ESG

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.

We conduct Environmental Impact Assessments prior to commencing mining activities and put in place environmental management plans – examples of actions conducted at the Kilimapesa mine include:

• Partnering with the National Environment Management Authority (NEMA) to plant 6,000 tree in collaboration with 10 local schools
• Segregation, recycling, reuse of all waste produced and the disposal of waste is conducted by a NEMA accredited and licensed waste handler
• Regular monitoring of water, air and soil as well as noise by NEMA accredited laboratories

Kilimapesa mine has transitioned from being fully powered by generators to receiving 67% of its power from the Kenyan national grid, of which 80% is renewable geothermal energy. The mine’s energy consumption from December 2021 up to August 2022 is 294,680 kWh, from the National grid and 218,162kWh powered by the Genset. Our average monthly emissions while on the national grid is 208.93 metric tons and 123.552 metric tons while on Genset.

Caracal Gold recognises that climate change is one of the most critical challenges facing society, the environment and our planet. As a responsible explorer and producer, we will be looking at ways of identifying, assessing and implementing actions in response to climate change challenges and the transition to a low carbon future.

Employees

Caracal Gold’s people are the driving force behind our exploration and mining activities. We seek to treat our people fairly and with respect and ensure they have the opportunity to develop and reach their potential. We comply with the labour legislation where we work.

Over this reporting period, the capability of the team has been strengthened to match our organisational growth and expansion.

We work in areas where the unemployment rate is high and therefore local employment is an important part of sharing benefits with surrounding communities. Currently the Kilimapesa mine, employs a total of 485 people of which 94% are national Kenyan staff and 73% come directly from the neighbouring villages.

Learning and training activities are central to staff engagement, learning and development as such, we provide on-the-job training through an internship scheme that currently has 3 interns in Exploration, 1 in Human Resources, 1 in the store keeping and 2 in the processing plant.

We actively promote diversity in the workforce and are proud to have increased the number of female staff from 14 to 32 at the Kilimapesa mine. We also have 1 female board member.

Health & Safety

Caracal Gold places its employees first, as they represent the backbone of the Company and our ongoing success relies on them staying safe, healthy and happy in their jobs. We work in complex environments with a wide range of potential risks to be managed and so providing a safe working environment is our highest priority. Our business principles, policies and management plans are based on targeting the achievement of a “zero harm” performance.

At the Kilimapesa mine, an Occupational health and safety plan is in place to manage risks and opportunities, prevent work-related injuries and ill health to workers and providing safe and healthy workplaces.

Stakeholder engagement

Caracal Gold believes that a strong social license to operate in our host countries and local communities is built on mutual respect and open two-way dialogue. This social license is fundamental to the long-term viability and success of our business.

Our stakeholders include our employees, contractors, suppliers, business partners, local communities and government authorities, including all individuals who live in proximity to our operations or who may be impacted by our business relationships.

Community Stakeholder engagement is conducted on a weekly basis through a dedicated Community Liaison Officer and the local monitoring committee (“the Moyoi committee”) which was created in 2000 to facilitate communication between the community and the mine. It currently meets every Friday to discuss matters affecting the community such as grievances, community development initiatives, local procurement and local employment.

Community

Caracal Gold recognizes that our activities have impacts on the communities where we work. We also recognize the positive role we can play to enable sustainable development by treating impacted stakeholders justly so that they don’t lose out, and fairly so that they gain from the presence of the company.

Caracal’s vision is to create genuine value for our stakeholders and continually improve our sustainability performance, as a good corporate citizen and neighbour, sharing the benefits of responsible mining and ensuring that we leave a legacy of positive socio-economic impact in the areas in which operate.

At our Kilimapesa mine, examples of community development initiatives include:

• Education within the local community: sponsorship of a computer teacher, assistance with electricity bills and construction of 2 pre-school classrooms
• Water: drilling of a borehole for a local high school that also supplies water to the local communities, provision of a livestock watering point
• Local procurement: we seek to procure as much as locally as possible and during this reporting period 233 000 USD was spent on local supplies

Caracal Gold recognizes that the long-term success and viability of its business requires responsible stewardship of its environmental impact, a strong social license to operate and ethical business practices. We are committed to complying with all national and international laws, regulations and standards that apply to our business.

Caracal Gold has appointed a new board composed of 3 non-executive directors, the Chief Executive Officer, Technical Director and Managing Director, who all bring extensive corporate, technical, financial and ESG (environmental, social and governance) experience to the company. The board assumes overall responsibility for all the environmental, social and governance aspects of the company and meets at least once a quarter.

In June 2022, the ESG Committee was created and held its first meeting. Its aim is to advise the Board of Directors and support the Company’s management team in relation to the development and implementation of the Corporation’s ESG initiatives, policies, compliance systems, and monitoring processes.

A suite of group governance policies have been drafted. These will be validated and communicated to all staff. These policies address subjects of ethical conduct, anti-bribery and corruption, whistleblowing as well as environmental and social responsibility, and health and safety.