Annual Report 2015 a New Impulse… 22 2 06 Hy Drocarbons Production & DRILLING 25 Hydrocarbons Production 25 Oil Shale 25 Maghreb-Europe Gas Pipeline 26

 KINGDOM OF MOROCCO

 Annual  report

His Majesty King Mohammed VI, May God Assist Him summary

01 Message from the general director 04

02 CONJONCTURE 06 International 06 National 10

03 MAJOR FACTS 12 Hydrocarbons 12 Mine 12 PMO (PMO) projects 12 Human Resources 13 Social & environmental responsibility 13

04 HYDROCARBON EXPLORATION 14 Licensing 15 ONHYM's own activity 15 Partners' activity 18

05 P ETROLEUM PARTICIPATIONS & COOPERATION 22 Annual Report 2015 A new impulse… 22 2 06 Hy drocarbons production & DRILLING 25 Hydrocarbons production 25 Oil shale 25 Maghreb-Europe Gas pipeline 26

07 MINING EXPLORATION 27 ONHYM’s own activity 27 Partners' activity 35 Mining drilling 36 Mining laboratories 38

08 M INING PARTNERSHIP & COOPERATION 39

09 HUMAN RESSOURCES 41 Annual Report 2015 3 01

Message from the general director

The year 2015 was characterized by stagnation in the world economy, marked mainly by the drastic drop of basic commodities.

Despite a challenging world market environment which has hit hard the Hydrocarbons and Mining sector, ONHYM maintained its research and promotion efforts as well as supporting its partners to guarantee the continuation of the programmes and developments projects.

The year 2015 was marked by the drilling of 10 exploration wells; three of which were positive and two revealed gas shows.

For mining exploration, ONHYM launched diverse research projects and focused on the most promising areas.

ONHYM recorded in 2015 a positive profit for the 4th consecutive year, with a net increase in investment from its own funds.

On the managerial front, a renewed organization is under implementation, with a focus on the promotion and capital raising. Annual Report 2015 4 ONHYM has adopted new Staff Regulations Impact studies are routinely conducted which embodies the will to establish a prior to project start-up with the new development model based on the establishment of a well-defined process of modernization of HR practices, improving validation and acceptability of the results. operational efficiency and management competence. Future prospects remain promising and Aware of its responsibilities as a corporate Moroccan sedimentary basins have not citizen, the National Company has yet revealed their full potential. Although undertaken the implementation of a CSR hydrocarbon and mining exploration is strategy which is a process of continuous a long, risky and highly capital intensive improvement introducing new managerial process, ONHYM remains determined practices. to achieve its objectives by deploying all means while addressing a number of other For a long time, ONHYM has implemented challenges. social actions such as support to associations, participation in local initiatives... Today through its catalytic role of hydrocarbon and mining exploration in Morocco, ONHYM embarked on the path to integrate social and environmental concerns by adopting a CSR approach based on the concept of shared values.

On the environmental front, ONHYM ensure the application of best environmental practices and, where appropriate, restoration of sites in case of harm. Amina BENKHADRA Annual Report 2015 5 02

CONJUNCTURE

International Global growth in slight slowdown...

World economic growth reached 3.1% in expected to improve. Even if the growth in 2015 according to the IMF. This is slightly countries that have experienced economic lower than what has been observed in difficulties in 2015 (including Brazil, Russia 2014. The Outlook remains uneven among and some countries in Latin America and countries and regions. Compared to last year, the Middle East) remains low or negative, it growth in developed countries has slightly should be higher in 2016, which will offset accelerated, while it has reflexed in emerging the gradual slowing foreseen in China. and in developing countries. Global economic activity has been mainly marked by a decline in commodity prices due to weakening demand and the increase in production … a significant levels. drop of hydrocarbon E&P In late 2015, developed countries continued Economic growth by region (2014-2016) investment... to suffer persistent after-effects of the crisis (high public and private debt, fragile financial 4,6%

sector, low investment), while for emerging 4,5%

countries, many adjustments are made after 4,0%

the strong expansion of credit and investment 3,6% 3,4%

that followed the crisis, including rebalancing 3,1%

of growth in China (with a significant 2,8% 2,6% international impact). 2,4% 1,6% In 2016, overall growth is expected to slightly 1,5%

accelerate to 3.6%. In developed countries, 0,9% the modest recovery that began in 2014 is World United States Eurozone Emerging expected to strengthen. In emerging and and developing countries developing countries, the perspectives are 2014 2015 2016 Annual Report 2015 6 Oil markets marked by the fall of barrel price...

On the other hand, the oil markets have been Crude oil (Brent) prices in $US/bl (1999 - 2015) marked by the fall of the barrel price. Indeed, the 120 price of Brent fell by 45.2% during the year 2015. At the end of December 2015, prices remained under 1,0 1,5 11 11 08,6 downward pressure in the context of a conjunction 100 1 98,5 of several factors, including: 98,2 - The strengthening of U.S. production, 80 - The finalization of the agreement with Iran on 79,4 nuclear power causing the return on the world 72,6 market of Iranian oil exports, 60 65,9 - The rise in programmed Iraqi and Russian exports. 62,0 54,4 53,9 According to the International Energy Agency, the 40

oil market saturation will persist in 2016. The barrel 38,2 price should be around $56. 28,9 28,5 20 25 24,4 ,9

In this gloomy oil context, global investment in 17 hydrocarbon exploration/production reached $590 0 billion(1) during the year 2015, down 20% from 2014. 2011 2010 2012 2013 2014 2015 2001 1999 2002 2003 2004 2005 2006 2007 2008 2009 2000

The year 2015 was marked by a significant drop of Evolution of global investment in E&P E&P investment in the North Sea and the budgets $900 EVR ISI Rest of the World reduction in several independent and majors Estimate $800 Canada companies, such as Shell, Chevron, BP, Exxon Mobil 739 G$ United States and Total. $700

(2) $600 For the year 2016, a new decline of $522 billion 590 G$ investments is expected. $500

$400

$300

$200

$100

$0 11 10 12 13 14 15 05 06 07 08 09 20 20 20 20 20 20 20 20 20 20 20 Annual Report 2015 (1) Estimation Evercore ISI Energy Research (2) Estimation Rystad Energy 7 Mining exploration budgets in a further net downward

Global investments in exploration decreased in 2015 for the third consecutive year. The total world exploration budget amounted to $9.2 billion, a decrease of 19% from 2014. Majors and juniors companies exploration budgets declined by 26% and 18% YOY respectively.

The proportion of the budget dedicated to mature projects has increased again in 2015 (34% of the global exploration budget) at the expense of preliminary exploration phase projects (Grassroots Projects) and advanced exploration stage projects (Late-stage Projects) whose share amounted to 29% and 37% respectively. Gold, uranium and metals of the platinum group (MGP) exploration budgets showed respective decreases of 14%, 34% and 33%. Share gold in the total exploration budget has increased by 45%, while base metals has slightly declined to constitute one-third of the total budget.

Despite the drop in investments in the majority of countries, companies continued to explore in different regions of the world. By 2015, the exploration Share gold reached 119 countries instead of 124 in the total in 2014. Although most regions have exploration budget has benefited from lower budgets, in Latin increased by America those budgets have increased 45%... by more than 28%, in large part because of the emphasis on exploration near existing mines. Annual Report 2015 8 Conversely, Africa and the Pacific Total global budget for nonferrous metels exploration (1996-2015) and Southeast Asia regions have Source : SNL - Metals Economics Group - Décembre 2015 l 4 experienced the largest decreases $24 in exploration expenditures, US$ billion US$ billion 11.4 9.2

with shrinkage of 30% and 28% $20 996=1) respectively. 3 6 $1 als price (1 2 2 $1 ed met xploration budget (US$ billion) x Estimated worldwide exploration tota exploration worldwide Estimated price metals indexed annual SNL $8 errous e 1 Annual inde $4 Estimated nonf 0 $0 11 10 01 12 13 14 15 02 06 07 08 09 03 04 05 999 996 997 998 20 20 20 20 20 20 20 1 1 1 1 20 20 20 20 20 20 20 20 2 000

The mining industry was also 2012 2013 2014 2015 marked by the falling prices of Lead ($/t) 2 059 2 140 2 094 1 784 (-14,8%) most metals under the effect of Tin ($/t) 21 071 22 289 21 868 16 070 (-26,5%) weak demand and overproduction. Copper ($/t) 7 944 7 321 6 858 5 494 (-19,9%) The decline in demand, driven by the weakness of the global Zinc ($/t) 1 945 1 908 2 164 1 928 (-10,9%) economic growth and particularly Gold ($/Oz) 1 669 1 410 1 266 1 160 (-8,4%) by the slowdown of the Chinese Silver ($/Oz) 31,1 23,8 19,1 15,7 (-17,8%) economic growth should continue Platinum ($/Oz) 1 552 1 486 1 384 1 052 (-24,0%) to lesser prices in 2016. Palladium ($/Oz) 643 725 803 690 (-14,0%)

Metals prices (2012-2015) Annual Report 2015 9 National conjuncture An energy bill in net decline

The national economy growth recorded 4.5% The recovery of raw phosphate exports’ in 2015 instead of 2.6% during the same quantities and of base metals, including period the previous year. This growth is zinc, copper and lead, favored a partial mainly driven by the good performance of the improvement in activity in late 2015. agriculture sector. At the end of December 2015, the energy bill However, the weakness of non-agricultural has registered a decline from the year 2014 sectors continued in 2015, recording a growth of 28% to 66.7 billion dirhams. of 1. 9 %, substantially bellow the pre-crisis performance. The net energy bill amounted 63 billion dirhams instead of 86 billion dirhams Indeed, the national economy has benefited recorded in 2014, a decrease of 26%. from a very favorable crop year and a The oil bill reached 52.7 billion dirhams in significant drop in commodity prices regression of 34% compared to the year 2014. including oil prices.

However, the slowdown of domestic demand The national combined with moderate export growth, economy reflecting the continued sluggishness of the growth recorded European economy, weighed on the recovery of non-agricultural activities. 4.5% in 2015 As far as the mining sector is concerned, the added value was down by 5.1% against an increase of 3.4% in 2014. This mainly reflects a decrease of 4.1%, after rising of 3.6% of phosphate’s commodity production in a context of low international demand for phosphate and fertilizers. Annual Report 2015 10 Annual Report 2015 11 03

MAJOR FACTS

meanwhile, concerned 13 objectives, Hydrocarbons including 6 for base metals, 4 for precious metals and 3 for industrial minerals and  Investment of 3.18 billion dirhams by the rocks. partners and 121.854 million dirhams by  Strengthening the strategic research by ONHYM; geochemistry campaigns in the Province  Drilling of 10 exploratory wells; of Awsered, the integrated mining projects  Acquisition of 1 795 Km² of 3D seismic and respectively in the eastern and southern 1 121km of 2D seismic; provinces, selection of priority targets Drilling  Loading and interpretation of 2 000 Km² of thanks to the two spectral campaigns on the of 10 3D seismic and 7 000 Km of 2D seismic; Anti-Atlas and western High Atlas. exploratory  Monitoring of 35 projects in partnership  Continuation of cooperation with countries wells and 7 special projects; in sub-Saharan Africa, including Guinea Conakry, Gabon, Mali and Mauritania.  Continuation of the project of the continental shelf extension;  Signature of two contracts of assignment, six memorandums of understanding, one  Signature of a new oil agreement, farm-out agreement and two endorsements. 4 reconnaissance licenses, a memorandum of understanding, 11 addenda to petroleum agreements, 4 addenda to Reconnaissance licenses, an amendment to the PMO (PMO) memorandum of understanding, 2 amendments to the MOU and 3 requests projects for extension. The project bureau has continued its accompanying measures of new project managers for the appropriation of the Mine methodology of project management in the process of projects management at ONHYM.  Exploration work on 40 projects including The PMO hosted an internal seminar, 27 by ONHYM and 13 in partnership. planning practical workshops, training for The own work of ONHYM concerned new recruits in addition to the development 27 objectives including 10 for precious of brochures for the promotion of project metals, 9 for base metals and uranium, management methodology adopted at 3 for rocks and industrial minerals, 4 for ONHYM. mining recognition and 1 special project (geothermal). The work in partnership, Annual Report 2015 12 Human Resources

 Adoption of a new ONHYM Staff Regulation.  Continuation of sustained training program to meet ONHYM's human resources needs.  Establishment of partnerships with national and international training institutions.  Targeted recruitment based on GPEC logic. A review of key competencies has allowed to have a succession plan with the recruitments needed by entity.

Social & environmental responsibility

As a corporate citizen committed to sustainable development, ONHYM strictly complies with applicable regulations in its activities, in accordance with the best international practices of the oil and gas industry and mines. Thus, ONHYM has initiated the implementation of a strategic vision CSR through the signing of a memorandum of understanding with the Moroccan center of excellence in CSR for the development of a CSR process within ONHYM. Companies with ONHYM participation continued this year their social and societal actions in partnership with the communities around their production sites. Annual Report 2015 13 04

HYDROCARBON EXPLORATION

Sustainable efforts and new projects launched

The exploration activities by ONHYM‘s proper means remain focused on hydrocarbon potential evaluation of the open blocks in the Atlantic offshore and the Mesorif areas. Two new projects on Lemsid, in the southern provinces and the Middle Atlas eastern areas, have been launched to assess their hydrocarbon potential.

Concerning the project of the Moroccan Atlantic continental shelf extension, a seismic and bathymetric data acquisition program have been conducted to complete the soumission to be submitted to the Commission of the Continental shelf limits.

Several projects were launched or continued in 2015, including:  Evaluation of the regional geology and petroleum potential of the coastal zone of Lemsid, located in the southern provinces;  Preliminary assessment of the Eastern Middle Atlas hydrocarbon potential;  Control of the play concepts in offshore Rabat-Tarfaya segments;  Preliminary study on the Atlantic Continental Shelf extension;  Synthesis study of the Mesorif;  Preparation of the portfolio of prospects and promotion of open blocks;  Formation of a database on logging interpretation;  Impact study of static on the seismic quality;  Standardization of topographic database onshore and offshore (seismic and wells). Annual Report 2015 14 Licensing

As of December 31, 2015, licensing concerning hydrocarbon exploration was carried out on a total area of 339 152.40 km².

Designation ONHYM In Partnership Area (Km²) Onshore permits 30 41 991.15 Offshore permits 76 121 473.40 Onshore reconnaissance licenses 4 135 134.13 Offshore reconnaissance licenses 2 40 169.90 Exploitation concessions 2 50.71 Exploitation concessions 7 29.11 Oil shale 4 MOU 304.00 Total 339 152.40

ONHYM's own activity Recognition of regional geology and hydrocarbon potential of Lemsid coastal area in the southern provinces

 Collection of geological, geochemical and temperature data for 2D modeling using Temis Flow software of some seismic profiles and maps of maturation and richness of the main source rocks;  Preparation of structural, geochemical and sedimentological synthesis of Lemsid basin, and realization of E-W geological sections along the seismic profiles;  Log interpretation of potential reservoirs intervals in the wells UETAT-A-1-41 and A2-41;  Establishment of velocity intervals in addition to time and depth maps for the top of Cretaceous and Jurassic from available well data;  Topographic reconnaissance on the ground, in January 2015, in preparation for the acquisition of a seismic program. Annual Report 2015 15 Control of the play concepts in offshore Rabat-Tarfaya segment

 Finalization of a chrono-stratigraphic chart and field work: completion of five correlations from biostratigraphic and sedimentological studies of 34 wells onshore and offshore, and 10 geologic sections as well as interpretation of key regional seismic transects for further information on major tectonic events;  Loading and interpretation of 7 000 Km of 2D seismic data and 2 000 Km² of 3D seismic data, and mapping of keys seismic horizons.

Preliminary study on the Continental Atlantic shelf extension

A total of 6 496.90 Km of 2D seismic and bathymetric data in addition to 5 113.92 Km of high resolution seismic data were acquired on the southern zone, in addition to 1 972.64 Km of 2D seismic and bathymetric data on the Northern zone. These data are currently being analyzed and interpreted in order to be included in the Moroccan soumission to the CLCS.

... 7 000 Km of Synthesis study on Mesorif 2D seismic data and  Realization of six litho-stratigraphic sections in the area including five in the Ouezzane area 2 000 Km² and one in Zoumi region; this work is aiming at tying and correlating the sub-surface to the of 3D seismic surface outcrops. These geologic sections show overlapping structures with play concepts data, and in Mesozoic and tertiary. This study was completed by a field work in Zoumi region and a mapping of lithological synthesis of different formations encountered in Ouezzane area was undertaken keys seismic to determine potential source rocks; horizons.  Interpretation of 893 km of 2D seismic data enabling the identification of new plays concepts in the area.

Preliminary assessment of the hydrocarbon potential in the Eastern Middle Atlas

 Geological and geochemical synthesis studies, in addition to various field works were undertaken in Missour and Guercif areas;  Field work on 4 structural cross sections and sampling for geochemistry and petrography;  Geochemical analyses and biostratigraphic study of 18 samples. This project will be pursued under a reconnaissance license with Shell. Annual Report 2015 16 ONHYM exploration activity in 2015

3 2

Objectives : Jurassic, Objectives : Jurassic Objectives : Trias, 1 2 3 Cretaceous & Tertiary and Triassic reservoirs Jurassic and Cretaceous Coastal area of Lemsid Eastern Middle Atlas Mesorif Basin  Geological, geochemical and  Geological and geochemical  Fieldwork and interpretation sedimentological synthesis analysis of 893 Km of 2D seismic of the area  Fieldwork and realization of data geological cross sections  Identification of potential play concepts

Objectives : The continental shelf Objectives : Jurassic, Cretaceous & 4 5 extension Tertiary

 Analysis of available geophysical data Rabat-Tarfaya Offshore  Acquisition of geophysical and bathymetric data  Interpretation of 2 000 km² of 3D seismic data between september and decembre 2015 and 7 000 km of 2D seismic lines  Mapping of the Key intervals in different segments in the Offshore and identification of Annual Report 2015 new play concepts 17 Partners' activity Offshore Zones

Permits/ Zone Partners Reconnaissance Activities Zone Loukos Offshore Chariot Oil & Gas Exploration  Finalization of the processing and interpretation of the permit 3D seismic data;  Calibration of the 3D seismic data with the 2D data and preparation of the processing report;  Interpretation of the 3D seismic fast track PoST and PreSDM. Gharb Offshore Repsol Exploration  Reprocessing of the 2D seismic data. South permit Mohammedia Chariot Oil & Gas Reconnaissance  Processing of the 3D seismic data; Offshore License  Evaluation of the hydrocarbon potential of the area;  Negociation of a new petroleum agreement (in progress). Rabat Deep Woodside / Chariot Exploration permit  Interpretation and processing of 3D seismic data and Offshore Oil & Gas study of seismic inversion in progress;  Further processing of 3D seismic data (PSDM). Rabat Ultra Deep Woodside Reconnaissance  Realization of a 1 221 Km 2D seismic program; Offshore License  G & G analysis and interpretation of the available seismic data in the area, development of new play concepts. Cap Cantin Deep Chevron Exploration  Finalization of the anisotropic and tomographic tests Offshore permit and sediment and salt flow models;  Realization of a sea bed sampling campaign;  Identification, interpretation and mapping of several leads. Cap Walidia Deep Chevron Exploration  Evaluation studies and realization of a sea bed Offshore permit sampling campaign;  Identification of the main distributary provinces for the sandstones to the offshore basins in the area. Cap Ghir Deep Chevron Exploration  Processing and QC of the 2D/3D available data. Quality Offshore permit control of received data;  Achievement of a sea bed sampling campaign;  Acquisition of 1 795 Km² of 3D seismic data;  Identification of the main distributary provinces for the sandstones to the offshore basins in the area. Essaouira Kosmos / BP Exploration  Processing of the acquired 3D data (1 100 Km²); Offshore permit  Realization of regional paleogeographic maps in the Essaouira-Agadir basin in order to study potential reservoirs;  Special reprocessing to enhance the resolution below the salt near the prospect "Spiders";  Realization of structural maps and maturation models for potential source rocks in the Essaouira-Agadir basin. Annual Report 2015 18 Permits/ Zone Partners Reconnaissance Activities Zone Mazagan PXP / PVD Exploration  Drilling of the MZ-1 well (final depth of 6 181 m). The Offshore permit dry well was plugged and abandonned;  Mapping of the main salt bodies in order to identify additional plays that can be evaluated following the drilling MZ-1 well;  Integration of the results of the electromagnetic survey to the stratigraphic and structural interpretation. Tarhazoute Kosmos / BP Exploration  Processing of 3 300 Km² of 3D seismic data in Offshore permit progress;  Validation of the PSDM model in progress;  Updating of the velocity models below salt;  Interpretation of the top and base of the salt;  Mapping of the Hauterivian distributary channels and structural analysis. Mir Left Offshore Genel Exploration  Reprocessing of the 2D seismic data; permit  Evaluation studies based on the SM-1 well results and preparation of the final report. Foum Assaka Kosmos / Exploration  Reprocessing of some key seismic lines and analysis Offshore Pathfinder / BP / permit of cuttings from the FA-1 well ; SK  Post drilling study of the FA-1 well;  Regional studies : interaction between sedimentation and salt tectonics and distribution tanks. Foum Draa Capricorn / San Exploration  Preparation of the final report. Offshore Leon / Serica / permit Longreach Sidi Moussa Genel / San Leon / Exploration  Studies and analysis of the SM-1 well tests results; Offshore Serica / Longreach permit  G & G analysis of the SM-1 well;  Updating of the prospects portfolio. Tarfaya Offshore Galp Energia / Exploration  Fluid inclusions analysis and geochemical studies at DVM permit Rock-Eval;  Identification of new prospects in the Lower and Middle Jurassic. Juby Maritime Capricorn / Genel Exploration  Geochemical modelisations of the area to understand permit the source rock potential;  Reprocessing and interpretation of the 3D seismic data;  Preparation of the closing report. Boujdour Teredo / Glencore Exploration  Petroleum system analysis and geochemical analysis Offshore Shallow permit and thermal calibration at DSDP well;  Reevaluation of the regional structural model. Cap Boujdour Kosmos / Exploration  Processing of 5 144 Km² of 3D seismic data acquired Offshore Capricorne permit in 2014;  Reprocessing of 3D vintage data (2009) and realization of a velocity model using new data from the CB-1 well. Foum Ognit New Age / Exploration  Processing and interpretation of 2 145 km of 2D Offshore Glencore permit seismic data. Anzarane Total Reconnaissance  Reprocessing and interpretation of 20 2D seismic lines Offshore License in the northern part of the area. Annual Report 2015 19 Onshore Zones

Permits/ Zone Partners Reconnaissance Activities Zone Lalla Mimouna Circle Oil Exploration  Finalization of mapping and prospects inventory. permit 53 prospects have been identified on the basis of the 2D and 3D seismic interpretation;  Drilling of 3 wells: LAM-1, ANS-2 and NFA-1. Two of the wells showed indications of gas. Fes Gulfsands Exploration  Reprocessing of seismic data and evaluation studies of permit the area. Rharb South & Gulfsands Exploration  Drilling of the well DOB-1, (final depth of 1 140 m). Rharb Center permit This well confirmed gas presence. Sebou Circle Oil Exploration  Drilling of 4 wells (KAB-1 bis, KSS-A, KSR-A, CGD-13) permit two of which have shown a gas discovery. Tendrara Lakbir Sound Oil / OGIF Exploration  Interpretation of the 3D seismic data; permit  Preparations for the drilling of the TE-6 well. Moulay Bouchta Gulfsands Exploration  G & G evaluation studies in progress. permit Sidi Mokhtar PetroMaroc / MPE Exploration  Reinterpretation work by the integration of the results North, South & permit of Koba-1 & Kamar-1 wells. West Haha Onshore PEL Exploration  Biostratigraphic studies; permit  Preparations for the drilling of a second well in the area. Zag Basin San Leon / Exploration  QC of data; Longreach permit  Hydrocarbon potentiel evaluation in progress. Tarfaya Onshore San Leon / Exploration  Hydrocarbon potential evaluation of the area; Longreach permit  Drilling of the LAY-4 well (final depth of 1 814 m). This well encountered gas in the Miocene. Hassi Berkane Maxim Reconnaissance  Geological evaluation of the area and reprocessing of License the 2D seismic data.

Drilling activity in 2015

Partner Permit Number of wells drilled Circle Oil Sebou 4 Lalla Mimouna 3 Gulfsunds Rharb South & Rharb Center 1 San Leon Tarfaya Onshore 1 PXP/Pura vida Mazagan Offshore 1 Total 10 wells Annual Report 2015 20 Partners exploration activity (2015)

2 Repsol (Gharb offshore South): Reprocessing of 2D seismic data

6 Woodside (Rabat Ultra deep offshore): Interpretation of available seismic data and acquisition of 1 121 km of 2D seismic lines

7-8 Chevron (Cap Cantin, Cap Walidiya deep offshore): Field work; Sea bed sampling campaign

10 PXP (Mazagan offshore): Drilling of the well MZ-1 at the final depth B-D Circle Oil (Lalla Mimouna and Sebou): of 6 181 m Drilling of 7 wells, 2 of them encountered gas accumulations 9-11 Kosmos (Essaouira and Tarhazoute offshore): C Gulfsands (Gharb): Processing and interpretation of 4 400 km² of 3D Drilling of the well DOB-1 seismic data and mapping

E Gulfsands (Moulay Bouchta): 12 Chevron (Cap Ghir deep offshore): G & G analysis Acquisition 1 795 km² of 3D seismic data, processing and interpretation H Sound Oil/OGIF (Tendrara Lakbir): Seismic interpretation. Drilling of the well TE-6 19 Glencore/Teredo (Boujdour Shallow): preparations. Petroleum system evaluation, geological and structural analysis K San Leon (Tarfaya onshore): Petroleum system evaluation and drilling of the 20 New Age/Glencore (Foum Ognit): well LAY-4 Processing of 2 145 km of 2D seismic data

L San Leon (Zag): 21 Kosmos (Cap Boujdour offshore): Annual Report 2015 Petroleum system evaluation Processing of 5 144 km² of 3D seismic data 21 05 PETROLEUM PARTICIPATIONS & COOPERATION

A new impulse…

The year 2015 was marked by the signing of:  1 new petroleum agreement;  4 new reconnaissance contracts;  11 amendments to petroleum agreements;  4 addendums to reconnaissance contracts;  1 memorandum of understanding;  1 amendment to memorandum of understanding;  2 amendments to heads of agreements;  3 applications for extension.

At 2015 year end, hydrocarbon licensing covered a total area of 339 152.40 sq. Km divided as follows:

> 338 848.40 sq. Km for conventional hydrocarbons Partnership 28 companies are ONHYM partners under petroleum agreements and reconnaissance contracts covering a total area of 338 797.69 sq. Km, divided as follows:  24 petroleum agreements covering 106 exploration permits for a total area of 163 464.55 sq. Km;  6 reconnaissance contracts relating to 4 onshore Reconnaissance Licenses and 2 in the offshore for a total area of 175 304.03 sq. Km;  7 exploitation concessions for a total area of 29.11 sq. Km.

ONHYM ONHYM mining titles cover a total area of 50.71 sq. Km representing 2 exploitation concessions.

> 304 sq. Km of unconventional hydrocarbons 4 companies are ONHYM partners under 4 MOUs relating to oil shale. Annual Report 2015 22 Petroleum agreement

Area Partner Work Program Haha Onshore Petroleum Exploration (Private)  Drilling of one exploration well. Limited

Reconnaissance Contracts

Area Partner Work Program Issouka Shell Exploration Company B.V  Reprocessing of 2D seismic data;  G&G studies and works. Aoufouss Repsol Exploracion Atlas S.A  G&G studies and works. Meridja Oil And Gas Investments Fund  Reprocessing of 2D seismic data;  G&G studies and works. Western Mdc Oil & Gas Holding Company Llc  Reprocessing of 2D seismic data; Mediterranean “Mubadala Petroleum”  G&G studies and works.

Amendments to petroleum agreements

Area Partner Purpose Rabat Deep Chariot Oil And Gas Investments  9 months extension of the Initial Period; Offshore (Morocco) Limited / Woodside Energy  Modification of the Minimum Exploration Work (Morocco) Pty Ltd Program of the Initial Period. Mir Left Offshore Genel Energy Limited  Modification of the Minimum Exploration Work Program of the Initial Period. Sidi Moussa Genel Energy Limited / San Leon  12 months extension of the First Extension Period; Offshore Offshore Morocco B.V / Serica Sidi  Modification of the Minimum Exploration Work Moussa B.V Program of the First Extension Period. Tendrara Lakbir Oil And Gas Investments Fund / Sound  Modification of some provisions of the petroleum Oil Morocco Sarl Au agreement. Tendrara Lakbir Oil And Gas Investments Fund / Sound  Assignment of 50% of OGIF percentage interest to Oil Morocco Sarl Au Sound Oil. Annual Report 2015 23 Area Partner Purpose Cap Rhir Deep Chevron Morocco Exploration Limited  12 months extension of the Initial Period; Offshore  Modification of the Minimum Exploration Work Programs of the Initial Period and the First Extension Period. Cap Cantin Deep Chevron Morocco Exploration Limited  12 months extension of the Initial Period; Offshore  Modification of the Minimum Exploration Work Program of the Initial Period. Cap Walidia Deep Chevron Morocco Exploration Limited  12 months extension of the Initial Period; Offshore  Modification of the Minimum Exploration Work Program of the Initial Period. Tarfaya Offshore Galp Energia Tarfaya B.V / Dvm  Assignment of 100% DVM percentage interest to International Sarl Galp. Sidi Moussa Genel Energy Limited / Longreach Oil  Assignment of 100% Longreach percentage interest Offshore And Gas Ventures Limited / San Leon to San Leon. Offshore Morocco B.V / Serica Sidi Moussa B.V Tendrara Lakbir Oil And Gas Investments Fund  15 months extension of the Initial Period.

Application for extension

Area Partner Purpose Sebou Onshore Circle Oil Maroc Limited  12 months exceptional extension. Rharb Gulfsands Petroleum Morocco Limited  10 months exceptional extension. Haha Petroleum Exploration (Private)  3 months exceptional extension. Limited

Addendums to reconnaissance contracts

Area Partner Purpose Hassi Berkane Maxim Resources Inc.  First 6 months extension of the reconnaissance license. Rabat Ultra Deep Woodside Energy (Morocco) Pty Ltd  12 months extension of the reconnaissance license. Offshore Meridja Oil And Gas Investment Fund  6 months extension of the reconnaissance license. Hassi Berkane Maxim Resources Inc.  Second 6 months extension of the reconnaissance license.

Other agreements

Area Partner Purpose Timahdite et General Strade  MOU relating to oil shale. Tarfaya

Amendements of other agreements

Area Partner Purpose Tarfaya West Zonatec S.A  24 months extension of the validity period of the MOU Flank until 25 September 2016;  Modification of the area of interest. Meskala OCP  Amendments n°1 to two Heads of Agreements relating to the extension of their validity period. Annual Report 2015 24 06 Hydrocarbons production & DRILLING

Hydrocarbons production

 Production is concentrated in Essaouira and Gharb regions;  There was a slight reduction in natural gas supplies of about 5.65% in 2015 compared to 2014, mainly due to the decrease of the SUPER CERAME consumption and the stopping of Keyes Cemok natural gas delivery.

Years 2014 2015 Difference 2015/2014 Natural Gas In Million 43.74 41.27 -5.65% Nm3 Condensate in Tons 5 184 4 998 -3.59%

The overall turnover generated by hydrocarbons sale (natural gas and condensate) at the end of December 2015 is 123.68 Million MAD (Tax Free), which represents a decrease of 34.4% ... reduction compared to the turnover realized in 2014, which is 188.68 Million MAD (Tax Free). in natural gas supplies of It should be noted that the year of 2015 was characterized by a significant decline of the oil and about 5.65% fuel n°2 prices, on which the natural gas and condensate prices are indexed. This year was also in 2015 marked by the oil prices liberalization since December 2015. compared to 2014 Oil shale

 Organisation of a mission to Timahdit in order to localize favorable outcrops to extract 50 tons of oil shale samples which are destined to be tested in MANAGEM laboratory.  Assistance of ZONATEC representatives in the extraction and the preparation of one ton of oil shale from the Tarfaya pilot mine, this sample is to be tested in St Petersburg (Russia) using the UIT-3000 process.  Development of a partnership project with an Italian company, General Strade, with which the MOU is still in negotiation. The goal of the project is to test the Moroccan oil shale using bitumen process. Two missions were organized in order to extract samples from Tangier and Timahdit deposits. These samples will be sent to Italy for laboratory tests.  Preparation of procedures manual for oil shale laboratory which includes: the realization processes, the good practices principles, the HSE chart, the operating procedures for each analysis, the operating modes of each equipment and the models of analysis sheets and

requests. Annual Report 2015 25  Prospection of oil shale indices in Errachidia-Boudnib and Aghbala basins. This project aims to confirm the potential and the quality of the oil shale in these areas. Two missions were done and 25 samples were collected, 13 chemical and geochemical analysis were performed, 26 thin sections were prepared and studied and 25 Fisher tests were realized for the oil and gas saturation determination in the oil shale. This project is in the results compilation and interpretation phase.  Conduction of a Fisher tests campaign and humidity analysis on the heaps bypassing the Tarfaya pilot mine in the oil shale laboratory, this campaign’s goal is to identify the sub-layers sampling (R0, R1,R2,R3 or R4).

Maghreb-Europe Gas pipeline

ONHYM is in charge of managing gas quantities received by Moroccan Government, as a royalty for natural gas transit through our country for the benefit of European customers « SAGANE &TRANSGAS ». ONHYM’s teams continued to ensure daily monitoring of gas consumption by Spanish and Portuguese customers as well as ONEE power plants. As a result, natural gas volume transited through GME in 2015 is 9.71 billion NM3, representing a slight decrease of 0.31% compared to the volume transited in 2014, which was 9.74 billion NM3.

Designations 2014 2015 Difference 2015/2014 Quantities of natural gas transported for SAGANE and 9.71 9.74 0.31% TRANSGAS, in billion NM3 Total amount of the royalty, in Million NM3 697 650 -6.74% Quantities of gas consumed by ONEE power plants 444 445 0.23% «Tahaddart & ABM», in Million NM3 Annual Report 2015 26 07

MINING EXPLORATION

Accurate research and diversified targets

The mining exploration in 2015 concerned 40 projects.

ONHYM’s own activity concerned 27 projects including 10 for precious metals, 9 for base metals and uranium, 3 for industrial rocks and minerals, 4 for general research and 1 special project (geothermal). Activity in partnership interested 13 projects including 6 for base metals, 4 for precious metals and 3 for rocks and industrial minerals.

... mining Furthermore, cooperation with sub-Saharan exploration Africa countries, including Guinea Conakry, in 2015 Gabon, Mali and Mauritania, continued and concerned covered capacity building and sharing of expertise. 40 projects... ONHYM’s own activity Precious metals

 Lahjeyra (REE, Nb, Mo, Au) - Province of Aousserd The Lahjeyra project is located about 190 km South of Dakhla. During 2015, and in order to identify the Lahjeyra structure and its peripheral ring, a magnetic and gravimetric survey was conducted covering a 21 km² area. The results of the gravity survey revealed an anomaly at the center of the main ring, which coincides with a significant magnetic anomaly. Moreover, in the North sector, the magnetic survey has highlighted strong magnetic anomalies with NE direction corresponding to the direction of the regional structures and intersecting linear anomalies. To control the anomalies of the northern part and detail the encouraging zone with positive drills, a third drilling campaign totaling 1 031 meters was completed. The drill holes intersected the targeted structures. Radiometry measurements show a radioactivity ranging from 400 to over Annual Report 2015 1 000 c/s. The drill holes are being analyzed. 27 Annual Report 2015 28  Essarih (REE, Mo, Au) - Province of  Takenzart (or) - Province of Ifrane Aousserd The Takenzart project is accessible from the main The Essarih project is located in the region of road connecting the towns of Khenifra and Azrou. Bir Gandouz at about 265 km South of Dakhla. The work carried out on this project aim to the control The mineral exploration by soil geochemistry have of alluvial gold geochemical anomalies identified in helped identify soil anomalies of REE (Ce, La, Y). the Ordovician formations, outcropping in the east A sampling of favorable structures was carried out of the Central Hercynian Massif, with grades in the on a geological background of 1/5 000. The results concentrates up to 234 g/t Au. The work carried out of chemical analyzes show grades reaching consisted of a geological mapping at 1/1,000 over an 1.2% Ce and 1 800 ppm Y in brecciated structures. area of about 15 ha, coupled with 235 rock samples The geophysical exploration in the area of Essarih whose chemical analysis show low gold grades consisted of a gravimetric and magnetic survey over (<0.1 ppm) and up to 1.9% Pb and 0.6% Cu. a 21.5 km² area.

 Jbel Lahouanit (Au) - Province of Bouarfa  Tizagzaouine (Au, Cu, Mn) - Province of The work performed on the Jbel Lahouanit project Ouarzazate consisted of geological mapping, trenching and The Tizgzaouine project is located SE of the massif of drilling in 2014. The latest results of the drilling Siroua, about 90 km SW of the city of Ouarzazate and campaign received in 2015 being not conclusive, the about 25 km NW of the city of Tazenakht. In 2015, the steering committee decided to close the project. exploration works consisted of a geophysical survey which allowed identifying polarizable resistant linear structures superimposed on the mineralized  Glibat Lafhouda - Drag - Twihinate - structures, oriented NW-SE, confirming their lateral Lamlaga (Nb, Ta, U, Fe, REE) - Province of continuity and in depth over 70 m. The results of Aousserd chemical analyzes showed contents that reach These projects are located about 350 km SE and 5.7% Cu, 40 g/t Ag and 3.9% Zn. South of Dakhla. The reports of the works done in these projects are being finalized and a call of tender was launched in 2015 for the realization of  Hyperspectral targets (Au-polymetallic) processing tests on the ore of Glibat Lafhouda and The project "Hyperspectral targets" covers mainly Twihinate. the inliers of Kerdous and Bas Draa located respectively in the regions of Sous Massa and Guelmin Oued Noun and straddling the provinces of  General Research (precious metals) Guelmim, Tan Tan, Assa Zag, Tata, Tiznit, Taroudant > General Research in South Zone (RG-SZS) and Chtouka Ait Baha. In 2015, the exploration The general search for precious metals (Province of works concerned the areas of Tighmi and Tanalt, Aousserd) continued and involved detailed geological located in the Precambrian inlier of Kerdous. At work in the sector of Alwarma for the control of soil Tighmi sector, an area of 2 500 ha was covered by gold anomalies with geological mapping at 1/5,000 geological mapping at 1/10 000 with the collection of 3 km² and detailed lithogeochemical and soil of 524 samples. The results of chemical analysis sampling. A first preliminary sampling revealed obtained for 324 samples do not exceed 45 ppb Au gold grades up to 3 ppm in quartz structures on with the exception of one sample collected on a metric thicknesses. Geological mapping at 1/10,000, quartz vein with iron oxides who showed a grade sampling and radiometric survey were performed of 1.6 g/t Au. The remaining 200 samples are in the Amaragh sector. The results of chemical being analyzed. In Tanalt sector, the hyperspectral analyzes yielded grades up to 0.45% Ce, 0.1% La, targets superimposed on geochemical gold BLEG 0.2% Nb, 150 ppm U, 150 ppm Y and 230 ppm Ta. and alluvial anomalies were covered by geological Geological mapping at 1/5 000 with sampling and mapping at 1/25 000 with the collection of 125 radiometric survey was carried out in the eastern samples (50 soil and 75 rock) which are currently part of Glibat Lafhouda. The results returned grades being analyzed. up to 0.8% Ce, 1.6% Nb and 322 ppm U. Annual Report 2015 29 Radiometric profiles with rock sampling were carried out to control the uranium airborne anomaly of Tlayha (45 km to the west of Tichla). Preliminary results show uranium contents up to 669 ppm. Two wells were performed at depths of 1.80 m and 1.50 m in the Tlayha structure to recognize the thickness of the uranium calcrete horizon. The two wells remained in the mineralized horizon.

> General Research in Anti-Atlas (RG-MPSAA) The work concerned the sectors of Tidili and Alebdi located in the western High Atlas, the sectors of Tizi n’Oussatour, Tagdilt and Iknioun located in the eastern part of Saghro massif and in Siroua. In the area of Tidili, the results of chemical analyzes of 365 samples showed gold grades up to 3.2 g/t. Copper contents range between 0.1 and 2.9% with an exceptional value of 7.53% Cu. In the area of Alebdi, the work consisted on geological mapping at 1/2 500 with the collection of 184 samples Furthermore, surface sampling in the Tizoula sector that showed grades up to 345 ppb Au, 415 g/t Ag, 8.7% shows the presence of copper, lead, zinc and silver Pb and 9% Zn. respectively with grades up to 1.8% Cu, 2.4% Pb, In the sector of Tizi n’Oussatour located about 25 km 2.5% Zn and 105 g/t Ag. The geophysical ground ESE of the former Tiouit mine, results of chemical control of Taadant target confirms polarizable analyzes showed contents that reach 3.2% Cu and 363 areas within the basal serie. These could reflect g/t Ag. the presence of copper mineralization in both the For Tagdilt sector, chemical analyzes of 236 samples north flank than the South flank of the sector, showed low gold grades (242 ppb). parallel to the lateral continuity to the east of the mineralization intersected by the first cored drilling campaign of 2014. Based on these geophysical and geological results, 6 drill holes TD3 to TD8, totaling 750 m, were implanted and will be performed during Base metals the first half of 2016.

 Western Anti-Atlas (Cu) - Province of Taroudant  Aghracha (U, REE) - Province of Aousserd On the Western Anti-Atlas project, the geological Exploration work continued around the positive control of AFMAG anomalies (ZTEM) continued on drill holes in order to identify favorable areas or Taadant and Tizoula sectors, by geological mapping blocks of mineralization to be recognized by the at 1/25 000 (10 km²) and lithogeochemistry (76 drilling planned in 2015. The work done consisted in samples). geological mapping at 1/25 000 (90 km²) and 1/12 500 (40 km²), and the collection of 459 samples. At Taadant, the surface sampling conducted in the This work was coupled by a radiometric survey with East of the area of the two drill holes TD1 and TD2 a mesh of 250 m x 250 m (130 km²), and a mesh of showed the presence of copper mineralization as 125 m x 125 m (40 km²) and a detailed mesh of 50 m malachite in green siltstone and quartzite sandstone x 50 m (10 km²). of the basal serie with grades reaching respectively The results confirm the continuity of the outcrops of 1.1% and 1.6% Cu, and impregnating the coarse PIII radioactive pegmatites with radioactivity exceeding conglomerates with malachite in the cement. The in some places 10 000 c/s. The results of chemical copper grades recorded in these latter facies are up analyzes show grades in pegmatites ranging from to 7.1% Cu. 0.5% to 6.4% REE and 50 to 580 ppm U. Annual Report 2015 30  South Zone (U) - Province of Aousserd  Iraouene-Mouzaref (Cu, Ni, Fe) - Province In the South Zone, tactic geochemical survey carried of Tinghir out in 2014 in the areas of Al Faj and Lahjayra Lbeida During the first half of 2015, a second cored drilling highlighted geochemical anomalies of cerium and program totaling 492 m was performed in the uranium. Geological control of these anomalies Mouzaref sector. Meanwhile, a topographic and was carried out in 2015 by a radiometric survey at geologic survey at 1/1 000 over an area of 500 ha was 1/12 500 over an area of 55 km² and the collection conducted covering all the area of Mouzaref with the of 140 samples. He highlighted the presence of collection of 120 samples whose chemical analyzes microgranitic dykes with radioactivity reaching showed copper grades up to 5% on the Mouzaref 1 200 c/s. Chemical analyzes of samples taken from structure. Furthermore, a geological mapping at 1/1 these facies gave low uranium and cerium grades, 000 was conducted in the copper-iron-bearing area not exceeding respectively 122 ppm and 408 ppm. of Ras Kemmouna (50 ha) with the collection of 44 samples whose analyzes is ongoing. A magnetic survey was conducted over an area of 2 km² coupled with IP (4 profiles) in order to study the  Laayoune basin (U) - Province of extensions and rooting of the mineralization of the Boujdour sector. In the East area, the results of the magnetic On the Laayoune basin project, the geological control survey allowed identifying magnetic structures of N of airborne radiometric anomalies realized in 2014 to NE direction, which correspond to iron formations. as part of the general research, highlighted uranium In the West area, where the copper indications are occurrences in the areas of Agwidir and Lahmada, located, the magnetic survey did not record any with grades respectively up to 275 ppm and 430 disturbance. IP survey recorded at the mineralized ppm U. Following these encouraging results, a structure, a geophysical signature characterized campaign of 32 cored drilling totaling 379.4 m was by a slight variation of the chargeability and a achieved. All the drill holes intersected the targeted discontinuity of the apparent resistivity. radioactive facies at depths not exceeding 6 m. The mineralization intersected occurs as dissemination of carnotite both in the calcretes and in the microconglomerates. Annual Report 2015 31  Tiddas (polymetallic) - Province of  Hassi Bou Al Maamra (Fe) - Province of Khemisset Tan Tan & Assa Zag On the Tiddas sector, the results of chemical Based on the results of the geochemical campaign analyzes of the geochemical survey undertaken performed in the region, a radiometric control of in 2014 (400 samples) revealed the presence of cerium geochemical anomalies was conducted in numerous stream sediment anomalies in Pb, Zn and 2014; chemical analyzes published in 2015 show very Cu. The geological control of these anomalies was low grades of cerium. carried out on an area of 6 km² with the collection of During 2015, exploration works carried out in the 76 samples whose chemical analyzes showed very region of Hassi Bou El Maamra in the sectors of low grades. Oui-n-Delouin and Feija of Akemmoum, consisted on geological mapping at 1/25 000 over an area of 27 km² with the collection of 82 samples whose  Imlily (U) - Province of Dakhla chemical analyzes showed iron contents not On the Imlily project, located a hundred kilometers exceeding 33%. East of Dakhla, the campaign of short drill holes (498 m) performed late 2014 intersected a silicified horizon of microconglomerate on thicknesses  General Research (base metal) ranging from 10 cm to 1.20 m. All the drill holes have A preliminary recognition concerned zinc and lead been systematically sampled totaling 605 samples. showings in the South flank of the Central High The results of chemical analyzes show average Atlas (region of Msemrir) with the collection of 74 grades that do not exceed 20 ppm U. The maximum samples whose chemical analyzes showed grades grades were recorded on the drill holes SI01 and not exceeding 0.9% Pb + Zn and 500 ppm Cr + Ni. SI18 with respectively 160 ppm and 140 ppm U Moreover, the work concerned also the recognition over thicknesses of 20 cm and 90 cm of silicified of iron showings of the western Meseta and copper microconglomerate. and manganese showings in Demnate region Annual Report 2015 32 (Central High Atlas). In the first geomorphological Rocks and industrial minerals unit, the iron showings of Benikhirane, Ben Slimane and Bled Delâa were recognized by geological  Rhamna (electrometallurgical silica) – mapping and sampling. The results of chemical Province of Rhamna analyzes showed content ranging from 40 to 82% In the area of Rhamna, work for the research for Fe2O3 at Benikhirane (around the Ait Ammar iron electrometallurgical silica continued in the areas mine), from 28 to 38% in Bled Delâa and 32 to 73% in of Jebel Kharrou and Koudya Maguil by geological Benslimane. Benslimane prospect will be leased to mapping and sampling of quartzites. These massive the company MBD Mining Investment SARL. A detail quartzites of Ordovician age are light gray to white magnetic survey has been achieved in this sector with ferruginous fractures. over an area of 7.4 km² and allowed locating highly magnetic areas prone to an abnormal concentration of iron ore in the studied area.  General Research (Clays) In the region of Demnate, geological reconnaissance at 1/25 000 over 9.5 km², geological mapping at As part of the general research for rocks and industrial 1/2 500 over 55 ha and rock sampling were minerals, the showings of halloysite of Maaza and conducted on the copper occurrences of El Had, Tidona, and of bentonite of Bargoual, Ait Hossein, Termert, Taist, Talate n’Ouslim, Talent and Ait Tamlil Hammam and Oued Zemmour in the Nador region and also on the manganese show of M'koussa. were recognized by geological mapping and sampling. Chemical analyzes yielded copper grades between Industrial dolomites in Khemisset region have also 1% and 3.3% in Taist; 0.5% and 3.4% in El Had, 0.6 been sampled for chemical analyzes and technological to 5.2% in Termert and up to 52% MnO in M'koussa. tests. Samples of Ait Tamllil sector (Talent and Talate 82 clay samples were collected of which 30 samples for n’Ouslim shows) are being analyzed. chemical analyzes and 52 for X-ray identification. The first results show that the bentonite showings in Nador sector are calcium-sodium. Concerning the dolomites, a sample of 300 kg was collected for technological tests in the laboratories of the OCP and 61 samples for chemical analyzes in ONHYM laboratories. Tests and chemical analyzes are ongoing. Annual Report 2015 33 Strategic Research

Integrated mining exploration Project in the Oriental

Merija Tiouli Geophysics  Gravimetric survey over a total  Detailed ground magnetic survey. The preliminary data area of 20 km² with a mesh of processing helped locating some good geological features 200 x 200 m; 440 measured at the study area and identifying favorable structures for stations. trapping MVT mineralization. Geochemistry  Soil geochemistry  Research for Pb-Zn anomalies that may be related to MV  Research of copper anomalies type mineralization. that could be related to the  380 soil samples. extension of the Merija copper mine.  393 soil samples. Geology  Geological cross sections  All the results of the complementary geological works totaling 2.87 Km with the have been integrated into the overall study of the area to collection of 22 samples. prioritize potential areas and identify three main anomalies to control on the ground.  The service order for the second phase of the project was notified in November 2015.

Launch of the integrated mining exploration Project in the Southern Provinces The integrated mining project in the Southern Provinces aims to highlight new potential areas for mining research.

Geochemistry Geochemical survey in the region from Ed Dakhla-Oued Ed Dahab The geochemistry alluvial and soil campaign in the region of Ed Dakhla-Oued Ed Dahab started in 2014, the project is in the Phase III consisting of:  Processing of analytical data;  Elaboration of grade maps for each element;  Elaboration of map anomalies for each element and a synthesis map;  Interpretation of the results;  Structuring of the geochemical database.

Remote Sensing – Hyperspectral The activity of remote sensing in 2015 focused on two parts, which are:  Continuation of synthesis and interpretation of geo-scientific data on areas covered by the two hyperspectral campaigns namely: Siroua, Kerdous, Draa, Tata and North Akka;  Fieldwork control of the results obtained in the inlier of Kerdous.

Geothermal About twenty samples of thermal waters were collected in the eastern Morocco. Following the chemical analysis and processing of the data, it is found that the detected variations and mentioned zoning testify to a regional individualization and sometimes a compartmentation of the main geothermal aquifer carried by limestone and dolomitic limestone formations of the lower Jurassic. Annual Report 2015 34 Partners' activity  Tichla-Aousserd (precious and base metals) – ONHYM-METALEX (Canada) As part of ONHYM-METALEX agreement on mineral exploration in the Tichla region, exploration work continued through the implementation of a program including trenches and small pits with the collection of geochemical samples.

 Central Morocco (Au) – NEWMONT (USA) As part of the ONHYM - NEWMONT agreement, a geochemical campaign covering part of central Morocco by the BLEG method (Bulk Leach Extractable Gold) was launched in 2015. It has helped to highlight several targets of precious and base metals which will be followed by geological control.

 Ighrem Domain (Cu) – MANAGEM (Morocco) The work conducted in 2015 as part of this convention focused on the Tizert sector by conducting a diamond and reverse circulation drilling campaign, distributed in the central areas, North and South of Tizert deposit for the certification of the resources in the Far North sector (Aferni sector) and for the exploration of the extensions. Tizert sector shows a significant potential.

 Tekna (polymetallic) – ONHYM-CMG (Morocco) The work carried out in 2015 concerned the prospects of Moulay Amine, Assoufid, Rheya and Moussiha. It mainly consisted of geophysical surveys in order to relocate and to specify the airborne magnetic anomalies of these prospects. Processing of the collected geophysical data allowed a better definition of the prospected anomalies. Variations in dimension, wavelength and amplitude of these anomalies testify to the existence of magnetic sources of different size, depth and geometry.

 Clay Prospects – MASCIR (Morocco) As part of the agreement between ONHYM and MASCIR (Moroccan Foundation for Advanced Science, Innovation and Research), the work was carried out to characterize clays of a number of prospects for their use as filler for plastics industry. Preliminary results of these studies on Jbel Kharrou clays are conclusive and a specific agreement to develop the project in partnership with MASCIR will be negotiated. The project is in the testing phase at the industrial scale on a 3 tons sample. Annual Report 2015 35  Cooperation with sub-Saharan Africa As part of the agreement protocols and amendments signed with SOGUIPAMI (Société Guinéenne du Patrimoine Minier, Guinea Conakry), SEM (Société Équatoriale des Mines, Gabon), DNGM (Direction Nationale de la Géologie et des Mines, Mali) and OMRG (Office Mauritanien des Recherches Géologiques, Mauritania), ONHYM organized training in mining and hydrocarbons domains (exploration techniques, geochemistry, laboratories, geophysics, Remote Sensing, hyperspectral) for executives from Guinea, Mali and Mauritania for a total of 240 man-days. Senior officials from DNGM, AUREP and OMRG visited ONHYM for the evaluation and monitoring of the agreements. A study of compilation and analysis of data of the mining sector of Mali was elaborated by ONHYM at the request of the Malian side. The Bagama gold project proposed by DNGM (Mali) was studied by ONHYM and it was concluded that it is a small gold deposit with low tonnage and low grade, non-priority for ONHYM. At the request of OMRG (Mauritania), interpretation of geophysical and geochemical data available on promotional areas of Zednes and Agane was the subject of a detailed study by ONHYM and a synthesis report was presented to the Mauritanian side.

Mining drilling

During 2015, 60 drill holes totaling 3 499.50 m were completed. All such work was performed for the ONHYM’s account.

Number of Total coring Tracks Worksite Region Observations drillings (ml) (ml) Aghracha Aousserd 15 758.40 - Work in progress Imlily Aousserd - - - Cancelled Essarih Aousserd 4 838.80 10 290.00 Work in progress Laayoune Basin Laayoune 32 379.40 250.00 Work in progress Lahjeyra Aousserd 5 1 031.00 - Work in progress Iraouene Mouzaref Tinghir 4 491.90 120.00 Work in progress Total travaux 60 3 499.50 10 660.00 Annual Report 2015 36 Mining projects 2015

Tangier 27 Nador ! ! Quaternary 29 Oujda Cenozoic Rabat Fez 20 Meknes " Mesozoic Casablanca 11 # 6 26 # " 30 Paleozoic ! 28 31 #3 Proterozoic !! Errachidia Marrakech 22 " ean " 25 21 " 23 " 12 5 19 # # " Agadir 24 9 " 4 # # "18

Atlantic Oc 17 "

Laayoune Smara

16 "

NB : The projects of general research (RG-MPSAA, RG-MP-ZS, RG-SMB, RG-SRM), Geothermal, Strategic Campaigns and Dakhla Integrated Projects concern many regions and are not plotted 14 in the map. " Research project n°11, in agreement with Newmont, covers the 13 central Hercynian massif. " " 15 2 # Awserd 8 ##1 #7 #10 Base Metals Precious Metals ONHYM Projects ONHYM Projects Lagouira 13- Aghracha (REE, Fe, U) 1- Essarih (REE, Nb, Mo, Au) 14- South Zone (U, Fe, Cu) 2- Lahjeyra (Nb, REE, Fe) 15- Imlily (U) 3- Hyperspectral targets 16- Laâyoune Basin (U) (Au, Pb, Zn, Ag, Cu) 17- Hassi Bou Al Maamra 4- Jbel Lahouanit (Au, Cu) (Fe, Ce, Cu) 5- Tizegzaouine (Au, Zn, Pb, Ag, Cu) 18- Occidental Anti-Atlas (Cu) 6- Takenzart (Au) Rocks & 19- Iraouene-Mouzeref (Cu) 7- Lafhouda-Drag Industrial Minerals 20- Tiddas (polymetallic) (Nb, Ta, U, REE, Fe) ONHYM Projects 8- Twihinate-Lamlaga 27 - Ras Tarf (Diatomite) Projects in partnership (Nb, Ta, U, REE, Fe) 28 - Rhamna (Silica) 21- Guemassa-Haouz (Polym) (ONHYM-CMG) Projects in partnership 9- Had Imawn (Au) Projects in partnership 22- Jebilet (Polym) (ONHYM-CMG) (ONHYM-Managem) 29- Tertiary Basins (Bentonite) 23- Tekna (Polym) (ONHYM-CMG) 10- Tichla Awserd (Au, Cu) (ONHYM-TOLSA) 24- Ighrem Domaine (Cu) (ONHYM-Metalex) 30- Zrahina (F, Ba, Pb) (ONHYM-Managem) 11- Central Morocco (Au) (ONHYM-Garrot-Chaillac) 25- Boumadine (Zn, Pb, Au, Ag) (ONHYM-Newmont) 31- Jbel Kharrou (Clay) (ONHYM-Maya) 12- Zgounder (Au)

(ONHYM-MASCIR) 26- Ait Ammar (Fe) (ONHYM-CMMF) Annual Report 2015 (ONHYM-Maya Gold & Silver) 37 Mining laboratories Confirmation of ISO 9001 certification

 Certification The certification of the mining laboratories according to the standard ISO-9001 version 2008, has been renewed for a period of three years, following the audit conducted by the firm Moody Certification Morocco in 2014. The surveillance audit n°1 was conducted beginning April 2015 and concluded to maintain the certification for the current year.

 Mineralogy  Preparation of samples: At the end of December 2015, 267 thin sections, 13 polished blades, 26 polished sections were made and 35 artificial concentrates are prepared, for a total of 341 samples.  Petrographic and mineralogical studies: The studies concerned 80 samples and are divided into 45 petrographic studies and 35 mineralogical studies of artificial concentrates. These studies were performed on samples from ONHYM projects.

 Mineral processing The number of samples prepared for chemical analysis during the year 2015 totaled 12 639 distributed as follows:

Worksite Number of samples ONHYM Projects 11 582 Subsidiaries and third parties 1 057 Total 12 639

 Mineral chemistry The total number of determinations made during the year 2015 totaled 136 335, corresponding to 12 015 analyzed samples.

Worksite Number of samples Number of determinations ONHYM Projects 11 636 135 240 Subsidiaries and third parties 379 1 095 Total 12 015 136 335 Annual Report 2015 38 08 MINING PARTNERSHIP & COOPERATION

Sustained activity of cooperation

During 2015, the mining partnership & cooperation activity was marked by the signing of:  2 Assignment contracts;  6 Protocol Agreements;  1 lease agreement;  2 Amendments.

 Assignment contracts

Partner Area Status of the Description contract Managem Ighrem Approved Signature of a contract for the assignment, in favor of AGM, of the bloc 1 of Ighrem Sector, part of the research agreement with purchase option concluded between ONHYM and Managem. Inversiones Boudkek In approval Signature of a contract for the assignment, in favor of Monte process the Spanish company Inversiones Monte Olimpo, of Olimpo the Boudkek magnesite deposit. Annual Report 2015 39  Protocol Agreements

Partner Area Status of the Description contract SANC Southern Zone In approval Signature of a Protocol Agreement with the company SANC related Bouissafene process to the execution of a program of works and studies with the aim of evaluating zircon sands of the southern zone of Bouissafene before acquisition. NEWMONT Central Approved Signature of a Protocol Agreement with the company Newmont Morocco related to the execution of a geochemical campaign (BLEG) in Central Morocco. OMRG In approval Cooperation: Signature of a Protocol Agreement with the process Mauritanian Office of Geological Research (OMRG) on training and exchange of experience on mining exploration. MML Khzama In approval Signature of a Protocol Agreement with the company Moroccan (Province of process Minerals Limited (MML) related to the execution of a study and Ouarzazate) work campaign with the aim of evaluating the mining potential of the mining domain of Khzama. SIDM Frag Al Ma In approval Signature of a Protocol Agreement with the company Société (Marrakesh process Internationale De Développement Minier (SIDM) region) related to the execution of a study and work campaign with the aim of evaluating the mining potential of the mining domain of Frag Al Ma.

 Lease agreement

Partner Area Status of the Description contract MBD Ben Slimane In approval Signature of an agreement related to the lease, in favor of MBD process MINING INVESTMENT SARL, of the permit n°1137824 covering Ben Slimane iron occurrences.

 Amendments

Partner Area Status of the Description contract METALEX Southern Area In approval Signature of the amendment to the Exploration Convention with the process company Metalex extending this convention by 18 months, to allow the parties to carry out additional works on selected areas in the southern provinces. OMRG In approval Cooperation: Signature of the amendment n°1 to the Protocol process Agreement ONHYM/OMRG related to the actions planned for the year 2015. Annual Report 2015 40 09

HUMAN RESSOURCES

A new Staff Regulation and an optimized career management

On the 31st December 2015, the workforce is 605 officers, including 177 engineers and managers, 298 supervisors, 4 employees and 126 workers, including 18% of women.

The staff ratio improved by one point to Workforce by category 29%. To further improve this rate, it is essential to have a sustained pace of recruitment spring leveraging the results of the integrated approach of the GPEC Employees : 1% and their translation into actions of Workers : 21% Engineers and human capital management, aligned with Executives : 29% the new strategic directions. Supervisory agents : 49%

The workforce, after a steady decline from 2001 to 2007, under the combined effect of the retirements and voluntary Workforce evolution 2015-2001 departures operations, experienced 1571 ... an 1538 1499 a stagnation from 2007 to 2009, then 1477 1434 1359 innovative text a downward trend from 2009 to 2014, highlighting the 955 due to the massive retirements, 947 942 899 human capital 827 781 689 voluntary departures and the very 647 605 limited recruitments focused on the core business and the needs in specific

profiles. 200 1 200 2 200 3 200 4 200 5 200 6 200 7 200 8 200 9 201 0 201 1 201 2 201 3 201 4 201 5

Concerning the recorded departure for 2015, there are 57, due to retirements. 39 staff members have been recruited under the Framework Law 2015.

New Staff Regulation

The new Staff Regulations, which definitively breaks with the previous one, is the result of over 10 years of work, negotiation, dialogue and determination. It successfully led to the adoption of an innovative text highlighting the human capital. The implementation of this Staff Regulation will allow the Office to streamline its management rules, to implement a management by performance, to enhance its attractiveness on the job market and to ensure its employees a rewarding career. Annual Report 2015 41 Social activities

 Holiday camps: 98 children in Ben Smim;  Summering center: 174 agents benefited from visits to the summering centers of Cabo-Negro, Ifrane and Kettara;  Pilgrimage: 5 pilgrims were supported by ONHYM to accomplish the pilgrimage in the Holy Place of Islam;  Medical Assistance: 3 788 cases were granted for hospitalization, laboratory tests, X-rays;  Transmission of 15 867 disease case to the insurance company (12.9 million DHS);  Group Care: 1 200; medical visits: 358; systematic visits to sites 184; systematic ophthalmologic visits: 30;  Mammography Screening: 30 beneficiaries;  Flu Vaccine: 200 beneficiaries.

Training

Indicators Number Training actions 141 Participations 919 MDT 2 925 Beneficiairies 214

Number Number of Areas of training MDT of actions participations

Forums, workshops, seminars, 25 64 259 promotion action

Exploration, production, processing and 17 61 234 technical topics

Data processing, office automation and 4 15 51 SI

Management, personal development 60 630 1 172 and HR

Quality, security and environment 9 40 56

Management techniques and other 14 30 106 topics

Long term training (Morocco and 9 9 732 abroad)

English courses 3 70 315

Total 141 919 2 925 Annual Report 2015 42 Petroleum Agreements, Reconnaissance Contracts, Blocks under Negotiation and Open Acreages 20°0'0"O 15°0'0"O 10°0'0"O 5°0'0"O  KINGDOM OF MOROCCO

! Tanger

111 XIV

9 35°0'0" N I 187 18 Oujda 143 133 ! Petroleum Agreements, II 132 145 144 35 III 134 137 1 38 135 Reconnaissance Contracts, 182 19 181 138 180 59 139 Blocks under Negotiation 141 140 36 ! XIII 3 ! Rabat 174 Fes 142 and Open Acreages 165 2 ! Casablanca 186 B 166 109 167

189 150 148 146 152 C1 169 170 171 172 168 151 153 149 147 VII 154 11 2 Figuig ! 156

155 157 C2 !Er-rachidia

120 121 102 5 ! Marrakech 163 106 7 123 103 11 4 122 6

104 107 56 IX 124 125 Ouarzazate PETROLEUM AGREEMENTS 105 57 ! 108 128 58 158 127 N° EXPLORAT ION ZONES COMPANY AREA Km² 129 !Agadir 161 X 1 LOUKOS OFFSHORE IONHYM-CHARIOT 1 155,60 68 67 159 5 130 SIDI MOKHTAR NORD 1 072,30 30°0'0" N 69 162 6 SIDI MOKHTAR SUD ONHYM-MPE-PETROMAROC 1 198,90 82 7 SIDI MOKHTAR OUEST 429,50 70 160 83 18 LALLA MIMOUNA NORD 1 371,20 86 ONHYM-CIRCLE OIL 84 19 LALLA MIMOUNA SUD 840,10 85 20-34 CAP BOUJDOUR OFFSHORE I-XV OHNYM-KOSMOS-CAPRICORN 22 265,00 11 5 35 RHARB CENTRE 1 358,70 190 ONHYM-GULFSANDS 36 RHARB SUD 1 357,50 38 SEBOU ONHYM-CIRCLE OIL 134,70 56-58 HAHA - (NORD - CENTRE - SUD) ONHYM-PEL4 919,00 191 59 FES ONHYM-GULFSANDS-CAITHNESS 1 598,85 60 60-66 TA RFAY A ONSHORE 1-7 ONHYM-SAN LEON 7 730,20 97 61 67-70 FOUM ASSAKA OFFSHORE I-IV ONHYM-KOSMOS-PA THFINDER-BP-SK 4 853,00 62

71-81 ZAG 1-11 ONHYM-SAN LEON-LONGREACH 14 625,30 98 63 73 72 74 75 76 77 78 79 80 81 82-85 SIDI MOUSSA OFFSHORE 1-4 ONHYM-GENEL-SERICA-SAN LEON5 018,00 64 99 97-101 !Lâayoune BOUJDOUR OFFSHORE SHALLOW I-V ONHYM-TEREDO - GELENCORE 7 244,40 65 100 102-108 ESSAOUIRA OFFSHORE I-VII ONHYM - KOSMOS - BP 8 786,00 176 177 66 120-125 MAZAGAN OFFSHORE I-VI ONHYM-PXP - PVD 8 717,40 178 101 71 127-130 TA RHAZOUTE OFFSHORE 1-4 ONHYM-KOSMOS-BP 7 753,30 179

137-142 RABAT DEEP OFFSHORE I-VIONHYM-CHARIOT- WOODSIDE 10 781,80 21 20 143-145 GHARB OFFSHORE SUD I-III ONHYM-REPSOL4 417,70 22 146-151 CAP WA LIDIA DEEP OFFSHORE 1-6 11 765,50 23 24 152-157 R CAP CANTIN DEEP OFFSHORE I-VI ONHYM - CHEVRON 11 860,90 26 158-160 CAP RHIR DEEP OFFSHORE I-III 5 591,20 25 O PEN ACREAGES 161-162 MIR LEFT OFFSHORE I-II ONHYM - GENEL 3 265,70 28 27 188 N° NAME AREA Km² 165-172 TENDRARA LAKBIR I-VIII ONHYM-OGIF 14 548,50 173 29 XI 2CASABLANCA OFFSHORE 3 000,00 176-179 FOUM OGNIT OFFSHORE 1-4 ONHYM-NEWA GE-GLENCORE 7 997,90 31 30 9LIXUS OFFSHORE2 760,70 25°0'0" N 180 MOULAY BOUCHTA OUESTONHYM-GULFSANDS1 495,65 Y 86 FOUM DRAA OFFSHORE 5 872,60 181 33 32 MOULAY BOUCHTA ESTONHYM-GULFSANDS1 356,00 111GHARB OFFSHORE NORD 9 596,80 34 112TADLA I18 845,00 115ASSA54 808,10 126ANZARANE OFFSHORE 100 926,70 132 - 135TAOUNAT E7 600,20 Dakhla XII RECONNAISSANCE CONTRACTS ! 163HAOUZ 9 474,40 173BOUJDOUR DEEP OFFSHORE 18 364,70 N° RECONNAISSANCE ZONES COMPANYAREA Km² 174BOUFA KRANE10 917,90 186RABAT ULTRA DEEP OFFSHORE SUD8 593,55 109 MERIDJA ONHYM-OGIF 8 873,33 11 4 188BOUJDOUR ONSHORE OUEST14 861,30 AOUFOUSS ONHYM-REPSOL 34 018,20 126 190TARFA YA OFFSHORE NORD 10 923,30 182 RABAT ULTRA DEEP OFFSHORE ONHYM-WOODSIDE 36 736,90 191TARFA YA OFFSHORE SUD11 881,60 187 HASSI BERKANE ONHYM-MAXIM 5 116,00 BEL JADIDA OFFSHORE 6 349,40 189 ISSOUKA ONHYM-SHELL 87 126,60 C1-C2SAFI OFFSHORE NORD ET SUD 9 729,40 RBOUJDOUR OFFSHORE I13 292,00 XSOUSS 6 345,10 YBOUJDOUR OFFSHORE II 19 673,20 I - IIIOUEZZANE I-III4 643,75 VIIDOUKKALA ABDA 4 673,35 IX OUARZAZATE 4 145,80 XI BOUJDOUR ONSHORE EAST 19 754,20 Lagouira B LOCS UNDER NEGOTIAT ION ! XIIDAKHLA LAGWIRA37 919,80 N° NAME AREA Km² XIII MAAMORA EST755,00 3 MOHAMMEDIA-OFFSHORE4 654,86 XIVASILAH2 200,10 31 - 12 - 2015 20°0'0"O 15°0'0"O 10°0'0"O 5°0'0"O  KINGDOM OF MOROCCO