ANNUAL REPORT 2016

His Majesty King Mohammed VI, May God Assist Him SUMMARY

MESSAGE FROM THE GENERAL DIRECTOR 4 INTERNATIONAL AND NATIONAL ENVIRONMENT 6 International environment 6 National environment 10

MAJOR FACTS 12 Hydrocarbons 12 Mining 12 Strategy & performance 13 Investment promotion 13 Human resources 13 Information system 14 Corporate social responsibility and environmental "CSR" 14 ONHYM’s contribution to COP22 15

MOROCCO-AFRICA PARTNERSHIP 16 An inclusive South-South co-development vision 16

HYDROCARBON EXPLORATION 18 Licensing 18 ONHYM’s own activity 19 Partners' activity 22

HYDROCARBON PARTNERSHIP & COOPERATION 25

2 HYDROCARBON DEVELOPMENT & PRODUCTION 29 Reservoir studies 29 Development studies 29 Reservoirs production 29 Hydrocarbons delivery 30 Oil Shale - shale gas 31 Maghreb Europe Gas Pipeline ‘‘GME’’ 31

MINING EXPLORATION 32 ONHYM’s own activity 32 Partners’ activity 40 Mining laboratories 42

MINING PARTNERSHIP & COOPERATION 43

HUMAN RESOURCES 45 Social activities 46 ONHYM cultural center 46 Summer camps : Holidays for all 47 "SHC" safety and hygiene committee 48 Training 48

Annual Report 2016 3 MESSAGE FROM THE GENERAL DIRECTOR

The worldwide oil price downturn which In the framework of the South-South we have experienced since June 2014 cooperation policy advocated by His impacted investments, capital allocation Majesty King Mohammed VI may God and employment. Assist Him, and which is based on co-development and solidarity principles’, Despite this challenging environment, 2016 was also characterized by a ONHYM has maintained and developed continued cooperation with several its partnerships as well as attracted new African countries. companies to intensify the exploration of Moroccan sedimentary basins. Thus, ONHYM is fully engaged in capacity- building activities, transfer of know-how Today, more than twenty oil companies in the fields of oil and mining exploration, operate in Morocco in partnership with and various management areas. ONHYM, including two majors (ENI and Chevron), one national oil As a catalyst for the hydrocarbons company (Qatar Petroleum), five and mining exploration in Morocco, independent oil companies (Kosmos, ONHYM has made commitments as part Capricorn, Glencor, Woodside and Repsol), of its contribution to the sustainable eleven independents and one junior. development of the country. ONHYM In 2016, the efforts invested by ONHYM ensures compliance with the regulations and its partners revealed gas shows and applicable to its activities and develops discoveries in the areas of Gharb, Meskala, performance standards in line with the Tendrara and Essaouira. best international practices.

Regarding mining research, ONHYM is Moreover, in the context of the Kingdom’s continuing its work on promising areas and involvement as the host of COP22, the its dynamics of opening up to domestic Office has committed itself as other and international investors through the international oil and gas companies, sale of mature projects. to promote sustainable solutions.

Amina BENKHADRA

4 … the efforts invested by ONHYM and its partners revealed gas shows and discoveries in the areas of Gharb, Meskala, Tendrara and Essaouira.

Annual Report 2016 5 INTERNATIONAL AND NATIONAL ENVIRONMENT

International environment

A low global growth

(*) International Monetary According to the IMF(*), world economic In emerging and developing countries, Fund: World Economic Outlook - January 2017. growth reached 3.1% in 2016. The global growth stabilized in 2016 at 4.1%, after economy has been marked by a lower five consecutive years of slowdown. activity in the United States, particularly in the first half of the year, as well as by In 2017, the recovery is expected to the impact of the Brexit. Even though accelerate with global economic growth the financial markets reactions to the estimated at 3.4%: the outlook is British referendum result were limited, improving for emerging and developing the increase in economic, political countries and the US economy is regaining and institutional uncertainties and the momentum. While the longer-term expected reduction in trade and financial outlook for advanced economies remains exchange between the UK and the rest moderate, due to weak productivity of the EU had negative macroeconomic growth, further growth is expected in consequences, especially in the UK. As a emerging and developing countries in the result, growth in advanced economies in medium term. 2016 has been revised downward to 1.7%.

4,5% 4,1% 4,1%

3,4% 3,2% 3,1% 2015 2,6% 2016 2,3% 2017 2% 1,6% 1,7% 1,6%

World United-States Euro Zone Emerging and Developing countries

Economic growth by region (years 2015-2017)

6 120 111,5 111,0 108,6

98,2 98,5 100

79,4 80 72,6 65,9 62,0 60 54,4 53,9 45,13 38,2 40 28,5 28,9 24,4 25,0 17,9 20

0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Crude Oil (Brent) prices $US/bl 1999 - 2016

Oil prices registered another decline in 2016. Brent price reached $45.13, down 16.3% from 2015.

The decline in E&P investment observed in 2015 was confirmed in 2016. At the global level, oil and gas upstream investment reached US$394 billion, down 24% from 2015. This decline particularly affected independents, whose budgets fell by 34%, against 26% for majors, and only 14% for national companies (NOCs). At the regional level, the Middle East and the CIS have been relatively spared. In the Middle East, investment was supported by the NOCs, which account for more than 70% of spending on the region and which, in general, maintained their budget at the 2015 level. The Americas suffered the strongest decrease with declines of 37% in North America and 34% in Latin America.

Finally, the decline in investment was close to the world average in Asia-Oceania (-20%), Europe (-22%) and Africa (-25%).

Global decline in exploration & production investment is confirmed.

Annual Report 2016 7 High volatility and uncertainty affecting oil prices make forecasting the level of investment in 2017 difficult. Nevertheless, if the price of the barrel stays between 50 and 60 dollars, the E&P budgets could increase by 3 to 8%. The increase would mainly concern North America, where investment could jump by nearly 25%, mainly driven by independent US companies. Outside North America, relative stability is expected. The increase in NOCs investments is expected to be offset by continued declines in investment by majors and independents, which remain focused on restoring their margins.

Billion USD

800

683 700 664

600 518 Middle East

500 405-425 Europe 394 400 CIS

Asia - Pacific 300

Latin America 200 Africa

100 United States & Canada

Assessment 2017 0

2013 2014 2015 2016 (e) 2017 (p) *Source : French Institute of Petroleum - IFP (April 2017). Evolution of global investment in E&P* (in Billion US$)

In mining exploration, global investment reached US$7.2 billion in 2016, down 22% from 2015. Since 2014, companies are allocating a growing share of their investment to late stage projects, less risky and less capital consuming, to the detriment of early stage projects aiming to find new deposits.

Most of the world exploration budget in 2016 was allocated to gold (47.9%), followed by copper (21.9%).

… companies are allocating a growing share of their investment to late stage projects, less risky and less capital consuming …

8 Global nonferrous exploration budget (in US$B) During 2016, gold and silver prices

Nonferrous Exploration Budget Total Estimated Exploration Total Annual Indexed Metals Price increased respectively by 7.8% and 9.3%.

24 4.0 This trend was due, in particular, to the US$ billions 7.2 22 increased demand for safe-haven assets 3.5 in the stock markets, and the climate 20 US$ billions 9.2 of economic and political uncertainty in 18 3.0 Indexed Metals Price (1996=1) Europe that followed the Brexit. 16 2.5 14 Furthermore, platinum price fell by 6.1% due to the supply surplus on the world 12 2.0 market, which followed the Volkswagen 10 1.5 scandal. This situation has raised 8 investors’ concerns about the stability of

Nonferrous Exploration Budget (USSB) 6 1.0 the overall demand for diesel vehicles, and

4 therefore platinum. Similarly, the price of 0.5 2 palladium declined by 11.2% due to lower demand for automotive catalysts. 0 0.0 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 Source: SNL - Metals & Mining - 2017

Investment by exploration type (as a percentage of Worldwide Exploration) After a decline during the first three

50 quarters of the year, base metal prices Advanced exploration strengthened at the end of the year,

40 benefiting from higher economic growth forecasts and indices of industrial 30 production, mainly in the United States Preliminary exploration (planned stimulus measures), in China 20 Minesite exploration (following the strengthening of the real estate sector) and in India. The only 10 exception was copper, which has been impacted by the excess of supply, and 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 which recorded an annual decline of Grassroots 41.1 38.2 33.8 32.9 33.6 30.7 33.0 30.1 29.0 27.8 Late Stage 39.6 40.6 40.4 42.9 41.7 43.8 38.1 38.7 36.8 37.0 11.5% in 2016. Minesite 19.3 21.2 25.8 24.2 24.7 25.5 28.9 31.2 34.2 35.2 Source: SNL - Metals & Mining - 2017

Global exploration budget

2012 2013 2014 2015 2016 Lead ($/t) 2 059 2 140 2 094 1 784 1 872 (+4,9%) Tin ($/t) 21 071 22 289 21 868 16 070 17 994 (+12%) Copper ($/t) 7 944 7 321 6 858 5 494 4 863 (-11,5%) Zinc ($/t) 1 945 1 908 2 164 1 928 2 095 (+8,6%) Gold ($/Oz) 1 669 1 410 1 266 1 160 1 250 (+7,8%) Silver ($/Oz) 31,1 23,8 19,1 15,7 17 (+9,3%) Platinum ($/Oz) 1 552 1 486 1 384 1 052 988 (-6,1%) Palladium ($/Oz) 643 725 803 690 613 (-11,2%)

Metals prices - 2012-2016

Annual Report 2016 9 National environment

The Kingdom's Gross Domestic Product Regarding the electricity sector, the growth is estimated to have reached 1.1% electricity production is expected to in 2016, down from 4.5% a year earlier, increase by 2.9% by the end of this year. due to a severe drought in 2016. This performance is due to the private production of energy combined with the Other than agriculture sector, the acceleration in the implementation of economic growth has improved thanks structural projects of renewable energies. to the dynamics of activities related to tertiary sector and the good performance As for the consumption of electrical of secondary sector’s activities. power, it grew by 1.9% in 2016 against 2.2% a year earlier. This variation is In 2016, the tertiary sector recorded an due in particular to the increase of the increase of 2.3% against 1.4% a year consumption related to high, very high and earlier, mainly due to the remarkable medium voltage electrical power by 1.3% growth of telecommunications, trade, and that of low voltage by 3.9%. tourism and business services. In terms of energy bill, it declined by 18% As for secondary activities, the growth in 2016 to 54.4 billion dirhams in 2016 remained sluggish around 4 percent compared to 66.2 billion dirhams the year (+ 4,2%) reflecting a healthy performance before. related to export values of goods, notably by the strong recovery of the sector of The net energy bill amounted to 52.5 phosphates and derivatives (contribute billion dirhams against 63.2 billion dirhams, by 93, 5% to total increase in exports) registered in 2015, which represents a and the launch of foreign businesses of decrease of 17%. Morocco. As for the oil bill, it reached 40.48 billion In this context, the mining activities staged dirhams in 2016, down 23% from the a slight recovery of 3.2% in comparison to previous year. a decrease of 5.1% in 2015.

10 … the energy bill declined by 18% in 2016.

Annual Report 2016 11 MAJOR FACTS

Hydrocarbons Mining

A total investment of 1.117 billion DH Realization of research over 40 objectives by partners and 117.515 million DH by located in the most promising areas of the ONHYM; country. ONHYM's own work concerned Drilling of 3 exploratory wells; 29 objectives, including 11 for precious Evaluation of petroleum potential metals, 8 for base metals and uranium, of 3 promising areas by ONHYM 2 for rocks and industrial minerals, 7 for Follow up of 26 projects in partnership, mineral exploration and 1 special project 7 special projects and 1 GIS Project; (geothermal energy). Partnership work has Continuation of the study of the involved 11 objectives, including 4 for base continental shelf extension; metals, 4 for precious metals and 3 for Signing of two new Petroleum industrial rocks and minerals; Agreements, one new Reconnaissance Signing of 2 transfer agreements, Contract, fourteen amendments to 1 memorandum of understanding, Petroleum Agreements, three addendum 5 cooperation agreements and to Reconnaissance Contracts, two Protocol 7 amendments. to the Agreement on Cooperation, and two amendments to Protocol to the Agreement on Cooperation.

12 Strategy & performance

The implementation of the organizational evolution has been started to: Update the management manual and the manual of procedures, Develop human resources, Optimize the procurement and supply process, Strengthen the control management, Consolidate the process of strategic planning and portfolio management.

Investment promotion

In 2016, ONHYM adopted a new development model that clarifies its positioning and strategic orientations. A new organization aligned with this new strategic positioning was set up with the creation of a Pole dedicated to investments promotion.

The creation of this new cluster will reinforce some key functions, such as marketing, promotion, fund raising, asset portfolio and participations management, as well as the monitoring of cooperation agreements, and coordination of actions carried out within the framework of these conventions and agreements.

Human resources

2016 was marked by the implementation of the Office’s new organizational structure and the new Staff Status, which entered into force on December 1st 2015. Focusing on the unifying values of Career management, evaluation through performance and expertise recognition. This new Status reinforced ONHYM's positioning as a committed and citizen-based company.

ONHYM continues to pursue a sustained training program to address strategic needs.

Annual Report 2016 13 Information system

2016 was marked by the implementation As part of the governance of the Office's of a new 2017-2021 IS Master Plan. documentary and information assets and The IS security audit project provided in accordance with the IS security audit, an opportunity to analyze the inventory ONHYM launched a transverse project of IS security and to draw up a list of for the study and implementation plan recommendations. A major project for for documentary heritage classification the preservation, management and and a calendar for ONHYM’s archives accessibility improvement of the national preservation. In addition, a project to geophysical data heritage has started. digitize supporting documents was Concerning the support functions, the launched to consolidate the benefits of the year 2016 was marked by the new documentary heritage treatment program compensation system’s implementation at resulting from the first Master Plan. the SIRH level following the adoption of the new Staff Status and the upgrading of ONHYM’s intranet and the projects center.

Corporate social responsibility and environmental "CSR"

Impact As part of its continuous improvement, Additional specific actions (limiting gas ONHYM strictly respects the regulations flaring, reducing the impact of lighting, studies are applicable to its activities and develops dematerializing many operations, etc.) are performance standards in line with in progress of evaluation. systematically international best practices in the hydrocarbons and mining industry. On the environmental front, ONHYM carried out ensures the use of best environmental In terms of hydrocarbon production, practices, and the restoration of sites before the ONHYM contributes indirectly to the in case of damage. Impact studies are reduction of CO emissions. Indeed, sales systematically carried out before the start start of 2 of gas to its customers in the Meskala and of projects with the implementation of a Gharb regions avoid CO emissions when well-defined validation and acceptability projects… 2 the fuel equivalent is used. ONHYM has results process. also converted all Meskala’s generators into a gas-powered group and is doing the Concerning the mining sector, ONHYM same for the Gharb. A carbon footprint subsidiaries and participation companies appraisal covering all ONHYM facilities is continued this year their social and underway. societal actions in partnership with the communities around their production sites.

14 ONHYM’s contribution to COP22

During the 22nd Conference of Parties The Office also participated in many on Climate COP22 in Marrakech from events organized during the COP22: 7th to 18th of November 2016, ONHYM was actively involved in this event Active participation in a study on the through the organization of the “OIL AND consideration of climate change by the GAS SUSTAINABILITY FORUM”, a COP mining sector. A conference-debate 22-labeled event focused on examining under the theme "Mines & Climate in key issues related to the oil and gas Morocco", labeled COP22, published the companies engagement in sustainable study’s results; development policy. Contribution to the International Symposium on Climate Change "New The main recommendations from this Approaches, New Technologies, New event include: Opportunities" preparation, labeled COP22 and organized by CCME; Increasing the share of natural gas in the The first global alliance and coalition energy mix; forum; Reduction of methane emissions from oil The Expert Forum on Nationally and gas production; Determined Contributions (NDC); Increasing energy efficiency; Seminar for the 3rd national Development of research and innovation communication to the United Nations for low-carbon technologies; Framework Convention on Climate Accelerating CO2 storage and capture Change (TCN) presentation; technologies; The Conference "360 Degree on Implementation of an incentive price for Carbon: Towards a sustainable carbon; energy transformation in an inclusive Development and support of renewable conversation on the road to COP22"; energies, especially through increased The MedCOP Climate - Tangier 2016; investment ($ 400 billion in 2030); African Philanthropy Forum: Taking Bolds Gradual abandonment of the least Steps in Energy and Climate Change; efficient coal-fired power plants. The "Energy Transformation through Diplomacy and Entrepreneurship" panel organized by the US Embassy; The "Energy Day" organized by the Ministry of Energy, Mines, Water and Environment.

Annual Report 2016 15 MOROCCO-AFRICA PARTNERSHIP

An inclusive South-South co-development vision

The Moroccan - African partnership is characterized by a secular relationship, a geographical, cultural and spiritual closeness. This cooperation has been strengthened by the recent visits of His Majesty King Mohammed VI, May God Assist him, in several African countries with the signing of numerous agreements marked by a strong commitment of the public and private sectors, within the framework of an inclusive South-South and co-development vision.

… Whether we look at it from the angle of the continent’s dynamic forces, its resources or its potential, Africa is a great continent. It therefore has to take its destiny in its own hands… This is why Africa should learn to trust Africa. Our continent does not need assistance so much as mutually profitable partnerships. Africa needs human and social development projects much more than it needs humanitarian aid…

Extract from His Majesty King Mohammed VI speech’s at Moroccan-Ivorian economic forum in Abidjan on 24 February 2014

The cooperation with African countries is an important part of ONHYM's strategy that involves sharing experiences, synergies and building partnership projects on a win-win basis.

… In this regard, the Kingdom of Morocco attaches a particular importance to the human element, whether through training and qualification or through the implementation of human and sustainable development programs, which have a direct impact on the improvement of the living conditions of the African Citizen...

Excerpt from the message of His Majesty King Mohammed VI to the participants of the 2017 Crans-Montana Forum 16 In 2016, ONHYM continued cooperation with several African countries (Mali, Guinea Conakry, Gabon and Mauritania) and signed new cooperation agreements:

Guinea Conakry: ONAP (National Office of Petroleum); Madagascar: OMNIS (Office of National Mines and Strategic Industries); Nigeria: NGSA (National Geologic Survey Agency); S outh Sudan: DGS (Directorate of Geological Survey of the Republic of South Sudan). © MAP © MAP © MAP © MAP

These agreements are devoted to scientific and technical cooperation (exchange of experiences and information), training activities in the different disciplines of hydrocarbon and mining exploration and management (regulation, promotion, project management…), and possible participation of both Parties in mining, oil and gas projects.

In this context, ONHYM has received several high-level delegations for working visits, as well as executives and engineers for short-term trainings. At the end of 2016, the total number of people / days for training courses was 925.

Annual Report 2016 17 HYDROCARBON EXPLORATION Knowledge consolidation of Moroccan sedimentary basins

In a gloomy economic climate, following the fall in oil prices, ONHYM maintains its efforts to attract new partners and to ensure regular followup of its partners in the fulfillment of their commitments. Work planned in hydrocarbon exploration for the year 2016 aimed to maintain momentum, impelled by ONHYM own activities and by its partners in order to consolidate progress in the knowledge of the potential of the Moroccan sedimentary basins for conventional and unconventional hydrocarbons (shale gas and oil shale).

ONHYM continues to double efforts to attract new partners…

Licensing

At the end of 2016, licensing concerning hydrocarbon exploration, was carried out on a total area of 284 220.59 Sq. km, by 23 companies including ONHYM.

Designation ONHYM In partnership Area (Sq. km) Onshore exploration permits 29 36 643.65 Offshore exploration permits 64 97 583.07 Onshore reconnaissance 3 126 134.70 licenses Onshore reconnaissance 1 23 790.60 licenses Exploitation concessions 1 38.71 Exploitation concessions 8 29.86 Oil shale 2 MOU Total 284 220.59

18 ONHYM’s own activity

Recognition of regional geology and hydrocarbon potential of Lemsid coastal area in the southern provinces

Acquisition of 456.75 km of 2D seismic lines of a planned total of 950 km; Preparation of a geochemical synthesis of existing data within the area, and realization of petrophysical and well logs interpretation reports for 6 wells; Loading and interpretation of 18 157 km of 2D seismic data, including 456 km newly acquired and 17 701 km vintage data from the neighboring areas.

The integration of geological, geochemical and geophysical data allowed the identification of new play concepts and leads in the Paleozoic and Jurassic with promising potential.

Annual Report 2016 19 Control of the play concepts in offshore Rabat-Tarfaya segment

Realization of a bibliographic synthesis and interpretation of 14 050 Km of 2D seismic data and 6 200 Sq. km of 3D seismic data and 12 well logs data in the offshore areas of Tarfaya, Ifni Deep, Mir Left, Loukos and Foum Assaka; Seismic interpretation and correlation of horizons corresponding to the Upper Callovian, Valanginian, Albian and Miocene on 10 assemblages of seismic lines. These will serve as a basis for a regional geochemical modeling of potential source rocks in the area of Rabat-Tarfaya segment; Evaluation of the source rock potential of the Valanginian - Albian from the geological and geochemical synthesis of data from wells and outcrops. Special emphasis was placed on the Aptian-Albian interval in the Essaouira-Agadir basin following the encouraging results obtained from geochemical analysis of samples from outcrops; Identification of new leads in the Mesozoic and Cenozoic sequences of the intra-nappe in the Loukos Offshore area, salt related leads with areas ranging from 20 to 45 Sq. km in the areas of Foum Assaka and Mir Left Offshore, as well as stratigraphic and structural leads in the area of Tarfaya.

Synthesis study on Mesorif

A new 2D seismic acquisition of 850 km was programmed in order to set up the geodynamic evolution of the Mesorif domain and develop new exploration concepts related to alpine thrusting. Mapping exercises at the Jurassic sequence allowed identification of 14 leads that will be invested by the seismic program planned in the area.

Study on the Continental Atlantic shelf extension

Work on this project has continued with the processing and interpretation of Multichannel Seismic data, Multibeam echosounder and Sub bottom profiles acquired in 2015, which served as a basis for the preparation of the Moroccan submission of the extension of the Atlantic continental shelf beyond 200 Miles. The Moroccan submission final report was finalized.

Realization of the historical review of hydrocarbon exploration in Morocco and promotion of the free acreage

Completed in 2016, this project aimed to update the history of oil exploration, which dates back to 1996. This document will provide an enlightened view of what has been done in the field of the hydrocarbon exploration in each sedimentary basin in Morocco especially in terms of ideas and concepts of exploration evolution. It will also serve as a source of references for partners wishing to enter an exploration zone in Morocco.

Biostratigraphic, petrophysical and geochemical study of cuttings from wells drilled between 2010 and 2015

Realization of 7 wells stratigraphic, biostratigraphic, geochemical and petrophysical synthesis; Drafting of the report and development of the geothermal gradient map for the wells TAO-1, CB-01, SM-1, JM-1 and FA-1; Rock Eval pyrolysis analysis of 10 samples from the well FD - 1 (between 2 510 m and 2 750 m); Realization of numerous works of transcription of seismic data, logs and well data vectorization.

20 ONHYM exploration activity in 2016

2

3

4

1

Paleozoic, Jurrasic, Triassic, Jurassic and G&G studies and The continental shelf Cretaceous & Tertiary Cretaceous promotion of the extension Offshore segment of Rabat - Tarfaya Lemsid : Geological and Geological & Finalization of the Geophysical synthesis, Geophysical studies Seismic interpretation of processing and and interpretation of and mapping of the 14 050 Km of 2D and interpretation of the data 1 857 Km of 2D seismic new leads, launch 6 200 Km2 of 3D seismic Organization of three lines and awarding of three data meetings with MZSL Acquisition of contracts related to the and other departments 456,75 km of 2D seismic acquisition of 850 Km Preparation of the final lines of 2D seismic report of the Moroccan submission

Annual Report 2016 21 Partners' activity

Offshore Zones

Permits/ Zone Partner(s) Reconnaissance Achievements Zone Gharb Offshore Repsol Exploration Reprocessing of 1 590 km of 2D seismic data; South permit Interpretation of seismic data and evaluation of the petroleum systems including leads and prospects; Acquisition of 1 218.5 Sq. km of 3D seismic data which is being processed. Mohammedia Chariot Oil & Exploration Geological & Geophysical evaluation Offshore Gas permit Rabat Deep Woodside / Exploration Interpretation of 3D seismic data and evaluation of the Offshore Chariot Oil & permit hydrocarbon potential of the area; Gas / ENI Identification of secondary targets above the P-1 prospect in the Jurassic; Identification of 9 Jurassic leads. Rabat Ultra Woodside Reconnaissance PSTM processing and interpretation Deep Offshore License of 2D seismic data; Interpretation of Gravity-Magnetic data; Identification of salt related and carbonate play concepts. Cap Cantin Chevron / Qatar Exploration Reprocessing of 2D and 3D data, mapping and Deep Offshore Petroleum permit identification of potential leads; Finalization of gravimetric modeling and the source to sink study; Acquisition of 3 726 Sq. km of 3D seismic data which is being processed. Cap Walidia Chevron / Qatar Exploration Finalization of the source rock distribution regional Deep Offshore Petroleum permit study; Prospects portfolio update with 50 new leads, following the new results of the 2D seismic data reprocessing; Acquisition of 596 Sq. km of 3D seismic data, which is being processed. Cap Rhir Deep Chevron / Qatar Exploration Reprocessing and processing of 2D/3D data; Offshore Petroleum permit Study of the prospectivity of the area based on the newly acquired 3D data interpretation. Essaouira Kosmos Exploration Specific reprocessing of a volume of 615 Sq. Km of 3D Offshore permit data in order to improve subsalt resolution close to the prospect "Spiders" programmed for drilling; Preparation of a report including the results of a study related to reservoir rocks distribution and source rock modeling; Detailed study of a Cretaceous lead in the Essaouira Shallow Offshore area following ONHYM’s recommendations.

22 Permits/ Zone Partner(s) Reconnaissance Achievements Zone Mazagan PXP / PVD Exploration Evaluation of the area and mapping of structures Offshore permit above and below the salt, as well as identification of new prospects following the results of the well MZ-1; Finalization of the analysis on rock and gas samples extracted from the well MZ-1; Elaboration of a synthesis on source and reservoir rocks characteristics located in the area. Sidi Moussa Genel / San Exploration Continuation of prospects evaluation by integrating Offshore Leon / Serica permit data from the well SM-1 and farm out campaign to attract partners to share the risk; Cretaceous mature prospects inventory. Foum Ognit New Age / Exploration Finalization of the interpretation of the newly acquired Offshore Glencore permit 2D seismic data; Regional geological analysis and reservoir modeling; Establishment of environmental impact assessments prior to the 1 000 Sq. km of 3D seismic data acquisition. Boujdour Kosmos / Exploration Finalization of the PSDM reprocessing of the Maritime Capricorn permit seismic data acquired in 2009 and 2014, and a new interpretation is underway based on this reprocessing; Preparation for a new 3D seismic program acquisition.

Onshore Zones

Permits/ Zone Partner(s) Reconnaissance Achievements Zone Lalla Mimouna Circle Oil Exploration Evaluation of the permit by integrating the results of permit the wells: NFA-1, ANS-2 and LAM-1. Sebou Circle Oil Exploration Geological and geophysical studies. permit Tendrara Lakbir Sound Energy / Exploration Drilling of two wells: TE-6 and TE-7 the results of OGIF permit which were positive (gas discovery); Preparation for the well TE-8 drilling. Moulay Bouchta Gulfsands Exploration Continuation of geological and geophysical studies. permit Sidi Mokhtar Sound Energy Exploration Continuation of hydrocarbon evaluation of the area. permit Haha onshore PEL Exploration Finalization of the report for the well TAMANAR-2 permit location; Preliminary topographic work and permitting for the well TAMANAR-2 drilling (Spud date on 31/12/2016). Hassi Berkane Maxim Reconnaissance Hydrocarbon evaluation of the area; license Relinquishment of the area.

Annual Report 2016 23 Partners exploration activity in 2016

Tanger

01 Oujda

Rabat Fes

Casablanca 07

02 Figuig 03

Marrakech Er-rachidia

08 Ouarzazate 04 Agadir

A t l a n t i c O c e a n

Lâayoune

05

06

Dakhla

Lagouira

01 Repsol (Gharb offshore South) 06 Kosmos / Capricorn (Boujdour Maritime) Realization of environmental impact Geological and Geophysical studies assessments and acquisition of 1 218,5 Km2 Preparation for the acquisition of 3D seismic data of a 3D seismic program 02 Chevron / Qatar Petroleum 07 Sound Energy / OGIF (Tendrara Lakbir) 03 (Cap Cantin, Cap Walidia and Cap Rhir) Drilling and test of the wells TE-6 and TE-7, 04 Evaluation and gravimetric modeling underway gas discovery Acquisition of 4 322 Km² of 3D seismic data Preparation for the drilling of the well TE-8 05 New Age / Glencore 08 PEL (Haha onshore) (Foum Ognit offshore) Well spud of Tamanar-2 on 31/12/2016 Realization of environmental impact assessments prior to the acquisition of 1 000 Km² of 3D seismic data

24 HYDROCARBON PARTNERSHIP &

COOPERATION

The year of 2016 was marked by the signing of:

Reconnaissance contract; Application for exploitation concession; Application for exceptional extension of exploitation Addendums to concession. reconnaissance 1 3 contracts. 5 14 Petroleum Agreements; Applications for Amendments Cooperation Heads Of entry into the to petroleum Agreements; first extension agreements. Amendments To Heads period. 2 Of Agreements.

À fin 2016, le domaine minier des hydrocarbures a couvert une superficieBy the end of totale 2016, hydrocarbonde 284 220,59 licensing km² covered répartie an acreageen : of 284 220.59 Sq. km. Conventional Hydrocarbons

Partnership

Twenty-two (22) companies are ONHYM’s partners under petroleum agreements and reconnaissance contracts covering a surface area of 260 391.28 Sq. km, divided as follows: 20 petroleum agreements covering 93 Exploration Permits for a surface area of 134 226.72 Sq. km; 3 reconnaissance contracts relating to 3 onshore Reconnaissance Licenses for a surface area of 126 134.70 Sq. km; 8 Exploitation Concessions for a surface area of 29.86 Sq. km.

ONHYM

ONHYM mining titles cover an acreage of 23 829.31 Sq. km representing 1 Reconnaissance License (23 790.60 Sq. km) and 1 Exploitation Concession (38.71 Sq. km).

Unconventional Hydrocarbons

Two companies are ONHYM’s partners under 2 MOUs relating to oil shale.

Annual Report 2016 25 Petroleum Agreements

Area Partner(s) Work program Boujdour Maritime Kosmos Energy Maroc Mer Profonde / 3D seismic acquisition; Capricorn Exploration and Development G&G works and studies. Company Limited Mohammedia Chariot Oil & Gas Investments (Morocco) 2D Seismic acquisition; Offshore Limited 3D Seismic acquisition.

Reconnaissance Contracts

Area Partner Work program Doukkala Abda Olympus Energy International Inc. Seismic reprocessing. G&G works and studies.

Amendments to petroleum agreements (First part)

Area Partner(s) Purpose Zag Basin San Leon (Morocco) Limited / Longreach 12 months extension of the First Oil and Gas Ventures Limited Extension Period. Boujdour Offshore Teredo Morocco Limited / Glencore 2 years extension of the First Extension Shallow Exploration (Morocco) Limited Period; Work program modification. Cap Rhir Deep Chevron Morocco Exploration Limited / Transfer of 40% of Chevron’s percentage Offshore Qatar Petroleum International Upstream interest to Qatar Petroleum. Cap Cantin Deep Chevron Morocco Exploration Limited / Transfer of 40% of Chevron’s percentage Offshore Qatar Petroleum International Upstream interest to Qatar Petroleum. Cap Walidia Deep Chevron Morocco Exploration Limited / Transfer of 40% of Chevron’s percentage Offshore Qatar Petroleum International Upstream interest to Qatar Petroleum. Sidi Mokhtar Petromaroc Corporation Plc / Maghreb Gathering the First and Second Extension Petroleum Exploration S.A Periods under one validity period Work program modification. Tendrara Lakbir Sound Energy Morocco Sarl Au / Oil and 4 months extension of the Initial Period. Gas Investments Fund Gharb Offshore Repsol Exploracion Gharb S.A 12 months extension of the Initial Period; Sud Work program modification. Sidi Mokhtar Petromaroc Corporation Plc / Maghreb Transfer of 100% of PetroMaroc and Petroleum Exploration S.A / Sound Energy MPE’s percentage interests to Sound Morocco SARL AU Energy. Rabat Deep Chariot Oil and Gas Investments (Morocco) Transfer of 80% of Chariot’s percentage Offshore Limited / Woodside Energy (Morocco) Pty interest to ENI. Ltd / Eni Maroc B.V

26 Amendments to petroleum agreements (Second part)

Area Partner(s) Purpose Sidi Moussa Genel Energy Limited / San Leon Offshore Gathering the First and Second Extension Offshore Morocco B.V. / Serica Sidi Moussa B.V. Periods under one validity period; Work program modification. Essaouira Offshore Kosmos Energy Deepwater Morocco / BP Transfer of 100% of BP’s percentage Exploration (Morocco) Limited interest to Kosmos. Essaouira Offshore Kosmos Energy Deepwater Morocco 18 months extension of the First Extension Period; Work program modification. Moulay Bouchta Gulfsands Petroleum Morocco Limited 12 months extension of the Initial Period; Work program modification.

Application for entry into first extension period

Area Partners Work program Cap Rhir Deep Chevron Morocco Exploration Limited / Gathering the 3D seismic data; Offshore Qatar Petroleum International Upstream G&G interpretation. Cap Cantin Deep Chevron Morocco Exploration Limited / 3D seismic acquisition. Offshore Qatar Petroleum International Upstream Cap Walidia Deep Chevron Morocco Exploration Limited / 3D seismic acquisition. Offshore Qatar Petroleum international upstream Rabat Deep Chariot Oil and Gas Investments (Morocco) Drilling of a well; Offshore Limited / Woodside Energy (Morocco) Optional 3D seismic acquisition. Pty Ltd. Tendrara Lakbir Sound Energy Morocco SARL AU / Oil and Drilling of a well. Gas Investment Fund

Addendum to reconnaissance contracts

Area Partner Purpose West Mediterranean Mubadala Petroleum 5 months extension. Aoufouss Repsol Exploracion Atlas, S.A. 12 months extension. Issouka Shell Exploration Company B.V. 9 months extension.

Annual Report 2016 27 Exploitation concession

Area Partner Purpose Sidi Al Harati Circle Oil Maroc Limited Production of the well SAH-W1. South-West

Exceptional extension of exploitation concession

Area Owner Purpose Meskala ONHYM (alone) 10 years exceptional extension.

Other agreements

Purpose Partner Country Cooperation Heads of Agreement Office National des Pétroles « ONAP » Republic of Guinea Amendment to Heads of Agreement Cooperation Heads Office des Mines Nationales et des Madagascar of Agreement Industries Stratégiques « OMNIS » Amendment to Société des Pétroles du Sénégal Senegal Heads of Agreement « PETROSEN »

28 HYDROCARBON DEVELOPMENT & PRODUCTION

Reservoir Reservoirs studies production

Performance monitoring and reserves During 2016, this activity was reevaluation for producing fields; characterized by the realization of several Establishing the short and mid-term projects relating to the state determination production forecast for producing wells of the natural gas transport networks in in Gharb region; Essaouira and Gharb regions, especially: Accomplishment of Meskala reservoir Diagnosis of cathodic protection in both simulation study allowing to define regions; the development plan with several Inspection of the 4” inches pipeline production scenarios; connecting the DRJ station to the CMCP Monitoring the realization and analysis plant at Kenitra; of well tests data from TE-6 and TE-7 Realization of an expertise on the 8” inches wells, drilled in Tendrara Lakbir permit, pipeline located in the Gharb region; with ONHYM’s partner Sound Energy Monitoring of the construction of a 4” Morocco. inches pipe section which was damaged by a landslide near Super Cerame clay deposit. Development studies

Preliminary and topographic studies to supply the PSA plant with natural gas were established. However, engineering studies for the connection of the PSA plant to the Gharb gas pipeline network were initiated; Technical and economic studies were carried out for the development of the Gharb discoveries; Technical report accompanying the concession demands for the Gaddarri Sud-Ouest "CGD-12" and Sidi Al Harti "SAH-W1" were studied; Establishing of Meskala’s possible development scenarios with assessment of their economic viability; Preparation of the technical report accompanying the request for the exceptional extension of the Meskala concession.

Annual Report 2016 29 Hydrocarbons delivery

Production concentrated in Essaouira and Gharb regions During 2016, natural gas delivery increased by 4.3 % due to OCP consumption increase even with CMCP consumption stop during 78 days, from 28 June until 13 September (for the construction of a 4 inches pipe section which was damaged by a landslide near Super Cerame clay deposit).

Years 2015 2016 Natural gas in millions Nm3 41.83 43.80 Condensate in Tons 4 998 4 849.7

The overall turnover generated by hydrocarbons sale (Natural gas and condensate) at the end of December 2016 is 100.7 Millions MAD.

30 Oil Shale - shale gas

Sampling and mechanical preparation of Tarfaya and Timahdit oil shale for our partner General Strade. The samples will be the object of laboratory analysis and asphalt production pilot tests at the University of Rome in Italy. Follow-up the activities of our partners Zonatec, General Strade and GOS, and providing to them the technical and administrative support by proposing the necessary recommendations to carry out the MOUs tasks work program.

Maghreb Europe Gas Pipeline "GME"

As a part of the royalty management received by the Moroccan Government for the transit of natural gas through our country for European customers « Sagane & Transgas » benefit, ONHYM’s teams continued to ensure regular monitoring of consumption of Spanish and Portuguese customers as well as ONEE power plants natural gas royalty consumption. As a result, the natural gas volume transited through the GME in 2016 is 9.01 billion NM3, which represents a slight decrease of 0.9% compared to the volume transited in 2015 valued to 9.09 billion NM3.

Difference Designations 2015 2016 2015/2016 Quantities of natural gas transported for Sagane 9.09 9.01 -0.9% and Transgas, in billion NM3 Royalties, in millions NM3 650.4 644.6 -0.9% Quantities of gas consumed by ONEE power 445.2 465.1 4.5% plants ”Tahaddart & ABM”, in millions NM3

Annual Report 2016 31 MINING EXPLORATION The mining exploration continues with determination

The mining exploration in 2016 concerned Essarih (REE, Mo, Au) 40 projects, 29 by ONHYM’s own activity A reconnaissance program including a and 11 in partnership. survey of 4 drill holes totaling 838.8 m was carried out during 2015. The drill ONHYM’s own activity concerned holes intersected the structures defined 29 projects including 11 for precious by geophysics. However, the results of metals, 8 for base metals and uranium, chemical analysis show low grades of 2 for industrial rocks and minerals, 7 for rare earths elements, which not exceed general research and 1 special project 565 ppm Ce and 248 ppm Y. A detailed (geothermal). Activity in partnership soil geochemistry program continued interested 11 projects including 4 for base during 2016 in the area to define other metals, 4 for precious metals and 3 for mineralized structures; 189 samples were industrial rocks and minerals. collected and show contents up to 330 ppm Ce, 2711 ppm Cu and 949 ppm Zn.

ONHYM’s own Tlayha (U) The structure of Tlayha was identified by the geological mapping (1/5 000) activity and lithogeochemical sampling of the radiometric anomalies. The result revealed grades up to 1 062 ppm U. Drill holes Precious metals TLS01 to TLS64 show encouraging grades ranging from 100 to 767 ppm U with a Lahjeyra (REE, Nb, Mo, Au) thickness varying from 0.8 to 4 m. The chemical analysis results of the drill holes carried out during 2015 (1 031 m) confirm the encouraging results of the previous campaigns in the central mass, whereas the results of the drill holes in the northern part are just indicatives. A re-evaluation of resources was performed, based on the drilling results, and give 372 Mt at 0.62% LREE, 613 ppm HREE, 0.34% Nb2O5 and 461 ppm Th.

32 Lafhouda East (Ta, Nb et U) A geological mapping (1/5 000) and several geologic cross-sections were carried out in this prospect. The results of chemical analysis revealed grades up to 0.8% Ce, 1.6% Nb and 322 ppm U. The planned program of drilling (600 m) was initiated by the completion of the first drill hole (GLS15) stopped at the depth of 100.3 m.

Tighmi (Au) Saghro South (Ag, Cu) The work carried out consisted in The research was carried out in the areas a geological follow up of the BLEG of Tizi N'Ousatour and Iknioun. In the Tizi geochemical anomalies revealed in the n'Oussatour argentiferous copper sector, Aït Issafen sector with watersheds of geological surveys were carried out at 14.9 and 18.46 ppb Au, and in the sector different scales (1/10 000, 1/2 500, 1/500) of Agouzouln with 10.24 ppb Au. The over a total area of 130 ha. 370 samples work carried out consisted of a 1/10 000 for chemical analysis and 7 samples for geological mapping covering an area of petrographic study were collected. The approximately 5 Sq. km, with the sampling results of chemical analysis of the surface and chemical analysis of 120 samples samples showed grades up to 363 g/t Ag which showed occurrences grade levels and 3.25% Cu. Following these results, a The mining (59 ppb Au, 0.8% Cu and 1.1% Zn). The drilling campaign was performed with the activity is currently suspended in this area, exploration realization of 4 drill holes totaling 489 m. following the signing of a memorandum The first drill hole intersected three of understanding on 21/07/2016 with the in 2016 mineralized passes successively at the Turkish company Abalioglu, which will depth of 20, 44 and 64 m of respective continue the research on this project. concerned 40 apparent thickness and grade of 6.5 m at 259.5 g/t Ag and 2.5% Cu; 3 m at 33.3 g/t projects, Ag and 0.6% Cu; 2.3 m at 161.1 g/t Ag and Tizgzaouine (Au, Cu, Mn) 0.2% Cu. The result of chemical analysis 29 by of the third drill hole shows an average The work carried out concerned the two grade of 19 g/t Ag and 0.15% Cu on a sectors of Tizgzaouine Merzoug and ONHYM’s thickness of 30 m. The fourth drill hole Tizgzaouine North. In the first sector, the was implanted to recognize the rooting work consisted of a geological survey own activity of the mineralization intersected by the with the carrying out of 70 linear meters and 11 in first one. Chemical analyzes of this latest of trenches and the collection of 120 survey are underway. samples. The results of the chemical partnership. analysis showed isolated anomalous with In the Iknioun area, the Outta Oui, contents up to 88,5 g/t Ag and 2% Cu. Aït Mersid and Taytlast occurrences, In the Tizgzaouine North area, ten mineralized in Au, Ag and Cu, were resistivity / chargeability profiles and a subject to a 1/2 500 geological mapping magnetic survey were carried out covering over an area of 120 ha, with the collection an area of 154 ha. The magnetometry of 203 samples for chemical analysis revealed a magnetic perturbation zone and 11 samples for petrographic and superimposed on the mineralized metallographic studies. The results of structures, which confirms an NW-SE analysis show grade up to 5.9 g/t Au, continuity in the two studied areas. The 74 g/t Ag and 2.1% Cu. induced polarization revealed a resistant body on the mineralized structures, which probably corresponds to a silica filling, with chargeability anomalies.

Annual Report 2016 33 Tanalt (Au, Cu, Pb) This project consists of the geological control of gold geochemistry anomalies, BLEG and alluvial, that coincide with hyperspectral targets. The work carried out consisted of a 1/25 000 mapping over an area of 17 km² and the collection of 246 geochemical samples. The analysis results showed isolated concentrations of lead up to 1.2% obtained in the quartzites of the Precambrian II.

Tidili (Au, Cu) The work carried out consisted of a geological follow up of a hyperspectral anomaly, by geological mapping at 1/5 000 over an area of 1,5 Sq. km and the collection of 50 geochemical samples. Near this target, the area of Aoudid was also mapped at 1/1 000 covering an area of 1 Sq. km, with the collection of 148 samples on ferruginous quartz veins hosted in the volcanic breccia with General research (precious metals) andesites and rhyolites. General research in the south zone The result of the chemical analysis show (RG-SZS) encouraging grade up to 19 g/t Au, obtained in a NW / SW vein structure, with In the The Chenna areathe work carried an extension of 300 m and thicknesses out in this area consisted of geological ranging from 0.5 to 1 m. A second vein survey and the collection of 1 206 rock structure, parallel to the first, show an samples. anomalous gold grade from 30 to 100 ppb and sporadic Ag (up to 89 g/t Ag). The mineralization is related to centimetric to decimetric silicified sandstones Activity will continue on this project to horizons, with quartz and carbonate assess the potential of Aoudid's gold- filaments and veinlets, iron oxides and bearing vein structures. malachite, showing grades up to 6 g/t Au and 6% Cu. Otherwise, a study of the geological context of this mineralization was Besides, samples from the Amaragh, undertaken within the framework of the Tichla and Oum Tlayha sectors are being agreement with the University of Geneva. analyzed. A soil geochemistry campaign covering an area of approximately 750 Sq. km was carried out in the greenstone area of Bir Gandouz and Tichla, with the collection of 748 soil samples that are being analyzed.

34 Base metals

Occidental Anti-Atlas (Cu) For the Taâdant sector, the results of chemical analysis show grade up to 1.4% Cu, 106 ppb Au and 102 g/t Ag.

The second drill campaign (TD3 to TD9) totaling 925.80 m, was then carried out. These drill holes intersected two mineralized zones: the quartz sandstones of the basic series located below the small limestone and the PIII conglomerates.

The result of core sampling (160 samples) shows grade, at the basic series, up to 0.64% Cu over 15 cm (TD5) and 0.30% Cu over 2.10 m (TD8), whereas, in the PIII conglomerates, the grades are 0.4% Cu over 4.15 m (TD6) and 0.6% Cu over 1.45 m (TD5).

In addition, chemical analysis in the Tizoula General research in the Anti-Atlas sector shows grade up to 3.8% Cu and (RG-SAA) 92 ppm Ag, whereas in the Agoulmine In 2016, the work in the North zone sector, the copper grade are up to 1.14% … in the concerned the Zgounder, North Tamlalt Cu with an average of 0.1% Cu. Anti-Atlas (Eastern High Atlas) and Tizi N'Test A geophysical survey of 5 profiles totaling (Western High Atlas) sectors. 12 km by the resistivity / chargeability The results method was carried out at Tizoula and This activity consisted of geological confirms the perfect correlation of the of chemical mapping and the collection of 87 samples AFMAG anomaly with the formations of that show grades up to 0.4% Pb, 0.1% Zn the basic series, with apparent rooting analysis show and 19 ppm Ag. In the area around the below the signals of high resistivity that Zgounder Mine, an alluvial and stream- correspond to dolomites and limestones. grades up to sediment geochemistry survey was carried out. 6.5 g/t Au, Aghracha (U, REE) In North Tamlalt, the work carried out 120 g/t Ag … In Aghracha project (Aousserd province), consisted of geological mapping coupled exploration work continued on the with the collection of 438 samples. The Awhifrite sector, with the realization of results of chemical analysis show grades 220.5 m of drilling, 68.22 m3 of trenching up to 6.5 g/t Au, 120 g/t Ag, 1% Pb and and collecting 48 rock samples. 7% Cu. The chemical analysis revealed grades exceeding 14% REE and 1 400 ppm U. In the Tizi N'Test area, work was carried The analysis of the 604 half core samples out on the Aït Lahcen sector, with an show grades from 0.2% to 6.3% REE 1/25 000 geological mapping covering an and from 50 to 624 ppm U on metric to area of 9.8 Sq. km and another at decimetric passes, with an average grade 1/5 000, coupled with the collection of of 1.7% REE and 160 U on an average 174 samples. Analysis results showed effective thickness of 4.80 m at AW23 sporadic grades up to 424 ppb Au, 5.6% drill hole. Cu and 326 g/t Ag.

Annual Report 2016 35 Laâyoune Basin (U) The geological follow up of airborne radiometric anomalies revealed uranium occurrences in the Agwidir and Lahmada sectors with grades up to 275 ppm and 430 ppm U respectively. A drilling campaign intersected the targeted radioactive facies but uranium grades were sporadic, not exceeding 100 ppm. A soil geochemistry campaign was carried out over an area of 55 Sq. km (863 soil samples). The interpretation of the data revealed geochemical anomalies (Pb, Zn, Cu, Ba, Th, U). A geological follow up of some geochemical and geophysical anomalies was carried out over an area of 28 Sq. km with the collection of 143 samples whose results show relatively low grades. Iraouène Mouzaref (Cu) Following the inconclusive results of the Awark (REE, U) interpretation of the last drilling survey Chemical analysis of the surface samples performed during 2015, the project is revealed grade above 9% REE and 700 closed. A synthesis report of all project ppm U, with an exceptional gold content data is underway. of 246 ppb in a ferruginous quartz vein with pyrite and malachite. The drill holes intersected the targeted pegmatites at Aït Tamelil (Cu) varying thickness, between 0.5 and In the project of Aït Tamellil (Azilal province) 5 m. Its radioactivity oscillates from 300 a geological mapping at 1/10 000 on to 1 200 c/s. Chemical analysis of core 1,6 Sq. km area revealed a copper-bearing drills show grade ranging from 0.1% to structure, which trends EW to ENE-WSW 2.2% REE and from 50 to 341ppm U on with an extension of about 600 m and centimetric to metric passes. a thickness up to 15 m. The chemical analysis of the 120 samples show grades up to 4.11% Cu over 1 m. Ras Kemmouna (Cu) Geophysical studies (MAG and IP) were On the project of Ras Kemmouna also carried out in order to study the (Errachidia province), geological work extension and the rooting of the copper- have revealed copper and iron structures bearing occurrence. The interpretation of hectometric extension and decimetric of the resistivity profiles revealed an thickness. Chemical analysis revealed apparent contrast between the geological grades up to 2.2% Cu and 64% Fe. formations. Geophysical study was also carried out to investigate the extension of the occurrence The vein structures, moderately of copper and iron mineralization. polarizable, occur on some profiles, at the contact between schist and sandstone. From the processing of the magnetic data, the anomalies seem to be located at a depth of up to 100 m depending on the direction of the vein structure.

36 General research In the Central High Atlas (Beni Mellal (base metals) province), the Aouddine lead-zinc occurrences were subjected to geological As part of the general research on base work with the collection of 9 rock samples, metals, exploration activities concerned that revealed grades varying from 0.11% the research of Pb-Zn-Cu-Ni in the Rif, to 6.11% Pb and 0.1% to 0.9% Zn. At the Prérif and Central High Atlas regions, Naour and Tizi n'Isli sectors, the geological as well as manganese in the sectors of work concerned the Aguerd Meziane and Tasdremt-Aoufour, Ouarzazate and the Tamaracht occurrences as well as the countries of horsts. Tassent and Aqqa n'Ouanine sectors, with In the region of the Prerif (Ouezzane the collection of 113 rock samples overall province), geological investigation has sectors. The 32 samples taken from the been done in the Pb-Zn occurrences of Sidi sectors of Aguerd Meziane and Tamaracht Redouane and Nefza, in order explore their revealed copper grade varying from 0.1 to extension. The work carried out showed 1.1%. The analysis of the other samples that the zinc grades in the two showings are underway. are respectively from 1.3% to 3.6% and from 4.7% to 14.5%. Lead grades The geological works in the Tiouine in Nefza ranged from 0.25% to 13.5%, basin (Ouarzazate province) focused on with an average of 5.05%. Moreover, targeting the extensions of the manganese in the Rif (Chefchaouen province), the occurrences of Tikirt, Offremt and Tirinesse sector shows a zinc stratiform Daousdrem. The chemical analysis are mineralization as calamine, hosted in the ongoing. In addition, exploration work is breccia dolomites of the Triassic base. underway in the area of Merija (Figuig In the Tasdremt-Aoufour district (Taroudant province), through the realization of seven province), the activity concerned geological sections and the collection of manganese occurrences and consisted 39 samples. The chemical analysis show of geological mapping and cross sections low copper grades not exceeding 260 ppm with the collection of 53 rock samples, Cu and 0.9% Pb. which yielded up to 41% Mn over a thickness of 0.5 m. This work revealed that the mineralized layer thickness varies between 0.1 m and 1.20 m, with a maximum 1.80 m at Tighanimine.

Annual Report 2016 37 Rocks and industrial minerals

Rhamna (electrometallurgical silica) In the area of Rhamna, work for the research for electrometallurgical silica continued in the areas of Jebel Kharrou and Koudya Maguil by geological mapping and sampling of quartzites. These massive quartzites of Ordovician age are light gray to white with ferruginous fractures. 65 samples were taken and the chemical analysis are in progress.

General research (rocks and industrial minerals) The general research for industrial rocks and minerals were initiated by geological reconnaissance, sampling and follow up of occurrences in the Saiss basin of Meknes for the research of extra-siliceous sands, in the North of the Oulmes granite for the research of kaolinic clays and feldspars, and in the calcareous ridge of the Western Rif for industrial dolomites. 151 samples were collected. The first results from analysis and technological studies show that, for the siliceous sands of Saiss, the useful portion represents 84.25 to 90.31% of the total weight, consisting essentially of quartz. For the granite arena of Oulmes, the clay fraction represents 13.88% of the total weight, composed mainly of kaolinite. 60 samples of industrial dolomites are undergoing chemical analysis.

Strategic research Integrated project for mining exploration in the Oriental Geochemical campaign in Following this project, three targets were Dakhla-Oued Ed Dahab region identified: The soil and alluvial geochemistry The Tiouli West area for Mississippi campaign in the region of Oued Ed-Dahab Valley-type Pb-Zn mineralization, which - Lagouira (Dakhla - Oued Ed-Dahab region) will be the subject to detailed geological was closed. mapping, soil geochemistry, geophysical and drill surveys during 2017. At the end of this campaign, 2 794 soil The Merija sector for stratified copper- anomalies and 255 alluvial anomalies were bearing mineralization, which will also be identified and are placed on the maps of subject to detailed geological mapping, the study area. These anomalies will be geochemical, geophysical and drill subject to geological follow up. surveys during 2017. The Metroh area where work has not shown any potential for Mississippi Valley Pb-Zn mineralization does not warrant any additional work.

38 Integrated mining exploration project Geothermal Energy in the Southern Provinces The synthesis made on the Errachidia- The integrated project for mining Boudnib basin, from the data collected exploration in the southern provinces aims, from the oil and hydraulic drilling shows on one hand, to evaluate the work carried that Errachidia and Aoufous sectors could out in the area since 2002 and reassess be favorable as potential geothermal areas. the identified prospects and, on the other This synthesis shows that the Turonian hand, to highlight new potential targets. and Senonian aquifers have temperatures ranging from 38° to 42°C, whereas the Jurassic aquifer, located more deeply, Alluvial geochemistry campaign would have a temperature exceeding in the central High Atlas 90°C. The synthesis carried out on Fez- Saiss basin shows that the geothermal This campaign will cover an area of aquifer is located in the lower Jurassic 10 000 Sq. km and will start in with temperature estimated to be above February 2017. 92°C. Fieldwork was carried out during the 4th quarter of 2016 and continue to cover the two basins. Synthesis of hyperspectral data As part of the project "synthesis of hyperspectral data", and following the compilation and interpretation of the geoscience data from the two hyperspectral surveys in Siroua, Kerdous, Bas Draa, Tata and Akka Nord, priority targets with metallogenic criteria were selected. An action plan was developed for each target.

The field control work at the Kerdous inlier consisted of collecting and measuring by field spectroradiometry of 801 samples as well as collecting 24 rock samples for chemical analysis. This work allowed the individualization of prioritized targets with sulfated minerals.

Annual Report 2016 39 Partners’ activity

Ighrem Domain (copper) - MANAGEM Zgounder (silver) - MAYA (Canada) (Morocco) During 2016, Zgounder Millenium Silver The work carried out in 2016 under this Mining (ZMSM), of which ONHYM owns agreement focused mainly on the Tizert 15%, and who exploit the Zgounder sector by conducting a survey of core and silver deposit, produced 16 192.64 kg reverse circulation drillings, focused on of silver. the junction zone and the extension of the west lens, in order to recognize and ZMSM continue to upgrade plant increase the resources and reserves of the facilities in order to reduce substantially Tizert deposit. the cyanide consumption. Pilot tests using a flotation process show a total … the The total length of drill holes is silver recovery of 84%. Maya initiated Zgounder 11 905.20 m. These surveys have shown a project to improve plant efficiency by very satisfactory results and have revealed introducing flotation cells. silver deposit, additional copper resources. produced Further work will focus on the West and Tighmi (Precious metals and base North lateral extensions of the deposit, the metals) - ABALIOGLU (Turkey) junction and the eastern block of Tizert and 16 192.64 kg A memorandum of understanding was Aferni-Maamour in order to increase the signed between ONHYM and the Turkish of silver. resources of this potential sector. company Abalioglu on 21/07/2016.

The aim is to carry out, by Abalioglu, Tichla-Aousserd (precious metals a study and work program for assessing and base metals) - ONHYM-METALEX the mining potential of the Tighmi sector (Canada) in order to conclude a research agreement As part of ONHYM-METALEX agreement that could lead to the identification of an on mining exploration in the Tichla area, economic deposit. samples collected during the previous year are being analyzed in Metalex laboratories in (Canada).

40 Mining exploration, location map of mining projects 2016

Tangier Nador ! 28 Oujda Rabat Fez Meknes Casablanca 12 26 # " 29 27 ! ! Errachidia 21 " Marrakesh " 20 25 23 " " 7 22 9 " # # 17 18 13# 30 8 !# " " Agadir 24 10 " 5 # 6 # "19 Atlantic Ocean #

Quaternary Cenozoic

Laâyoune Mesozoic Smara Paleozoic 16 Proterozoic "

0200 400km Dakhla

14 15 1 "" # 2 Awserd # 4 # 11 # 3 Lagouira #

Precious Metals Base Metals Rocks & ONHYM Projects ONHYM Projects industrial Minerals 1- Lahjeyra (Nb, REE, Fe) 14- Aghracha (REE, U) ONHYM Projects 2- Essarih (REE, Nb, Mo, Au) 15- Awark (REE, U) 27 - Rhamna (Silica) 3- Tlayha (U, Au) 16- Laâyoune Basin (U) 4- Lafhouda East (Nb, REE, Fe) 17- Iraouène-Mouzeref (Cu) Projects in partnership 5- Kerdous North (Au, Ag, Zn, Pb, Cu) 18- Ras Kemmouna (Cu, Fe) 6- Tighmi (Au, Ag, Cu) 19- Occidental Anti-Atlas (Cu) 28- Tertiairy Basin (Bentonite) 7- Saghro South (Ag, Cu, Au) 20- Ait Tamellil (Cu, Pb, Zn) (ONHYM-TOLSA) 8- Tizegzaouine (Au, Ag, Cu) 29- Zrahina (F, Ba, Pb) (ONHYM-Garrot-Chaillac) 9- Tidili (Au, Cu) Projects in partnership 30- Nqob (Talc) (ONHYM-MECTP) 21- Jebilet (Polym) (ONHYM-CMG) Projects in partnership 22- Guemassa-Haouz (Polym) 10- Had Imawn (Au) (ONHYM-CMG) (ONHYM-Managem) 23- Tekna (Polym) (ONHYM-CMG) NB : The projects of general research (RG-SAA, RG-ZS, RG-SMB, RG-SRM and 11- Tichla Awserd (Au, Cu) 24- Ighrem Domain (Cu) RG-Geochemistry), Geothermal, Strategic (ONHYM-Metalex) (ONHYM-Managem) Campaigns and Integrated Projects 12- Maroc Central (Au) 25- Boumadine (Zn, Pb, Au, Ag) concern many regions and are not plotted (ONHYM-Newmont) (ONHYM-Maya) in the map. 13- Zgounder (Ag) 26- Ait Amar (Fe) (ONHYM-Maya Gold & Silver) (ONHYM-CMMF)

Annual Report 2016 41 Mining laboratories

Certification Mineral chemistry

Number The certification of the mining laboratories, Number of Worksite of determi- according to ISO 9001 version 2008, samples nation was renewed for a period of three ONHYM years following the audit carried out by 11 061 114 616 Moody Certification Morocco during Projects 2014. Supervision audit n°2 was carried Subsid- iaries out in March 2016 and concluded that 490 1 442 certification for the current year would be and third parties maintained. The renewal and transition to 2015 is scheduled for 2017. Total 11 551 116 058

Mineralogy

During 2016, 293 samples from ONHYM projects were studied: 223 thin blades, 13 polished blades, 18 polished sections were made and 39 artificial concentrates were prepared. Petrographic and mineralogical studies involved 174 samples, divided into 124 petrographic studies and 50 mineralogical studies of artificial concentrates.

Mineralurgy

Number of Worksite samples ONHYM Projects 11 004 Subsidiaries and 343 third parties Total 11 347

Mineral chemistry

During 2016, 158 drill holes totaling 3763.50 m were completed. All such work was completed for the ONHYM's account.

Number of Total coring Worksite Province Tracks (ml) drillings (U) (ml) Aghracha Aousserd 5 220.50 - Awark Aousserd 13 707.90 - Tlayha Aousserd 123 934.20 - Lafhouda Est Aousserd 1 100.30 - Ras Kemmouna Errachidia 5 385.00 1 420 Occidental Taroudant 7 925.80 1 723 Anti-Atlas Saghro Sud Tinghir 4 489.80 1 991 Total work 158 3 763.50 5 134 42 MINING PARTNERSHIP & COOPERATION

The mining partnership and cooperation activity was marked by the signing of:

Protocol Assignment Cooperation Amendments 1Agreement 2 contracts 5 agreements 7

Assignment contracts

Partner Zone Description Inversiones Signature of a contract for the assignment on 18/08/2016, in favor Monte Boudkek of the Spanish company INVERSIONES MONTE OLIMPO, of the Olimpo Boudkek magnesite deposit. Signature of a contract for the assignment on 09/09/2016, OCP S.A Khémisset in favor of OCP S.A. of the potash and rock salt deposit of Khémisset.

Protocol agreement

Partner Zone Description Signature on 21/07/2016 of a Protocol agreement with the company ABALIOGLU, concerning the execution of a study and Abalioglu Tighmi works campaign to evaluate the mining potential of the Tighmi mining area, Souss-Massa.

Cooperation agreements

Partner Description Signature on 03/05/2016, of the Framework Cooperation Agreement BRGM ONHYM / BRGM (France) related to the scientific and technical cooperation in the field of earth sciences. Signature on 30/05/2016, of the Framework Cooperation Agreement UNIGE ONHYM / UNIGE (Switzerland) related to the cooperation in the fields of earth sciences and mineral exploration. Signature on 21/11/2016, of the ONHYM / OMNIS (Madagascar) Protocol OMNIS Agreement, on scientific and technical cooperation in the field of mines and hydrocarbons. Signature on 03/12/2016 of the ONHYM / NGSA Framework Cooperation NGSA Agreement (Nigeria), on scientific and technical cooperation in the field of mines. Signature on 23/12/2016, of the ONHYM / ONAP Protocol Agreement ONAP (Guinea Conakry), related to the scientific and technical cooperation in the field of hydrocarbons.

Annual Report 2016 43 Amendments

Partner Description

Signature on 25/01/2016, of the 2nd Amendment to the ONHYM / SOGUIPAMI Protocol Agreement (Guinea Conakry) concerning the SOGUIPAMI cooperation actions scheduled for the financial year 2016 and the first five months of the financial year 2017.

Signature on 31/03/2016, of the Amendment N° 2 to the ONHYM / OMRG OMRG Protocol Agreement (Mauritania), concerning the cooperation actions scheduled for the financial years 2016 and 2017.

Signature on 24/05/2016, of the 2nd Amendment to the ONHYM / DNGM DNGM Protocol Agreement (Mali), concerning the cooperation actions scheduled for 2016 and the first six months of the 2017 financial year.

Signature on 01/06/2016 of the 2nd Amendment to the ONHYM / AUREP AUREP Protocol Agreement (Mali), on the cooperation actions scheduled for the financial year 2016 and the first six months of the 2017 financial year.

Signature on 09/06/2016, of the 2nd Amendment to the ONHYM / SEM SEM Protocol Agreement (Gabon), related to the cooperation actions scheduled for 2016 and the first five months of the 2017 financial year.

Signature on 02/09/2016, of the Amendment to ONHYM / PETROSEN PETROSEN Protocol Agreement (Senegal) concerning the planned cooperation actions for the years 2016 and 2017.

Signature on 23/12/2016 of the Amendment to the ONHYM / ONAP ONAP (Guinea Conakry) Protocol Agreement concerning the cooperation actions scheduled for the financial years 2016-2017.

44 HUMAN RESOURCES

By the end of 2016, ONHYM's workforce is 609 officers, including 197 engineers and executives, 195 superior supervisors, 105 primary supervisors and 112 classified agents, of which 20% of women.

19%

32%

17%

32%

Engineers & Executives Superior supervisors Primary supervisors Classified agents

The supervisory rate improved by three points to 32% thanks to targeted recruitments as reflected in the integrated approach drawing on the results of the GPEC and the succession plan.

The Office's workforce, after a steady decline from 2001 to 2007, under the combined effect of retirements and voluntary departures operations, experienced a stagnation from 2007 to 2009, then a downward trend from 2009 to 2016 mainly due to massive retirements, voluntary departures and very limited recruitment focused on the core business and the need in specific profiles.

ONHYM recorded 54 departures this year. The recruitments done under the 2016 framework law involved 42 staff members (16 engineers and executives, and 26 supervisors); 37 were recruited in this year and 5 postponed to 2017.

1571 1535 1499 1477 1434 1359

955 947 942 899 827 781 689 647 624 609

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Workforce evolution (2001 - 2016)

Annual Report 2016 45 Social activities

ONHYM devotes particular attention to social activities within the Office. The objective is to optimize working conditions and create a work blooming atmosphere for all.

Several annual actions are carried out, such as summering centers in different regions of Morocco, support of pilgrims, granting of loans for housing... On the medical matter, several initiatives have been carried out: the organization of Mammography campaigns, pulmonary screening, influenza vaccination campaigns...

ONHYM cultural center

Created by the BRPM (Mining Research and Participations Office) in 1984, the socio-cultural center provides social and cultural activities for the children of ONHYM’s staff. The socio-cultural center offers a wide range of activities throughout the year: languages, music, theater, computer science, poetry, civic education...Based on the principle that "a child who reads is a successful child", the center also provides children with a rich library to familiarize them with the world of books.

This year, ONHYM signed a partnership agreement with the Al Amal association for the implementation of an annual program of activities for the benefit of participants in the center and the development of the "child artist" project in partnership with the INDH (National Initiative for Human Development). The agreement also includes the creation of an artistic institute and the training of talents in the fields of painting, music, dance, poetry and theater. The children of the center are also engaged in solidarity actions with regard to vulnerable populations (elderly, sick children…).

46 Summer camps: Holidays for all

Focused on offering a playful holiday for all the children of its staff, ONHYM has long maintained this tradition of organizing summer camps. The ultimate goal is to offer the children a way to live their leisure in a constructive way by encouraging participation and good integration.

ONHYM mobilizes supervisors, animators and administrative agents to animate and manage in the best conditions these colonies and offer these children a rich and pleasant experience.

During these colonies, the ONHYM ensures to: Suggest a safe way for children to spend their holidays in a different setting from their daily routine. Bringing life skills to community life: listening to others, participating in the different tasks of everyday life… Integrate hygiene, food rules and sensitization to environment respect and sustainable development. Developing self-sufficiency. Discover nature and learn how to respect the environment.

Annual Report 2016 47 "SHC" safety and hygiene committee

The Safety and Hygiene Committee contributes to the protection of health and safety of ONHYM’s staff, and the improvement of its working conditions.

Training

Indicators Total Training activities 140 Participations 1 016 Person/ Training Day 2 806 Total of beneficiaries 336

Training data

Total of Total of Training domains Total PTD actions participations Congresses, forums, workshops, 20 58 205 promotion action... Exploration, operations, treatment 22 92 249 & technical themes Computers - office and IT 9 25 125 Human Resources Management 35 197 595 & HRM Quality Security & Environment 23 365 334 Management techniques 19 119 259 & other themes Medium and long term trainings 11 11 718 (Morocco and Abroad) English 1 49 221 TOTAL 140 1 016 2 806

48 hydrocarbon licensing map 20°0'0"W 15°0'0"W 10°0'0"W 5°0'0"W

SPAIN

1000

#Tanger M editerranean Sea

111 XIV "N '0 °0 35 9 187 18 143 #Oujda I 145 144 35 132 1 38 137 182 138 19 181 180 217 140 1000 59 141 A 139 Fes 36 # 218 #Rabat XIII

142 219 165 #Casablanca B 186 109 166 167

189 171 150 148 146 152 170 169 172 Madeira Islands C1 168 221 220 153 151 149 147 223 154 112 Figuig# 156

155 C2 157 #Er-rachidia

102 Marrakech 5 # 163 106 7 103 120 6 114

104 107 56 IX Ouarzazate 105 57 #

108 58 c O c e a158 n 130 PETROLEUM AGREEMENTS #Agadir X ALGERIA

N° EXPLORATION ZONES COMPANYAREA Km² "N '0 159 162 ONHYM 30°0 5 - 7 SIDI MOKTAR 2700,7 SOUND ENERGY MOROCCO SOUTH LIMITED 82 86 ONHYM 18 - 19 LALLA MIMOUNA 2211,3 83 CIRCLE OIL MAROC LIMITED 160 ONHYM 84 71 - 81 BASSIN DE ZAG SANLEON (MOROCCO) LTD 14625,3 85 LONGREACH Oil & GAS VENTURES LTD OPEN ACREAGES 115 ONHYM N° NAME AREA Km² 190 SAN LEON OFFSHORE MOROCCO B.V 82 - 85 SIDI MOUSSA OFFSHORE 5018,0 1LOUKOS OFFSHORE 1 910,60 SERICA SIDI MOUSSA B.V GENEL ENERGY LIMITED 195 9LIXUS OFFSHORE 2 338,40 ONHYM 191 35 RHARB OCCIDENTAL 1 362,10 97 - 101 BOUJDOUR OFFSHORE SHALLOW TEREDO MOROCCO LIMITED 7244,4 Canary Islands GLENCORE EXPLORATION & PRODUCTION (MOROCCO) LTD 36 RHARB ORIENTAL 1 807,74 ONHYM 102 - 108 ESSAOUIRA OFFSHORE KOSMOS ENERGY DEEP WATER MOROCCO 8786,0 97 38 SEBOU190,40 2000 59 OULJA1 771,18 98 192 73 ONHYM 72 74 75 76 77 78 79 80 81 86 IFNI DEEP OFFSHORE 10 861,23 CHARIOT OIL & GAS INVESTMENTS (MOROCCO) LIMITED 99 137 - 142 RABAT DEEP OFFSHORE 6738,8 A t l a n t i #Lâayoune 111 GHARB OFFSHORE NORD 10 028,94 WOODSIDE ENERGY (MOROCCO) PTY LTD ENI MAROC B.V 176 100 112TADLA I18 845,00 177 115ASSA54 808,10 178 101 152 - 157 71 CAP CANTIN DEEP OFFSHORE 7709,6 179 120MAZAGAN OFFSHORE9 561,70

ONHYM 201 126EL ARGOUB OFFSHORE 105 863,62 158 - 160 CAP RHIR DEEP OFFSHORE 3634,3 200 CHEVRON MOROCCO EXPLORATION LIMITED 193 130TARHAZOUTE OFFSHORE 8 645,04 QATAR PETROLEUM INTERNATIONAL UPSTREAM O.P.C 202 146 - 151 CAP WALIDIA DEEP OFFSHORE 7647,6 203 132TAOUNATE8 080,40 204 ONHYM R 206 162MIR LEFT OFFSHORE3 265,70 165 - 172 TENDRARA LAKBIR 9335,7 OIL & GAS INVESTMENTS FUND 205 SOUND ENERGY MOROCCO SARL AU 163 HAOUZ 9 474,40 ONHYM 208 188 182RABAT ULTRA DEEP OFFSHORE 36 736,90 176 - 179 FOUM OGNIT OFFSHORE NEW AGE MOROCCO LTD 7997,9 207

209 "N GLENCORE EXPLORATION & PRODUCTION (MOROCCO) LTD XI 186RABAT ULTRA DEEP OFFSHORE SUD10 865,00 '0 215

ONHYM 25°0 143 - 145 GHARB OFFSHORE SUD 4417,7 211 210 REPSOL EXPLORACION GHARB S.A A 187 HASSIBERKANE5 116,00 Y ONHYM 216 212 188BOUJDOUR ONSHORE OUEST14 861,30 56 - 58 HAHA ONSHORE 4919,0 213 PETROLEUM EXPLORATION (Private) LIMITED 192SAKIA EL HAMRA13 128,80 ONHYM 214 180-181 MOULAY BOUCHTA 2851,7 GULFSANDS PETROLEUM MOROCCO LIMITED C1-C2SAFI OFFSHORE NORD ET SUD12 300,80 ONHYM TANI RBOUJDOUR OFFSHORE I11 147,10 200 - 216 BOUJDOUR MARITIME KOSMOS ENERGY MAROC MER PROFONDE 33733,9 XII I CAPRICORN EXPLORATION AND DEVELOPMENT COMPANY LIMITED #Dakhla XSOUSS 6 345,10 ONHYM 217 - 219 MOHAMMEDIA OFFSHORE 4654,9 YBOUJDOUR OFFSHORE II 17 496,40 CHARIOT OIL & GAS INVESTMENTS (MOROCCO) LIMITED IOUEZZANE 4 119,57 RECONNAISSANCE CONTRACTS IX OUARZAZATE 4 145,80 114 AOUFOUSS ONHYM - REPSOL EXPLORACION ATLAS S.A 34018,2 MAUR 126 XI BOUJDOUR ONSHORE EAST 19 754,20 189 ISSOUKAONHYM - SHELL EXPLORATION COMPANY BV 87126,6 XII DAKHLA LAGWIRA37 919,80 220 DOUKKALA ABDA ONHYM - OLYMPUS ENERGY INTERNATIONAL INC4989,9 193 LEMSID ONHYM 23790,6 XIII MAAMORA EST755,00 XIVASILAH2 200,10 BLOCS UNDER NEGOTIATION

3000 109 MERIDJA8 873,33 190 TARFAYA OFFSHORE SHALLOW NORD 11 442,66 191 TARFAYA OFFSHORE SHALLOW SUD10 977,17 195 CAP JUBY DEEP OFFSHORE1 057,70 Lagouira # 220-221 RENDUS TENDRARA 5 207,70 A KENITRA OFFSHORE 1 400,00 B EL JADIDA OFFSHORE 6 349,40 31 - 12 - 2016 20°0'0"W 15°0'0"W 10°0'0"W 5°0'0"W

SPAIN

1000

#Tanger M editerranean Sea

111 XIV "N '0 °0 35 9 187 18 143 #Oujda I 145 144 35 132 1 38 137 182 138 19 181 180 217 140 1000 59 141 A 139 Fes 36 # 218 #Rabat XIII

142 219 165 #Casablanca B 186 109 166 167

189 171 150 148 146 152 170 169 172 Madeira Islands C1 168 221 220 153 151 149 147 223 154 112 Figuig# 156

155 C2 157 #Er-rachidia

102 Marrakech 5 # 163 106 7 103 120 6 114

104 107 56 IX Ouarzazate 105 57 # O c e a n 108 58 158 130 PETROLEUM AGREEMENTS #Agadir X ALGERIA

N° EXPLORATION ZONES COMPANYAREA Km² "N '0 159 162 ONHYM 30°0 5 - 7 SIDI MOKTAR 2700,7 SOUND ENERGY MOROCCO SOUTH LIMITED 82 86 ONHYM 18 - 19 LALLA MIMOUNA 2211,3 83 CIRCLE OIL MAROC LIMITED 160 ONHYM 84 71 - 81 BASSIN DE ZAG SANLEON (MOROCCO) LTD 14625,3 85 LONGREACH Oil & GAS VENTURES LTD OPEN ACREAGES 115 ONHYM N° NAME AREA Km² 190 SAN LEON OFFSHORE MOROCCO B.V 82 - 85 SIDI MOUSSA OFFSHORE 5018,0 1LOUKOS OFFSHORE 1 910,60 SERICA SIDI MOUSSA B.V GENEL ENERGY LIMITED 195 9LIXUS OFFSHORE 2 338,40 ONHYM 191 35 RHARB OCCIDENTAL 1 362,10 97 - 101 BOUJDOUR OFFSHORE SHALLOW TEREDO MOROCCO LIMITED 7244,4 Canary Islands GLENCORE EXPLORATION & PRODUCTION (MOROCCO) LTD 36 RHARB ORIENTAL 1 807,74 ONHYM 102 - 108 ESSAOUIRA OFFSHORE KOSMOS ENERGY DEEP WATER MOROCCO 8786,0 97 38 SEBOU190,40 2000 59 OULJA1 771,18 98 192 73 ONHYM 72 74 75 76 77 78 79 80 81 86 IFNI DEEP OFFSHORE 10 861,23 CHARIOT OIL & GAS INVESTMENTS (MOROCCO) LIMITED 99 137 - 142 RABAT DEEP OFFSHORE 6738,8 A t l a n t i #Lâc ayoune 111 GHARB OFFSHORE NORD 10 028,94 WOODSIDE ENERGY (MOROCCO) PTY LTD ENI MAROC B.V 176 100 112TADLA I18 845,00 177 115ASSA54 808,10 178 101 152 - 157 71 CAP CANTIN DEEP OFFSHORE 7709,6 179 120MAZAGAN OFFSHORE9 561,70

ONHYM 201 126EL ARGOUB OFFSHORE 105 863,62 158 - 160 CAP RHIR DEEP OFFSHORE 3634,3 200 CHEVRON MOROCCO EXPLORATION LIMITED 193 130TARHAZOUTE OFFSHORE 8 645,04 QATAR PETROLEUM INTERNATIONAL UPSTREAM O.P.C 202 146 - 151 CAP WALIDIA DEEP OFFSHORE 7647,6 203 132TAOUNATE8 080,40 204 ONHYM R 206 162MIR LEFT OFFSHORE3 265,70 165 - 172 TENDRARA LAKBIR 9335,7 OIL & GAS INVESTMENTS FUND 205 SOUND ENERGY MOROCCO SARL AU 163 HAOUZ 9 474,40 208 ONHYM 182RABAT ULTRA DEEP OFFSHORE 36 736,90 176 - 179 FOUM OGNIT OFFSHORE NEW AGE MOROCCO LTD 7997,9 207 188

209 "N GLENCORE EXPLORATION & PRODUCTION (MOROCCO) LTD XI 186RABAT ULTRA DEEP OFFSHORE SUD10 865,00 '0 215

ONHYM 25°0 143 - 145 GHARB OFFSHORE SUD 4417,7 211 210 REPSOL EXPLORACION GHARB S.A A 187 HASSIBERKANE5 116,00 Y ONHYM 216 212 188BOUJDOUR ONSHORE OUEST14 861,30 56 - 58 HAHA ONSHORE 4919,0 213 PETROLEUM EXPLORATION (Private) LIMITED 192SAKIA EL HAMRA13 128,80 ONHYM 214 180-181 MOULAY BOUCHTA 2851,7 GULFSANDS PETROLEUM MOROCCO LIMITED C1-C2SAFI OFFSHORE NORD ET SUD12 300,80 ONHYM TANI RBOUJDOUR OFFSHORE I11 147,10 200 - 216 BOUJDOUR MARITIME KOSMOS ENERGY MAROC MER PROFONDE 33733,9 XII I CAPRICORN EXPLORATION AND DEVELOPMENT COMPANY LIMITED #Dakhla XSOUSS 6 345,10 ONHYM 217 - 219 MOHAMMEDIA OFFSHORE 4654,9 YBOUJDOUR OFFSHORE II 17 496,40 CHARIOT OIL & GAS INVESTMENTS (MOROCCO) LIMITED IOUEZZANE 4 119,57 RECONNAISSANCE CONTRACTS IX OUARZAZATE 4 145,80 114 AOUFOUSS ONHYM - REPSOL EXPLORACION ATLAS S.A 34018,2 MAUR 126 XI BOUJDOUR ONSHORE EAST 19 754,20 189 ISSOUKAONHYM - SHELL EXPLORATION COMPANY BV 87126,6 XII DAKHLA LAGWIRA37 919,80 220 DOUKKALA ABDA ONHYM - OLYMPUS ENERGY INTERNATIONAL INC4989,9 193 LEMSID ONHYM 23790,6 XIII MAAMORA EST755,00 XIVASILAH2 200,10 BLOCS UNDER NEGOTIATION

3000 109 MERIDJA8 873,33 190 TARFAYA OFFSHORE SHALLOW NORD 11 442,66 191 TARFAYA OFFSHORE SHALLOW SUD10 977,17 195 CAP JUBY DEEP OFFSHORE1 057,70 Lagouira # 220-221 RENDUS TENDRARA 5 207,70 A KENITRA OFFSHORE 1 400,00 B EL JADIDA OFFSHORE 6 349,40 31 - 12 - 2016 5, Avenue Moulay Hassan B.P. 99, 10 000 Rabat - Maroc Tel. : +212 (0) 537 23 98 98 Fax : +212 (0) 537 70 94 11 [email protected] www.onhym.com