Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Received a Section 404 Permit under the Clean Water Act from the United States Army Corps of Engineers for the disturbance of 0.85 acres of wetlands and 696 linear feet of stream channel which will be mitigated through a pre-certified In-Lieu Fee Program.
• Issued a draft air quality permit and received notification that its MPDES (Montana pollutant discharge elimination system) permit has been deemed Complete and Compliant by the MT DEQ.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Organized opposition from certain individuals and organizations who are motivated to preclude any possible mining in the Smith River watershed.
• Negative operating cash flow requiring substantial additional capital to fund future exploration and development activities.
• Potential inability to secure necessary permits to build and operate a mine at the Black Butte Copper Project.
• Potential for litigation to prevent or impair the pursuit of the Black Butte Copper Project.
• The Black Butte Copper Project is the Company’s only mineral property interest.

Mitigation Strategies

• The Company plans to address the uncertainty by raising additional funds in the capital markets in fiscal year 2019.
• The Company is currently completing the final step in the permitting process for the development of the Black Butte Copper Project, which is the Environmental Impact Statement (EIS).
• The Company has designed the Black Butte Copper Project to meet or exceed all applicable environmental laws.

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: IFRS

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
• Community Engagement

Environmental Achievements

• The Project has been designed to meet or exceed all of the standards and obligations required under the Project’s stringent Mine Operating Permit conditions.
• Mill tailings will be used for underground paste-fill support and the surplus deposited in a double-lined cemented tailings storage facility.

Social Achievements

• The Project will employ 240 full-time, highly paid employees along with 20-30 full-time contractors as well as providing significant economic benefits for all stakeholders in the local community and Montana at large.
• We have already commenced pre-construction earthworks on the site employing over 30 Montanans through local contractors, in addition to our own dedicated team.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• A legal challenge to the issuing of the Mine Operating Permit has been filed in the 14th Judicial Court of Montana.
• The same parties have also objected to the Company’s leasing of mitigation water rights that have preliminary approval from the Montana Department of Natural Resources and Conservation (MT DNRC).
• The water rights have to be finalized prior to start of production.

Mitigation Strategies

• To date, the legal challenge has not resulted in any interference with development activities and construction continues.
• While the Company does not believe that either of these challenges have any merit, they do have the potential to delay the development timeline.

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

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
• Social
• Governance

Environmental Achievements

• Successfully completed a $4 million pre-construction earthworks program to construct the Portal Pad and the Brine & Contact Water Pond in December 2020 without any reportable safety or environmental incidents.

Social Achievements

• Signed a partnership agreement with Highlands College in Butte, Montana to develop a training pathway program for Black Butte Copper Project employees.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Legal challenges to the MT DEQ’s Record of Decision, resulting in a court ruling in favor of the plaintiffs.
• Difficult drilling conditions, Covid-related absences, and mechanical issues exacerbated by supply chain issues delaying the 14,000m diamond drilling program.
• Organized opposition from certain individuals and organizations who are motivated to preclude any possible mining in the Smith River watershed.
• Negative operating cash flow and the need for substantial additional capital to fund future operations.
• Uncertainty regarding securing and maintaining sufficient water rights.
• Potential for future legal challenges and political risks.
• Risks associated with compliance with environmental requirements and potential changes in environmental legislation.
• Global health crisis (COVID-19) impacting operations.
• Vulnerability to cyber-attacks.

Mitigation Strategies

• Filed a notice of appeal of the District Court's final order to the Montana Supreme Court.
• Negotiations with objectors to water rights resulted in agreements resolving remaining issues.
• The company plans to address the uncertainty of continued operations by raising additional funds in the capital markets or through debt financing.
• The company continues to operate its business and has requested its employees and consultants work remotely if exposed to COVID-19 or showing symptomatic signs of COVID-19.
• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Transition Risks

• Regulatory changes

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: IFRS

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
• Social
• Governance

Environmental Achievements

• Received necessary permits to divert groundwater for mining and store high-water flows for stream flow maintenance (November 2022)

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Legal challenges to the MT DEQ’s Record of Decision, impacting permitting and construction timelines.
• Organized opposition to the Black Butte Copper Project from environmental groups.
• Difficulties securing and maintaining sufficient water rights.
• Negative operating cash flow and the need for substantial additional capital.
• Competition from larger, better-capitalized mining companies.
• Risks associated with mining operations (hazards, accidents, etc.).
• Potential impacts of global health crises (COVID-19) and other disruptions.
• Vulnerability to cyber-attacks.

Mitigation Strategies

• Appealing the District Court's order to the Montana Supreme Court.
• Negotiating agreements with objectors to water rights modifications.
• Seeking additional financing through debt or equity financing.
• Implementing safety measures to mitigate risks associated with mining operations.
• Implementing remote work policies in response to COVID-19.
• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Transition Risks

• Regulatory changes

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: IFRS

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed