Climate Change Data

Environmental Metrics

ESG Focus Areas

• Community Engagement
• Environmental Management
• Social Responsibility
• Governance

Environmental Achievements

• Water well requirements and usage assessments ongoing and working with MAWLR, Regional Authorities and Traditional Authorities
• Water-based drilling fluid system implemented as best practice
• Development and research into possibilities for Net Zero carbon reduction program for existing and upcoming operations
• Water Management Plan ongoing implementation, REN Wildlife Survey and monitoring, REN EMP monitoring
• Waste Management System enhanced
• REN approved Environmental Clearance Certificate for stratigraphic wells and extensive EMP (2019-08-26)

Social Achievements

• Donation of COVID19 healthcare packages in PIAC
• Donation of equipment to regional area hospital
• Namibian personnel begin work at project site, ongoing hiring and promotion of Namibian site personnel, inclusion of Gender and Diversity & Labour Standards
• Local labour hiring at Project Impact Areas and continues; Inclusion of Gender and Diversity & Labour Standards
• Four solar-powered community water wells permitted and donated to PIACs; another six solar-powered community water wells are being permitted and will be donated
• Publication of ‘Voices of Kavango’ providing insights into the perceptions and concerns of impacted and interested stakeholders in Kavango East and West and the San (Kwe) Community
• Funding of Educational Scholarships in both East and West Kavango
• Major donation to National Education Student Initiative
• Executive commitment to Regional Governors for regional and local hiring; commitment being upheld and heightened

Governance Achievements

• REN Management Team established, along with REN Wildlife Survey and Monitoring Expert, REN EMP Expert and Namibian hydrogeologist
• MME and NAMCOR training on site
• Ministry meetings with ReconAfrica Executive - MME, MEFT, MAWLR
• 2D EIA Regulatory Consultation and Open House sessions: East and West Kavango, Windhoek; inclusion of issues and concerns into EIA documents
• Ombudsman site inspection
• San (Kwe) community engagement meetings with Indigenous/interested stakeholders, inclusion of issues, concerns, follow-up engagement
• Development of Technical Committee with MAWLR
• Opening of REN Rundu business and administrative office, coordinating local and regional hiring for project requirements
• Initiated discussions with government for Cross-Ministerial Task Force for resolution of issues and approvals
• Official Opening of Operations and 6-2 site with MME, NAMCOR, Regional, Traditional and Local Authorities and Community Members
• Extractive Sector Transparency Measures Act (ESTMA) implemented. ReconAfrica’s ESTMA Reports completed and filed for 2019 and 2020.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Net Zero opportunities with innovative technology and environmental measures positively impacting social elements and livelihoods

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

• Environment
• Social
• Governance

Environmental Achievements

• Conducted comprehensive Environmental Impact Assessments to protect the Kavango East and West regions.
• Working with governments and stakeholders to protect Namibia's water resources with focus on aquifer protection, surface water management, and project no-go zones.
• Employed a wildlife survey specialist to develop and implement wildlife protection measures.

Social Achievements

• Completed extensive consultation and engagement with local, regional, and national stakeholders, including indigenous communities.
• Drilled four solar-powered community water wells, with plans for six more.
• Employed more than 200 Namibian residents.
• Working with Namibian educational institutions to enhance STEM training programs.

Governance Achievements

• Committed to operating in compliance with its Code of Business Conduct and Ethics and other relevant policies.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Working with local, regional, and national suppliers and service providers.

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

• climate change and carbon emissions
• operational performance
• water and air quality
• biodiversity
• reforestation
• waste management
• regulatory consultation
• stakeholder and indigenous engagement
• issues & concerns (grievance) management
• human rights standards
• labour standards & human resource processes
• data protection and privacy
• gender and diversity
• community outreach projects
• corporate governance processes

Environmental Achievements

• Completed comprehensive Environmental Impact Assessments (“EIAs”) for stratigraphic wells and 2D seismic programs. Obtained Environmental Clearance Certificate (“ECC”) for stratigraphic wells and 2D seismic. Completed nearly 500 linear kilometers of seismic acquisition and processing in 2021 using low environmental impact equipment.
• Drilled 7 additional water wells and completed the installation of 6 water wells in early 2022; total of 20 water wells drilled and 13 installed to date.

Social Achievements

• Committed N$112 million ($10 million) to ESG initiatives in Namibia, with approximately $1.6 million expended as of March 31, 2022.
• Community outreach programs including drilling community water wells, providing school materials and sports equipment, funding Project Never Walk Alone, and participating in We Race Together.
• Granted ten STEAM scholarships and provided emergency funding for Namibian students impacted by the war in Ukraine.
• Over 600 Namibian residents hired for Phase 2, 2D seismic program and other projects in 2022, in addition to over 500 in 2021.
• Skills transfer initiative providing basic training in various practical disciplines; on-site technical training completed for stratigraphic wells and 2D seismic program.

Governance Achievements

• Working collaboratively with national, regional and local governments, traditional authorities and communities in Namibia and Botswana.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and resulting supply chain disruptions and travel bans significantly contributed to cost overruns in drilling program.
• Lost approximately two months of activity in December 2021 and January 2022 due to the Omicron outbreak.
• Failure to meet April 26, 2022 deadline for completion of work programs on Chiapas properties in Mexico; potential penalties and further action by CNH.

Mitigation Strategies

• Successfully raised additional financing for gross proceeds of $47,466,250 through February 2022 Offering to fund drilling program.
• Continuing to evaluate strategic alternatives for the Amatitlán block in Mexico.

Supply Chain Management

Responsible Procurement

• Using local suppliers and businesses for seismic campaigns (lodges, hotels, industrial yards, equipment rental agencies, local vehicles rentals, communications providers, medical providers, fuel distributors, air and land transportation, PPE suppliers, and caterers).

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• climate change and carbon emissions
• operational performance
• water and air quality
• biodiversity
• reforestation
• waste management
• regulatory consultation
• stakeholder and indigenous engagement
• issues & concerns (grievance) management
• human rights standards
• labour standards & human resource processes
• data protection and privacy
• gender and diversity
• community outreach projects
• corporate governance processes

Environmental Achievements

• Completed comprehensive Environmental Impact Assessments (EIAs) for stratigraphic wells and 2D seismic programs. Obtained Environmental Clearance Certificate (ECC) and received approval for amendments and renewal.
• Acquired 761 kilometers of 2D seismic data using low environmental impact equipment. Despite over 180,000 person-hours, 90% from local communities, there were no major health, safety, or environmental incidents.
• Implemented industry leading drilling practices to protect the environment, using casing and organic, biodegradable water-based drilling fluids.
• Completed initial wildlife monitoring (collaring) initiative with the Ministry of Environment, Forestry and Tourism (MEFT).

Social Achievements

• Committed $10 million (N$112 million) to ESG initiatives, including drilling 24 community water wells (21 completed with tanks and solar power), assisting with 8 additional wells via MAWLR, and supporting Namibia's COVID-19 vaccine rollout campaign.
• Granted 10 STEAM scholarships to graduates from Kavango East and Kavango West and provided emergency funding for students impacted by the war in Ukraine.
• Provided school materials and sports equipment, funding for Project Never Walk Alone, and participated in We Race Together.
• Hired over 600 Namibian residents for Phase 2, 2D Seismic Program and ongoing drilling, construction, and ESG projects. Over 500 Namibian residents worked in various roles in 2021.
• Working with Namibian educational institutions to enhance training programs related to the environment, drilling, and seismic activities.
• Strong commitment to gender diversity and increasing the number of women hired locally.

Governance Achievements

• Working collaboratively with national, regional, and local governments, traditional authorities, and communities in Namibia and Botswana.
• Submitting quarterly and annual reports to the Government of Botswana.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and resulting supply chain disruptions and travel bans leading to cost overruns of $4,042,034.
• Omicron outbreak causing approximately two months of lost activity.
• Failure to meet the April 26, 2022 deadline for completion of work programs on Chiapas properties in Mexico.
• Class action lawsuits filed by Company shareholders in the United States District Court in Brooklyn, New York.

Mitigation Strategies

• Successfully raised additional financing for gross proceeds of $47,466,250 through a February 2022 Offering.
• Increased seismic coverage from 450km to 761km to enhance subsurface imaging and data quality.
• Used two competing processing contractors to enhance data quality.
• Granted a 20-month extension to complete work programs on Chiapas properties.
• Engaged a third party to assist in obtaining the extension and provide support.
• Intends to vigorously defend the lawsuits.

Supply Chain Management

Responsible Procurement

• Extensive use of local suppliers and businesses for seismic operations

Climate-Related Risks & Opportunities