Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility (CSR)
• Environmental Protection
• Community Engagement

Environmental Achievements

• Received ISO14001 accreditation for environmental aspects of exploration (post-year-end)
• Completed revegetation of drill platforms at Yawi (post-year-end)

Social Achievements

• Formal access agreements signed with 70% of communities in the Project area, providing access to 60% of its surface area.
• Created over 350 part-time work opportunities for local communities.
• Engaged 21 local suppliers.
• Invested in education on basic sanitation and water purification methods, benefiting over 500 families.

Governance Achievements

• Appointment of Mr. Warren Gilman, Mr. Jonathan Kagan and Dr. Leanne Baker to the Board.
• Appointment of Mr. Alfred Lenarciak as Lead director (post-year-end).

Climate Goals & Targets

Environmental Challenges

• Risks associated with operating in an emerging market (Ecuador)
• Potential for conflicts with local communities opposed to mining activities.
• Need for additional capital to fund exploration and development.
• Risks related to political and economic instability in Ecuador.
• Fluctuations in commodity prices.
• Environmental risks and hazards.
• Dependence on a single project (Lost Cities-Cutucú Project).
• Impact of COVID-19 pandemic on operations and workforce.

Mitigation Strategies

• Comprehensive Social Management Plan (SMP) to manage and mitigate social risk.
• Community engagement program to build relationships with local communities.
• Securing additional funding through equity financing, debt financing, and private placements.
• Compliance with environmental regulations and obtaining necessary permits.
• Diversification of exploration targets (gold, silver, copper).
• Development of a back-to-work protocol in response to COVID-19.
• Withdrawal of personnel from the field during the peak of the COVID-19 pandemic.

Supply Chain Management

Responsible Procurement

• Engaged 21 local suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, wildfires, drought)

Transition Risks

• Changes in climate change legislation and regulations

Reporting Standards

Frameworks Used: NI 43-101

Certifications: ISO 14001 (post-year-end)

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility (CSR)
• Environmental Protection
• Community Engagement

Environmental Achievements

• ISO 14001 accreditation received for environmental aspects of exploration (March 10, 2020)
• Restoration and revegetation of drill platforms at Yawi met Ministry of Environment requirements
• Drill platforms in Tsenken N2 and N3 areas restored with native species
• Water systems of 53 of 55 communities evaluated; clean water restored in six communities

Social Achievements

• Formal access agreements with 36 of 55 (65%) communities, providing access to 70% of project area
• Distribution of COVID-19 information translated into Shuar language
• Two food deliveries (8 and 10 tonnes) to communities in Q2 2020
• Creation of over 350 part-time work opportunities in 2018
• Investment in education on basic sanitation and water purification methods benefiting over 500 families in 2018

Governance Achievements

• Appointment of Ms. Leonor Vegas as VP-CSR for Aurania’s Ecuadorian subsidiary
• Appointment of Carolyn Muir as VP-Investor Relations
• Appointment of Alfred Lenarciak as Lead Director
• Establishment of Audit Committee, Compensation, Nomination, and Governance Committee, and Safety, Environment and Social Responsibility Committee

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting field work and office activities
• Community relations and potential opposition to mining activities
• Capital requirements for ongoing operations and exploration
• Exploration risks, including geological uncertainties
• Political and economic instability in Ecuador
• Fluctuations in commodity prices
• Inadequate infrastructure in project area
• Environmental risks and regulations
• Illegal mining activities
• Dependence on single project
• Reputational risk
• Going concern uncertainty

Mitigation Strategies

• Implementation of strict COVID-19 protocols, including testing and remote work
• Dedicated CSR team and formal access agreements with communities
• Securing additional capital through equity and debt financing
• Thorough exploration programs and risk assessments
• Close collaboration with Ecuadorian government and ministries
• Diversification of funding sources
• Careful planning and risk management
• Compliance with environmental regulations
• Monitoring and reporting on illegal mining
• Exploration of additional projects
• Emphasis on responsible operations and communication
• Financial planning and securing additional funding

Supply Chain Management

Responsible Procurement

• Engaged 21 local suppliers in 2018

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, wildfires, drought)

Transition Risks

• Changes in climate change legislation

Reporting Standards

Frameworks Used: NI 43-101

Certifications: ISO 14001

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Community Engagement
• Corporate Social Responsibility

Environmental Achievements

• ISO 14001 accreditation received for environmental aspects of exploration (March 10, 2020); restoration and revegetation of drill platforms at Yawi meets MEW requirements; drill platforms in Tsenken N2 and N3 restored with native species; application made for water-use permits for scout drilling; water systems evaluated in 53 of 55 communities, clean water restored in six communities.

Social Achievements

• Established community engagement program; working with local communities; set up field office in Macas, Ecuador; established and trained local team to manage community engagement; CSR team works closely with 98% Indigenous communities; approach aligned with Equator Principles and UN Declaration on the Rights of Indigenous Peoples; Stakeholder Engagement Plan incorporates early stakeholder engagement with social impact analysis; supported government programs in Health, Agriculture, Education, Social Inclusion and Economy; social license to operate in 55 communities; CSR initiatives totaled $421,306; clean water systems installed in nine communities; three school libraries built; school supplies provided; supported deworming campaigns; six-month microbusiness program delivered to 100 women.

Governance Achievements

• Appointment of Carolyn Muir as VP-Investor Relations; full-time employment agreement with President, CFO, and VP-Investor Relations; Alfred Lenarciak appointed Lead Director; contract with OTrade and Market Access Ltd. terminated; Leonor Vegas appointed VP-CSR; Board diversity improved with appointment of Nathalie Han.

Climate Goals & Targets

Environmental Challenges

• Highly competitive exploration and mining sector; fluctuations in mineral prices and worldwide economic cycles; risks associated with operating in an emerging market (Ecuador); obtaining and maintaining government approvals; community relations; potential for political and economic instability in Ecuador; financing risk; environmental risks and hazards; illegal mining; security risks; climate change; epidemic and pandemic diseases; dependence on single project; reputational risk; going concern uncertainty.

Mitigation Strategies

• Revised corporate strategy focusing on core mineral concessions in Ecuador; exploring joint ventures and partnerships; maintaining all concessions in Ecuador; strict COVID-19 protocol implemented; community engagement and CSR initiatives; compliance with environmental regulations; ongoing monitoring of water quality; formal access agreements with communities; efforts to mitigate climate change risks; measures to manage information technology risks; insurance (though limitations acknowledged).

Supply Chain Management

Responsible Procurement

• Ensuring contractors and suppliers comply with environmental policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, wildfires, drought)

Transition Risks

• Climate change legislation and treaties

Reporting Standards

Frameworks Used: Equator Principles, United Nations Declaration on the Rights of Indigenous Peoples

Certifications: ISO 14001

Environmental Metrics

ESG Focus Areas

• Community Engagement
• Corporate Social Responsibility
• Environmental Protection

Environmental Achievements

• ISO 14001 registration demonstrates commitment to minimizing environmental footprint; environmental protection initiatives and obligations cost $163,604 (approximately 2.8% of field-based expenditure) in 2023, reduced due to decreased scout drilling activity.

Social Achievements

• Established community engagement program, working with local communities; CSR initiatives totaled $409,198 in 2023; supported clean water systems in nine communities, built three school libraries, provided school supplies, and supported deworming campaigns; delivered a micro-business program to 100 women from five communities.

Governance Achievements

• Audit Committee and other board committees (Compensation, Nomination, and Governance Committee; Safety, Environment and Social Responsibility Committee) are in place and actively functioning; details on director and officer compensation and related party transactions are disclosed.

Climate Goals & Targets

Environmental Challenges

• Highly competitive exploration and mining sector; fluctuations in commodity prices; risks associated with operating in an emerging market (Ecuador); financing risk; environmental risks and hazards; government or regulatory approvals; political and economic instability in Ecuador; community relations; surface rights and access; labour and employment matters; infrastructure; tax regime in Ecuador; measures to protect endangered species; illegal mining; security risks; changes in climate conditions; epidemic and pandemic diseases; key talent; significant shareholder influence; internal control over financial reporting; conflicts of interest; dependence on single project; information technology systems; insurance and uninsured risks; application of anti-bribery laws; reputational risk; going concern.

Mitigation Strategies

• Community engagement and CSR programs; compliance with environmental regulations and obtaining necessary permits; risk management strategies; diversification of funding sources; robust internal controls; board oversight of ESG matters; mitigation strategies for climate-related risks (not explicitly detailed but implied through discussion of climate change legislation and physical risks); efforts to maintain good relationships with employees and communities.

Supply Chain Management

Responsible Procurement

• Ensuring contractors and suppliers comply with environmental policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, wildfires, drought)

Transition Risks

• Climate change legislation and treaties

Reporting Standards

Frameworks Used: Equator Principles, United Nations Declaration on the Rights of Indigenous Peoples

Certifications: ISO 14001