Creating Value Through Relationships Table of Contents

2019 SUSTAINABILITY REPORT CREATING VALUE THROUGH RELATIONSHIPS TABLE OF CONTENTS

MESSAGE FROM THE CEO AND THE VICE-PRESIDENT OF SUSTAINABILITY

ABOUT THE REPORT

ABOUT US _ _ _ 9 30 74 SUSTAINABILITY HIGH OPERATIONAL STANDARDS PROTECTION POINT OF CONTACT SUSTAINABILITY AS OPERATIONAL EXCELLENCE EVERYTHING IS POSSIBLE (102-1) (102-53) A ROADMAP FOR ADVANCING IS OUR DRIVING FORCE WHEN YOU FOCUS ON RIGHTS ON EVERY FRONT AND BEING LEGAL Colombia Office _ _ _ Street 7 No. 39-215, of. 1208 El Poblado, Medellín Colombia 15 45 78 (+57) 4 3121026 STAKEHOLDER RELATIONS OUR PEOPLE ENVIRONMENTAL MANAGEMENT WORK, MEASURE, ADJUST, AND EVERYTHING WE DO MODERN MINING, RESPONSIBLE Suggestions and concerns related to ALWAYS KEEP AN OPEN DIALOGUE ADDS GREAT VALUE MINING BY NATURE this report [email protected]

_ _ _ Queries can also be sent via postal mail to our Medellin offices or can be delivered directly to the staff at our community Public 21 54 86 Attention Office in Buriticá. CORPORATE GOVERNANCE COMMUNITY AND REGIONAL DEVELOPMENT FINANCIAL PERFORMANCE REMAIN RELEVANT BY BEING WE STRIVE TO BE THE BEST TAKING ON THE CHALLENGE COHERENT AND TRANSPARENT NEIGHBOR OF GROWING TOGETHER _ 67 FORMALIZATION WORKING TOGETHER TOWARD A SUCCESSFUL CO-EXISTENCE ___ On March 5, 2020, Zijin Mining Group (China) acquired _ 100% of Continental Gold’s shares. This 2019 Sustainability Report may, therefore sometimes, reference Continental LEGAL COMPLIANCE Gold instead of Zijin-Continental Gold. You will, however, see the updated company name and logos throughout this publication. GRI TABLE (GLOBAL REPORTING INITIATIVE) The Colombian Peso Market Exchange Rate used for this report is COP 3,281 per US Dollar. LETTER FROM THE CEO – JAMES WANG Go to content

(102-14) On March 5, 2020, Zijin Mining Group acquired 100% of throughout the world. Its shares are listed on both the Shanghai Continental Gold’s shares. This happened after a 4-month long Stock Exchange and the Hong Kong Stock Exchange. process when all required steps were taken for the acquisition. I Our work will continue in Colombia. now have the privilege of leading Zijin-Continental Gold. Programs such as the Supply Chain Linkage Program (PEP), Zijin Mining Group is an international mining company with Future Harvest, the Family-Responsible Company (FRC) certifi- operations throughout Asia, Africa, South America, and Oceania. cation, the company’s high operational standards, and its focus Sustainability and employee safety are fundamental pillars of the on creating local jobs, motivated Zijin Mining Group to acquire “Coming to Colombia is no company. I am therefore pleased to reiterate that we share the Continental Gold. The biggest motivation, however, was the coincidence. The Buriticá same values presented in the 2019 Sustainability Report, which human talent we discovered, which has been building this world- are based on GRI standards. We firmly believe wealth is created class Project for years in Colombia. Project will be Colombia’s through harmony. We are determined to build a harmony-filled The company is transitioning into its production phase, as the most advanced underground ecosystem for the company, our employees, and the community. construction of the gold-ore mineral processing plant is 99% fin- Coming to Colombia is no coincidence. The Buriticá Project will ished. Although we face many challenges related to the world- mining project. We are be Colombia’s most advanced underground mining project. We wide COVID-19 crisis, we have demonstrated that we can con- committed to continuing to are committed to continuing to be an example of Modern Mining, tinue contributing to the local, regional, and national economy by which is sustainable and properly executed. implementing and following strict safety protocols. be an example of Modern We came to Colombia with the firm commitment of contributing Zijin-Continental Gold is ready to become the leader in Mining, which is sustainable to Western Antioquia’s development, as we develop the Project. Colombia’s gold mining sector, and its mission is to become the The numbers in this report are therefore essential, as they set the most important mining company in the world by 2030. and properly executed.” roadmap for the work which is ahead. I want to share a little bit of background information related ___ to our group. In 2019, Zijin was listed number 889 on the Forbes James Wang «Global 2000 - The World’s Largest Public Companies.» In 2020, CEO Zijin-Continental Gold it reached number 778. It is the top gold mining company on the list and the top non-ferrous Chinese mining company. Zijin was founded in 1993 in Fujian Province in southeast China. It has been working with metals such as gold, copper, and zinc since the very beginning. In the last few years, it has become a leader in specialized mining and metal refinement, having projects and companies in 24 of China’s provinces and 13 countries

3 / Sustainability Report 2019 / Zijin – Continental Gold LETTER FROM THE VICE-PRESIDENT OF SUSTAINABILITY Go to content

We thank you for stopping to read the Zijin-Continental Gold fam- >> We’ve participated in the wild-cats conservation alliance, ily’s 2019 extraordinary adventure story. This story showcases helped coffee farmers adopt technical methods, provided the great effort of 4,334 heroes during a 365 day period, which vocational training, environmental education to students, and helped build a mine in Buriticá, expected to transform Western many other things. Antioquia and the lives of the people affected by the project. The generosity of the people who have embraced us is over- We understand there is much more to do, and are aware of our whelming. Thank you to the residents in municipalities within our limitations and of the high expectations which communities and area of influence. The participation of workers, contractors, sup- local authorities have. We are confident that if we act in good “We are confident that pliers, local authorities, religious leaders, the media, Department faith, remain true to our values, and work together, this mining and National Government functionaries, control entities, social project will have a significant and positive impact on Western if we act in good faith, and multilateral organizations, and contractor firms, has been Antioquia. remain true to our values, extraordinary. The report discusses each aspect of our actions (economic, Without the support, quality, and commitment of our people, social, or environmental), with supporting evidence for how and and work together, this we would have never achieved so much. why we acted. It provides details on how short, mid, and long mining project will have Your trust encourages us to improve every day. term goals’ results were measured, as well as an example of a This report highlights how we’ve been able to achieve: successful case. a significant and positive >> 91% advancement in construction, and more than than 15,000 Zijin Mining Group, China’s largest diversified metal mining impact on Western meters of tunnels. corporation, acquired Continental Gold at the end of 2019, as part >> 20,000 meters in exploration drilling and 69,000 meters within of its plan to become one of the largest mining companies in the Antioquia.” the mine. world by 2030. >> 50% of our workforce is from the area, and 20% of our workers The fusion between state-of-the-art technology and experi- are women. ence from the People’s Republic of China, with Colombian exper- >> A 60% reduction in recordable injuries even though employee tise, values, labor, and the goodwill of thousands of Colombian numbers almost doubled. citizens will, without a doubt, allow this Project to be com- >> Social and environmental investments of COP$14.6 billion missioned as one of the most productive, and technologically and COP$13 billion in purchases from local suppliers. advanced projects, with a major focus on environmental and >> Formalization mines’ production has increased fourfold when social responsibility. compared to 2017. ___ >> Over 110,000 hours of training have been provided, and we Carlos Franco continue to be a Family-Responsible Company. Vice-President of Sustainability

4 / Sustainability Report 2019 / Zijin – Continental Gold Continental Gold continues on its path toward sustainability in Buriticá and Western Antioquia. It is a process that continually opens up doors, year after year, and sets an example for other companies and industries to follow. Its story is full of people, and enthusiastic professionals, continually dreaming of building bridges and discovering opportunities on the other side of the tunnel. Go to content

About the Report

(101) The following 2019 Sustainability report is pre- >> International Council on Mining and Metals sented to all our stakeholders. It includes the most (ICMM)’s Sustainability Framework. relevant results related to our financial, environmen- >> Voluntary Principles on Security and Human Rights. tal, and social performance. It also considers potential >> United Nations Guiding Principles on Business and risks that we may face, national and international con- Human Rights (UNGP). texts, our pillars, and company values. (102-12) (102-54) This report was prepared follow- The Organization for Economic Co-operation and ing the Global Reporting Initiative (GRI) Standards: Development (OECD) Due Diligence Guidance for Essential option, and considers the guidelines set forth Responsible Mineral Supply Chains in Conflict-Affected under the GRI Mining and Metals Sector Supplement. and High-Risk Areas. Material issues presented in this The document also considers coincidences in the report were identified during a relevant material issues organization’s efforts with objectives outlined in the exercise, performed at the end of 2019. The issues UN’s Sustainable Development Goals (SDGs). were prioritized and validated by the different stake- (102-45) (102-49) (102-50) (102-51) (102-52) The infor- holders who participated. They are listed in order of mation contained herein corresponds to the period importance: between January 1 and December 31, 2019. This report >> Social Impact Management is published annually, and the last edition was published >> Protection and illegal mineral extraction in June of 2019 (which covered processes carried out >> Strategic relationships with our stakeholders in 2018). The report covers Continental Gold Limited’s >> Water operations in Western Antioquia. It includes the Buriticá >> Local Economic Development Project: our flagship high-grade gold operation. >> Occupational Health & Safety (102-55) The GRI Table can be found in the appendix. >> Environmental Management The content of this report reflects material issues for >> Mining Formalization the company and its stakeholders. It includes elements >> Operational Excellence that are relevant to individual stakeholders and the >> Talent management mining industry as a whole. It covers points related to international standards and the most broadly accepted (102-32) This report was approved by the Board of socio-environmentally responsible behavior, which Directors, by the Chief Executive Officer (CEO), and by includes: Colombia’s CEO. >> Performance Standard 1 from the International Monetary units are reported in US Dollars. Finance Corporation (IFC).

6 / Sustainability Report 2019 / Zijin – Continental Gold Go to content

(102-2) (102-16) About us Strategic Map

HEALTH AND ENVIRONMENTAL CONSTRUCTION CONSTRUCTIVE EMPLOYEE RESULTS RESOURCES SAFETY MANAGEMENT OF MINE AND COMMUNITY SATISFACTION AND AND MINING PROCESSING PLANT RELATIONS SENSE OF BELONGING POTENTIAL

>> Zero fatalities >> Strict compliance >> Keep mine and >> Consolidate our social >> Have exceptional leaders >> Comply with the >> Guarantee >> Decrease serious of Environmental processing plant license via Continental to guide the organization approved budget the quality of reportable event Regulations construction on time and Gold activities and by in achieving its objectives the mineral (SRE) injury rates >> Strengthen our on budget. building a constructive >> Attract, select, train and production by >> Maintain our OHSAS Environmental >> Achieve the mine’s relationship with motivate the employees adequately

STRATEGIC STRATEGIC Standard 18001 Management construction and authorities and that the company needs preparing for OBJECTIVES certification System milestone objectives communities, thereby for the construction and commercial >> Implement >> Create the necessary maximizing benefits operation of the mine production. conservation conditions for large- and contributing to the >> Have a highly qualified and biodiversity scale competitive Company’s reputation. and successful support programs production area, that is close to our >> Modification of people and has no labor the Environmental disputes License F STRATEGIC S O FO EA CU AR S

IMPROVING PEOPLE’S LIVES AND CREATING VALUE THROUGH SUSTAINABLE MINING

HIGHER PURPOSE

VALUES: Respect Ethics/Integrity Transparency Safety Social commitment

7 / Sustainability Report 2019 / Zijin – Continental Gold Go to content

(102-3) (102-4) Municipalities and rural villages in the area of influence of the Buriticá Project, Gran Buriticá S.A.S. and Berlin S.A.S.

Buriticá ITUANGO Antioquia Colombia Llanogrande Mogotes

BRICEÑO VALDIVIA BURITICÁ Bubara Mogotes

Higabra Siara Pajarito TOLEDO Los Asientos Los Asientos

N Higabra Los Arados La Angelina

Murrapal SAN ANDRÉS YARUMAL Rural Municipal Villages El Naranjo DE CUERQUIA El Naranjo Municipality Pinguro

Alto del Obispo

BURITICÁ PROJECT GRAN BURITICÁ PROJECT BERLÍN PROJECT

8 / Sustainability Report 2019 / Zijin – Continental Gold SUSTAINABILITY

(102-19) Our sustainability model

Continental Gold knows that having a sustain- sustainability, which emphasizes Occupational Community and ability model with clearly defined stakeholders Health and Safety, Labor Relations, Communities, Regional Development and clear roles promotes valuable conversations Security, Land, Small-Scale Mining, and Artisanal Our People Environment with a long-term focus that enable the Company Mining. to pursue its higher purpose, which is to: “Improve Sustainability is a cross-cutting commitment High Operational Institutional lives and create value through sustainable min- throughout our entire organization, from the Standards strengthening ing.” It also allows the Company to advance in highest corporate level down to each specific and Relations its goal of ensuring sustainability throughout the business area. entire value chain. Our organizational structure prioritizes sus- Sustainability is a top priority for our Board tainability in every decision we make. To guaran- of Directors. Starting in 2017, they’ve approved tee this, We promote open dialogue spaces, con- and adopted a Sustainability Policy that ratifies certation, and coordination. our commitment to social and environmental

The Board of Directors is responsible for defining macro concepts BOARD OF DIRECTORS that guide the organization. They also check and revise previous decisions to ensures the Company remains on track with its long- term strategy to guarantee business continuity.

BOARD OF DIRECTORS COMMITTEES Audit Committee; Community and Government BD Committees help the board make decisions. They provide a Relations Committee; Corporate Governance long-term vision, strategic orientation, advice, and accompany Committee; Nominations and Human Resources decisions. Committee; Health, Safety, Environment Committee; and Technical Committee The Sustainability Committee ensures sustainability is considered at all corporate levels and is promoted in every goal that is set throughout the organization. SUSTAINABILITY COMMITTEE Responsibilities: • Coordination. • Monitoring and follow-up. • Analyzing trends and the environment. • Producing information.

The Company is committed to incorporating sustainability into everything we do, at all levels within the organization. We encourage workers and employees to take ownership of the concept, which systemati- cally helps consolidate our strategic vision. (102-20) At an executive level, the Senior Vice- Presidency of External Affairs and Sustainability leads an experienced upper management team, supervising economic, environmental, and social

issues. It is subdivided as follows: Training the >> Sustainability Vice-Presidency (oversees the next generation of Buriticá’s Social Management, Formalization, and Projects heritage and Planning departments). rangers >> Environmental Vice-Presidency. >> Communications Management. >> International Standards Directorate COORDINATION MONITORING AND FOLLOW-UP >> Provides strategic guidelines for complying with and >> Monitors sustainability risks. We also have a Financial Vice-Presidency, which managing the Company’s Sustainability Policy and >> Develops action plans to improve sustainability reports directly to CEO Colombia. reviews advances in its implementation. performance. In 2019 we advanced in creating a Sustainability >> It generates mechanisms to bring different areas Committee, a space for dialogue, analysis, and deci- together so that they can work in a coordinated PRODUCING INFORMATION sion making. Its responsibilities include: fashion. >> Collects and validates information for different >> Coordinates the Comprehensive Socio- reports. Environmental Management System. >> Coordinates and produces an annual Sustainability >> Supervises the Grievances and Complaints Office’s Report. operation. 2020 will be a decisive year for this governance body. ANALYZING TRENDS AND THE ENVIRONMENT It will attempt to bring the different areas together and >> Monitors and analyzes best practices and encourage people to take ownership of the Company’s the mining environment, to identify risks and Sustainability Model, using training, instruction, and opportunities for the Company. assertive communication strategies with the various >> Proposes changes to the Company’s Sustainability stakeholders. Policy and Strategy.

Materiality The process used the following steps: Materiality matrix Analysis 1. ISSUE IDENTIFICATION >> Communities and local authorities (a (102-47) (102-46) At Zijin-Continental Gold, we Different information sources were ana- workshop with Mayors from Western are aware of our surroundings, our sec- lyzed. We identified world affairs, mega Antioquia). 2 tor’s dynamics, and our stakeholders’ tendencies, sector-based practices, and >> Strategic partners (two interviews). 5 4 expectations. Therefore, we periodically initiatives, as well as accessions and international >> Canadian regulators and authorities (one 1 7 update and adapt the risk and impact commitments. We also revised current corporate pol- interview). 3 management strategies for our Mining icies, strategic risk factors the Company is exposed >> Employees (two prioritization workshops, 11

Project, to help us better face these to, and vital corporate components within the orga- one in Medellin and one in Buriticá). 13 12 challenges, in ways that are transparent nization’s different levels. >> Formalized miners (workshop with 8 6 and responsible to all our stakeholders. miners held in Buriticá). 15 10 9 14 In 2019 we updated our material- 2. IDENTIFICATION STAKEHOLDER GROUPS >> Non-government organizations (three 17 16 ity analysis, seeking to align Company TO CONSULT interviews). 18 19 needs and strategic objectives with Different stakeholder groups were ana- >> Suppliers (four interviews). 20 the needs and the desires of our stake- lyzed, and key individuals were defined >> International cooperation entities (two holders. Doing so will safeguard the within each group. Specific methodolo- interviews).

Company’s long-term success. The gies were established to engage and dialogue with >> Colombian and Antioquia government Relevance for stakeholders purpose of the exercise was to: each group. This was always done while applying regulators and authorities (13 interviews). Relevance to business >> Identify the most relevant work- the highest Company values and using the most >> Guilds/Associations (two interviews). related focal points for the next 3 appropriate personnel. The chosen participants rep- >> The Media (two interviews). MATERIAL ISSUES years. resent the diversity of people surrounding our proj- 1. Social Impact Management 2. Protection and Unlawful Extraction >> Contribute to the Company’s ect. Our selection criteria considered individuals with 4. PRIORITIZATION 3. Strategic Relationships with Our Stakeholders strategic discussions. different levels of responsibility, gender parity, and Each of the important/signif- 4. Water >> Enrich and improve our current always respecting people’s autonomy throughout icant issues identified in the 5. Local Economic Development Sustainability Model. the process. materiality analysis was rated 6. Occupational Health & Safety 7. Environmental Management and prioritized. This was done using a mate- 8. Mining Formalization The exercise incorporated required 3. INTERNAL AND EXTERNAL riality matrix we built after each issue was 9. Operational Excellence Global Reporting Initiative (GRI) prac- CONSULTATIONS validated. 10. Talent Management tices and the AA1000 Stakeholder We conducted interviews, workshops, and MAINTENANCE ISSUES Engagement Standard. surveys with different stakeholder groups 5. VALIDATION 11. Regional Development and Institutional Strengthening to identify the most important things for Management reviewed and val- 12. Biodiversity 13. Ethical Conduct them. This helped us understand where we should idated the different important/ 14. Fair Labor Practices; focus our efforts in the next few years. Stakeholder significant issues. The results of 15. Responsible Value-Chain participation was accomplished using virtual and the validation process allow us to visualize 16. Air Quality traditional tools. Honest and respectful dialogue issues that will be relevant in the upcoming 17. Corporate Governance 18. Responsible Mineral Processing was encouraged among the participants, who were years. Issues have been classified into two 19. Climate Change invited to share their views, in no particular order. groups: material issues and relevant issues. 20. Waste Management

WE ARE ALIGNED WITH INTERNATIONAL 1. EQUATOR PRINCIPLES (EPS) 3. GENERAL ENVIRONMENTAL, STANDARDS These best practice principles, which HEALTH, AND SAFETY (EHS) Today’s world, and especially our stakeholders, “Businesses need apply to all industries and several financ- GUIDELINES FOR THE MINING require specific, relevant, transparent, and acces- to stop seeing ing practices, have already been adopted SECTOR sible information. Zijin-Continental Gold under- by over 80 financial institutions. They pro- These International Finance Corporation stands how critical it is that we manage our busi- sustainable vide guidelines for determining, assessing, (IFC) guidelines* contain general exam- ness correctly and is committed to complying with development as and managing environmental and social ples of international best practices for the and even exceeding national rules and regulations risks in projects being financed. industry and provide users with guidance by adopting international best practices that guide a compliance issue related to specific issues. For the Buriticá all our underlying policies and procedures. and realize that 2. ENVIRONMENTAL AND SOCIAL Project, we applied industry-sector guide- In 2019, we consolidated our International PERFORMANCE STANDARDS lines that provide general descriptions Standards Strategy with a clear purpose: “To con- it generates FROM THE INTERNATIONAL of the industry, help us manage indus- tribute to Western Antioquia’s inclusive and sus- real value.” FINANCE CORPORATION (IFC) try-specific impacts, and establish indica- tainable development”; and in this way strengthen These standards provide guidance in iden- tors to help us monitor performance. the social license we have earned for our project, Accountability, 2006 tifying social and environmental risks and and ensure that it continues to be valid through- impacts. They establish a series of best 4. UNITED NATIONS GUIDING out time. We are not, however, merely promoting practices that should be adopted to pre- PRINCIPLES ON BUSINESS AND international best practices within the Company. vent, mitigate, and to compensate for their HUMAN RIGHTS (UNGP) Our Sustainability Model requires that these pro- effects using an adequate management Our due diligence effort, for all matters cedures be incorporated into our entire value system. related to human rights, led us to adopt the chain. They should also be adopted by those In 2019, Zijin-Continental Gold worked UN’s “Guiding Principles,” which involves that do business with us. Multi-actor spaces are on closing gaps, identified in our com- working with State agencies, private a great way to share both our accomplishments pliance with the norm. We hope to close businesses, and civil society with clearly and areas where we all need to improve. A modern 100% of these gaps in 2020, except for defined roles and responsibilities. Their mining, open and transparent dialogue approach issues requiring full consolidation of the purpose is to promote harmony during not only makes us a reference within the sector mining production phase. development and encourage peaceful but also positively affects the relations with our conflict resolution between the different different stakeholder groups. parties. We are firmly committed to respecting human rights. The safety and well-being of everyone involved in the Buriticá Project are a top priority. It is possible to accomplish this by managing our operation in an economic, social, and environmentally friendly way, guided by the highest international standards, such as: * Learn about the general Environmental, Health, and Safety (EHS) guidelines for the mining sector.

ACCESSIONS AND MEMBERSHIPS (102-12) (102-13) COLOMBIA

Colombian Mining Association (ACM)

National Business Association of Colombia (ANDI)

Colombo-Canadian Chamber of Commerce

Mining and Energy Committee on Security and Human Rights (CME)

Colombian Reporting Process under the Extractive Industry's Transparency Initiative (EITI)

5. VOLUNTARY PRINCIPLES ON SECURITY 7. THE ORGANIZATION FOR ECONOMIC AND HUMAN RIGHTS CO-OPERATION AND DEVELOPMENT (OECD)’S DUE Board of Directors of Proantioquia This voluntary code of conduct helps guide corporate DILIGENCE GUIDANCE FOR RESPONSIBLE MINERAL (foundation for private sector development of Antioquia) behavior and shows companies how to protect their SUPPLY CHAINS IN CONFLICT-AFFECTED AND HIGH- personnel and assets while respecting human rights. RISK AREAS AND ITS “GOLD SUPPLEMENT” This guidance document helps mining companies source their CANADA 6. ORGANIZATION FOR ECONOMIC mineral resources in ways that do not contribute to conflicts CO-OPERATION AND DEVELOPMENT and are respectful of human rights. It also encourages open and Prospectors & Developers Association of (OECD) GUIDELINES FOR MULTINATIONAL transparent mineral supply chains and a commitment to sus- Canada (PDAC) ENTERPRISES tainable business practices in the mining sector. The document, These are government-led recommendations for together with its gold supplement, provides companies with a companies from or operating within OECD coun- complete package on how to source minerals responsibly, and tries. They provide non-binding norms and principles in ways that contribute to stability, peace, and sustainable devel- Canadian Institute of Mining, Metallurgy related to responsible business behavior within a opment, instead of unintentionally increasing the problems in and Petroleum (CIM) global context. conflict-affected and high-risk areas.

14 / Sustainability Report 2019 / Zijin – Continental Gold STAKEHOLDER RELATIONS

WORK, MEASURE, ADJUST, AND ALWAYS KEEP AN OPEN DIALOGUE Our Propositions

Open communication channels are fundamental to transparency, integrity, and social commitment.

Modern mining must guarantee access to information as a pillar of human and social development.

Results must be assessed in the quest for continuous improvement. Communicating more is less important than providing the right message.

The best way to identify, manage, and cater to the needs of the territory is through continuous dialogue.

(102-21) (102-40) (102-42) (102-43) (102-44) (103-1) Zijin-Continental Gold utilizes diverse relations COMMUNITIES IMPACTED AND LOCAL AUTHORITIES (103-2) (103-3) (CNL7) mechanisms, such as: Zijin-Continental Gold creates value for all Attention to requests. stakeholders by building long-lasting relations based on trust, and by consolidating part- Press releases. nerships that promote regional development. Community training. Areas of interest This helps ensure the Company’s permanence •• Information and formulation of the Environmental Management Plan for the Buriticá Project. throughout time. Community billboards. •• Execution of strategic projects which improve quality of life in the area. Our relations mechanisms promote the •• Training and instruction. Partnerships/Alliances. •• Supply chain linkage and inclusive businesses. development of broad and inclusive strategies •• Formalization of small-scale mining. Coordination and execution of joint programs. and make it possible to co-build procedures, •• Strengthening community capacities. •• Institutional presence in the territory for social investment and law enforcement purposes. visions, and plans, with legality and the com- Dissemination of documentation. •• Challenges related to informal small-scale mining and illegal mining. mon good guiding our actions. Sustainability Report. Multiple, and ever more accessible, com- REGULATORS AND AUTHORITIES IN COLOMBIA AND ANTIOQUIA munication channels exist to allow the public Internal news channels. to study and observe our actions. This helps Participation in events us build harmonious win-win relations, where communities, the Company, and the govern- El Buri de Occidente newspaper and print. Areas of interest ment all benefit. •• Socialization of the Environmental Management Plan for the Buriticá Project. Information sessions. •• Follow-up on obligations acquired during the issuance of mining titles and environmental licenses. Workshops for building, socializing and following-up •• Formalization of small-scale mining. on social projects. •• Application of the law. •• Colombian mining sector relations and promotion. Visits to the Project. •• Job training program offerings and implementations, in Buriticá and surrounding areas.

Telerevista. CANADIAN AUTHORITIES AND REGULATORS Dialogues with Continental Gold.

Safety talks.

Monitoring. Areas of interest •• Socialization of the Buriticá Project. Interactions in public meetings. •• Information on closing gaps related to international socio-environmental management standards. Radio spots. •• Information on human rights practices in relation to public and private security. •• Formalization of small-scale mining. Social media. •• Managing illegal-mining related risks in Colombia.

OPINION LEADERS AND THE MEDIA EMPLOYEES

Areas of interest Areas of interest •• Modern mining and development, supply chain linkage. •• Collective agreement and collective bargaining. •• Environmental licensing. •• Personal and professional development and wellness programs. •• Formalization of small-scale mining. •• Job Satisfaction Survey.

SHAREHOLDERS AND INVESTORS SUPPLIERS AND CONTRACTORS

Areas of interest Areas of interest •• The Buriticá project and its feasibility study. •• Training and instruction programs. •• Timeline and construction modality. •• Design of a safety culture system and improvement of accident rates. •• Socio-political Risk Management. •• Closing gaps and socio-environmental management. MINERS UNDERGOING FORMALIZATION PROCESSES

ECONOMIC DEVELOPMENT PROJECTS AND PROGRAM OPERATORS Areas of interest MAJOR ACHIEVEMENTS IN 2019 •• Design of a safety culture system and improvement of accident rates. •• Training and Instruction. Areas of interest •• Structuring of mining environmental guides. •• Investment of resources and strategic projects in the territory. In 2019, our work focused on three •• Training and instruction programs. •• Job training program offerings and implementations, in Buriticá and surround- NON-GOVERNMENTAL ORGANIZATIONS (3) specific strategic actions: ing areas. AND ENVIRONMENTAL GROUPS >> Debugging or creating our communication channels and making them ever more ASSOCIATIONS assertive and effective for our stakeholders. >> Putting our processes to the test and Areas of interest measuring their effectiveness using different •• Formalization of small-scale mining. •• Local development projects. reputational markers such as Colombia’s Areas of interest •• Environmental impacts management. Mining Sector Reputation Ranking: “Brújula •• Colombian mining sector relations and promotion. •• Water care and conservation. Minera;” and also by participating in industry- •• Gold governance models in Colombia. •• Sustainability best practices. related contests which award mining •• Informal and illegal mining. construction and sustainability factors. >> Developing strategies and mechanisms for open dialogue with impacted stakeholders.

EFFECTIVE COMMUNICATION, OUR VOICES ARE STRONGER TOGETHER A KEY TOOL FOR BUILDING TRUST We understand how important it is to work together We promote continuous, transparent, and timely and to cooperate with our allies. This led us to communication with both internal and external join the Colombian Mining Association (ACM)’s stakeholders, using 12 different channels. How often #LoQueNosUne (What unites us) campaign. This each channel is used depends on the particular pub- allowed us to share the work we’re doing in Western lic being addressed. We leverage these channels to Antioquia with all Colombia via the RCN National try to guarantee quick and efficient access to infor- Radio Station chain, which allowed us to broadcast mation for all of our stakeholders. 14 different radio spots. Some of our most effective channels include cor- We contributed to 13 different articles published porate billboards (scattered throughout the Project), in the “Portafolio” national financial newspaper, on community billboards (posted in municipal city-hall various subjects. These included education, min- buildings and Community Action Committee meeting ing formalization, productive projects, Colombia’s venues), radio spots, and social media. Our followers National Technical Learning Institution (SENA), on Facebook, Instagram, and Twitter grew from 4,608 re-forestation, water protection, flora & fauna, sup- in 2018 to 9,116 in 2019. porting children, culture, infrastructure, citizen participation mechanisms, and suppliers development. ACCESS TO INFORMATION IS FUNDAMENTAL Click here. FOR EFFECTIVE RELATIONS In 2019, we increased coverage and renamed our CORPORATE REPUTATION, EVERYONE’S monthly community newspaper, now called “El RESPONSIBILITY Buritiqueño.” It was previously called “El Buri del Our goal is to strengthen each area’s voice and to Occidente Antioqueño.” We also increased its pages unite our corporate discourse. We are determined from 12 to 16 and started to distribute it in the neigh- A HISTORY OF CONSISTENT DIALOGUE (CNL 7) to consolidate our organizational culture by prior- boring municipalities of Santa Fe de Antioquia, We’ve held continuous “Dialogue with Continental itizing values and our higher purpose. Four train- Cañasgordas, and Giraldo. This has allowed us to Gold” Sessions for three straight years in a row. This ing sessions were held for this particular purpose. increase the reach of our corporate message and is space is used to exchange information with commu- Members of management, department leaders, and also helping us contribute to building a regional alli- nities, listen to their concerns, answer their questions, teams dealing with relations issues were invited ance, which is a high priority for the Company. and come to agreements. In 2019, we held a total of 8 to participate in the training (a total of 32 people We implemented a WhatsApp messaging strat- Dialogue with Continental Gold sessions, including 4 attended). egy to contact operational personnel and send them “Dialogue with the Colonies” (people from our area of We also promoted our values and higher purpose information more quickly. We used 66 WhatsApp influence currently living in Medellin). throughout our different channels. Each of our 720 messages and four interaction campaigns to reach Two hundred two (202) people participated in the internal news messages included key messages, 362 of the 733 operational personnel. sessions. Recurring issues dealt with jobs, productive which varied depending on the subject matter. projects, shared-usage of the Higabra industrial road, A protocol for dealing with specific situations was the community aqueduct, and environmental man- established, with the help of representatives from agement (e.g., water, permits, readings/measure- every area. The protocol set the basis for the updated ments, PES: Payments for Environmental Services). Crisis Manual, which will be available in 2020.

OUR GOALS NOTEWORTHY SHORT-TERM >> Generate favorable conditions for •• In 2019, the Company received the commissioning of the Buriticá three awards for stakeholder Project and the arrival of Zijin relations management. Mining Group in Colombia, using appropriate communication and SUCCESS CASE •• We’ve ranked among the top 10 relations strategies. companies in Colombia’s Mining SUPPORTING BURITICA’S Sector Reputation Ranking: “Brújula CULTURE AND HISTORY MID-TERM Minera” for three (3) consecutive On May 9, 2019, Zijin-Continental >> Promote and spread production years. In 2019 we ranked #7 (up Gold was awarded the Colombian and sustainability best practices from #9 in 2017, and 2018). Mining Association (ACM)’s that protect the Company National Journalism Award for our efforts in and help build political and •• Dialogue with Continental Gold protecting Buriticá’s culture and history. media reputation, using bold sessions have continued for Our Support for Buritica’s Cultural Heritage and assertive communication 3-years in a row: with a balance of Rangers and the Route of the Chief (Buriticá’s strategies that will help us 8 meetings with 202 participants. Historical and architectural heritage route) is respond to any possible crisis. consistent with our institutional strengthen- •• Communication channels have ing strategy, which is one of Zijin-Continental LONG-TERM been upgraded and created for Gold’s sustainability pillars. >> Support the work of different more effective and strategic Supporting culture and history not only areas so that our long-term communication. builds credibility, but it also strengthens rec- actions continue to strengthen ognized institutions and overseeing entities our relationships with our various •• We expanded the reach of “El in charge of these matters, such as City-Hall, stakeholders. Strong relationships Buritiqueño” newspaper to also the Office of the Inspector General, the Local are essential for the successful cover Cañasgordas, Giraldo, and Ombudsman’s Office, etc. operation of the Buriticá Project Santa Fe de Antioquia; pages were The Route of the Chief (Ruta del Cacique) and for any other projects we increased from 12 to 16. HOW WE MEASURE OUR ACTIONS campaign, had both an internal and external establish in Colombia. reach. It makes it clear that a region’s culture >> Positively impact the region where •• A new WhatsApp messaging Media distribution channels are con- and history should be on the public agenda, Zijin-Continental Gold operates strategy was implemented for tinuously monitored. In 2019, we and must be jointly protected by citizens, through strategic communication operational personnel, which were involved in 457 publications authorities, regional entities, and companies and industry best practices. currently reaches 362 field and broadcasts in national media outlets. located in the territory. employees. 218 were positive (47.7%), 211 were neutral A video on the Route of the Chief is avail- (46.17%), and 28 were negative (6.12%). able here.

20 / Sustainability Report 2019 / Zijin – Continental Gold CORPORATE GOVERNANCE

REMAIN RELEVANT BY BEING COHERENT AND TRANSPARENT Our Propositions

We are committed to transparency in our processes, stakeholder relations, and communication.

There must be coherency between how we act and our organizational values.

Our stakeholders’ interests are considered in our corporate decisions.

(103-1) (103-2)(103-3) (102-18) 2019, was a year of change and growth for Continental Gold. By completing one of Colombia’s most advanced large- Management Structure scale mining projects, we will be closer to our purpose: “Improving people’s Board of Directors lives and creating value via sustainable mining.” CEO Zijin-Continental Gold is meeting the demands of employees, investors, com- Fiscal CFO CEO Colombia munities, and the public in general, by Auditor governing the Company with responsibility, transparency, and integrity. This is Sr Vice-President of possible due to our highly qualified cor- COO Public Affairs and Sustainability porate management team, which continuously monitors all processes and Vice-President Vice-President of Vice-President Vice-President Vice-President of Finance Environmental Issues of Sustainability of Protection of Legal Affairs makes sure we are complying with our goals and commitments. Vice-President IT OHS Business Operations Social Communications Protection Human Resources Explorations of Finance Manager Manager Manager Manager Management Manager Manager Manager Manager Manager

Project Control Plant Plans and Manager Manager Projects Manager

Logistics Formalization Manager Manager Board of Directors

(102-24) A Board of Directors subdivided into four subcommittees leads our corporate management team:

COMMITTEES RESPONSIBLE FOR MAKING RESPONSIBILITIES DECISIONS

Audit Committee Monitors financial, ethical, and anti-corruption matters.

Monitors community and government relations, including corporate social responsibility Community and Government Relations Committee and environmental matters. Corporate Governance, Nominations, Supervises corporate management and human resource practices. and Human Resource Committee

__ Helps the Company and the Board of Directors with Environmental Organizational structure information Technical, Health, Safety, and Environment Committee and Occupational Health and Safety programs and policies, which can impact the Project as of December 2019. and the operation.

Structure of the Board of Directors

(102-18) (102-22) (102-23) (102-26) (405-1) The Board of Directors has eight members, each of whom are elected yearly by a majority of votes.

LEÓN DR. KENNETH G. ARI B. MARTÍN STEPHEN DR. CLAUDIA PAUL J. CHRISTOPHER TEICHER THOMAS SUSSMAN CARRIZOSA GOTTESFELD JIMÉNEZ MURPHY SATTLER Chairman of the Board, President, Ken Thomas Executive Director, Partner at, Philippi Vice-President of Executive Director, Corporate Director Corporate Director Continental Gold & Associates Inc. Continental Gold Prietocarrizosa Ferrero DU Communications and Jiménez & Asociados & Uría Public Affairs, Newmont S.A.S. Goldcorp Corporation

Independent: yes Independent: yes Independent: no Independent: yes Independent: yes Independent: yes Independent: yes Independent: yes Seniority on the Board: Seniority on the Board: Seniority on the Board: Seniority on the Board: Seniority on the Board: Seniority on the Board: Seniority on the Board: Seniority on the Board: 2013 2012 2010 2016 2017 2014 2010 2017

Board Committees: Board Committees: Board Committees: Board Committees: Board Committees: Board Committees: Board Committees: Board Committees: • Community and • Corporate Governance, • Community and • Community and • Audit Committee • Community and • Audit Committee • Audit Committee Government Relations Nominations, and Human Government Relations Government Relations Government Relations (President) • Technical, Health, Committee Resource Committee Committee Committee. Director positions Committee. • Corporate Governance, Safety, and Environment • Technical, Health, • Technical, Health, • Technical, Health, or membership • Corporate Governance, Nominations, and Human Committee. Safety, and Environment Safety, and Environment Safety, and Environment Director positions in committees of Nominations, and Human Resource Committee. • Corporate Governance, Committee Committee Committee or membership other companies / Resource Committee Nominations, and Human in committees of organizations: Director positions Resource Committee Director positions or Director positions Experience: other companies / • Vice-President of Director positions or membership (Chairman). membership in committees or membership • Economic organizations: Communications and or membership in committees of of other companies / in committees of • Social • Scotiabank Colpatria Public Affairs, Newmont in committees of other companies / Experience: organizations: other companies / • Environmental (Director). Goldcorp Corporation other companies / organizations: • Economic • Cementos Argos S.A. organizations: • LarraínVial Colombia (New York Stock organizations: • Alamos Gold Inc. • Environmental (Colombia Securities • Cardinal Resources (Director). Exchange). • Empresas Públicas de (Toronto Stock Exchange, Exchange) Limited (TSX) (Director) • Andes University Medellín (EPM - Public TSX) (Chairman of the • (Director; member • Technical, Health, (Director). Experience: Utility Energy Company) Board). of the Sustainability Safety, and Environment • Economic (Director). • Generation Mining Committee). Committee Chairman. Experience: • Social • Pharmacielo Colombia Limited (Canadian Stock • Andes University in • Former Chairman and • Economic • Environmental Holdings S. A. S. Exchange) (Director). Bogotá (Member of the member of the Canadian • Social (Director). Board of Directors). Institute of Mining, Experience: • Fedesarrollo (a major Metallurgy & Petroleum Experience: • Economic think tank on economic (CIM). • Social • Social matters; Director). • Environmental • Environmental • Ideas for Peace Experience: Foundation (a neutral, • Economic private sector foundation; • Environmental Director).

Experience: • Economic • Social • Environmental

STRUCTURE OF THE BOARD 2017 2018 2019 2017 2018 2019 Total number of board members 9 8 8 Number of CEOs 1 1 1 Percentage weight of CEO on the board 11% 13% 13% Number of non-company directors 8 7 7 Percentage of non-company directors on the Board 89% 88% 88% Number of women directors 1 1 1 Percentage of women directors 11% 13% 13% Number of independent directors 7 7 7 Percentage of independent directors 78% 88% 88% Number of directors that are not independent 2 1 1 Percentage of directors that are not independent 22% 13% 13% Average number of years our directors have served on the board 4.1 4.4 5.4

(405-1) Percentage of individuals, representing the Company’s diversity, serving in governing corporate bodies, for each of the following categories: 2017 2018 2019 DIVERSITY OF THE BOARD - NUMBER PERCENTAGE NUMBER NUMBER PERCENTAGE NUMBER PERCENTAGE NUMBER PERCENTAGE PERCENTAGE Percentage of women in governing corporate 1 12.50% 2 22.22% 1 12.50% bodies Percentage of men in governing corporate 7 87,.50% 7 77,.78% 7 87.50% bodies Percentage of employees under the age of 30 0 0.00% 0 0.00% 0 0.00% in governing corporate bodies Percentage of employees ages 31 to 40 in 3 37.50% 1 11.11% 0 0.00% governing corporate bodies Percentage of employees ages 41 to 50 in 1 12.50% 2 22.22% 3 37.50% governing corporate bodies Board of Directors’ Roles Percentage of employees ages 51 to 60 in 3 37.50% 3 33.33% 2 25.00% governing corporate bodies and Responsibilities Percentage of employees ages 61 and older in 1 12.50% 3 33.33% 3 37.50% governing corporate bodies (102-26) Percentage of employees belonging to other >> Supervises strategic and non-strategic Company affairs minority categories including people with 0 0.00% 0 0.00% 0 0.00% by delegating these to the C-Suite (CEO, CEO Colombia, COO y CFO). disabilities, ethnic minorities, or vulnerable populations >> Sets objectives, values, and business strategies. Total number of individuals that are part of >> Selects and appoints members. 8 100.00% 9 100.00% 8 100.00% governing corporate bodies >> Defines procedures for resolving conflicts of interest. >> Identifies and oversees general corporate risk management * Governing corporate bodies include the Chairman, the COO, and Vice-Presidents. Apprentices are not included in the total employee count. as well as economic, environmental, and social impacts.

Risk Management (102-15) (102-29) (102-30) (102-31) (103-33) MAIN RISKS MAIN IMPACTS MAIN OPPORTUNITIES We know the Project is transitioning into its produc- 1. Lack of precision in the Resource Model, 1. Company shares losing value. 1. Optimizing costs. tion phase, so we are highly focused on timely iden- for estimating, locating ,and determining 2. Drop in project value for investors. 2. Strengthen partnerships with tifying any risk factors and on maturing our organi- mineral grade 3. Drop in gold reserves. stakeholders. zational culture. Our risk management efforts begin 2. Lack of funding 4. Losing our social license. 3. Impart out staff’s knowledge and at each department. Every primary committee must 3. Data theft or information loss due to cyber 5. Environmental license modifications experience on security related issues. identify and assess operational risk every quarter. attacks. 6. People’s physical integrity being affected. 4. Implement suggestions received during After, the Local Risk Committee assesses the risks, 4. Conflicts with communities in the area of 7. Delays in Project construction. audits and visits during the construction creates and approves a summary of the most signifi- influence. 8. Loss of information. phase. cant risks, and sends it to the Board of Directors. 5. Formalized companies not satisfied with 9. Impact on reputation. 5. Work together with environmental The Board meets quarterly to review the risk analy- results. 10. Interruption of operations (activities being authorities and research institutes to sis, performed by the operations team, and to assess 6. Construction affecting the environment. stopped or blocked). protect biodiversity. and update the operational risks that are most strate- 7. Legal or reputational risks associated with 6. Transfer knowledge related to best gic and those which can impact the organization at a money laundering, terrorism financing, or practices within our value chain. macro level. corruption. 7. Promote transparency and the reporting (102-15) In 2019, the following major risks, impacts, of unethical behavior. and opportunities were identified:

Ethics and Integrity (102-16) (102-17) (102-34) (205-2)

At Continental Gold, we believe the best way to create sustained value for our business and our stakeholders is to do things right; with concrete actions that reflect our commitment to our values (Respect, Ethics and Integrity, Transparency, Security and Social Commitment). We are convinced this is the only way to fulfill our higher purpose (“Improving lives and creating value through sustainable mining.”)

Organizational abilities

>> Teamwork. >> Commitment and Responsibility. >> Effective Communication. >> Results Based. >> Adaptation/Flexibility.

Organizational rules of conduct

CODE OF ETHICS AND BEHAVIOR communication with the C-Suit, through different Consultant Steven Koegler (steven.koegler@risk- committees that perform tasks for Board or for the strat.com) audited 100% of the Company’s areas on Compliance Officer. As was previously mentioned, in Seventy-five (75) issues related to corruption miti- 2019, 25 cases were reported via the Transparency gation, prevention of unethical behavior, and com- Hotline. The Board of Directors’ Audit Committee pliance. The Company was audited both in 2018 and was notified. 2019 The audit discovered three main risks: Every single case was investigated, and disci- >> Company employees and officers behaving plinary action was taken for all confirmed cases. unethically . These cases were related to one or several of the >> Inappropriate use of Company assets following categories: and financial resources. >> Improper use of Company resources and assets/ >> Impersonation fraud. Destruction and theft. >> Fraud in non-financial reports (205-2) In 2019, 100% of top-management and direc- >> Conflicts of interest/Supplier and contractor tors received training and information related to relations. anti-corruption policies and procedures. Between >> Corruption and bribery. 2018 and 2019 we increased our training for Company >> Inappropriate employee behavior/Not following employees by 50%, which means 77% of our 1,175 company policies. employees (100%) received training. Additionally, 53 >> Inappropriate behavior by 3rd-party suppliers suppliers were informed about our anti-corruption or contractors. policies and procedures. >> Workplace Relationships/Harassment. (205-3) Just like in 2018, in 2019, no public legal >> Duties / Occupational Health and Safety. cases, nor accusations related to corruption were >> Improper use of resources and assets/ Misusing filed against the Company, nor against any of its Company assets. employees. Furthermore, there was a 39% increase >> Money-laundering / financing terrorism. in cases reported via the Transparency Hotline. >> Conflicts of interest / Company officials This means that people are becoming more willing and directors. to report issue. All essential information needed >> Threats/Sabotage/Operation. by the Board of Directors is collected via direct

Information and ethical concerns mechanisms

The following mechanisms exist for disclosing concerns related to unethical behavior, and violations of the code of conduct. >> Coexistence Committee: [email protected] >> Citizen information and attention services (SIAC): [email protected]. Phone: (4)3121026, ext. 3312. Mobile: 3117331725 >> Transparency Hotline: •• Anonymous Telephone Hotline: 01-8000-1234-84 (Colombia) / 1-888-882-0180 (USA/Canada) •• Emails: [email protected] / [email protected] / [email protected] •• Via letter correspondence: Paul J. Murphy, Chairman of the Audit Committee (Continental Gold Inc., 155 Wellington Street West, Suite 2920 Toronto, ON, Canada M5V3H1). / Enrique Gil, HOW WE MEASURE OUR ACTIONS Compliance Officer (Calle 7 # 39-215, Office 1208, Centro Empresarial BBVA, Medellín, Colombia). >> > An Annual Audit Plan, >> The internal Audit, >> Results from these >> Our Compliance Officer >> Internal PQRS (requests, complaints, claims and approved by the Audit Compliance, and Risk processes are reported follows-up on all suggestions) system managed the Human Resources Committee Chairman, Management Department to the Audit Committee complaints received Department. exists to ensure we are follows-up on all action and to area leaders during through the Transparency managing the organization plans implemented after an management committee Hotline, and also reports (102-25) A platform exists for dealing with possible conflict of effectively. Our 2020 Audit audit, on a monthly basis. meetings. them to the Audit interest declarations within the Company. Employees that are Plan was defined at the Committee. unable to use the digital platform reporting mechanism can fill end of 2019. It focuses on out a physical form. Conflict of interest information is sent to production and operational the Audit Committee. efficiency within the plant.

OUR GOALS

SHORT-TERM >> Strengthen and mature our Risk Management System, compliance actions, and audit processes, always implementing best practices.

MID-TERM >> Promote a culture of transparency and of reporting unethical behavior.

LONG-TERM >> Position ourselves as a leading mining company known for world- class best practices in Colombia and Latin America.

SUCCESS CASE

Claims reported via the Transparency Hotline increased by 39%, from 18 in 2018 to 25 in 2019. Zijin-Continental NOTEWORTHY Gold believes self-reporting is an effective way to lower risks and mitigate impacts. Seeing a •• In 2019 we created a Local Risk to become more involved that includes using new data protection, 62% (221/355) 39% increase in reporting of risks and ethical Committee. The Committee and committed in the technologies and digital were trained on issues related concerns shows that the company is maturing counts on the participation Company’s Comprehensive platforms that help us reach all to money-laundering and in its culture of Ethics and Integrity. There is a of the Chief Executive Officer Risk Management and Risk of our employees. financing of terrorism, and 91% growing interest in best practices and proper (CEO), the Chief Operating Mitigation initiatives. (324/355) received training usage of resources. Officer (COO), Vice-Presidents, •• 54% of our administrative staff related to compliance. and invited managers. This has •• We implemented a (193/355) received training and allowed Upper-Management communication strategy information related to personal

29 / Sustainability Report 2019 / Zijin – Continental Gold

OPERATIONAL EXCELLENCE IS OUR DRIVING FORCE Our Propositions

We developed innovative infrastructure, with high operational standards.

We are pioneers in industry best practices in Colombia.

We strive to manage negative impacts and maximize positive impacts of our presence in the territory.

We encourage technological transformation as a way of increasing security and efficiency in our processes.

(103-1) (103-2) (103-3) After several years of exploration activi- The mine’s construction has generated Exploration ties in the Buriticá mineral gold deposit, many jobs, decreased unemployment, EXPLORATION MAP trying to understand the region’s geology, and opened many new opportunities for In January 2019 we announced our updated in 2017, we began the construction of one local employment. Many people have mineral resources projections, which con- Colombia’s biggest large-scale under- been hired as mining workers, process- sidered data collected since 2017. Our ground gold mines. This mine is located ing plant technicians, and administrative updated projections make Buriticá one of BURITICÁ in the heart of Buriticá, and begins a new staff. We thank to thank everyone that world’s most important Gold Mines under mining era in Colombia. has contributed to the Project in each of construction. It has 11.34 million ounces of The Buriticá Project combines excep- its phases. You’ve allowed us to build a gold (MI&I - measured and indicated plus Yaraguá North tional mineral volume with infrastruc- world-class operation, using the highest inferred). We also finished the totality of our ture development, metallurgy, quality, operational standards, best practices, exploration drilling, which covered approxi- Perseus Yaraguá East Deep and growth potential. Zijin-Continental while keeping the construction phase mately 20,000 meters and primarily focused Yaraguá Gold plans on producing 250,000 ounces timeline on schedule. We expect to con- on understanding BMZ (Broad Mineralized Veta Sur of gold per year, throughout a 14-year tinue maintaining these high standards in Zones), and assessing the continuity of min- Laurel period. The mine’s state-of-the-art con- every phase: Exploration, Construction, eral structures or “vetas” in the Yaragua and struction and its processing plant cost Production, and Closure. Veta Sur systems. investors close to USD 549.5 million. In November, we received a new mining Electra North title in an area that is very close to our mining project, which is under construction. This increases the Project’s potential, and NG CC MN LE could allow us to continue exploration and prospecting activities in the short and mid- E RATONA P Orión E L L E OP E O term. In 2019, we performed other explora- R Safety C R U N th & E A S O al R L T O He es L I L D l p O tion activities in the Department of Antioquia. E a o E N C on ns N S ti i U a b C p le E We’ve also advanced in building open C u s c u O c p F O p and genuine dialogue with communi- We expect to produce l y

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Construction BURITICÁ PROJECT - PROCESSING PLANT

In December 2019, the Project’s construction phase was 91.1% complete. This brought us 1 closer to our goal starting the commission- 2 ing phase in H1 of 2020. The Project expects Ore Stockpile to become self-sustainable in H2 of 2020. 1 Every advance in the Project is the tes- Primary timony of thousands of workers, from 2 Crusher Colombia and other countries, striving to 3 3 Mill Building transform Colombia’s mining sector, and to 4 improve the outlook for Western Antioquia. 7 Gravity 5 9 4 We know how important it is to guarantee 8 Concentrator the safety of the areas we intervene. That’s 5 Leach Pad why we structured a system to mitigate 6 impacts. Counter Current 6 We use backfilling in underground mine Decantation tunnels, which is composed of extracted 10 - CCD rock, to ensure water containing heavy met- 7 Merrill Crowe als doesn’t filter through. We’ve also built 11 logistical and operational infrastructure 8 Smelter close to the mineral processing plant to prioritize the safety and well-being of our work- 9 Detoxification ers and that of the community. Our intention 10 Tailings filters is always the same: being a good neighbor. 12 11 Tailings Storage Piles

Tailings aerial 12 ropeway

13 Pulp plant

14 TSF

15 Water treatment plant

Construction progress as of December 2019.

KEY SUPPORT INFRASTRUCTURE ALSO INCLUDES >> A 5.9 km long access road between the >> Mining support facilities, including >> Public services infrastructure including water, >> Mining wastewater sedimentation ponds. Project entrance (La Estrella) and the Higabra maintenance of mobile equipment facilities, sewage, fire-protection, and communication Valley, which is the rural village where the mine personnel facilities, and a sprayed infrastructure. >> Surface water management infrastructure for large-scale mining complex is located. concrete mixing plant. dealing with local currents and facility runoff. >> A 13.2 kW power supply for pre-production >> Pulp plant used to produce cement backfilling >> Explosives storage facility. >> TSF for filtered tailings and waste rock. which will backfill the tunnels after the >> A 110 kW power transmission line, connected production is completed. >> Tailings cargo transport aerial conveyor to EPM’s national power grid. between the mineral processing plant and the backfilling pulp plant.

Operation Main Processes and Equipment for Modern Mining We are leaders in implementing high opera- In the last three years, we mainly focused on tional mining standards. We focus on minimiz- the construction of the mineral processing plant ing mining’s negative impacts and maximizing and on gaining access to the mineral ore bod- JUMBOS its positive impacts. We work hard to meet all ies. At the end of 2019, we progressively started of our stakeholder’s expectations. Our focus is to extract mineral ore to prepare our operations For underground drilling and tunneling, we use Mining Jumbos, horizontal face drills that can to maintain a safe and innovative infrastruc- area. Mineral ore extraction increased from 100 advance up to four meters at a time, increasing ture which is friendly with the environment. to 800 tons per day, which represents 50% of productivity. These drills are imported from plant’s capacity. Europe and allow operators to work under safe conditions.

(CNL13) (CNL14) LOADERS IN 2019 Our low profile loaders are imported from Europe and are selected based on the size of the mine. The We advanced equipment can be used to extract mineral ore from panels in deep drilling areas, using remote-controlled loaders to avoid risks to personnel. It also allows the 15,091 operator to carry out work from a closed ergonomic METERS cabin. of tunnels, which represent a 127% increase when compared to 2018.

RADIOS We reached Communication between workers and 68,960 For Zijin-Continental Gold, a modern mining supervisors is facilitated using an underground METERS approach not only means using state-of-the-art radio system. of diamond drilling, technology and innovation, but it also includes which is a 364% increase compared to the previous year. sustainable regional development and inclusion. We use specialized high-tech mining equipment and techniques, as well as maintenance We extracted practices for our machinery to operate under TUNNELS 123,514 optimal conditions. Our personnel are trained TONS to acquire optimal skill sets which highly qualify To increase productivity in the mine, we try to incorporate them to perform their duties, and also make them larger machinery with higher capacity. Therefore, the of mineral ore, diameter of some of our tunnels will be five meters by five representing an increase attractive candidates to other companies in the meters. These dimensions are bigger than those of most of 1,741% compared to 2018. future. underground mines in Colombia.

(103-1) (103-2) (103-3) BOLTERS Focused on We use Bolter Miners to install bolts and meshes on the rock, which support underground development. Just like Rock Drilling Jumbos, Operational Excellence Bolter Miners are imported from Europe for increasing productivity and ensuring safety in support installations. The operator is put under a ceiling to perform tasks safely. Occupational Health & Safety Zijin-Continental Gold understands how Our OHS Management System was designed important Occupational Health and Safety is and planned with three modern mining TRUCKS and considers OHS a fundamental corporate aspects in mind: It must be adequate, con- value. It is a cross-cutting issue we encour- venient, and effective. The system is contin- With 30-tonne Sandvik trucks, the truck age with all of our employees, and partners uously audited by both internal and exter- cycle time will decrease and therefore minimize the carbon footprint. since it positively impacts productivity as nal auditors and it is regularly assessed by well as people’s wellbeing. Company management to insure we contin- Our people are our most valuable uously work on improving it. We also have resource. That is why we consistently imple- an Emergency Management System for ment accident prevention strategies and dealing with a wide variety of equipment controls, to minimize job related accident such as: fire fighting vehicles, mining rescue SYSTEM FOR TRACKING PEOPLE risks. This promotes the health and safety vehicles, ambulances, BG4 plus equipment, AND EQUIPMENT of both employees and contractors in each tools for rescuing vehicles, etc. Our Rescue of the different work areas for different risk Brigade has been growing in number and We are currently developing a system to monitor levels they may be exposed to. All of these quality. Members receive cutting-edge train- people and equipment in real-time, using a NEWTRAX enabled cap lamps system to strengthen strategies are included in our Occupational ing by both the Company and by Colombia’s the monitoring and control system of personnel Health and Safety Management System National Mining Agency (ANM). They’ve inside the mine. (OHSMS), which is certified pursuant to the become so skilled, they even support exter- OHSAS 18001:2007 Standard. This stan- nal mining emergencies. dard fully complies with Colombian appli- LONG-HOLE DRILLING EQUIPMENT cable legal requirements (Resolution 0312 - DL210 TAILINGS from 2019 and Decree 1072 from 2015) and A flexible and compact long-hole electro-hydraulic We apply an international Modern Mining technique the USA, MSHA (Mine Safety and Health drilling rig, designed for production drilling in narrow by mixing tailings (materials left over after the Administration) standard. vein underground mines. process of separating the gold and silver from the mineral ore) with cement, to produce a paste, later used as filler in the panels that were extracted within the mine.

MAJOR ACHIEVEMENTS IN 2019

Staff numbers increased STANDARDS RELATED TRAINING SPECIALIZED TRAINING (both employees and con- In 2019, employees and contractors We developed specialized training pro- tractors) to help us perform received 24,346 hours of training in Zijin- grams to strengthen certain areas. critical operations, and plant construc- CNL’s 18 OHS Standards (e.g., work- Training areas include: ICAM (Incident tion activities. This put our existing at-heights, confined spaces, load lifting Cause Analysis Method), incident inves- Occupational Health and Safety strat- maneuvers, excavations, lockout, chem- tigation methodology, Basic Life Support, egies to the test, and forced us to fur- ical handling, explosives, support struc- Behavior Based Safety (BBS), Defensive ther strengthen them. Our safety and tures, etc.) Driving, Mining Rescue, Fall Protection prevention work included: Equipment Inspection, ISO 45001, Emergency Management Coordinator, EDUCATIONAL CAMPAIGNS Work-at-Heights Coordinator, Handling Employees and I Commit To, Protection from Falls, contractors received Explosives, Transport of Dangerous The Right to Say No, Preventing Traffic Goods (HAZMAT), Cyanide Management, Accident, Alcohol, Tobacco, and Drug 24,346 HOURS (health). Specialized training in these of training in OHS Standards Use Prevention, etc. Take Care of Your areas prepares workers for specific sit- Hands Campaign uations and strengthens are technical OCCUPATIONAL HEALTH & response. SAFETY WEEK We performed nutritional screening CONTROLLING HYGIENE HAZARDS activities, cardiovascular screening, We have implemented strict controls and and healthy lifestyle talks. monitoring for activities which could represent a hygiene hazard or could pose a PINK WEEK AND BLUE WEEK high risk of disease. This allows us to take This was a two (2) week campaign proper action and make timely decisions. were women were screened for breast Safety precaution have been heightened: cancer, and men over 45 were able vital signs are continuously taken, per- to take the prostate specific antigen sonal protection equipment is provided (PSA) blood test. (face masks, temperature readers), maintenance of vehicles and machinery have been enhanced, the health of employees is monitored, metrology strategies have been enhanced for the protection of health, public safety, the environment, etc.

Health Week Campaign

All of the tools and equipment previously men- statistics dropped, but our workers are more tioned are a fundamental part of our manage- safety conscious and are becoming more pro- ment system’s PDCA (Plan-Do-Check-Act) ductive in their processes. Today we are safer methodology. Not only have our accident rates/ and more effective.

(403-9) (403-10) Injuries, work-related illness, lost days, absenteeism, and fatalities Unit 2017 2018 2019 EMPLOYEES Total Recordable Injuries Number 17 42 18 Total accidents not requiring sick-leave (not recordable) Number 52 177 137 Total Recordable Injury Frequency Rate Number 2.97 3.48 1.08 Sick-leave days due to accidents Days 487 1,366 569 Total work-related illnesses Number 0 0 0 Sick-leave days due to work-related diseases Days 0 0 0 Mining Emergency Rescue Team Number of sick-leave days per year Days 182 4,207 4,470 Cases warranting sick-leave due to common illness Cases 319 340 365 Sick-leave days due to common illness Days 2,905 2,841 3,901 Accident rate Rate 2.9 4.6 1.6 Exposed population - average Number 592 911 1,121 SUCCESS CASE Fatalities Number 0 0 0 An Elite Mining Emergency rescue teams to the test. They competed Total hours worked Number 1,145,062 2,412,815 3,335,352 Rescue Team was formed. against top mine rescue specialists from all With training, teamwork, and over the country. Not only was the competi- Upper Management’s blessings, it partici- tion fierce, but it was also a profound learn- pated in Colombia’s National Mine Rescue ing experience, for all participants. Olympics. This was the first time Zijin- (403-9) (403-10) Injuries, work-related illness, CNL participated in this event, organized MINE RESCUE OLYMPICS RESULTS lost days, absenteeism, and fatalities Unit 2017 2018 2019 by the Colombian National Mining Agency >> First place in the “Mining Rescue CONTRACTORS Total Recordable Injuries Number 52 40 36 (ANM). Two teams were sent to compete Equipment Mechanical Aptitude” Total accidents not requiring sick-leave (not recordable) Number 64 161 226 in the National Mine Rescue Olympics, one competition, awarded to Lina Fernanda Total Recordable Injury Frequency Rate Number 4.6 1.68 0.75 male team (8 men) and one female team (6 Ramos. Sick-leave days due to accidents Days 6,337 120 980 women). Zijin-Continental Gold recognizes >> Second place in the “Pre-hospital Care” Accident rate Rate 5.6 2.5 1.1 how important women are to our organiza- competition, awarded to our men’s team. Exposed population - average Number 929 1.596 3.223 tion, and we were proud to send these lady >> Second place in the “Mine Rescue” Fatalities Number 6 0 0 champions to represent us. The National competition, awarded to our men’s team. Total hours worked Number 2,238,911 4,769,150 9,590,656 Mine Rescue Olympics put our mining

HOW WE MEASURE OUR ACTIONS

Many actions are taken to ensure that we comply with internal and external requirements, such as legal requirements and Company processes. These include: >> Internal OHS-MS audits. contractors’ compliance Performed to verify that with required objectives, our Occupational Health internal Company & Safety Management guidelines, and legal System complies with requirements. legal requirements, internal >> OHS Team Meetings. requirements, and the Used for ensuring Work OHSAS 18001 Standard. Plan execution is on track, >> Internal control audits. indicators are complied Performed by the internal with, follow-up on any Audit and Risk Management issues reported, and to team, and verifies issues assess employees’ health. such as event investigations >> Joint Occupational Health & and reporting. Safety Committee (JOHSC). >> External OHS-MS audit. Promotes and follows-up on Performed by Bureau OHS standards and general Veritas, a management performance. Is in constant systems certification entity. contact with workers to >> Reviewed by Management. review OHS related issues My name is Lina Fernanda Ramos. see more women included in differ- We review how OHS and suggestions. I’m 31 years old. I’m from the munici- ent areas of the mining sector. We are processes were managed >> Zero Accidents Committee. pality of Giraldo. This is my third year proving that we are highly capable during the year and This committee reviews working at CNL. I have learned a lot of carrying out all types of activities. formulate proposals/ each month’s accident about handling emergency issues. More and more women are taking on strategies for the following statistics. Potential future That is why I decided to become part greater roles every day, which highly year. consequences are also of the Emergency Brigade team two benefits the companies we work for. >> Weekly meetings. We assessed for accidents years ago. After having won the competi- review Work Plan progress, that occurred. Action plans The Company has trusted me to tion at the Colombian National Mine accident rates, indicators, for improvement, resulting carry out my role as an emergency bri- Rescue Olympics, I am now training and activities performed from the investigations, are gade member, and I have performed myself to represent the Company that could affect OHS defined and goals are set my duties to the best of my abilities. in next years International Mine performance. for following-up on those This year I became part of the min- Rescue Competition, which will be in >> Contractor meetings. This plans in the next months. ing rescue team. It is gratifying to September of 2020, in USA.” space is used to verify

(102-9) (103-1) (103-2) (103-3) OUR GOALS Supply Chain

SHORT-TERM >> Increase compliance percentages related to legally required minimum standards for Occupational Health & Safety Management Systems (OHS-MS), under Resolution 0312 of 2019. >> Implement an IPS (prehospital care unit) in the Project facilities. >> Consolidate our Contractor Management Program in all its different phases (tender/bid, selection, contracting, closing). >> Carry out the Training Plan for emergency MID-TERM brigade members in communities in our >> Implement an OHS Risk Management area of influence. School to provide employees and >> Migrate our OHS-MS from the OHSAS contractors with training and 18001:2007 to the ISO 45001:2018 refresher training, and to encourage By correctly managing our sup- departments during the final part of Standard, for certification purposes. self-care in a fun educational way. ply chain, we guarantee availabil- the construction phase and during >> Implement a hygiene strategy. >> Have zero work-related illnesses in ity of goods and services for the the commissioning. Our major goal is >> Revise and update our Occupational both employees and contractors. Company’s critical activities, and at to ensure all required goods, services, Health and Safety policies, for Alcohol, the same time, strengthen the local and assets are readily available when Drugs, and Tobacco Prevention, and Road LONG-TERM economy in our area of influence. The necessary, for the successful com- Safety. >> Minimize Recordable Injuries in our criteria for selecting our providers missioning of the Mining Project, and >> Consolidate the PREVSIS Environmental, operation. consider many variables, apart from at the same time make sure procure- health, and safety (EHS) software tool >> Minimize days of absenteeism due price. These include quality, techni- ment is done at a local or national with our OHS management system. to common illness and work-related cal proposal, compliance with inter- level when available. >> Implement 100% of the technical safety accidents. nal OHS standards and requirements, We also stabilized the procurement standards. >> Have zero work-related illnesses for environmental processes, financial and warehousing modules within our >> Train 100% of Zijin-CNL staff (where both employees and contractors. management issues, and insurability. JD Edwards ERP System. This will applicable) in technical safety standards. >> Position ourselves as the leading In 2019, the entire logistics team make procurement processes more >> Make Zijin-CNL absence policies Company in OHS matters in the moved from Medellín to the Buriticá efficient, will ensure controls are in applicable to all Company contractors. Colombian mining sector. Project facilities. This was done to place, and will help management better support the different areas/ make better decisions.

TYPE OF SUPPLIERS Local Purchases 2019 Local supplier are located in the Project’s PERCENTAGE OF SPENDING International: 123 area of influence, which includes the ON LOCAL SUPPLIERS Total (204-1) suppliers municipalities of Buriticá, Giraldo, Buriticá: 189 1,408 Cañasgordas, Santa Fe de Antioquia, Sopetrán, and San Jerónimo. 2.6% 2.1% Western Antioquia: 80 In 2019, several local suppliers were approved to the supply the Company with National: 1,016 certain previously imported elements including: mill linings, support meshes, synthetic boreholes, etc. This helped the 2017 2019 Company reduce costs and delivery times. We also implemented action plans to have 1.8% SUPPLIER TYPES LOCAL SUPPLIERS local providers develop specialized prod- (102-9) Zijin-CNL Suppliers are classified (204-1) Suppliers located in the Project’s direct ucts and services, which are either scarce according to their geographic location, as local, area of influence. These include suppliers or not yet available in the Colombian mar- national, or international suppliers. from the municipalities of Buriticá, Giraldo, ket. This transfer of knowledge will help Cañasgordas, Santa Fe de Antioquia, Sopetrán, the Colombian economy because it is 2018 and San Jerónimo. preparing Colombia’s industry for future demands, when other projects, similar to Buriticá become a reality. 867,581,899,266

SHARE OF SPENDING ON LOCAL SUPPLIERS 640,342,797,333

Total paid to Company suppliers

Total paid to local suppliers

Colombian Peso 179,051,037,736 Market Exchange Rate 3,281 4,659,986,030 11,526,170,352 17,875,427,114 2017 2018 2019

OUR GOALS Ferromontaña, a supplier from the Supply Chain Linkage Program SHORT-TERM LONG-TERM (PEP) >> To ensure availability of all needed >> Plan for the Company’s long term goods and services required needs in terms of goods and during testing, commissioning, and services. SUCCESS CASE production stages. >> Anticipate and manage machinery In 2019, we increased and equipment renewal needs, as availability of special- MID-TERM well as needs related to special ized goods and services >> Reduce operating costs by projects, mine expansion, or for the mining industry by helping continuously seeking competitive maintenance. local partners develop them. We prices, substitute products, and helped local companies develop by developing long-term business their capacities so they could relationships with suppliers. become future providers for the mining industry.

HOW WE MEASURE OUR ACTIONS

Zijin-Continental Gold uses solid management level and for their workers. Technological tools like ARACNIA software procedures, mechanisms, and In 2018, 20 contractor firms had an exter- are being used to ensure there is information technological tools to ensure an nal audit. The audit found that 13 of these traceability during tenders and bidding pro- efficient and transparent logistics process. companies, needed to make changes to cesses. We have a Procurement and Contracts Our procurement manual provides guide- improve performance requirements. Committee that approves key processes for the lines to help internal and external clients We ended commercial relations with four Organization and that makes decisions which ensure transparency and objectivity when of these companies during the construction are consistent with internal policies. dealing with each of the established pur- phase and improvement plans were imple- All information related to procurement pro- chasing categories. mented for the other nine. The remaining cesses is audited by the Audit Management We also have a Contractor’s Guide nine companies had another audit to verify team and by external parties, like the Fiscal to help companies provide optimal ser- progress had been made in areas requiring Auditor. This ensures we objectively comply vices for the Operation. The Guide cov- improvement. Another seven contractors with our norms and guidelines. ers human rights, the environment, OHS, were audited in 2019 and we adopted pro- community relations, labor, security and cedures, requiring companies to close any protection, etc. Following this Guide is pending social, environmental, and labor mandatory within the contract terms and issues before a contract could be consid- all contractors receive training at both the ered closed or finished.

Digital transformation

At Continental Gold, we promote digi- Modern Mining improves people’s quality of tal transformation as a way to increase life through cutting-edge technology, facili- the efficiency of our processes. We pro- tates decision-making, and optimizes work actively and efficiently manage risks or activities. In 2019, we overcame essential adverse situations that may affect the challenges in the Company’s operation phase confidentiality, integrity, or availability of and obtained results in four areas: support, the Company’s information. We also use information security, infrastructure, and ERP technology to automate processes, fos- (Enterprise Resource Planning System). ter information security, protect our infrastructure, address support processes, and connect neighboring communities in our area of influence in a comprehensive, fast, and reliable manner.

INFORMATION AND SUPPORT SYSTEMS INFORMATION SECURITY INFRASTRUCTURE ERP >> Consolidate information decreases our operational >> Assess and manage the >> Quickly manage all alerts >> Continue with our >> Implement the JD Edwards technology management burden in areas like principal vulnerabilities that related to possible attacks to connectivity strategy to, ERP system, including the best practices from the Procurement, IT (Information affect IT infrastructure security, our security network devices in the short term, be able Fixed Assets, Accounts international ITIL framework Technology), and Fixed Assets including periodic reviews and and servers. to support data traffic Receivable, Accounts to improve areas such as management. follow-up of action plans. >> Carry out employee and computing loads for Payable, Procurement, organization, costs, efficiency, >> Optimize technical support >> Implement improvements in awareness campaigns the Higabra complex and Inventory, and General flexibility, and integration. services, inventory information access controls for different types of consolidate our technology Accounting modules. Begin >> Adopt Office 365 and management, and through data encryption cybersecurity threats and platform, so we are the improvement phase Microsoft Teams for better technological laboratory mechanisms in Windows prevention mechanisms to successfully able to support for our applications collaboration within contracts, to achieve better stations. mitigate their impact on the the connectivity needs of and reports. the Organization. service level agreements (SLA) >> Extend SOC (Security Organization. the construction team. >> Use the equipment as a and lower operating costs. Operation Center) monitoring service model. This provides services for better online us with greater flexibility detection of security and agility in the delivery of breaches in our technology computer equipment and infrastructure.

OUR GOALS SUCCESS CASE

The Company leveraged its con- company Tigo to connect fiber optic cable nectivity needs and demands to in the area. This will allow the Company and SHORT-TERM benefit both the Company and communities to have high-speed internet >> Automate processes to optimize tasks Our Responsible Modern Mining communities. It managed to get telecom access and will enable the company to fulfill and user interaction. Project manages negative socio- company Claro to install 4G, and telecom its demanding connectivity needs. >> Use our vendors/suppliers’ electronic environmental impacts and invoices to automate invoice maximizes positive impacts comparison processes. caused by our presence in the >> Help transform Burita’s Santa Gema territories. Please read the chapters Educational Institution by providing on “Our commitment to regional them internet access to allow them and community development” and to offer virtual education in their El “Environmental management.” Naranjo and Higabra campuses.

MID-TERM >> To be an example in cutting-edge technology and mining, using new tools such as RPA (Robotic Process Automation), augmented virtual reality, IoT (Internet of Things), AAI (Analytical Artificial Intelligence) and other digital tools. >> Optimize our technology platform o support the loads that the business demands.

LONG TERM HOW WE MEASURE OUR PROCESSES >> Integrate IT (Information Technology) and OT (Operation A constant communi- >> Monthly operation >> General IT and specific Technology), which allow us to be cation between differ- committees. information security at the forefront of mining technology ent Company teams is >> Feedback with process policies and guidelines and new global trends. assured using technology with leaders. >> Continous cybersecurity efficient and agile processes >> Internal audits. monitoring such as: >> External audits. >> Weekly meetings with the >> Internal and external primary group. monitoring systems.

44 / Sustainability Report 2019 / Zijin – Continental Gold OUR PEOPLE

EVERYTHING WE DO ADDS GREAT VALUE Our Propositions

We promote professional development, the building of soft skills, and employees’ well-being.

We are a Family-Responsible Company.

We prioritize diversity t every level in the Organization.

(103-1) (103-2) (103-3) Our people are our main asset. We, We are a Family- 940 therefore, encourage best practices at 867 all levels within the Organization. Our people are encouraged to reach their Responsible Company maximum potential, not only when COMPANY EMPLOYEES fulfilling their assigned duties but in We have been a certified Family-Responsible support, personal and professional devel- BY JOB CATEGORY every aspect. Our employees have Company (FRC) since 2016, and are the only opment, equal opportunities, and leader- 2017 2018 2019 acquired skills and capacities that will mining entity in Colombia with FRC sta- ship and management styles. In 2019, we allow them to face all challenges and tus. This means we encourage employees were re-certified for three years as a Family- technical difficulties that could appear to balance their work, family, and personal Responsible Company by the Másfamilia Categories: during the Project’s commissioning. lives, which is possible through six funda- Foundation. Implementing this strategy has 1. Ceo, COO, Vice-Presidents 514 Our vocational training programs have mental pillars: quality employment, family allowed us to: 2. Managers become a primary source for recruit- 3. Superintendents and directors ment and hiring. 4. Managers, coordinators, specialists, engineers, geologists, other We know that by creating local jobs, professionals we help build capacities through- (102-7) (102-8) (CNL3) 5. Analysts, aides, assistants, out the territory. This helps reduce operations, and trainees. inequality and improves the qualify of GENERAL LABOR STANDARDS 2017 2018 2019 life for local communities. Therefore, Total number of employees. 705 1,075 1,175 202 Number of permanent employees. 505 628 710 we always prioritize training people 176 Number of fixed-term employees. 87 301 416 from Western Antioquia to try to open 159 Number of employees with different types of contracts 113 146 49 doors to better job opportunities for (apprenticeship). local communities. Number of indirect employees. 929 2.217 3,388 Percentage of fixed-term employees. 12.34% 28.00% 35.40% (excluding apprenticeship contracts). 8 9 8 16 12 15 8 11 10

Percentage of permanent employees. 71.63% 58.42% 60.43% Category 1 Category 2 Category 3 Category 4 Category 5 Total number of men. 544 846 954 Total number of women. 161 229 221 COMPANY EMPLOYEES Percentage of men. 77.16% 78.70% 81.19% 2017 2018 2019 Percentage of women. 22.84% 21.30% 18.81% BY SHIFT TYPE Number of employees coming from local communities Full-time employees. 705 1,075 1,175 384 581 591 (Buriticá and zone of indirect influence) Half-day and part-time 0 0 0 Percentage of employees from local communities (Buriticá and employees. 54.47% 54.05% 50.30% indirect area of influence) Percentage of full-time 100% 100% 100% Number of employees covered under the Collective Bargaining employees. 44 66 52 Agreement. Percentage of half-day 0% 0% 0% Percentage of employees covered under the Collective and part-time employees. 6.24% 6.14% 4.43% Bargaining Agreement

784

MALE EMPLOYEES 697 BY JOB CATEGORY

2017 2018 2019

408

FEMALE EMPLOYEES BY 170 141 JOB CATEGORY 156 121 2017 2018 110 2019 106 61 49 55

7 7 7 12 11 13 7 10 9 1 2 1 4 1 2 1 1 1

Category 1 Category 2 Category 3 Category 4 Category 5 Category 1 Category 2 Category 3 Category 4 Category 5

Categories: MEN 2017 2018 2019 WOMEN 2017 2018 2019 1. Ceo, COO, Vice-Presidents Company employees by shift type Company employees by shift type 2. Managers Full-time employees. 544 846 954 Full-time employees. 161 229 221 3. Superintendents Half-day and part-time employees 0 0 0 Half-day and part-time employees. 0 0 and directors Percentage of full-time employees. 77.16% 78.70% 81.19% Percentage of full-time employees. 22.84% 21.30% 18.81% 4. Managers, coordinators, Percentage of half-day and part-time employees. 0.00% 0.00% 0.00% Percentage of half-day and part-time employees. 0.00% 0.00% 0.00% specialists, engineers, Breakdown by contract type Breakdown by contract type geologists, other Number of men with long-term contracts. 395 490 560 Number of women with long-term contracts. 110 138 150 professionals Number of men with fixed-term contracts. 84 283 371 Number of women with fixed-term contracts. 3 18 45 5. Analysts, aides, assistants, Number of men with different types of contracts Number of women with different types of contracts 65 73 23 48 73 26 operations, and trainees (e.g., apprentices, trainees, etc.) (e.g., apprentices, trainees, etc.) Number of indirect male employees (contractors) 827 1,940 954 Number of indirect female employees (contractors) 102 277 221

TOTAL NUMBER OF EMPLOYEES AND = Growth RECRUITMENT RATES Attracting Talent (401-1) 9% 2017 2018 2019 In 2019, hiring rates remained high for both direct and EMPLOYEES, indirect employees. This was due to our increased includes apprentices. 477 demand for workers during the infrastructure construction phase, for preparation of tunnels, and to get

the processing plant and mine ready for the commis- 21.2% EMPLOYEES sioning stage. with direct contracts.

REDUCTION IN ROTATION AND MOBILITY Starting in 2018, we added a new employee turnover 25.3% ADVANCES IN DIVERSITY AND INCLUSION 356 indicator to calculate the Company’s performance in EMPLOYEES Diversity is a priority at every level within the this area. In 2019, our employee turnover rate was in operations. Organization. We strive to build a family-like rela- 3.93%, which was 11% lower than the previous year. tionship with employees where diversity of all types 14.2% is accepted and respected. This includes a diversity ADMINISTRATIVE of gender, age, physical capacity, and any other dif- staff. ferentiating factor.

237 (401-1) 2017 2018 2019 52.8% EMPLOYEE TURNOVER EMPLOYEES GEOGRAPHIC DIVERSITY 2017 2018 2019 Medellin and its Metropolitan RATE 167 220 263 contractors. Area. Worker turnover rate. 4.90% 15.10% 14.10% Western Antioquia. 384 581 591 Worker turnover rate due to 159 2.90% 6.80% 6.70% voluntary resignation. Other locations. 131 204 239 140 38.6% Employees that left through Other municipalities 2 45 30 EMPLOYEES 23 70 82 a mutual agreement. in Antioquia. with direct contracts Employees that passed away. 0 4 2 AGE DIVERSITY + contractors. Employees that left due Generation Z (1994-2010). 104 226 218 to contract expiration or 2 11 23 Generation Y (millennials) retirement. We vitalized the local 355 538 635 economy by generating (1981-1993). Employee inter-company 0 0 0 Generación X (1969-1980). 180 238 253 transfers. local jobs. 29 At the end of 2019, Baby Boomers (1949-1968) 63 70 67 23 Employees that left after a 14 63 75 Silent Generation (1930-1948) 3 3 2 11 voluntary resignation. 2 Employees fired/laid-off. 11 17 29 50.3% EMPLOYEES WITH DISABILITIES OF EMPLOYEES Percentage of employees with Total hires Layoffs during Total layoffs due 0.14% 0.09% 0.09% during the the period to contract expiration were from Western disabilities in our workforce. period or retirement Antioquia.

Consolidating Wellbeing

(401-2) 2019 2019 was a year of significant challenges All employees receive life insurance, accidental in terms of improving infrastructure and services for death insurance, time off when if they get mar- employees, given the fact that the mine is transition- ried, childbirth subsidies, disaster recovery loans, ing from construction to production. Our mission to home mortgages, cheap vehicle insurance (via the favorably impact people’s day-to-day existence in Employee Fund), on the job meals (for workers based the Company led to the following results: in Buriticá), and many other benefits. >> 86% of our accommodations are in Buriticá or We also promote integration and recreation activ- within the Project area. ities for employees, which are in harmony with the >> Transportation routes were set up within traditions of the Project’s area of influence: the tunnels to improve employee’s working >> Miner’s Day. conditions. >> Children’s Day. >> Additional dining halls were adapted to serve >> Golden Youth Program. Family Day Celebration hot food and decrease the need for disposable >> Spaces for Families. (404-1) packaging. >> Swimming classes in the Family Center. AVERAGE YEARLY TRAINING HOURS 2017 2018 2019 >> A direct route between Medellín-Higabra. >> Training/education days. Total training hours. 37,556 58,798 90,208 >> A Passenger Transportation Control and Number of training hours for CEO, COO and Vice-Presidents. 2,191 84 365 Monitoring Center was implemented. Number of training hours for managers. 1,755 156 248 Number of hours of training for superintendents and directors. 7,582 332 550 Number of hours of training for managers, coordinators, specialists, 5,252 12,230 28,410 engineers, geologists, other professionals. Number of hours of training for analysts, aides, assistants, 20,776 45,996 60,635 operational staff, and trainees. Average number of training hours for CEO, COO, and Vice Presidents. 6 11 0.40 Average number of training hours for management. 5 13 0.27 Organizational Training and Average number of training hours for superintendents and directors. 20 30 1 Average number of training hours for managers, coordinators, 14 72 31 Climate Development specialists, engineers, geologists, other professionals. Average number of training hours for analysts, aides, assistants, 55 53 67 operational staff, and trainees. In 2019, we conducted our first Work Climate Survey We not only focus on finding and hiring workers for Number of training hours by gender (female). 8,576 13,858 13,744 led by international consulting firm Mercer. 77% of the Company’s current needs, but also strive to pro- Number of training hours by gender (male). 28,979 44,940 76,464 our employees participated. The results showed that mote all kinds of skills development to position our- Average number of training hours by gender (female). 53 61 62 employees feel great satisfaction and commitment selves as a world-class mine which operates with Average number of training by gender (male). 53 53 80 in the Company, with an 84% favorability rate. the highest industry standards. Average number of training. 63 61 77 Number of employees who received training in the last year. No information 1,075 1,175 % of employees who received training in the last year. No information 100% 100%

Women received fewer training hours than men because the area with the highest number of training hours is operations, an area with a higher number of men.

BASIC TRAINING PROGRAM TECHNICAL TRAINING AND SKILLS We strive to generate training spaces for employ- DEVELOPMENT PROGRAM ees who have not yet finished their basic schooling Our training focused on developing technical competencies TOTAL INVESTED IN TRAINING to allow them to obtain a high school diploma. in leadership, Occupational Health and Safety, and wellness. COP 1,030,098,750 In 2019, 18 employees and four of their depen- These newly acquired skills allowed 171 Company employ- dents (employees’ families) received Company ees to be promoted to new positions. support to continue their studies. We also accompanied 45 additional employees in their higher education initiatives, allowing them more flexible hours and providing them with financial support.

JOB TRAINING 69.35 We implemented training programs for community Total hours members in our areas of influence, to be able to hire on health and wellbeing them in the short or mid-term and thus contribute 35,122.68 Total training hours on local employment. 100 mining technicians grad- operational and safety 22,984 standards uated with vocational degrees during the second Total hours half of 2019. 61 were hired directly by the Company. on development training Graduates include: >> Industrial Mechanical Maintenance Technicians: 26 people. >> Mineral Processing Technicians: 42 people. >> Industrial Machinery Technicians: 32 people.

Students in Mining Techniques In October, we started a new Excavation Equipment training, in alliance with SENA. Operator vocational training program in partnership with SENA (Colombia’s Public Vocational College). 52,557.25 35 trainees enrolled, 19 of which are women. Total hours on technical 22 employees from the processing plant and training laboratory were trained as Mineral Processing

Technicians. We encouraged employees to learn a In 2019, workers received a total of 110,733 training hours. second language: 55 joined the English program. Each employee received an average of 98.3 training hours. The “Average yearly training hours” chart above shows a lower number since OHS training is not broken down by job category and gender as required by the indicator.

ASSESSING PERFORMANCE (404-3) Improving and managing employee and areas for improvement are highlighted performance is critical for Zijin-Continental to help everyone improve performance. Gold. Spaces for healthy conversation and Personal development is also encouraged. direct feedback by managers are encour- Performance assessments impact compen- aged. Employee’s strengths are exalted, sation and benefits.

Percentage of employees who receive continuous Average performance performance and professional development 2019 assessment results assessments Executive Committee. 75% 106% Administrative staff. 95% 99% Operators. 83% 77% Total men - administrative staff only. 89% 98.80% Total women - administrative staff only. 91% 99.80% Total men - operations staff only. 83% 77.50% Total women - operations staff only. 73% 75.20%

WORK PRACTICES Our mission is to build stable and mutually the end of 2019, 52 of our employees were beneficial working relationships. Functional covered by collective agreements (4% of our dialogue spaces such as the Committee for workforce). The remaining employees were Graduation ceremony for one of our Mining Technician groups Work Coexistence and work-related com- beneficiaries of the Collective Bargaining plaints mechanisms allow us to deal with Pact* or were considered administrative worker requirements quickly. staff. (102-41) Zijin-Continental Gold respect (CNL15) During 2019 we received and freedom of association and fully complies resolved three complaints related to labor SUCCESS CASE with agreed-upon working conditions. At practices. By the end of 2019, we As of December 2019, 18.8% of our hired an additional 221 workforce were women, including EMPLOYEES COVERED BY COLLECTIVE AGREEMENTS 2017 2018 2019 women, 195 of them with SENA apprentices. Women are prior- Total number of employees in the Organization. 705 1.075 1.175 long-term direct contracts. 26 were itized in all of our hiring processes. Total number of employees covered by collective agreements. 0 66 52 hired as SENA apprentices. 132 of Women filled 84 % of our vacancies Percentage of employees covered by collective agreements. 0% 6% 4% these women come from Western by the end of the year. Antioquia (83 of them are from Buriticá). 340 women were hired via * A Colombian legal framework used for agreements between the Company and non-union workers. third party contractors.

HOW WE MEASURE OUR PERFORMANCE OUR GOALS

Under the FRC (Family-Responsible Company) model, our performance is validated using the following mechanisms: SHORT-TERM >> Ensure that local employment accounts >> FRC Committee. Made up in this regard (Ministry of for at least 70% of our operations work- of company executives and Labor, Caso Auditores, and force and 50% of our overall personnel. employee representatives. This PricewaterhouseCoopers, PwC), >> Increase participation in the is a space for managing and and all three highlighted the Company’s diversity and inclusion promoting different conciliation strengths in our best practices programs. measures that go beyond legal related to payroll and employee >> Have a turnover rate of less than 4% requirements. It operates as a benefits. while increasing productivity and governance mechanism for this >> Committee for Workplace safety levels. purpose. Coexistence. Composed of >> Maintain favorable working conditions >> Internal and External Audits. company executives and in the Company. Ensures we remain on track with employee representatives, and >> Keep our social license in good best practices for our processes seeks to promote dignified and standing, which will allow us to and Company conciliation fair working conditions. continue exploration and production procedures. >> Administration and activities, and strengthen employees >> Training. We ensure training is transportation. Ensures and their families so they will be proud MID-TERM >> Strengthen our employees effective from the very beginning, we have highly qualified of being part of the Organization. >> Attract, select, train, and to stay true to their higher by only hiring highly qualified suppliers for the provision >> Raise levels of trust in the Company motivate employees for purpose and corporate providers in the area. We also of food, accommodations, by generating a positive work exploration, construction, values, so they become role perform all the necessary documentation, and environment. This will ensure and operation processes. models for excellence within accompaniments and assess the transportation services and operations and exploration activities >> Maintain exceptional leaders the communities. knowledge acquired. that they are aligned with can proceed without stoppage or to guide the Company in >> We try to guarantee employee the guidelines outlined in the blockages. achieving its objectives. LONG-TERM satisfaction by providing Company’s Sustainability >> Improve technical skills for both >> Maintain a healthy working >> To become the most all benefits contemplated Model. In 2019, we opened our employees and members of our environment with high job attractive and preferred under Colombian law and Transportation Control Center to communities. satisfaction and where mining company for complying with all payment monitor the operation of vehicles >> Ensure contractors correctly employees are proud to Colombian workers, and terms negotiated under the in real-time. This allows us to implement labor standards that belong to the Company. become the leader in Collective Agreement and have safer routes in our area of promote healthy and highly productive >> To be a highly qualified implementing best practices the arbitral award. Three influence and on the Medellín- working environments. and strategic support area, in productivity and raising external audits are performed Buriticá route. >> Assure knowledge transfer within the that is close to the people the quality of life for workers Company and keep key personnel in and which eliminates and their families. the Company. labor conflicts.

53 / Sustainability Report 2019 / Zijin – Continental Gold COMMUNITY AND REGIONAL DEVELOPMENT

WE STRIVE TO BE THE BEST NEIGHBOR Our Propositions

We support the territory’s vocation and needs while contributing to regional development and sustainability to leave the region better off after the end of the mining life-cycle.

By creating local jobs, we increase the territory’s capacity, reduce inequality, and improve the quality of life for communities.

We foster partnerships that allow us to achieve results aligned with our higher purpose and with the region’s priorities and needs.

Being effective requires maintaining two-way, transparent, and respectful relationships with communities.

We are committed to building trust among our different stakeholders by working on citizen safety/security and productivity (Confía+).

(103-1) (103-2) (103-3) (203-1) INFRASTRUCTURE INVESTMENTS AND SERVICES WE’VE SUPPORTED Zijin-Continental Gold works to strengthen the Investment Description Investment value Investment value Justification mining sector and become a force in pro of sus- (type of investment) (COP) (USD) tainable development in the region. We believe Co-financing of projects that the community prioritized and which were chosen according to the INFRASTRUCTURE 871,613,496 260,074 participatory rapid appraisal methodology. These projects were supported by the Mayor’s Office and in sharing resources and expertise and strive to beneficiary communities. generate synergies with public and private enti- • Access to higher education. Higher Education Program. • Vocational training in Buriticá and surrounding areas. ties, communities, and other actors involved in EDUCATION 322,904,886 98,247 • Contributing to improving educational levels for people in the municipality of Buriticá. the development of our Project. • Helping people finish high-school. Our responsibility is to identify, assess, and • Strengthening Community Action Committees (CACs) in Buriticá. manage our impacts on the community and the • Implementing a Community Health and Safety Plan for the Mining Project’s Direct Area of Influence SOCIAL DEVELOPMENT (DAI). 280,291,143 83,851 environment. We strive to leave a positive mark AND HEALTH • Mental health conferences to promote healthy lifestyles and prevent Drug Use in the Project’s area on the region by being respectful and promoting of influence. human rights in all of our actions. • Mitigating and controlling impacts generated by the Mining Project. • Actions to build relationships in impacted communities (Buriticá and area of influence). We try to maximize benefits for the territory COMMUNITY CULTURAL AND • Supporting cultural preservation in the Municipality of Buriticá (Integration and El Retorno Festival 763,313,253 231,024 and promote economic sustainability by gener- RECREATIONAL ACTIVITIES celebration, Farming Festivals, Community Christmas, San Antonio Festivals, Race Day Celebration, ating local employment, development of a local Myths, and Legends). Partnering with the Colombian National Police to develop training activities for topics such as Learning mining supply chain, promotion entrepreneur- SOCIAL RESPONSIBILITY 22,404,309 6,676 to Value Yourself, Education and Prevention, and Taking Control of Your Life. These activities focus on ship in sectors different from mining, and build- helping children and adolescents from Buriticá. ing local capacity. Maintaining an inter-sector work system to promote joint management and sustainable use of our natural resources. These also focuses on equality, equity, solidarity, social justice, and environmental PAYMENT FOR By promoting robust institutions, we are bet- preservation. Participants include: ENVIRONMENTAL SERVICES 226,028,145 68,577 ter able to guarantee long-term positive impacts • 8 families from rural areas with land covering 409.04 hectares in Santa Fe de Antioquia. (PES) on the territory. That is why we encourage part- • 60 families from rural areas with land covering 463.18 hectares in Buriticá. • 29 families from rural areas with land covering 602.97 hectares in Urabá, Antioquia. nerships aimed at achieving results that are Execute PRAE (School Environmental Project), and PROCEDA (Citizen-led Environmental Education aligned with our higher purpose. Project) plans in Buriticá and the area of influence. We also carried out the strategic educational and communications activities within the Company. Our regional and community development ENVIRONMENTAL EDUCATION 224,322,921 67,527 PROCEDA: Murrapal, Mogotes, La Angelina, Alto del Obispo, El Naranjo district, and the urban area (El (PRAE-PROCEDA) strategy focuses on three major points: Edén and La Mariela neighborhoods). 1. Managing social impacts. PRAE: I. E. Santa Gema, main campus, and in the Higabra, El Naranjo, Mogotes, La Angelina and Alto del Obispo campuses. 2. Promoting local economic development. Construction of the Los Asientos rural village aqueduct (stage 2: distribution networks), to provide LOS ASIENTOS AQUEDUCT 470,882,642 146,356 3. Strengthening local capacities. drinking water to 45 homes throughout the village. Strengthening farming production units and improve income revenue for farmers in the Direct Area of Influence by training leaders in the Colombian rural sector. The Future Harvest Program is being AGRO-INDUSTRIAL PROJECTS 1,341,721,567 392,833 implemented with partners such as Comfenalco and TECOC, and 332 productive projects have been implemented so far. Local companies have been strengthened in our Direct Area of Influence, and their owners/ management have received training in soft-skills and business abilities. Our Supply-Chain Linkage MINING SUPPLY-CHAIN 894,908,556 265,366 program (PEP) has been implemented in partnership with the Medellin Chamber of Commerce for PROJECTS Antioquia and the Inter-American Development Bank (IDB). Interactuar is providing the training. So far, 75 companies have received training and 28 are already part of Zijin-CNL’s supply chain. TRAINING AND DEVELOPMENT Formalization projects have received training to help them develop and strengthen their technical, FOR FORMALIZED MINING 38,765,085 11,726 administrative, and leadership capacities. COMPANIES

(203-1) INFRASTRUCTURE INVESTMENTS AND SERVICES WE’VE SUPPORTED Investment Description Investment value Investment value Justification (type of investment) (COP) (USD) Ventilation systems were donated to formalization sub-contracts to help them reactivate their mining projects after equipment and machinery were lost under different circumstances. Supplies were donated to help mining formalizations reactivate their activities. DONATIONS AND SUPPORT Formalization companies received donations to help them register their companies before the Chamber FOR FORMALIZED MINING 201,276,101 61,194 of Commerce. COMPANIES Formalized companies are receiving financial support to help them comply with the standards required by the Zijin-Continental Gold project. The support received includes funds for handling fixed cost and revenues and specific supplies/assets (Zijin-CNL provides them with tools and equipment, but these remain Zijin-CNL assets). TOTAL COP 5,658,432,104 USD 1,693,451

Managing

Social Impacts OUR MAIN ACHIEVEMENTS IN 2019 We strive to manage negative impacts and maximize positive ones for our oper- Considering that we are We used the environmental impact ation. Therefore, we established two-way, transitioning from con- study performed and validated by an respectful, and transparent relationship struction to production, international expert independent con- mechanisms with communities in our area the Company is identifying social and sultant as our baseline of perceived of influence. This allows us to develop environmental impacts that commu- environmental and social impacts. increasingly relevant strategies that con- nities perceive will occur during this These dialogue spaces allowed us to tribute to the development of the region. new phase of the Buriticá Project. Our align our environmental and social Having clearly defined prevention, miti- goal was to create spaces for dia- agendas with the needs and expec- gation, or compensation measures, which logue with the communities, related tations of the communities to max- are agreed upon with the communities, to the production phase, discuss imize benefits. They also allowed are essential for running a Project which impacts, define measures, estab- us to get the population involved in is socially, environmentally, and financially lish working agreements with com- creating participatory monitoring responsible. munities, and monitor performance. mechanisms. Responsible impact management and From October to December, we held participatory monitoring mechanisms are Golden Youth Group. five workshops with the communi- fundamental for building relationships of ties of Higabra, Mogotes, El Naranjo, trust, based on transparency, and which are Murrapal, and Los Asientos. mutually beneficial.

The main impacts identified by an expert consultant deal with mobility, migration, environment, community The following is the assessment of the perception surroundings, employment, goods, and services: of abiotic and socio-economic impacts through participatory processes with communities: IDENTIFIED IMPACTS (413-1) (413-2)

ASPECT IDENTIFIED SOCIAL IMPACT MEASURES IMPLEMENTED PERCEIVED IMPACTS Increase in local and regional traffic - More accidents on the Improvement to the Pinguro - La Estrella road. (ABIOTIC COMPONENT) Pinguro - Buriticá road. Road-safety culture program. (413-1) (413-2) Mobility plan for the Buriticá Project. Parking for Zijin-CNL buses and vans. 20% Greater vehicle mobility difficulties in Buriticá’s urban center. Participation in the mobility committee Signing of agreement for shared use of the industrial 14% road and defining required procedures for using it. 13% 13% Mobility Free transportation for the community. 11% Restriction access for local population needing to use the La 9% Community partnership for validated vehicles and Estrella - Higabra road, which is under construction. 6% people allowed use road. 5% 3% 4% Migration pressure caused by direct and indirect job creation. Quarterly monitoring of migration associated with Greater demand and overuse (overload) of local goods and the Buriticá Project (direct impact of workers and services. contractors). Cultural Heritage Program - Buriticá Heritage

Customs and traditions being altered in Higabra and El quality hillsides Rangers. land use dynamics Naranjo. Improving aqueducts in the Naranjo and Higabra emissions Detriment to natural resources (availability/demand for water) villages. Changes in the related problems related Increase in noise Increase and increase in environmental pollution (increase in solid Solid-waste management agreements between SER Alteration in river landscape’s visual landscape’s Changes in current Changes in current

Migration in gas and Increase and liquid waste/demand for better management/treatment Buriticá - Zijin-CNL - and members of the supply Induction in erosion bacteria alteration of surface water quality del agua subterránea Generation or increase Generation or increase Drop in the water table Drop systems). chain linkage program. Physical-chemical and in subsidy and instability particle matter emissions Alternatives were defined for managing domestic Alteración fisicoquímica y processes in riverbeds and in riverbeds processes Increased cost of living and price speculation. wastewater. bacteriológica de la calidad Detriment to the quantity and quality of water and temporary Environmental impact on the operation environment impacts caused by local construction activities. Environmental monitoring of water quality and water Increased expectations and uncertainty in the Higabra quantity for the Project’s primary water sources. community due to the CNL Processing Facilities’ immediate PERCEIVED IMPACTS Participatory monitoring of water sources in vicinity. (SOCIO-ECONOMIC COMPONENT) partnership with communities. Institutional changes, citizen participation, and community The comprehensive “Higabra integral” program (413-1) (413-2) relations. managing communities around the project. Community and institutional strengthening Environmental Higher expectations for land value (speculation in the real Supply chain linkage and community estate market). programs. Plus the consolidation of community spaces and agendas. impact Physical or economic displacement during future negotiations Mental health program - Uniminuto University and Presence of strangers in the village for land required by the Project. Commissioner’s Office for Family Matters. Increased risks for vulnerable populations related to Social projects for the village unwanted pregnancies, STDs, and infectious diseases. Low availability of qualified personnel but high expectation for Property purchases local jobs creation during the construction stage. Educational programs: literacy, job training and Mobility Contractors defaulting on payments. scholarships. Five-year training plan for the end of the Employment, Increased expectation for receiving vocational training to be construction and the beginning of the operation. Employment goods, and qualified for future jobs at the Company. services 0% 5% 10% 15% 20% 25% 30%

Land Management

Surface access is essential for all stages of the Apart from payment, we also provided beneficia- mining process (exploration, construction, com- ries of the negotiations with social accompaniment missioning, and production). Zijin-Continental and financial advice to help them better manage the Gold has an efficient and responsible land resources received. management strategy that responds to the All complaints, concerns, or issues are quickly Company’s needs and is consistent with corpo- dealt with via our Citizen Services and Information rate policies, international standards, best prac- System (SIAC). This system accepts all petitions tices, and respects community rights. and forwards them to the proper area, which han- (MM9) We follow strict property acquisition dles the concern: procedures. This allows us to identify, prevent, mitigate, and compensate for impacts that may arise within the negotiation process. We strive to restore or improve people’s living conditions and livelihoods when they are impacted by changes in their location or the activity they carry out. This year we focused on managing easements (payments for rights of passage) for infrastructure installed for the Chorodó-La Mina power LAND CLAIMS transmission line (located in the municipalities (CNL16) of Cañasgordas, Giraldo, and Buriticá) and for Number of complaints received acquiring properties adjacent to the future industrial zone in the Higabra Valley. Both projects Number of complaints resolved ended favorably for both the Company and the Number of complaints not yet resolved communities involved.

12 15 4 3 1 1 1 2017 2018 2019 Power Line Project.

NOTEWORTHY

FUTURE HARVEST Our agricultural development municipalities and generated program, “Future Harvest” 361 self-employment jobs, (Siembra Futuro), was born which benefited 1,600 people on August 12, 2017. It was in total. The program is in created in a coalition with high demand, and more several partners and currently and more rural families has 332 agro-business are submitting project Local Economic beneficiaries throughout proposals and business Buriticá, Cañasgordas, ideas all the time. For Development Giraldo, and Santa Fe sustainability purposes, the de Antioquia. program created a COP 600 We respect and support the territory’s voca- In its first two years, the million revolving fund that tion and priorities since this will guarantee the program accompanied 13 beneficiaries have access to region’s sustainability after the Mining Project agricultural and livestock when they require it. SUPPLY CHAIN LINKAGE PROGRAM (PEP) is completed. Our processes strive to strengthen business plans in these four PEP was launched in May of As of December 2019, 75 the social fabric, build trust and respectful rela- 2017 in partnership with the businesses (52% led by women) tionships between the different stakeholders, and Inter-American Development in Buriticá and Western Antioquia to create an inclusive and sustainable ecosystem Bank (IDB) and the Medellín were part of the PEP program. with a regional identity, which takes advantage of Chamber of Commerce for 35% of these companies have its potential. Antioquia, with technical already joined the Company’s Our mining process works hand in hand with assistance provided by supply chain or that of its communities, leveraging their skills, traditions, Interactuar. contractors. Zijin-CNL is and dreams. In 2018, Zijin-Continental committed to working with our Gold worked with 1,341 local supply chain. In 2019, we national suppliers and 226 local purchased products and services suppliers. Purchases in the for more than COP 13 billion. Buriticá Project area of influence COP 4,605 billion corresponded exceeded COP 11.5 billion in purchases from PEP program sectors such as food, textiles, beneficiaries. housing, construction, and civil works.

MAJOR ACHIEVEMENTS IN 2019

In 2019, we received prestigious awards >> Café Canelo, one of our PEP beneficiaries, thanks to the joint work between public received the Crecimiento Empresarial and private sectors that joined forces (Business Growth) award from the Interactuar to help the Company achieve its higher purpose: Corporation. “To improve lives and create value through sus- >> We implemented the Confia+ (More Trust) tainable mining”: program, in partnership with USAID, the Ideas >> We received the “Social Seal” from the for Peace Foundation (FIP), and the Colombian Government of Antioquia, which recognizes Coffee Federation, which seeks to strengthen Café Canelo, one of our PEP mining sector initiatives that are committed to citizen security and generate productive, Program beneficiaries. corporate social responsibility. legal, and sustainable opportunities in the >> >> We received recognition for implementing municipalities of our area of influence. This sound environmental and social practices in is a way to promote a culture “being legal” in the mining and energy sector by Colombia’s Western Antioquia. Ministry of Mines and Energy, the National >> We signed an agreement with Colombia’s Hydrocarbons Agency (ANH), and the National National University to work together in pro of Mining Agency (ANM). This is a recognition Western Antioquia›s sustainable development. for being a driving force, for change, in the The purpose is to research social and mining mining sector due to our relationship with the issues from applied engineering. territory.

SOCIAL INVESTMENT 2019 BY PROGRAM Amount invested Number of Direct Impacted (CNL2) COP USD projects beneficiaries community Future Harvest 1,341,721,567 408,926 332 495 1,769 Supply Chain Linkage Program 894,908,556 272,747 60 120 443

2019 Social Seal Award from the Government of Antioquia.

Strengthening Local Capacities and Partnerships for Development (CNL4) Institutional strengthening training and technical OBJECTIVES PARTNERS INSTITUTIONAL STRENGTHENING assistance programs (CNL18) We promote institutional strengthening does their part) and helps us avoid creating an Manage psychosocial risk factors through a series of strategies, including infor- unhealthy dependence on Zijin-Continental Gold (alcoholism, drug addiction, and teenage Buriticá’s Department of Health Mental Health Program pregnancies) that could affect communities / Buriticá’s Hospital / Minuto mation, dialogue, partnerships, and implemen- by our stakeholders. in our direct area of influence by de Dios University tation of development projects that seek to We work together with Community Action contributing to improved quality of life. improve quality of life for communities, generate Committees (CACs) and accompany them in Create sports and recreational training spaces to allow people from the Buriticá’s Department of relationships of trust with our stakeholders, and performing social diagnoses. We also help them My Village Gets Moving area of influence to use their time Education and Sports to contribute to the healthy development of our understand the impacts of the Project and help more productively and generate safe environments for community development. Mining Project. build their capacity to resolve the tension in their Santa Fe de Antioquia: Mayor’s Strengthen the local emergency corps Our institutional strengthening strategy is communities. Zijin-CNL has established pro- Strengthening local emergency Office, CGR, Fire Department through care and response training, and services (fire brigade and risk based on our Sustainability Model. Our goal is cedures for supporting social projects, which provide them with necessary emergency Buritica: Municipality, fire management committees) to generate social capital for communities and include social development and improving com- care equipment. department, transportation committee, and CGR institutions so that they can take ownership of munity infrastructure. This has helped members Implement accident preventive campaigns their own development. This is how we promote of the communities prioritize issues of concern. to reduce the risk of accidents and fatalities Municipality of Buriticá, Police partnerships and co-participation (everyone Road safety in different roads throughout Buriticá (via Inspector, Traffic Police, Pinguro Buriticá, industrial road, urban area, Devimar, CNL contractors etc.) Improve mobility (safety and infrastructure Antioquia Department conditions) for the Pinguro - La Estrella of Infrastructure and the Improving mobility secondary road. Municipality of Buriticá Improve rural village routes to improve Municipality of Buriticá and mobility for local communities. Asocomunal Partner with the National Police to generate safe environments by implementing the following programs: youth civic group, Institutional strengthening National Police, Municipality of building ecological playgrounds, school with the National Police Buriticá drug prevention programs, and educational spaces to promote safety and healthy coexistence. Buriticá’s Hospital, Buriticá’s’ Implement strategies to promote health and Department of Health, Community health & prevention disease prevention in communities in the Antioquia Infectology area of influence. Foundation Strengthen Buriticá’s Cultural Council Government of Antioquia, Strengthening cultural processes through technical assistance, training Municipality of Buriticá, and infrastructure processes, cultural dissemination, and by Heritage Rangers. improving cultural infrastructure.

My Village Gets Moving Program.

INSTITUTIONAL STRENGTHENING AGREEMENT WITH THE NATIONAL POLICE In 2019 we signed a technical and financial cooperation agreement to promote socio-environmental actions aligned with the indicators in our 2019-2022 Institutional Strategic Plan for working with the Police, an institution that works for the People. The purpose is promoting coexistence between the Colombian Police, communities, political institutions, and administrative entities, in coordination with public forces, justice agencies, local government, and citizens as participants who are an active part of the State. We recognize the Colombian National Police as an institution that works in pro of coexistence and protects the residents of Buriticá so they can exercise their rights and public liberties while protecting them from security Educational and recreational activities vulnerabilities. with the National Police.

>> Creation of the Youth Civic Group. We managed to >> Pedagogical Spaces for Coexistence and Citizen roots in the territory. In 2019, the “Parque Las Diversiones” train 30 youths, 21 of which continue to be active Education. Neighborhood crime prevention training (recreational park) was built in Los Asientos village. This was in learning processes related to leadership and workshops with 28 citizen security promoters and 16 an area that was recovered and transformed, where illegal service, attitude with a purpose, and strengthening of leaders were certified. mining processes used to take place. principles and values. >> Commercial Security Front. A voluntary organization >> Educational and recreational activities for the community. >> School Drug Prevention Program. A support strategy whose members work to build self-protection measures Accompaniment during local events, Rural Volunteering, for educational centers to prevent drug use. It in urban and rural areas. We managed to create it, Memorable Christmas Seasons, community meetings, and “Día embraces educational institutions such as Santa starting with 17 active members from businesses that Dulce de Los Niños Seguros y en Paz” (Children’s Sweet Day in Gema de Buriticá, including its Higabra, El Naranjo are open to the public. Peace and Safety). More than 21 prevention campaigns were and Mogotes campuses, and the Adolfo Moreno >> Ecological Youth Park. Promotes healthy coexistence, held in the urban center, the populated municipal divisions of Educational Institution. A total of 826 students, 27 recreation, and sports for rural youth, with spaces to Guarco and Tabacal, and the rural villages of Alto del Obispo, teachers, and 74 parents participate in the initiate. meet and interact, which encourage being proud of your Higabra, Mogotes, Palenque, and La Cordillera.

STRENGTHENING EDUCATION We are committed to education. It is one and duties.”* We promote skills/competen- OUR MAIN ACHIEVEMENTS of the main ways to transform people and cies based education that embraces knowl- IN 2019 communities. It improves the quality of life edge, doing, and being. and wellbeing of the most vulnerable. The We strive to generate capacities in local BASIC SCHOOLING Ministry of Education defines education as communities, beginning with basic school- We supported adult learners in fin- being “a process of permanent, personal, ing and then by getting citizens ready for ishing their basic schooling and cultural and social transformation based on employment. We, therefore, implemented the getting a high school diploma. The a holistic approach, which includes the con- following programs, which had the following approach used Special Integrated Academic ception of the human person, dignity, rights, results: Cycles (CLEI). 550 local people completed their studies in the Saturday School program, which allows them to be more academically prepared, and qualifies them for more public and private institutional offerings (jobs) in the area of influence.

VOCATIONAL TRAINING More than 2,800 people have received vocational training in the territory. Getting a job is one of the biggest expectations in the region; therefore, we continue consolidating educational offerings with partners such as SENA (Public Vocational College), to offer a continuous array of mining and non-mining programs.

HIGHER EDUCATION Access to higher education in Western Antioquia is low. Zijin- Continental Gold has, therefore, voluntarily contributed to transforming people, families, and territories by helping them access higher education in Antioquia. Our program currently has 44 direct beneficiaries, in academic programs such as Environmental Engineering, Graduation Ceremony for Dental Medicine, Agriculture, etc. Saturday School Program.

* Guide No. 21. Job skills/competences, Colombian Ministry of Education.

NOTEWORTHY

HIGHER EDUCATION SUPPORT FOR THE Scholarships for Higher Education: IMPROVEMENT OF 44 RURAL EDUCATIONAL DIRECT INFRASTRUCTURE BENEFICIARIES •• Improvements to classrooms, bathrooms, from Direct Area of Influence. and infrastructure expansions in 10 rural BASIC SCHOOLING AND village schools.Tabacal VOCATIONAL TRAINING Rural Youth Home.

550 •• Structuring Project ADULT GRADUATES Offices within Municipal obtained a high school diploma. Planning Departments for all four municipalities 2.800 PEOPLE RECEIVED in our area of influence VOCATIONAL CERTIFICATES (includes processes, working manual, and a 35 system of benchmarks and PEOPLE ARE STUDYING indicators). to become mining technicians.

•• Creation of a project bank SENA MINING in all four municipalities. TECHNICIAN PROGRAM •• The Municipality of 219 Buriticá presented a APPRENTICES project before the Ministry GRADUATED of Finance’s OCAD system cluding 81 women requesting funding to from the region: the first in the country to be certified as make improvements to Underground Mining Technicians. the La Vega Rural Village School.

HOW WE MEASURE OUR PERFORMANCE

Our performance is assessed using community and institutional monitoring mechanisms:: >> We apply participatory >> We apply the diagnostic processes, with guidelines defined communities from the in our Sustainability Direct Area of Influence, Strategy, which includes to define agendas and Social Investment and initiatives aligned with a Relations Plan for our stakeholders’ needs integrating our work and expectations (with and contributing to constant monitoring). the Company’s higher >> Working agreements are purpose. defined with the territory’s >> We comply with ICA OUR GOALS stakeholders and are reports (Environmental monitored using technical Compliance Report), which tables or community they send to the National SHORT-TERM >> Maximize the benefits from the LONG-TERM dialogue spaces. Environmental Licensing >> Generate capacities in start of the operation in the >> Guarantee an appropriate >> We participate Authority (ANLA), the communities and local territory. closure for the Mining Project, in institutional highest authority in the institutions so they can manage >> Define a shared, long- without generating social accountability exercises country on these issues. royalties, perform citizen term vision for the territory liabilities, and reduce impacts with the municipalities, >> We implemented an oversight, and plan and manage (coexistence) between related to dismantling, as much municipal councils, and independent third party for sustainable development. communities and the Company. as possible. departmental level entities review in compliance >> Come to an agreement with >> Implement a shared vision for (e.g., Ministries of Mines, with the IFC performance communities related to MID-TERM the territory›s development, Infrastructure, Education, standards and the social participatory monitoring of our >> Participate in partnerships that with communities leading the and Citizen Participation). impact assessment. environmental performance. are aligned with our defined process and the Company >> We use information >> We measured PEP and >> Continue to build trust and territorial development vision. being their main ally. systems such as Future Harvest program maintain our social license >> Support the creation of Borealis to follow up beneficiaries’ performance while helping communities community and institutional on and monitor results and the maturity of their understand our mining activity. groups with the abilities and and impacts on the business projects, via >> Guarantee a successful skills to manage and perform territory and to identify our partners, Chamber of transition and commissioning citizen oversight. opportunities for Commerce and Interactuar for the Project. improvement.

66 / Sustainability Report 2019 / Zijin – Continental Gold FORMALIZATION

TOGETHER WE MAKE A DIFFERENCE ON THE ROAD TOWARD COEXISTENCE Our Propositions

Mining formalization is a tool that promotes a culture of being legal in the territory.

We promote coexistence between modern mining and small-scale mining development in Buritica.

Women are the priority in our commitment to mining formalization.

We support the creation of formalized mining societies built on trust.

(103-1) (103-2) (103-3) Our Mining Formalization Program is a Our Formalization Model tool to promote the culture of being legal in the region. By adequately managing Our Formalization Program is based on a Strategic and Operational Model: small-scale mining through knowledge transfer, mining technology, and helping FORMALIZED them create formal jobs, we contribute Strategic Model COMPANIES to the territory’s governance and contribute to the development of the local Our Strategic Formalization Model seeks to transfer best Gold. They are trained to perform conventional min- communities that have embraced us. practices and the culture of our Organization to Buritica’s ing activities in areas where the Company’s large-scale Formalized companies are being small mining industry. It encourages operational excellence machinery and operation cannot be used. linked to our value chain via the pur- as the hallmark of our actions and leading by example. Our model contemplates financial help only during the chase of goods and services. The model has four stages. Each stage provides formal- first phase since after formalized miners obtain environ- ized miners with financial leverage, business advice, con- mental licenses, they can access loans from the Ministry tinuous technical support, and monitored autonomy. Thus, of Mines’ credit lines. once they have acquired operational and technical abilities, they can become mining operators for Zijin-Continental

STAGE 1 STAGE 2 STAGE 3 STAGE 4

Technical, financial, Technical and Monitored autonomy Operators Pilot Consolidated mining and business support business support Program operators

CNL’S ROLE CNL’S ROLE CNL’S ROLE CNL’S ROLE CNL’S ROLE Consulting Consulting Monitoring and control Technical and financial Monitoring and control + support + support guidance + financing + monitoring and control + monitoring and control

GOAL GOAL GOAL GOAL GOAL 80% of formalized High-tech competitive 80% 100% 100% companies become operators 50% 80% 100% mining operators for Strong mining 30% 80% 100% the Company associations

Legitimacy: obtaining permits to carry out mining activities Formality: business and commercial requirements and standards Legality: closing illegality gaps

Operating Model

(CNL8) We used the learning experience acquired Technical and social audits were performed fol- while working with formalized miners during the lowing internal parameters. We continue to imple- last five years to improve our operating model. We ment, measure, verify and identify opportunities set up the necessary measures and controls to for continuous improvement to achieve the pro- promote a culture of being legal. gram’s objectives.

1 2 3 4 5 6 7 8 9 10

SURFACE UNDERGROUND EXPLOSIVES MINERAL FINANCIAL ORIGIN OF TECHNICAL SOCIAL TAX PRODUCTION FUNDS STANDARDS STANDARDS STANDARDS

Monitoring Monitoring Monitoring use Processed by CNL Financial statement Sarlaft (anti-money Management system Employment contracts Controls of obligations Cartography Inspection visits Inspection visits of explosives Volume is controlled audits laundering) bi-annual and weekly visits Banking to the State Systematic sampling review Social security of Topography

MAIN ACHIEVEMENTS IN 2019

DIRECT JOBS DIRECT JOBS TOTAL DIRECT % OF LOCAL JOB CREATION COMPANY OPERATIONAL PHASE Seven companies were formalized in 2019. WOMEN MEN JOBS LABOR Sociedad Minera San Román S. A. S. Note 1: In 2019, Sakae voluntarily suspended Extraction. 8 47 55 84% Formalization sub-contract. its operations. Sociedad Minera Higabra S. A. S. Preparation and extraction. 2 12 14 93% Formalization sub-contract. Naranjo Gold Mine S. A. S. Development and extraction. 3 18 21 95% Formalization sub-contract. Sociedad Minera Los Nomos S. A. S. Formalization sub-contract. Development and extraction. 3 13 16 87% Operations contract. Consorcio Yaraguá S. A. S. Preparation and extraction. 0 8 8 100% Operations contract. Consorcio Nomarca. Consortium ended in 2019. NA NA NA NA El Arca Mining Company. Preparation and extraction. 1 16 17 76% Operations contract.

MAJOR ACHIEVEMENTS IN 2019

MANAGING RISK RELATED TO MONEY their quota of explosives, help them prepare WE PROMOTE THE WELFARE OF EMPLOYEES LAUNDERING AND FINANCING OF TERRORISM technical reports for the use of explosives, WORKING IN FORMALIZATION PROJECTS Every six months, a third-party, reviews existing databases and in constructing powder magazines. We >> Formalization projects must comply with a on our behalf to minimize risks related to money laundering also monitor the implementation of best job profile diagram (including medical and and financing of terrorism. We also check business and per- practices in the use of explosives. occupational exams) that is 100% aligned with our sonal profiles for legal, financial, and reputational issues to >> Ministry of Mines. We support formalized Organization’s requirements for new employees ensure compliance with Sarlaft requirements (anti-money miners in their relationships with the working within the operation. laundering entity). Antioquia Formalization Office and promote >> 100% of formalized miners have a job contract, are The Formalization Association, voluntarily sends us inter-institutional partnerships focused on affiliated to the social security system, and have reports describing the origin of funds it receives, including technical training. bank accounts. initial investments and those made during the execution of >> Municipality. We help formalized miners >> 95% of our formalized miners have health sub-contracts or operations contracts. It also reports any make their projects’ results visible to the insurance under the mandatory health plan for the changes to the board of directors, legal representation, and Buriticá community. contributory regime (not the subsidized regime). for new members. This gets us closer to our goal of having 100% of WE PROMOTE RESPONSIBLE formalized workers under this plan, which we set in WE BUILD BRIDGES BETWEEN INSTITUTIONS ENVIRONMENTAL MANAGEMENT our 2017 socio-economic baseline. AND FORMALIZED MINERS >> We ensure that mining production units do >> 90% of the formalized miners are affiliated to a >> Secretary of Mines. We support formalized miners not use mercury to process mineral ore. pension fund. in obtaining technical permits, such as the PTOC Four of our formalization sub-contracts (Works and Complementary Works Plan) and the use received environmental license approvals TRAINING PLAN of explosives certificate. We accompany formalized from Corantioquia, and one is pending In 2019, we trained 415 people in 27 areas. Our companies during differential inspection processes by approval in 2020. principal training programs were: the Secretary of Mines, and we assist in implementing >> We helped formalized companies submit >> Virtual Training Pilot Program, where 11 miners improvement plans for suggestions received during the three ICAs (Environmental Compliance received virtual training from the Pontificia inspections. Reports) to Corantioquia. Universidad Católica de Chile in Successful >> Corantioquia. We support formalized miners in getting Business Management for SMEs. their environmental licenses. We also accompany >> Leadership training and group and individual them during follow-up visits from this environmental coaching sessions. authority and provide advice on how to respond and >> Implementation of an Occupational Health and comply with requirements. Additionally, we help Safety Management System (OHS-MS). Formalization companies keep their licenses valid by >> Refresher training on handling explosive providing them advice on how to fill out Environmental substances. Compliance Reports (ICA). >> DCCA (Department that Controls Arms Trade, Ministry of Defense) We support formalized miners in obtaining

NOTEWORTHY

EMPLOYMENT NUMBERS average 115 WORKERS per month.

345 PEOPLE DIRECTLY BENEFIT from our Formalization Program.

94% OF WORKERS from the small-scale formalized mines are from the local community.

Formalized mines produced 2,127 OUNCES OF Women ore sorters group from the GOLD AND 2,915.98 Mogotes rural TH OF MINERALIZED village, which are part of the MATERIAL. Formalization They reported revenues of COP program. 5,726,767,613 including VAT (i.e. USD 1,726,998) and paid COP 195,223,601 in royalties. SUCCESS CASE Women ore sorters group: a story of their household, and the Company helped and administrative affairs. The training and 100% OF of entrepreneurship, Formalization, them form an association dedicated to sorting technical assistance are now allowing them to FORMALIZED MINERS and equality. These women used ore using the highest standards. We began the employ best practices in their work. received some level of education to be gold panners in the rural village of process in 2019 by providing them with spe- This project began with a group of 10 women, (primary, high school, technical, college, or university). Mogotes in Buriticá. They are now part of the cialized training on how to enrich low-grade but we continuously encourage other women Company’s value chain and are the first to mineral ore. to join them. This will make them all stronger perform ore sorting activities in the Company. The women were all born and raised in the and will contribute to local economic develop- As a way to promote legality and legitimacy region and came from a line of traditional gold ment in Western Antioquia. in their mining activity, the Company decided panners. Today they look at their work from a to support these women in their endeavor to different perspective. Thanks to the project, become entrepreneurs. They are all the heads they now have access to training in technical

HOW WE MEASURE OUR OUR GOALS PERFORMANCE

>> Quarterly Monitoring Committees SHORT-TERM support from the national with leaders from the formalized >> >> Help formalized mining government in financing and companies to address technical, projects become sustainable banking processes, focusing social, and business issues. in technical, financial, and on formalized miners. >> Weekly Field Visits, where we business terms. provide formalized miners with >> Generate more opportunities LONG-TERM technical assistance and guidelines for women within Mining >> Continue to be the most to improve their small-scale mining Formalization since women’s successful Formalization practices. inclusion has proven to be a Program in Colombia, by >> Monthly Inspections: to assess differential success factor. promoting true coexistence technical, social, and business >> Maintain and sustainably between large-scale mining processes for each of the formalized increase formal jobs created and small-scale mining in the mining companies, highlighting by mining societies. territory. opportunities for improvement when >> Continue to be a fundamental appropriate. MID-TERM pillar for the sustainability >> Management System used to >> Achieve established of the Buriticá Project and consolidate technical, social, and production and local become the program that business performance for each employment goals. develops mining supply chain formalization, and allowing us to >> Keep formalized companies linkage ideas to improve the assess compliance. self-sustainable. living conditions of small- >> External Audits. Administrative, >> Consolidate relationships of scale formalized miners. accounting and labor audits are trust and cooperation with carried out every six months. Our municipal and department Internal Control department also governments. applies specific audits throughout >> Manage actions to counteract the year. the pressure from illegal mining groups on our formalized miners. >> Push for more significant

73 / Sustainability Report 2019 / Zijin – Continental Gold PROTECTION

EVERYTHING IS POSSIBLE WHEN WE FOCUS ON RIGHTS AND BEING LEGAL Our Propositions

We promote a culture of being legal to create a safe territory.

Our approach to protection is comprehensive, multidimensional, and respects human rights.

(103-1) (103-2) (103-3) Zijin-Continental Gold works nonstop to MAJOR ACHIEVEMENTS IN 2019 protect the wellbeing of its people and the Company’s assets. Our vision is holistic. We A positive result of our Protection Strategy is promote comprehensive security processes that in 2019, there were no security incidents that support operations, the administra- that directly affected our personnel, assets, tion, and our sustainability department, thus or facilities. ensuring the continuity of the operation so the Company can achieve its objectives. WE’VE MITIGATED OUR SECURITY RISKS Our risk prevention and mitigation strategy Our security forces and partners have been very active. includes continuous assessment of risks and Operation CRETA, which began in 2016, continues in full the definition of control measures, with partic- force. The new phase of the Operation is called “CRETA 5” ular attention paid to risks involving corrup- and is meant to control illegal mining by shutting-down tion, extortion, and theft. We continuously use high-risk mines. intelligence strategies to stay alert, investi- Zijin-CNL Protection Units, private security, local gate, and receive information of high value to authorities, and Public Forces managed to increase the the Company. number of illegal mines that have been shut-down. These We maintain a broad and active relationship cumulative actions help preserve security in the terri- with all strategic, operational, and tactical lev- tory, minimize risks and impacts, and help the Project’s HUMAN RIGHTS TRAINING els of Public Forces. This allows us to cooper- continuity. Every action we perform in part- continued to promote training and ate heavily with Public Forces and implement nership with Public Forces fol- workshops for our employees and partnership agreements and arrangements lows a rigorous human rights partners to help us better under- that guarantee their presence and control in protection framework. In 2019, we stand this framework of action. the territory. 72 62 All of our actions follow rigorous proto- 86% cols which respect human rights. Our secu- COMPARISON rity partners are also committed to follow- OF CLOSED MINES 420 854 ing these protocols. Security personnel and PEOPLE TRAINED IN partners received training and instruction on 2018 2019 HUMAN RIGHTS ISSUES human rights, Voluntary Principles on Security (410-1) and Human Rights, and other standards that seek to preserve life and fair treatment within Zijin-Continental Gold also helped build new capaci- Total Zijin-Continental Gold. ties in Public Forces, which are now able to carry out security and control operations against illegal mining in Employees + contractors underground settings (tunnels). This will allow them to increase their reach and better fulfill their constitutional Public Forces, private security and surveillance companies duty to provide security in all areas. 2018 2019

SUCCESS CASE HOW WE MEASURE OUR PERFORMANCE

NOTEWORTHY CITIZEN CRIME PREVENTION PROGRAM We support the National Police’s Citizen Security >> We implemented the and operational levels 854 Crime Prevention Program, promoting the cre- Protection Management to achieve compliance PEOPLE ation of a Civic Participation Network and rural System, which guarantees with the Organization’s security fronts with the participation of children, accountability through protection objectives. received training on Voluntary Principles on youth, and adults. assessment of internal >> As a member of the Mining Security and Human Rights. processes that highlight and Energy Committee, we This included Public Forces opportunities for are required to submit an units, contractors, and improvement. incident report before that Zijin-Continental Gold 34 SECURITY SCHOOLS employees. >> Training in norms and citizen >> Reports are prepared entity. security periodically for all staff >> 3 urban security fronts >> 1 rural security front - energy We had zero security incidents affecting OUR GOALS SCHOOL PROGRAM 5 SECURITY FRONTS Company personnel and 500 STUDENTS STRENGTHENED assets, which guaranteed >> Drug use prevention >> Drug use prevention 100% CONTINUITY SHORT-TERM MID-TERM FOR THE >> Strengthen our >> Consolidate OPERATION. Protection structure to relationships and 3 COMMUNITY CIVIC PARTICIPATION make it more efficient partnership agreements BURITICÁ CRIME GATHERINGS NETWORK and modern, ensuring with Public Forces and 122 PARTICIPANTS PREVENTION, 630 MEMBERS quality when providing local authorities. >> Security and crime COEXISTENCE, >> Employees, contractors, WE SUPPORTED prevention issues & CITIZEN and citizens security for the >> Implement the the Colombian National PONAL - Community SECURITY PLAN operation. Protection Management Police in creating the Civic >> Permanently strengthen System for continuous Participation Network for Citizen Security and Crime risk management improvement purposes. Prevention. ONE OLDER ADULTS strategies to identify, GROUP AND ONE 2.552 assess, and control LONG-TERM YOUTH CIVIC GROUP CITIZENS RURAL CENSUS 630 IMPACTED Protection related >> Fulfill our duty to protect >> Recreation and >> 1,200 properties identified events that could assets and personnel YOUTH accompaniment activities >> Physical signage pending from the Mine’s areas of >> Citizen values and principles impact continuity for the and contribute to influence have joined the operation. corporate objectives. initiative.

IN PROJECT >> Creation of a rural security front in Higabra and Mogotes

77 / Sustainability Report 2019 / Zijin – Continental Gold ENVIRONMENTAL MANAGEMENT

MODERN MINING, RESPONSIBLE MINING BY NATURE Our Propositions

Caring for the environment and natural resources is one of our five strategic sustainability pillars.

We recognize that our operation demands careful management of environmental impacts, especially in relation to water and biodiversity. We know our activity will change the environment, so environmental management is a top priority in developing our Mining Project. Go to content Sustainability | Stakeholder Relations | Corporate Governance | High Operational Standards | Our People | Community And Regional Development | Formalization | Protection | ENVIRONMENTAL MANAGEMENT | Financial Performance | Appendix |

(102-11) (103-1) (103-2) (103-3) Zijin-Continental Gold is committed to responsible mining and having a harmonious relationship between nature and man. One of the five pillars in our Sustainability Model is properly managing environmental issues. We recognize that our operation requires careful environmental management and demands that we make decisions that respond to the needs and expectations of communities in our area of influence, prioritizing water, and protecting biodiversity. Trabajamos para prevenir, mitigar, controlar o We work hard to prevent, mitigate, control, or compensate for any impacts generated. We also manage perceived impacts and have the responsibility to clearly, accurately, and timely address all concerns that may arise related to the way we do it. We go far and beyond the environmental commitments set forth in the framework of our Management Plan. We have been developing voluntary strategies for the conservation of biodiversity and ecosystems, and strengthening community participation and group action. We assess our environmental initiatives and actions yearly. This is done through consultation, Nursery in the citizen participation, and environmental monitor- Buriticá Project. ing mechanisms that involve our stakeholders. Our joint efforts have one purpose: “To manage our environment responsibly, promote ecological (CNL10) In 2019, we invested COP 6,853,483,911 >> Modification to our environmental license. coexistence in the territory, and preserve biodi- (USD 2,088,783) in >> Environmental education programs for versity, in partnership with communities.” essential environmental management issues: employees, contractors, and the community. >> Payments to families that are part of the >> Keeping our Environmental Management System Payments for Environmental Services forest in compliance with the ISO 14001 international conservation program. certification standard. >> Execution of the Environmental Monitoring and >> Compensation payments for water use, and Follow-up Plan. investing in our comprehensive solid waste and >> Verifying our water and carbon footprint. hazardous waste management system.

ENVIRONMENTAL EXPENSES AND 2017 2018 2019 INVESTMENTS COMMENTS DIFFERENCE (CNL10) COP USD COP USD COP USD In 2019, there was an increase in Zijin-Continental Gold’s waste production due to a rise in construction and assembly activities in the Buriticá Mining Project. Waste disposal. 129,565,942 44,601 274,134,204 92,738 470,197,851 143,305 Collecting, transporting, and adequately treating generated waste (ordinary, 50,567 recyclable, organic, hazardous, and special waste) cost the Company COP 470,197,851 Emissions treatment. NA NA NA NA NA NA There are no chimneys that fall within the scope of the emissions standard. NA Amount paid to environmental authorities for water use and discharges. The Fee for water use. 4,897,207 1,686 4,803,417 1,625 5,565,672 1,696 amounts charged have remained stable for the last three years. 71 The differences in rates shown are due to currency exchange fluctuations. The rise is due to an increase in discharge volumes, which was authorized under the Discharge. 7,275,839 2,505 8,963,298 3,032 19,988,818 6,092 3,060 environmental license and corresponds to normal exploration and mining activities. Costs correspond to some of the maintenance expenses for the Environmental Management System (ISO 14001), including instruction and refresher courses for internal auditors, EMS audits, calibration and maintenance of environmental EMS (environmental certifications, measurement equipment, etc. 28,050,000 9,656 91,600,542 30,988 51,557,191 15,713 -15,275 green purchases). We saved money on specific scheduled courses because some of them were taught by internal personnel, and others were taught through partnerships with some of our suppliers, such as the Cyanide Management Course, taught by certified ORICA personnel. Investment by the Company in environmental education for employees, contractors, Environmental education and training. 447,998,963 154,217 509,939,081 172,510 518,477,162 158,020 and communities. Includes the building of the ecological trails project in Santa Fe -14,490 de Antioquia. Licensing Consultants / 1,783,649,261 613,993 700,177,270 236,866 492,266,585 150,031 -86,835 Expert Studies. Refers mainly to costs associated with the modifying of the environmental license Permits, paperwork, and taxes. 301,311,833 103,722 1,178,100 399 136,872,895 41,716 41,317 for the Buriticá Mining Project. Cost of executing the Environmental Monitoring and Follow-up Plan; includes Environmental monitoring. 2,965,235,638 1,020,735 4,513,910,294 1,527,033 4,311,126,340 1,313,931 water quality, air quality, and fauna (wildlife) monitoring. It also includes the cost of -213,102 verifying Continental Gold’s water and carbon footprint in 2018.

Administrative expenses. 88,197,426 30,361 101,186,863 34,231 124,655,470 37,992 3,761

Voluntary Payments for Payments to families that are part of the Payments for Environmental Services Environmental Services paid 130,544,772 44,938 1,100,545,961 372,309 722,775,927 220,285 -152,024 forest conservation program. to beneficiaries. Total environmental costs, expenses, 5,886,726,881 2,026,414 7,306,439,030 2,471,732 6,853,483,911 2,088,783 and investments.

SOME OF THE ACHIEVEMENTS FROM OUR ENVIRONMENTAL MANAGEMENT EFFORTS IN 2019

We continue to work together with vari- >> Voluntary Conservation Agreements. We ous public and private sector partners. This are fully aware that Buriticá and the area has allowed us to strengthen alliances with of influence have various habits with regional environmental authorities (Corantioquia and different species of plants and animals. Corpourabá), communities, international cooperation Some of our local flora and fauna species entities, civil society, and educational institutions in pro are endangered, being listed in the of environmental protection initiatives that contribute to International Union for the Conservation the sustainable development of Western Antioquia. of Nature (IUCN)’s Red List or other similar lists (GRI 304-4). This is an opportunity to Noteworthy achievements: contribute to much-needed conservation. >> Environmental Protection Agreement (April 29). We (304-3) 1,851 hectares of high ecological participated in an event that included educational value are currently being preserved using activities and the planting of 400 trees where the voluntary conservation agreements. former Santa Fe de Antioquia landfill used to be. 143 families from Western Antioquia During the event, we signed a voluntary agreement benefit from this program (and receive with Corantioquia to care for the environment and financial compensation for their efforts in promote the rational use of natural resources, through protecting the ecosystem). prevention and efficient mitigation of the impacts >> Corantioquia is part of this program that mining can have on the environment or the risks with eight families from Santa Fe de it poses for human beings. As part of the agreement Antioquia that protect 409 hectares in the (signed during the commemoration of “Tree Day”), Alegrías Regional Natural Park Corredor, we began a project to design ecological trails the located in the jurisdiction of Santa Fe Alegrías Regional Natural Park Corredor. and crossing into the municipalities >> Protecting Wild Cats (August 28). We partnered with >> Tree Planting Campaign. In 2019, of Anzá and Caicedo. We protect 463 regional environmental authorities (Corantioquia Corantioquia and Corpourabá held hectares of forest area, with the help of and Corpourabá) and signed a pact for wild cats several tree planting day campaigns, 60 families from the rural area of Buriticá. conservation in western Antioquia. The pact including the Regional “Forests for Life” We also have a partnership agreement recognizes how important wild cats are for (Bosques de Vida) tree planting campaign, with Corpourabá that allows us to protect maintaining a healthy forest and a balanced promoted throughout 80 municipalities 979 hectares in the “Alto del Insor” ecosystem. It is worthwhile mentioning that five of in Antioquia. We participated in all tree Integrated Management District, and the six wild cat species present in Colombia pass planting campaign days, donating over the Forest Reserve area protected under through Buriticá. Our cameras have already spotted 1,000 trees and all the necessary planting the “Ley Segunda” law passed in 1959. Ocelot, Margay, Puma, and Jaguarundi. supplies to help reforestation efforts in Seventy-five families receive financial Buriticá, Giraldo, and other municipalities compensation for their preservation in Western Antioquia. efforts in this area.

In 2019, our Environmental Management Environmental education efforts continued System was audited, and we maintained our throughout 2019. 323 hours were spent on ISO 14001:2015 certification.The audit, per- PRAE (School Environmental Project), and formed by Bureau Veritas, found zero “major 445.5 hours were spent on PROCEDA (Citizen- non-conformities” and full compliance with led Environmental Education Project). the standard’s requirements. The Company’s efforts paid off. The Government of Antioquia recognized Santa Our commitment is to: Gema Educational Institution (including its 1. Our operation had zero environmental urban campus, the campuses in the municipal fines or sanctions. We analyzed and subdivisions of La Angelina and El Naranjo, and dealt with all potential impacts and rural village campuses in Mogotes, Higabra, consistently monitored risks and alerts and Alto del Obispo) as providing the most (just like in previous years: 017 and significant environmental education experi- “Stop Using Plastic Bags” campaign. Delivery of reusable bags as a replacement for disposable plastic 2018) (307-1). ence in Western Antioquia. bags to carry groceries. 1. In 2019, we handled all environmental The Company also actively promotes envi- petitions, complaints, or claims quickly ronmental protection practices and taking and transparently. 92% of them have care of nature internally. Employees, from all already been formally closed (CNL11). fronts, participate in weekly activities meant 2. We successfully amended our to promote environmental best practices. We environmental license with a minor also celebrate “Environmental Week” within revision to our permits. the Company, yearly. 3. Hacienda La Mayoría was restored, a Noteworthy environmental awareness cultural and historical heritage site in the activities include “Stop Using Plastic Bags” Higabra village. campaigns, and the socialization of our “Using 4. We expanded our forest tree plant Water Efficiently and Saving Water Plan.” nursery to increase native tree seedlings We have a super talented environmental Company Environmental Week Celebration. production to continue to reforest areas management team. Everyone on the team of environmental and social importance. is highly qualified, and are also good human beings committed to high performance. Additionally, they are very respectful of the traditions and culture of the territory. All our technical and operational personnel are from the area of influence. This enables them to better understand the real impact that the Project World Tree Day Celebration. can have on the environment and define relevant strategies to manage it. In other words, not only do we work for the territory: we feel part of it.

We work comprehensively with constructive, As part of our support to community environ- As part of our environmental management plan, operational, Occupational Health, and Safety pro- mental processes in the region, we made a video we continuously monitor our energy use, any cesses that help us achieve our proposed goals. titled “Water for Education, Education for Water.” greenhouse gases (GHG) we emit, and how much We are proud of having received approval for The video was delivered to the Mogotes rural cam- waste we generate. The results of these mea- the environmental license amendment so quickly pus of the Santa Gema Educational Institution. The We committed surements were: and our success with environmental authority footage shows professor John Bairon Quintero to replanting >> (302-1) Energy. Compared to 2018, there was reviews and external audits. demonstrating the processes carried out for ade- 750 HECTARES an increase in energy use, both in energy As part of our environmental license, the quately caring for water. It is an educational tool for as environmental purchased from Empresas Públicas de Project has a Mine Closure Plan approved by students from that educational institution and the compensation. Medellín (EPM) and in fuel consumption. The corresponding authorities. We’ve already started community. increase was due to incremental progress in to work on it. Since 2018 we started a revegeta- Watch the video here. the mine’s construction, which require more tion process for 1.11 hectares, where the former equipment and more personnel. However, Yaraguá deposits used to be. In 2019, we con- compared to 2017, the values are relatively tinued providing upkeep for the revegetation to similar. ensure the area properly recovers. We are fully >> (306-2) Waste Generation. Similar to energy aware of our duty to recover the entire Project use, the solid waste generated increased area, which totals approximately 75 hectares. compared to 2018. This was also due to Even now, we are preparing for the closing and dis- progress in the construction stage, requiring mantling stage. We also committed to replanting more raw materials and supplies and more 750 hectares as environmental compensation. workers. It is noteworthy to see that part of (303-1) (306-1) We have a modern real-time envi- the increased waste is being recycled through ronmental monitoring network. It provides us with composting.The number of complaints/claims early warnings related to meteorological aspects, related to environmental issues dropped including air quality, noise, vibrations, piezometric from 22 (in 2018) to 13 (2019). The positive levels, and flow rates, etc. We are, therefore, able to reduction is the result of our professional verify compliance with environmental regulations personnel’s prevention mechanisms, technical very quickly and can take immediate action if any rigor, and our willingness to address the needs, inconsistencies are detected. culture, and expectations of the communities. The quality of our water resources is also mon- Petitions for environmental information also itored through an external laboratory, accredited decreased in number, dropping from eight in by Ideam. The community accompanies the mon- 2017, four in 2018, to one in 2019. itoring process. Progress is also being made in the construction and commissioning of the reverse osmosis plant, which will treat industrial wastewater before being discharged into the Cauca River. The plant will guarantee optimum water quality and goes beyond compliance requirements and parameters established by the standard.

Environmental management is crosscutting in every- OUR GOALS FOR 2020: thing we do. All of our employees receive environ- 1. Strict compliance of mental education and training. This helps build their Environmental Regulations environmental awareness and encourages respect 2. 2. Re-certify our for nature, which we believe is critical for successful Environmental coexistence. Management System. Our environmental management system will 3. 3. Strengthen relationships undergo a recertification process this year. We will with environmental include new mineral processing infrastructure, and authorities. our system must pass international ISO 14001 stan- 4. 4. Organize efforts for dards requirements, and continue to work in trans- the conservation of parent cooperation with entities such as Corantioquia biodiversity. and Corpourabá. It will also consolidate our efforts in 5. 5. Support the operation preserving wild cats in Western Antioquia. in preventing and mitigating new environmental impacts.

SPECIFIC OBJECTIVES WE Wild cat recognition workshop AIM TO ACHIEVE: with Panthera Foundation >> Zero environmental fines or SUCCESS CASE sanctions. >> Pass ISO 14001 In 2019 we consolidated our Our mission has also become an opportunity certification requirements. Conservation Plan. It was designed to work with communities and build awareness >> Carry out programs from to establish work plans for wild cat on how important it is to protect our wildlife, our partnership agreements conservation in Buriticá, including promotion especially in areas where people have been hunt- Corantioquia and campaigns. One of our primary focuses is pro- ing wild cats and other species, and hurting eco- Corpourabá. tecting the Leopardus tigrinus (a species listed systems around the Project. >> Strengthen conservation in the International Union for the Conservation Colombia is the second most biodiverse coun- processes in biological of Nature (IUCN)’s Red List ). Our mission led us try in the world. Protecting our species and eco- corridors and protect to strengthen national and regional partnerships systems thus becomes even more critical. All of endangered species such with different environmental authorities and us need to understand that nature and the econ- as the oncilla (Leopardus organizations. We joined efforts with civil society, omy can live in total harmony. We are proud to tigrinus). the public sector, and the educational community contribute to conservation efforts and try to lead to demonstrate how important it is to protect the by example, demonstrating that business and species and ecosystems in Western Antioquia. conservation can coexist.

85 / Sustainability Report 2019 / Zijin – Continental Gold FINANCIAL PERFORMANCE

TAKING ON THE CHALLENGE OF GROWING TOGETHER Our Propositions

We create value for all stakeholders by looking beyond financial profit.

MAJOR ACHIEVEMENTS IN 2019

>> Our financial results remained aligned with our >> The Project’s construction remained on approved budget. schedule with full-scale production scheduled >> Strategic tax planning allowed us to optimize to begin in the first quarter of 2020. investment decisions. >> We continue to work on the design of a new >> We received funding required for the financing corporate structure. This is essential as we of the Buriticá Project. Initially, we received USD transition into our commercial production 50 million. Later, Zijin Mining Group publically phase. announced their intention to buy the Company, >> We streamlined procedures and set up controls and send us an additional USD 50 million. for using cash in the Company.

ECONOMIC VALUE GENERATED 2018 2019 2019 (103-1) (103-2) (103-3) AND DISTRIBUTED (201-1) COP COP USD The primary purpose of our financial and >> We continuously strive to improve Money generated 8,656,141,537 8,573,889,174 2,613,122 accounting policies is to improve Company employees’ working conditions: promoting Operating income 8,656,141,537 8,573,889,174 2,613,122 performance and guarantee transparency worker’s well-being and professional Gold sales 7,593,117,537 6,279,266,413 1,913,775 in our financial information. This allows the development. Other revenue 534,720,000 340,984,600 103,924 Company to make strategic decisions that >> We invest in developing the local economy Income from financial investments 528,304,000 1,953,638,161 595,424 will ensure its sustainability through time. in our areas of influence. We do so Money spent 656,998,770,596 958,659,612,623 292,177,177 We create value for all stakeholders by according to the vocation and needs Operating expenses 579,564,434,095 868,907,964,917 264,822,960 going beyond Colombian legal requirements: of the territory. Purchase of raw materials 578,935,137,110 867,581,899,267 264,418,806 >> We have a buy-local policy. Local >> We define appropriate and timely action Cost of training employees 629,296,985 1,326,065,650 404,154 suppliers are prioritized, and we help plans to structure the Organization in Employee salaries and benefits 66,458,366,000 86,879,273,595 26,478,784 strengthen their businesses to make the most optimal way for entering the Payroll 58,038,222,000 74,496,104,595 22,704,682 them more competitive. This is a win-win commercial production phase. Social Security Contributions 6,461,570,000 10,379,874,000 3,163,544 for everyone since our capacity building >> We work to overcome mining sector Contributions to SENA 1,958,574,000 2,003,295,000 610,558 programs help local Companies produce challenges: legal uncertainty, informality, Payments to lenders - - - goods and services that would otherwise illegality, community relations, and Interest paid on loans - not be available in the Colombian market. logistical limitations for infrastructure Payments to governments 2,562,296,166 2,872,374,111 875,433 Local suppliers benefit, and our Company and security. All of these factors directly Taxes 2,221,358,488 2,608,048,652 794,873 benefits from having a local source of impact profitability and the availability of Royalties 282,493,396 246,321,736 75,073 products and services it can count on. funds necessary for our operation. Surface tax 58,444,282 18,003,723 5,487 Retained economic value -648,342,629,059 -950,085,723,448 -289,564,054

HOW WE MEASURE OUR PERFORMANCE

>> In 2019, the Finance Department was the budget. The reports are also sent led by a VP of Finance in Colombia, to the Company’s management and that reported to Colombia’s CEO and presented to the Board of Directors every the CFO headquartered in Canada. The quarter. Significant variations must all be VP manages financial issues for all justified. departments and ensures activities and >> Our corporate Controller reviews financial decisions are aligned with corporate statements thoroughly, every quarter. objectives and remain on budget in each >> The Audit Committee meets quarterly. reporting period. >> Our financial statements are audited and >> Financial results and variations are certified by PwC. analyzed monthly, and checked against

OUR GOALS

SHORT-TERM MID-TERM >> Implement a new corporate >> Reach maximum operating capacity structure with optimal processes for the processing plant and and procedures for our commercial maintain it. production phase. >> Achieve positive operational cash LONG-TERM flow, in the shortest time possible, to >> Actively support other Zijin-CNL guarantee financial sustainability for extraction projects and licenses, to the Project and generate value for all help extend the Company›s operating our stakeholders. lifespan in Colombia. >> Prioritize payments to local suppliers and improve salaries for our employees.

ISSUING REASON AMOUNT INSTITUTION/PERSON Fine for delays in paying and inaccuracy Department of Parafiscal and in self-assessment/settlement of Pension Management Affairs COP 28,990,149 Social Security pension and parafiscal (UGPP) contributions (fines paid in 2018).

COP 7,574,281,800 Tax adjustment for the registration of in taxes and COP Government of Antioquia’s mortgages used as loan collateral for 4,303,162,500 in Department of Revenue senior debt capital provided by Red Kite. interest for late payments.

Non-compliance in presenting a mandatory labor and works plan for COP 17,397,450 Government of Antioquia - mining title 6367. Secretary of Mines Non-compliance in presenting a mandatory labor and works plan for COP 17,397,450 mining title 6747.

In 2019, we legally disputed all fines a preliminary measure, before formally imposed. We filed a lawsuit for annulment challenging the fine imposed for Non- challenging the charges for the tax adjust- compliance in presenting a mandatory ment for the registration of mortgages and labor and works plan for mining title 6367. the fine imposed for Non-compliance in No fines or non-monetary sanctions presenting a mandatory labor and works related to environmental issues were plan for mining title 6747. Additionally, imposed during the reporting period. we requested a conciliation hearing as

GRI STANDARD NAME PAGE GENERAL CONTENT Profile Information 102-1 Name of the organization 2 102-2 Activities (describe the organization’s activities), brands, products, and services 7 102-3 Location of the organization’s headquarters 8 102-4 Number of countries where the organization operates, and the names of countries where it has significant operations 8 102-7 Scale of the organization (number of employees, number of operations, net sales, total capitalization, services provided) 41,47 102-8 Information on employees and other workers 47 102-9 Supply chain description 41 102-11 Precautionary Principle or approach, if applicable 80 102-12 External initiatives 6, 14 102-13 Membership in associations 14 Risk Management 102-14 Statement from senior decision-maker about the relevance of sustainability to the organization and its strategy for addressing sustainability 3 102-15 Key impacts, risks, and opportunities 26 Ethics and integrity 102-16 Values, principles, standards, and norms of behavior 7,26 102-17 Mecanismos de asesoramiento y preocupaciones éticas 26 Corporate governance 102-18 Governance structure 23,24 102-19 Process for delegating authority for economic, environmental, and social topics from the highest governance body to senior executives and other employees. 10 102-20 Executive-level responsibility for economic, environmental, and social topics 11 102-21 Processes for consultation between stakeholders and the highest governance body on economic, environmental, and social topics. 17 102-22 Composition of the highest governance body and its committees 24 102-23 Indicate whether the chair of the highest governance body is also an executive officer in the organization 24 102-24 Nominating and selecting the highest governance body 23 102-25 Conflicts of interest 28 102-26 Role of highest governance body in setting purpose, values, and strategy 24, 25 102-29 Identifying and managing economic, environmental, and social impacts 26 102-30 Effectiveness of risk management processes 26 102-31 Review of economic, environmental, and social topics 26 102-32 Indicate the highest committee or position that formally reviews and approves the organization’s sustainability report and ensures that all material topics are covered 6 102-33 Communicating critical concerns 26 102-34 Total number and nature of critical concerns that were communicated to the highest governance body and Mechanism(s) used to address and resolve critical concerns 26 Stakeholder engagement 102-40 List of stakeholder groups 17 102-41 Collective bargaining agreements 52 102-42 Indicate the basis for identifying and selecting stakeholders with whom to engage 17

GRI STANDARD NAME PAGE GENERAL CONTENT 102-43 Approach to stakeholder engagement 17 102-44 Key topics and concerns that have been raised through stakeholder engagement 17,18 Reporting practice 102-45 List of all entities included in the organization’s consolidated financial statements or equivalent documents, including entities not covered by the current report. 6 102-46 Explanation of the process for defining the report content and the topic Boundaries. 12 102-47 List of the material topics identified in the process for defining report content. 13 102-49 Significant changes from previous reporting periods in the list of material topics and topic Boundaries 6 102-50 Reporting period 6 102-51 Date of most recent report (if applicable) 6 102-52 Reporting cycle (annual, twice yearly, etc.) 6 102-53 The contact point for questions regarding the report or its contents 2 102-54 Claims of reporting in accordance with the GRI Standards (i.e., option chosen: Core, Comprehensive) 6 102-55 GRI content index 6

GRI STANDARD NAME PAGE SPECIFIC CONTENTS Stakeholder engagement 103-1 Explanation of the material subject and its limits 17 103-2 The management approach and its components 17 103-3 Evaluation of the management approach 17 CNL7 Dialogue with Continental Gold Sessions 19 Corporate Governance 103-1 Explanation of the material topic and its Boundary 23 103-2 The management approach and its components 23 103-3 Evaluation of the management approach 23 405-1 Diversity of governance bodies and employees 25 Ethics and integrity 205-2 Communication and training about anti-corruption policies and procedures 26 205-3 Confirmed incidents of corruption and actions taken 27 Operational Excellence 103-1 Explanation of the material topic and its Boundary 32 103-2 The management approach and its components 32 103-3 Evaluation of the management approach 32 CNL13 Global physical progress for the Construction 35 CNL 14 Distance drilled in meters 35

GRI STANDARD NAME PAGE SPECIFIC CONTENTS Occupational Health & Safety 103-1 Explanation of the material topic and its Boundary 36 103-2 The management approach and its components 36 103-3 Evaluation of the management approach 36 403-9 Work-related injuries 38 403-10 Work-related ill health 38 Supply chain 103-1 Explanation of the material topic and its Boundary 40 103-2 The management approach and its components 40 103-3 Evaluation of the management approach 40 204-1 Proportion of spending on local suppliers 41 Our people 103-1 Explanation of the material topic and its Boundary 47 103-2 The management approach and its components 47 103-3 Evaluation of the management approach 47 401-1 New employee hires and employee turnover 49 401-2 Benefits for full-time employees not given to part-time or temporary employees 50 404-1 Average hours of training per year per employee 50 404-3 Performance reviews 52 CNL15 Claims related to work practices 52 Community and regional development 103-1 Explanation of the material topic and its Boundary 56 103-2 The management approach and its components 56 103-3 Evaluation of the management approach 56 413-1 Operations with local community engagement, impact assessments, and development programs 58 413-2 Operations with significant actual and potential negative impacts on local communities 58 MM9 Resettlement sites, number of families resettled at each site, and ways in which their livelihoods were affected by the process. 59 CNL 16 Land claims 59 203-1 Infrastructure investments and services supported 56 CNL2 Amount spent on social investments 61 204-1 Proportion of spending on local suppliers 41 CNL3 Percentage of employees from local communities 47 CNL4 Partners 62 CNL18 Institutional strengthening via training and technical assistance 62 Formalization 103-1 Explanation of the material topic and its Boundary 69 103-2 The management approach and its components 69 103-3 Evaluation of the management approach 69 CNL8 Areas within the Company with artisanal and small-scale mineral extraction, risks associated, and measures adopted to manage and mitigate those risks 70

GRI STANDARD NAME PAGE SPECIFIC CONTENTS Protection 103-1 Explanation of the material topic and its Boundary 76 103-2 The management approach and its components 76 103-3 Evaluation of the management approach 76 410-1 Security personnel trained in human rights policies or procedures 76 Environmental Management 103-1 Explanation of the material topic and its Boundary 80 103-2 The management approach and its components 80 103-3 Evaluation of the management approach 80 CNL10 Breakdown of spending and investments on environmental protection 80, 81 Environmental Management System 307-1 Non-compliance with environmental laws and regulations 83 CNL 11 Number of environmental claims filed, addressed and resolved through formal claims channels 83 303-1 Water withdrawal by source 84 306-1 Water discharge by quality and destination 84 304-3 Habitats protected or restored 82 304-4 IUCN Red List species and national conservation list species with habitats in areas affected by operations 82 302-1 Energy consumption within the organization 84 306-2 Waste by type and disposal method 84 Financial Performance 103-1 Explanation of the material topic and its Boundary 88 103-2 The management approach and its components 88 103-3 Evaluation of the management approach 88 201-1 Direct economic value generated and distributed 88

94 / Sustainability Report 2019 / Zijin – Continental Gold SUSTAINABILITY REPORT 2019 CREATING VALUE THROUGH RELATIONSHIPS