ADRIATIC METALS PLC VAREŠ PROJECT STAKEHOLDER ENGAGEMENT PLAN 31 July 2020 ADRIATIC METALS PLC VAREŠ PROJECT STAKEHOLDER ENGAGEMENT PLAN CONTENTS INTRODUCTION ...................................................................................................................... 1 Report Overview ....................................................................................................................... 1 Project Description .................................................................................................................... 2 RELEVANT LEGISLATION, POLICY AND GUIDELINES ................................................................. 3 Bosnia and Herzegovina Legislation .......................................................................................... 3 International Standards ............................................................................................................. 4 PROJECT STAKEHOLDERS ........................................................................................................ 7 Stakeholder Identification ......................................................................................................... 7 Government Authorities ........................................................................................................... 8 Project Affected Communities ................................................................................................ 10 STAKEHOLDER ENGAGEMENT ACTIVITIES ............................................................................. 15 Capacity Building ..................................................................................................................... 15 Consultation before and during the ESIA process ................................................................... 15 Vareš Information Centre ........................................................................................................ 19 Community Investment Initiatives .......................................................................................... 21 Media Outlets .......................................................................................................................... 22 Public Liaison Committee ........................................................................................................ 22 Documentation and Issues Management ............................................................................... 23 Current and Future Stakeholder Engagement ........................................................................ 24 Key Stakeholder Issues ............................................................................................................ 24 GRIEVANCE MECHANISM ..................................................................................................... 25 Definition ................................................................................................................................. 25 Process .................................................................................................................................... 25 MONITORING AND EVALUATION .......................................................................................... 29 REPORTING .......................................................................................................................... 30 STAFFING ............................................................................................................................. 31 TABLES Table 3.1 Key Communities, Community Leaders and Population, 2018 ............................................. 11 Table 4.1 Scoping Study Consultation Meetings .................................................................................. 16 Table 4.2 ESIA Baseline Consultation Meetings ................................................................................... 17 Table 4.2 Community Concerns to Date ............................................................................................... 24 FIGURES Figure 1.1 Map showing the location of Vareš Project .......................................................................... 3 Figure 4.1 ESIA Process aligned with Technical Studies and BiH Permitting Process ........................... 16 Figure 5.1 Grievance Mechanism Process ............................................................................................ 27 Figure 5.2 Eastern Mining Grievance Form .......................................................................................... 28 31 July 2020 Page i ADRIATIC METALS PLC VAREŠ PROJECT STAKEHOLDER ENGAGEMENT PLAN PHOTOGRAPHS Photo 4.1 Community Notice Board in Vareš ....................................................................................... 19 Photo 4.2 Eastern Mining Information Centre, Vareš .......................................................................... 20 APPENDICES Appendix 1 – Stakeholder Mapping NOTE: THIS IS A WORKING DOCUMENT THAT WLL BE REGULARLY MONITORED, REVIEWED AND UPDATED THROUGHOUT ALL STAGES OF PROJECT IMPLEMENTATION Version Date Authors Reviewed by Approved number Version 1.0 Dec Allie Mitchell, Graham Hill, Adnan Teletovic, Kate Alison Allen 2019 WAI Harcourt WAI Version 2.0 May Allie Mitchell, Vildana Mahmutovic, Aida Ahmedovic, Graham 2020 WAI Milos Bosnjakovic, Kate Harcourt Hill, AM Version 3.0 July Allie Mitchell, Vildana Mahmutovic, Aida Ahmedovic, Dominic 2020 WAI Kate Harcourt Roberts, AM 31 July 2020 Page ii ADRIATIC METALS PLC VAREŠ PROJECT STAKEHOLDER ENGAGEMENT PLAN INTRODUCTION Adriatic Metals have commissioned Wardell Armstrong International (“WAI”) to develop a Framework Stakeholder Engagement Plant (“SEP”) for the Veovača and Rupice mines, or the Vareš Project, located in northern central part of the Federation of Bosnia and Herzegovina (“BiH”). The SEP was originally issued alongside the WAI Environmental and Social Scoping Study, January 2020, and the two should be read in conjunction, along with the CSA Scoping Report, November 2019. Version 3.0 of the SEP (this version) will be ‘owned’ by Adriatic Metals/Eastern Mining and subsequent updates will be made by them and approved by Dominic Roberts, Head of Corporate Affairs. COVID-19 Soon after the first draft of the SEP was prepared, and after the second site visit by WAI in February 2020, during which many meetings were held, the C-19 global pandemic was declared and many restrictions put on movements and meetings. Stakeholder engagement has continued during this time, with appropriate social distancing measures in place, with the exception of meetings of more than 15 people. In mid-June these restrictions were lifted, allowing the inaugural meeting of the Public Liaison Committee to take place and other stakeholder activities to continue as planned. Adriatic Metals continue, in close consultation with the local municipal and medical authorities, to monitor the C-19 situation. Guidance and training have been given to all staff and suitable sanitisation and protective equipment have been provided at all workplaces. The SEP has been reviewed against the EBRD’s C-19 Stakeholder Engagement advice1 and it is considered that the approach taken by Adriatic Metals is following best international practise. Report Overview This document takes into account the most recent project design and is developed with the aim of guiding stakeholder consultations and communications throughout the life of the Project, including closure. The SEP will be monitored, reviewed and updated on a regular basis by Adriatic Metals / Eastern Mining, providing a roadmap for engagement and monitoring the effectiveness of impact mitigation measures. This plan has been developed to meet best practice as exemplified by the standards of Equator Principles financial institutions, including the sustainability frameworks of the International Finance Corporation (“IFC”) and the European Bank for Reconstruction and Development (“EBRD”). During exploration, the main aim of stakeholder engagement in Vareš has been to establish two-way communication between Eastern Mining and stakeholders at national, regional and local levels. The SEP outlines how stakeholders will be informed of the impact assessment process and its various stages, including how they may be engaged in data collection, impact assessment and developing 1 EBRD COVID 19 Stakeholder Engagement (PR10) Briefing Note April 2020. 31 July 2020 Page 1 ADRIATIC METALS PLC VAREŠ PROJECT STAKEHOLDER ENGAGEMENT PLAN strategies for impact management and monitoring. During construction and operational phases, stakeholder engagement activities will focus on keeping stakeholders informed about the project activities and to engage them in terms of monitoring and impact management. Stakeholders are invited to review and provide feedback on this SEP. Eastern Mining will ensure this document is available and accessible to stakeholders in Bosnian, Croatian, Serbian and English, as deemed necessary. All comments and questions are welcome and should be sent to the Senior Management Team, which includes: • Paul Cronin, Director of Eastern Mining; • Graham Hill, Chief Operating Officer; • Adnan Teletovic, General Manager; • Dominic Roberts, Head of Corporate Affairs, • Vildana Mahmutovic, Environmental and Social Manager; • Aida Ahmedovic, Social and Community Relations Coordinator; • Emir Sudžuka, Company lawyer and Kate Harcourt, Environmental and Social Associate. General Manager, Adnan Teletovic, Environmental and Social Manager Vildana Mahmutovic,