Environmental Impact
Assessment

Outline of EMC Gold's Environmental Impact Assessment and Mining Project and Rehabilitation plans.

In 2019, EMC submitted the Initial Project Description to the General Directorate of Mining in the Principality of Asturias to initiate the Environmental Impact Assessment (“EIA”) procedure for the Salave Gold Project.

The Initial Project Description has been subject to a public consultation period prior to the issuance of the Terms of Reference ("ToR") for the EIA from the Ministry of Environment (Ministry of Infrastructure, Environment and Climate Change). The ToR outlines the guidelines that will help put together the final EIA, Mining Project and Rehabilitation plan for submission and will also highlight areas where further analysis and considerations may be required.

In July 2021, the EIA, Mining Project and Rehabilitation plan was submitted to the General Directorate of Mines (Ministry of Industry, Employment and Economic Promotion), and the month-long public consultation period came to an end in mid-October 2021.

Following the public consultation, feedback and relevant administration reports, the Mining Project and Rehabilitation Plan was updated to incorporate the comments from the consultation period.

In early 2025, the Environment Ministry suspended the EIA assessment process as an application to change the land use for the surface installation to urban was denied. The Company has challenged the decision not to change land use designation and a ruling is expected Q4 2025 – Q1 2026.

The EIA acknowledged the need for strong environmental and social responsibility. Within it, the EIA provides a framework to minimise or completely remove any negative impact the proposed Project will have on the environment and surrounding community. The EIA includes the following key elements;

• Negligible Risks to the Environment: The Project proposes a minimal-footprint, underground mining operation without the use of cyanide in its mining and processing; and will comply with all Spanish and European environmental legislation and standards,
• Investment: The investment in Asturias is projected to be approximately €100 - €105 million over the life of mine, and is expected to have an enduring effect on the local community and,
• Jobs: The Project is projected to generate between 150 and 200 direct jobs and between 1,000 and 1,500 indirect jobs over the life of the mine.

This framework will be complemented with an economical update of the PEA in the Scoping Study (announced in 2024) and the preparation of Pre-Feasibility and Feasibility studies. This work will be undertaken once a decision has been reached on the Strategic Investment Project application and the EIA is approved.

The Feasibility Study will be based on the Initial Project Description submitted to initiate the EIA permitting process and incorporate any feedback from the Ministry of Environment and General Directorate of Mines.