compliance training.
• Technical and process controls to protect information, assets and systems.
• Company’s articles do not limit the amount of indebtedness that the Company may incur.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: NI 51-101

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Liquidity Risk
• Inflation Risk
• Conflict in Ukraine
• Climate Change Legislation
• Environmental Regulation
• International Operations
• Uncertainty of Title
• Different Legal System and Litigation
• Risks Inherent in Oil and Gas Exploration and Development
• Risks Associated with Discovering Oil and Gas
• Risk Associated with Estimates
• Well-Flow Test Results
• Capital Requirements
• Shared Ownership and Dependency on Third Parties and Joint Venture Partners
• Risks Relating to Concessions, Licenses and Contracts
• Risks Relating to South African Regulations
• Availability of Equipment and Personnel
• Reliance on Key Personnel
• Prices, Markets and Marketing of Crude Oil and Natural Gas
• Early Stage of Development
• Current Global Financial Conditions
• Global Health Emergency
• Foreign Currency Exchange Rate Risk
• Credit Risk
• Conflict of Interests
• Anti-Bribery and Anti-Corruption Laws
• Information Systems
• Limitation of Legal Remedies
• Issuance of Debt
• Risks Related to illiquid trading
• Industry Regulatory
• Geopolitical Risk

Mitigation Strategies

• Actively monitors its liquidity to ensure that its cash flows and working capital are adequate to support these financial obligations and the Company’s capital programs. The Company will also adjust the pace of its exploration activities to manage its liquidity position.
• The Company focuses on operations in stable countries with good commercial terms.
• The Company has an anti-corruption policy in place for its personnel, and consultants. In addition, Company personnel bi-annually complete an anti-bribery and anti-corruption compliance training program.
• The Company applies technical and process controls in line with industry-accepted standards to protect information, assets and systems; however, these controls may not adequately prevent cyber-security breaches.
• Contractional provisions allowing the Company to default joint venture partners who are non-performing and reacquire any previous farmed-out working interests.
• In the event that such a conflict of interest arises at a meeting of the Company’s directors, a director who has such a conflict will abstain from voting for or against the approval of such participation, or the terms of such participation.

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: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental and Social Impact Assessment (ESIA)

Climate Goals & Targets

Environmental Challenges

• Electricity crisis in South Africa
• Evolving climate change legislation and regulation
• Environmental regulations
• Global health emergencies
• Fluctuations in oil and natural gas prices
• Risks inherent in oil and gas exploration and development
• Political and economic uncertainties in emerging markets
• Different legal systems and litigation
• South African regulations
• Shared ownership and dependency on partners
• Uncertainty of title
• Risks relating to concessions, licenses, and contracts
• Capital requirements
• Foreign currency exchange rate risk
• Credit risk
• Geopolitical risk
• Insurance risk

Mitigation Strategies

• Cost-cutting measures
• Monitoring liquidity and adjusting exploration activities
• Securing financing from external sources (debt, equity, farm-outs)
• Focusing on operations in stable countries with good commercial terms
• Conducting title reviews
• Contractual provisions allowing the Company to default non-performing joint venture partners
• Sourcing capital projects and expenditures in US dollars
• Obtaining insurance in accordance with industry standards

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Climate change legislation and regulation changes

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: KPMG LLP

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Regulation
• Social Impact

Climate Goals & Targets

Environmental Challenges

• Climate change legislation and evolving policies impacting the petroleum industry.
• Environmental regulations and potential penalties for non-compliance.
• Global health emergencies affecting oil and gas demand.
• Fluctuations in oil and natural gas prices.
• Risks inherent in oil and gas exploration and development (dry wells, production delays).
• Political and economic uncertainties in international operations.
• South African regulations and potential changes to fiscal parameters.
• Dependence on partners for funding and operational success.
• Uncertainty of title to concessions.
• Potential for legal disputes.
• Capital requirements and securing financing.
• Foreign currency exchange rate risk.
• Credit risk from joint venture partners.
• Geopolitical risks affecting oil and gas markets.

Mitigation Strategies

• Focus on operations in stable countries with good commercial terms.
• Active monitoring of liquidity and adjusting exploration activities.
• Obtaining insurance in accordance with industry standards.
• Contractual provisions allowing the Company to default non-performing joint venture partners.
• Title reviews prior to acquiring concession interests.

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Climate change legislation and regulation changes

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Regulation
• Social Impact
• Governance

Climate Goals & Targets

Environmental Challenges

• Withdrawal of joint venture partners from Block 11B/12B
• Delays in obtaining environmental authorization for ESIA
• Uncertainty regarding the future development of Block 11B/12B
• Securing offtake customers for Block 11B/12B resources
• Global health emergencies impacting demand for oil and gas
• Climate change legislation and regulation changes
• Political and economic uncertainties in emerging markets
• Risks inherent in oil and gas exploration and development
• Liquidity risk
• Inflation risk
• Geopolitical risk
• Insurance risk
• Credit risk

Mitigation Strategies

• Assessing the best way forward on the ESIA
• Focusing on obtaining Block 11B/12B Production Right approval
• Adjusting the pace of exploration activities to manage liquidity
• Actively monitoring liquidity
• Potentially issuing debt or equity and entering into farmout agreements
• Obtaining insurance in accordance with industry standards
• Contractual provisions allowing the Company to default non-performing joint venture partners

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Climate change legislation and regulation changes