Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Preparation for Construction
• CSR Strategy

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Reduce Current Operating Costs and Expenditures
• Determine deliverable debt / equity funding solution
• Improve Metallurgical Recovery & Processing Flowsheet
• Optimise Mining Schedule & Costs
• Alternative Power Supply Solutions
• Deliver on Indonesian Permitting requirements

Mitigation Strategies

• Finalise Feasibility Study
• Evaluate trade-offs of increased reagent costs versus construction capital reductions
• Earthmoving fleet alternatives for long haul distances
• Additional ounces from subsequent mining stages
• Current Option is Diesel @ ~US$0.34/kWhr US$0.10 reduction reduces unit cost by ~US$70/oz
• Extension to Contract of Work feasibility period
• Government of Indonesia Feasibility Study
• AMDAL Permit – Environmental and Social Impact Study
• Forestry “Borrow to Use” Permit
• Project Access

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: JORC

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

• Completed final environmental and social impact assessment (AMDAL) submissions and report

Social Achievements

• Continued engagement with local stakeholders associated with Government permitting and approvals; commitment to CSR programs in line with strategy

Governance Achievements

• Implementation of a shared services agreement to reduce executive and administration costs; Corporate Governance Statement

Climate Goals & Targets

Environmental Challenges

• Difficult market conditions in the gold sector; protracted permitting process due to Indonesian Presidential election process and subsequent restructuring of Ministries

Mitigation Strategies

• Significant cost base reduction; pursuing scenarios to optimize outcomes of the Feasibility Study; exploring alternative power supply options (leased power generation equipment with dual fuel); reviewing earthmoving and access road construction costs

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Social Achievements

• Continued engagement with local stakeholders associated with Government permitting and approvals.

Climate Goals & Targets

Environmental Challenges

• Low head grade, high strip ratio and operation during a period of low prevailing gold and silver prices at the Mirah project.
• Optimistic gold price of $1400/oz in the January 2014 Feasibility Study reduced the capacity to attract funding to complete the Sihayo Pungkut project.

Mitigation Strategies

• Innovative development approach to the Mirah project using local resources and expertise, and a full Owner-Operator approach.
• Update of the Feasibility Study for Sihayo Pungkut project to include changes to improve project economics (doubling production rate, reducing tailings and waste disposal costs, owner operation, simplified plant design, inclusion of cyanide recovery and detox technology).

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Green Gold Technology, a company specialising in Resin technology for the recycling of cyanide and detoxification of gold plant tailings

Environmental Metrics

Social Achievements

• Continual consultation and communication with the local community and landowners, as well as liaison with the Indonesian National and Provincial Governments and other interested or affected parties.

Climate Goals & Targets

Environmental Challenges

• Difficult logistics due to rugged terrain/remoteness
• Potential for extreme seismic events
• Very high rainfall
• Metallurgically and structurally complex ore body

Mitigation Strategies

• Owner Management concept to reduce operating costs
• Use of grid power (PLN)
• ReCYN cyanide recovery process
• Wet TSF (Tailings Storage Facility) for economical and operational considerations
• Improved retaining wall design for seismic influences

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme seismic events
• High rainfall

Reporting Standards

Frameworks Used: JORC Code 2012 Edition

Environmental Metrics

ESG Focus Areas

• Community Relations
• Environmental Protection
• Indonesian Safety, Health and Environmental Standards

Social Achievements

• Provided short-term employment opportunities to local communities during the drilling program
• Provided opportunities to local businesses supplying food and other supplies

Climate Goals & Targets

Environmental Challenges

• Lack of recovery in share price despite increased gold price
• Uncertainty regarding the legal status of tenements in India

Mitigation Strategies

• Infill drilling and further studies to increase certainty of assumptions underpinning the 2018 feasibility study
• Rebuilding technical studies team
• Ongoing efforts to resolve the legal status of Indian tenements

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Community Relations
• Environmental Protection
• Indonesian Safety, Health and Environmental Standards

Environmental Achievements

• Completed 7,337.5m of infill diamond drilling at Sihayo Gold Project to strengthen geological model and resource classification.
• Completed 325m of shallow diamond drilling for geotechnical site investigations for tailings storage facility.

Social Achievements

• Current drilling program provided short-term employment opportunities to local communities.
• Increased activity provided opportunities to local businesses supplying food and other supplies.

Governance Achievements

• Shareholders approved a selective capital reduction and a private placement of shares.

Climate Goals & Targets

Environmental Challenges

• Net operating loss of $1,791,980 for the half-year ended 31 December 2019.
• Dependence on funding by way of additional shareholder loans and equity capital raising to continue operations.
• Need for amendments to existing environmental and operating permits reflecting changes from revised Feasibility Study.
• Obtaining approvals for exploration drilling at Hutabargot Julu gold target within protected forest.

Mitigation Strategies

• Private placement of shares raised $2,881,413 of new capital.
• Preparing for major project permit applications, including baseline water, flora and fauna sampling and community condition assessment.
• Submitting documents for forestry exploration permit to the Ministry of Forestry.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Commodity price volatility and exchange rate risks
• Permitting delays
• Market conditions
• Climate-related risks (regulatory changes, physical risks)
• Operational risks (mineral deposit location, technical difficulties, infrastructure, weather, industrial disputes)
• Exploration risks (discovery of economic ore deposits, exploitation viability)
• Sovereign risk (changes in Indonesian mining legislation, taxation, enforcement of legal rights)
• Reliance on key personnel

Mitigation Strategies

• Holding cash in the currency of anticipated costs (foreign currency risk)
• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of weather patterns
• Extreme weather events
• Shifting climate patterns

Transition Risks

• New or expanded regulations
• Market changes related to climate change mitigation
• Changes to compliance regulations
• Taxation or penalties for carbon emissions

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

• Health, Safety & Environment
• Community

Social Achievements

• Community support initiatives in response to COVID-19 (distribution of masks, sanitizers, and food; coordination with Mandailing Natal Health Office).

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and related travel/work restrictions

Mitigation Strategies

• Compliance with government regulations and company safety protocols (mandatory COVID-19 testing, quarantining), implementation of strict COVID-19 workplace protocols and standard operating procedures.

Supply Chain Management

Climate-Related Risks & Opportunities