Environment Policy

Caracal is committed to sustainable development and recognises that the long-term sustainability of our business is dependent upon responsible stewardship in both the protection of the environment and the efficient management of the exploration and extraction of mineral resources, and the sustainable use of resources for the benefit of all our stakeholders. We seek to minimise our environmental footprint, mitigating any adverse impacts, and to promote sustainable development in the areas in which we operate. Our values and business principles as a Company are based on a “zero harm” environmental management performance; they underpin our environmental policy and represent the minimum guidelines for the Company in this respect. Environmental issues are integrated into our decision making and business strategies. We will ensure that directors, officers, employees, contractors, and suppliers are aware of this policy as well as the relevant responsibilities which it sets out In order to achieve this the company will:

• Identify and monitor on an ongoing basis all the significant environmental aspects and impacts directly related to its activities and establish appropriate objectives and strategies to control and alleviate them;
• Endeavour to surpass all environmental norms and obligations applicable to its activities.
• Implement a recognized environmental management system that will allow the company to ensure that all environmental policies and procedures are integrated into all aspects of its activities and allow for the proper monitoring and continuous development of its policies and procedures;
• Ensure that resources are available to meet our reclamation, environmental and mine closure obligations, including progressive rehabilitation, and we will consult with our local communities and key stakeholders as part of our mine closure planning.;
• Use best practices to prevent pollution, minimize sanitary and security risks and have a waste management system that will utilize the principles of usage reduction, reutilization, recycling, and elimination;
• Ensure that all employees, contractors, sub-contractors, suppliers, consultants and third parties contracted or associated with the development of the project understand their roles and responsibilities in the respect and management of the environment and encourage them to contribute to the management of the environmental issues;
• Have a high level of preparedness to react to environmental accidents in order to contain, control, clean up and eliminate;
• Assess biodiversity impacts and develop management plans with the goal of minimising deforestation and other biodiversity and land access impacts and ensuring no net loss of critical habitat.
• Design, govern, and manage tailings facilities in line with industry good practice.
• Recognise the increasing awareness of climate change and the need to participate in solutions that address the long-term impact of climate change, including where feasible, the reduction of green-house gas emissions and use of renewable energy sources.
• Recognise the sensitivity around water management and stewardship and aim to ensure sustainable water use.

We adopt an open communication policy regarding our activities with all related parties in order to achieve transparency in our environmental performance. This Code applies to all directors, officers, employees and consultants of the Company and its subsidiaries (“Company Personnel”). The Board of Directors of the Company will review and evaluate this Policy on an annual basis to determine its efficacy.

Approval date: 12th June 2023