Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility

Environmental Achievements

• Established a tree nursery to promote environmental conservation and donated seedlings to landowners of previous drill sites.
• Conducting an Environmental and Social Impact Assessment for tailings retreatment in Kenya.

Social Achievements

• Launched a CSR program in Kenya focusing on strategic community investment, including scholarships, school infrastructure improvements, hygiene and sanitation programs, and exploring nature-based enterprises.
• Dedicated time and financial support to improve health and safety on artisanal mining sites in Kenya.
• No significant accidents in Greenland, attesting to successful risk management and health and safety procedures.

Governance Achievements

• Established a new committee chaired by Mike Nott to monitor and review risks from field operations.
• Implemented and maintained compliance with anti-bribery and whistleblowing policies, including working with third parties.

Climate Goals & Targets

Environmental Challenges

• Difficult funding environment.
• Inadequate rail and port logistics for iron ore projects.
• Slow government response to changing requirements and resistance from affected communities.
• Availability of skilled workers.

Mitigation Strategies

• Successful corporate transactions and fundraising.
• Melville Bugt project's advantage of deep-water ocean access.
• Focus on improving health and safety training and compliance.
• Conditional purchase offer for Colombian assets.
• Rationalising structures of Kenyan holdings to maximize value.

Supply Chain Management

Responsible Procurement

• Sourcing locally where possible.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: PDAC’s e3 Plus framework

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility
• Health & Safety

Environmental Achievements

• Established a tree nursery on its Migori Project in Kenya to promote environmental conservation and donated seedlings to landowners.

Social Achievements

• Engaged with and built relationships with the new Kenyan administration after the elections; dedicated staff responsible for building stakeholder relationships; implemented comprehensive Risk Assessments of Health & Safety Systems; provided Health and Safety inductions and project-specific training to employees; improved Health & Safety culture.

Governance Achievements

• Implemented anti-bribery and whistleblowing policy; improved internal controls; adopted the Share Dealing Code; held an open day for shareholders.

Climate Goals & Targets

Environmental Challenges

• Challenging market environment for the minerals sector; drawn-out sales processes for Greenland and Colombian assets; drawn-out processes following announced intentions to sell assets; declining gold price; changing government structure in Kenya; undervaluation of Jupiter Mines Limited on the market.

Mitigation Strategies

• Cut overheads and reduced debt; improved operating efficiencies at El Limon mine, Colombia (reducing cash costs); actively engaged with the Kenyan Ministry, British High Commission, and Chamber of Mines; negotiated terms of remaining borrowings; seeking to sell approximately half of its Greenland asset; considering early or mid-stage project acquisitions; Jupiter Mines Ltd decided to delist from the ASX.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility
• Health & Safety

Environmental Achievements

• Established a tree nursery on its Migori Project in Kenya to promote environmental conservation and donated seedlings to landowners.

Social Achievements

• Undertakes sustainable development projects including capacity building and scholarships.
• Promotes policies ensuring high calibre employees are attracted, retained and motivated, treating employees equally regardless of sex, marital status, creed, colour, race or ethnic origin.

Governance Achievements

• Implemented an anti-bribery and whistleblowing policy.
• Implemented a tax efficient Share Incentive Plan.

Climate Goals & Targets

Environmental Challenges

• Exploration and development risks (speculative nature, permit approvals, ore reserve estimations, native title laws, contamination, skilled worker availability, geological risks).
• General and economic risks (economic contractions, inflation, equity market movements, currency fluctuations, government policy changes, plant and equipment failures, grade variations, adverse geological factors, weather conditions).
• Funding risk (ability to raise sufficient funds).
• Commodity risk (volatility in commodity prices and demand).
• Liquidity risk (difficulty in settling debts).

Mitigation Strategies

• Cost reduction measures (halving costs in many cases).
• Improved balance sheet (reducing parent company borrowings from £2.6m to £1.1m).
• Focus on asset realisation and strategic disposals.
• Diversification of projects to mitigate risks.
• Regular review of project milestones and timelines.
• Monitoring undrawn credit facilities, obtaining funding from various sources, maintaining a reputable credit profile.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility
• Health & Safety

Environmental Achievements

• Established a tree nursery on its Migori Project in Kenya to promote environmental conservation and donated seedlings to landowners.

Social Achievements

• Undertakes sustainable development projects including capacity building and scholarships.
• Promotes policies which ensure that high calibre employees are attracted, retained and motivated, and treats employees equally regardless of sex, marital status, creed, colour, race or ethnic origin.

Governance Achievements

• Implemented a tax efficient Share Incentive Plan for all employees, including Directors.
• Maintains high standards of corporate governance, drawing upon best practice available, including relevant aspects of the UK Corporate Governance Code.
• Has an anti-bribery and whistleblowing policy in force.

Climate Goals & Targets

Environmental Challenges

• General and economic risks (contractions in world economic growth, adverse changes in market sentiment, equity market weakness, currency fluctuations, interest rate fluctuations, exploration and development risks, regulatory shifts).
• Funding risk (inability to raise sufficient funds for projects).
• Commodity risk (high volatility in price and demand for commodities).
• Market risk (inability to secure sufficient funding to maintain operations).
• Delays in transactions related to restructuring strategy.
• Bad faith from certain authorities in relation to Kenyan gold interests.

Mitigation Strategies

• Restructuring and improvement of finances.
• Reduced overheads significantly.
• Reduced holding costs of existing project portfolio and optimised projects for value preservation and maximisation.
• Sale of Colombian gold assets.
• Pivot from mineral exploration to near-term cash-generative development projects (oil and gas).
• Cost reduction programme (reducing staff numbers, minimising marketing costs, outsourcing functions).
• Raising of finance (equity issues, convertible loan notes).
• Discussions regarding additional fundraising options.
• Sales of non-core assets.
• Seeking favourable outcomes for existing mineral and investment interests (sale or farm-out).

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility
• Health and Safety

Social Achievements

• Corporate Social Responsibility policy emphasizing stakeholder engagement and sustainable development projects (capacity building, scholarships).

Governance Achievements

• Implemented anti-bribery and whistleblowing policy.
• Established Audit Committee and Remuneration Committee.

Climate Goals & Targets

Environmental Challenges

• Continued access to equity and debt capital.
• Excessive cost of available capital.
• Currency volatility.
• Company share price volatility.
• Commodity investor risk appetites.
• Low world GDP growth.
• Natural resource market sentiment.
• Perceived oversupply of certain commodities.
• Base probability of exploration and development success.
• Low rate of deposits and reserves developed from targets.
• Geological setting variations and data uncertainties.
• Grade/tonnage issues.
• Operational and development cost variability and uncertainty.
• Natural resource policy and regulatory changes.
• Social license to operate.
• Resource nationalism.
• Infrastructure access.
• Staffing and expertise.
• Breakdowns of key plant and equipment.
• Extreme weather conditions.

Mitigation Strategies

• Significant cost reductions.
• Disposed of non-core assets (Star Striker Ltd, Colombian gold assets).
• Reduced dependence on market funding.
• Sublet office space and laid off staff.
• Continued cost reduction efforts.
• Reduced payables.
• Continued disposals of non-core assets.
• Prosecution of judicial review case in Kenya.
• Tightly controlled costs.
• Outsourced geological and accounting services.
• Cash outflow reduction and restructuring programme.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Operating Responsibly
• Corporate Social Responsibility
• Health and Safety

Social Achievements

• Undertakes sustainable development projects including capacity building, scholarships, and other ventures.
• Emphasis on stakeholder engagement and information dissemination, ensuring the local community is aware of plans and activities.

Governance Achievements

• Implemented anti-bribery and whistleblowing policy.

Climate Goals & Targets

Environmental Challenges

• Continued access to equity and debt capital to maintain solvency and to fund operations
• Cost of available capital – interest rate fluctuations – discounted equity offerings
• Currency volatility in the UK and in currencies in which the Company operates
• Company share price volatility
• Investor risk appetites
• Low world GDP growth – perceived demand for commodities may decline
• Natural resource sector and market sentiment
• Perceived oversupply of certain commodities – extended low pricing levels
• Base probability of exploration and development success
• Low rate of deposits and reserves developed from targets
• Geological setting variations and data uncertainties
• Style of mineralisation and variability of geological targets
• Grade/tonnage issues – failure to achieve economic deposits or reserves during development
• Operational and development cost variability and uncertainty
• Natural resource policy and regulatory changes impact operations
• Social licence to operate – permitting and approvals may be denied and/or delayed
• Resource nationalism – threatens project ownership during development
• Infrastructure access – poor infrastructure may require government upgrades and investment
• Staffing and expertise – key geological and operation staff may be difficult to recruit and retain
• Breakdowns of key plant and equipment
• Extreme weather conditions at operational sites may delay or increase the cost of operations

Mitigation Strategies

• Focus on cost control
• Avoid financing through equity markets
• Wait for value crystallisation or other events that would increase our market valuation before taking any significant initiatives
• Pursue an arbitration case in relation to some unclear points relating to the royalty and promissory note payable on our former Colombian assets
• Settle arbitration at an early stage
• Develop Multiple Revenue Streams
• Cost Reductions – Office Downsizing
• Continue Cost Reduction Efforts
• Reduced Requirement for External Funding
• Reduce Payables
• Dispose Non-Core Assets
• Reduce Dependence on Market Funding
• Risk assessment and evaluation is an essential part of the Group’s planning and an important aspect of the Group’s internal control system.
• Comprehensive Risk Assessments of Health and Safety Systems have been developed to identify existing risks, to implement relevant mitigation measures, and to identify potential risks before they may be directly applicable to our operations.
• Red Rock’s H&S strategy includes project and location specific training and H&S inductions, Emergency Response Plans and field team reporting procedures.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: Chapman Davis LLP

Environmental Metrics

ESG Focus Areas

• Operating Responsibly
• Health and Safety
• Corporate Social Responsibility

Social Achievements

• Emphasis on stakeholder engagement and information dissemination, ensuring the local community is aware of plans and activities.
• Undertaking sustainable development projects including capacity building, scholarships, and other related ventures.

Governance Achievements

• The Board is committed to maintaining high standards of corporate governance and in this it is guided by the Quoted Companies Alliance’s Corporate Governance Code (the “QCA Code”).

Climate Goals & Targets

Environmental Challenges

• Continued access to equity and debt capital to maintain solvency and to fund operations
• Natural resource policy and regulatory changes
• Social licence to operate – permitting and approvals may be denied and/or delayed
• Resource nationalism – threatens project ownership during development
• Infrastructure access – poor infrastructure
• Staffing and expertise – key geological and operation staff may be difficult to recruit and retain
• Cost of available capital – interest rate fluctuations – discounted equity offerings
• Currency volatility in the UK and in currencies in which the Company operates
• Company share price volatility
• Investor risk appetites
• Low world GDP growth – perceived demand for commodities may decline
• Natural resource sector and market sentiment
• Perceived oversupply of certain commodities – extended low pricing levels
• Base probability of exploration and development success
• Low rate of deposits and reserves developed from targets
• Geological setting variations and data uncertainties
• Style of mineralisation and variability of geological targets
• Grade/tonnage issues – failure to achieve economic deposits or reserves during development
• Operational and development cost variability and uncertainty
• Breakdowns of key plant and equipment
• Extreme weather conditions at operational sites may delay or increase the cost of operations

Mitigation Strategies

• Corporate finance planning and analysis facilitates multiple avenues to acquire and deploy capital including from internal sources of cash flow.
• Expansion of capital reserves and ongoing cost reduction efforts provides the Company with additional resilience during sector downturns.
• Ensuring new projects are undertaken only following thorough due diligence processes, and that once undertaken projects are led by skilled, technically adept managers with clearly defined goals.
• Working closely with national governments and regulatory bodies all the way down to local communities helps establish good two-way communication with key stakeholders and minimises many of the risks that arise when such relationships break down.
• Effective long term planning meanwhile can ensure that infrastructure bottlenecks are examined and dealt with well in advance.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: QCA Code

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility
• Health and Safety
• Diversity and Inclusion
• Environmental Responsibility

Environmental Achievements

• Not disclosed

Social Achievements

• Operates a Share Option Scheme and an employee Share Incentive Plan.
• Does not discriminate on the grounds of age, gender, nationality, ethnic or racial origin, non-job-related-disability, sexual orientation or marital status.

Governance Achievements

• Maintains high standards of corporate governance guided by the Quoted Companies Alliance’s Corporate Governance Code.
• Established an Audit Committee and a Remuneration Committee.

Climate Goals & Targets

Environmental Challenges

• Difficult market conditions affecting commodities and markets.
• Delays in confirming license status in Kenya.
• Impairment of assets in Bosnia and Botswana.
• Slow progress in forming a joint venture operating company in the Congo.

Mitigation Strategies

• Conservative decision to delay write-backs in Kenya pending license resolution.
• Fully impaired assets with poor prognosis.
• Continued work on complying with requirements under the new Mining Act in Kenya.
• Preliminary studies of historic data at Musonoi copper-cobalt license in the Congo.

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 Neighbourliness
• Employee Training and Development
• Diversity and Inclusion
• Health and Safety
• Community Relations
• Stakeholder Engagement

Environmental Achievements

• Not disclosed

Social Achievements

• Emphasized environmental and social neighbourliness, ensuring career opportunities with training and responsibility given to capable individuals regardless of background.
• Hired environmental and community relations officers in Australia and Kenya.
• Two geological team members awarded MSc degrees.

Governance Achievements

• Established an effective and engaged Board with a strong non-executive presence.
• Implemented an Anti-Bribery and Whistleblowing Policy.
• Regularly monitors key performance indicators (KPIs) associated with liquidity, cash flows, expenses, and share price.

Climate Goals & Targets

Environmental Challenges

• Travel and work restrictions imposed by various countries in response to the Covid-19 pandemic slowed exploration advances.
• Rigorous lockdowns and home working by officials in Victoria, Australia, delayed license grant processes.
• The ongoing COVID-19 pandemic caused uncertainty and volatility.

Mitigation Strategies

• Utilized video-conferencing services as alternatives to face-to-face meetings.
• Developed alternative sourcing strategies (implied by adapting to travel restrictions and focusing on strategic thinking during lockdowns).
• Appointed experienced local operators to assist with activities in different countries to reduce political risk.

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

• Corporate Social Responsibility
• Health and Safety
• Diversity and Inclusion
• Environmental Responsibility

Social Achievements

• Emphasis on stakeholder engagement and information dissemination in local communities.
• Undertaking sustainable development projects, including capacity building and scholarships.

Governance Achievements

• Effective and engaged Board with a strong non-executive presence.
• Well-functioning governance committees (Audit and Remuneration).
• Implementation of an Anti-Bribery and Whistleblowing Policy.

Climate Goals & Targets

Environmental Challenges

• Falling share price in 2022.
• Delays in announcing arbitration results in Congo.
• Poor market conditions for gold float in Australia.
• Lagging behind schedule in Kenya operations due to market conditions and lack of suitable partner.
• Limited ethnic diversity on the Board.

Mitigation Strategies

• Vigorous pursuit of claims in DRC and deployment of funds into projects and working capital upon successful realisation.
• Re-evaluation of options for Australian joint venture after year-end drill program.
• Addressing Kenya operations lagging behind schedule as a matter of urgency and searching for a suitable partner.
• Annual review of Board composition to ensure it meets changing business needs and consideration of ethnic diversity.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Health and Safety
• Diversity and Inclusion

Environmental Achievements

• Environmental Impact Assessments carried out on Lithium licenses in Zimbabwe and Kenya.

Social Achievements

• Emphasis on early, regular, and consistent engagement with local communities.
• Operates a Share Option Scheme and an employee Share Incentive Plan.

Governance Achievements

• High standards of corporate governance guided by the Quoted Companies Alliance’s Corporate Governance Code.
• Effective and engaged Board with a strong non-executive presence.

Climate Goals & Targets

Environmental Challenges

• Exploration and development is an inherently high-risk business.
• Exploration risk, resource risk, environmental risk, financing & liquidity risk, political risk.
• Substantial loss for the year.
• Uncertainty surrounding future profitability and the need to raise additional funding.

Mitigation Strategies

• Targeting areas of potential with historical data and strong evidence of mineral deposits.
• Environmental rehabilitation in accordance with local regulations.
• Multiple avenues to acquire and deploy capital, including asset sales, debt funding, or equity funding.
• Cost reduction efforts.
• Experienced local operators to reduce political risks.
• Cash flow forecasts and budgets prepared.
• Cost reduction, joint ventures, farm-ins, asset disposals, and financing to focus on activities that can lead to early cash flow.

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