SRHI Inc.

Climate Impact & Sustainability Data (2020)

Water Consumption:20 L/s at full capacity

Uses renewable biomass energy to lower carbon footprint
Very low rate of water consumption (20 L/s at full capacity, less than a third of permitted 64 L/s)
Comprehensive Environmental Qualification Resolution (RCA) active since 2009, including reforestation and petroglyph park construction

MTV Foundation for social investment and community relations, completing 105 projects since 2015
Joint Health and Safety Committee for employee safety and occupational health, aiming for zero accidents
Three-year collective bargaining agreement with Tres Valles' Workers Union Association No. 1

Code of Business Conduct and Ethics adopted by the Company and MTV
Whistleblower Policy adopted by the Company and MTV
Environment, Health and Safety Committee (EHS Committee) established to oversee environmental, health and safety issues

MTV's operating history demonstrates risks including under-capitalization, cash shortages, working capital deficits, and operating losses.
COVID-19 pandemic significantly disrupted operations in 2020.
High total consolidated indebtedness (44.0 million under Amended Facility and 21.3 million Unsecured Debt) and negative cash flows from operations.
Non-compliance with one operating covenant related to operating costs in 2020.
Material uncertainties cast significant doubt about MTV's ability to continue as a going concern.
Additional funding requirements for exploration, development, and production.
Dependence on one customer (AAML) for nearly 100% of revenues.
Potential for labor disruptions due to unionization.
Risks associated with operating in Chile (political, economic, and social risks).
Environmental risks and liabilities.
Commodity price risk (copper price volatility).
Foreign currency risk (USD, CLP, CAD).
Litigation risks.
Risks related to the ENAMI contract.
Acquisition risks.
Competition in the copper market.
Cybersecurity risks and threats.
Reputational risk.
Catastrophic events, natural disasters, severe weather, and disease.

Judicial Reorganization Agreement (JRA) approved in August 2020 to restructure debt.
Amended Facility and Amended Offtake agreements to improve financial stability.
SRHI New Loan provided to MTV to support operations.
Assessing options to provide further financial support to MTV if needed.
Regular meetings with community stakeholders.
Comprehensive environmental and safety policies and procedures.
Competitive remuneration and compensation packages to attract and retain personnel.
Liability insurance.
Monitoring and evaluation of currency exchange rates.
Contingency planning for catastrophic events.
Business continuity planning.

Climate Change Data