Collective Mining Ltd.

2023 ESG Report

Published on July 19, 2024

Founded by the team that developed and sold Continental Gold Inc. to Zijin Mining for approximately $2 billion in enterprise value, Collective Mining is an exploration company with projects in Caldas, Colombia. Management, insiders and close family and friends own nearly 50% of the outstanding shares of the Company and as a result, are fully aligned with shareholders. The Company is listed on the TSX under the trading symbol “CNL”, on the OTCQX under the trading symbol “CNLMF” and on the FSE under the trading symbol “GG1”.

Disclaimer and Forward Looking Statements

Company Profile

Organizational Profile

Name

Collective Mining Ltd.

Describe nature of activities, brands, products and services

Collective Mining is an exploration company
located in Caldas, Colombia, and currently
developing the Guayabales and San Antonio
projects. The Company’s flagship discovery is
the Apollo porphyry system within the
Guayabales Project, a high-grade copper-silver-
gold-tungsten porphyry system of immense
scale. Recently, we discovered tungsten, a key
element for the energy transition and
reindustrialization.

Located directly within the Marmato mineral
district of the prolific "Middle Cauca" belt in
west-central Colombia, the area is one of the
most underexplored mineral belts globally,
particularly given the rich history of continuous
gold and silver mining in Marmato and Supía
dating back more than 500 years and hosting
more than 10 fully permitted mining
operations.

While adhering to a principled approach
towards the environment, sustainability, and
governance, we work hand-in-hand with all
stakeholders for a mutually beneficial future.

Link to Corporate Website

https://www.collectivemining.com/

Industry Classification

NAICS:
21 Mining, quarrying, and oil and gas extraction
21222 Gold and silver ore mining
212220 Gold and silver ore mining

ISIC:
B0729 Mining of other non-ferrous metal ores

Market Capitalization

$100 Million up to $1 Billion USD

Type of Operations

Exploration Mining Company

Company Headquarters

Toronto, Canada

ESG Accountability

Role and Name of highest authority within company for Environment, Social and Governance strategy, programs and performance

Omar Ossma, CEO

ESG Reporting Period

Unless otherwise noted, all data contained in this report covers the following period

From

2023-01-01

2023-12-31

Audit Status

Identify the degree to which any inputs of the report are third-party checked

Self-Declared

Financial Reporting Period

Specify the frequency of sustainability reporting

Annually

Whether Financial reporting period aligns with the period for its sustainability reporting

Yes

Geographic Scope of Report

Unless otherwise noted, the data in this report covers ESG matters related to the following countries of operations

Colombia

Fragile and Conflict-Affected Situations

Identify all of the entity's countries of operations that align with the World Bank's list of "Fragile and Conflict-Affected Situations"

None

Business Operations Scope of Report

Identify notable exclusions, and reference any existing or planned reports that do or will address these (e.g, assets recently divested or acquired, non-managed joint ventures, specific exploration activities, recently closed sites, etc.)

For this report, the "operation" refers to all
resources devoted to the Guayabales and San
Antonio Projects in Colombia.

Mineral Resource Types in Scope

Which of the following mineral resource types are covered by this report

None

Mineral Reserve Types in Scope

Which of the following mineral reserve types are covered by this report

None

Currency

Unless otherwise noted, all financial figures referenced in this report are in the following currency

USD

Strategy

Provide a statement from the highest governance body or most senior executive of the organization (i.e., CEO, chair, or equivalent senior position) about the relevance of sustainable development to the organization and its strategy for for contributing to sustainable development. (CEO's message for this report)

Please see attached statement from our
President & CEO.

Omar Ossma, CEO

CEO Statement_2023

Policy commitments

Provide a description of the organization’s policy commitments for responsible business conduct

Collective Mining has implemented corporate
policies to uphold ethical standards,
transparency, and best practices, including:

1. Code of Ethics and Business Conduct.
2. Information Disclosure and Insider Trading
Policy.
3. Anti-Bribery and Anti-Corruption Policy.
4. Anti-Hedging Policy.
5. Diversity and Inclusion Policy.
6. Health, Safety, and Security Policy.
7. Sustainability Policy.

Corporate Governance

What are (if any) the authoritative intergovernmental instruments that the commitments reference

The anti-bribery and anti-corruption policy
ensures that the Company and its stakeholders
conduct business in accordance with applicable
laws, including the Criminal Code and
Corruption of Foreign Public Officials Act
(Canada). Compliance with this policy
supplements existing anti-bribery legislation
without limiting obligations under such laws.

Do the commitments stipulate conducting due diligence

It is not stipulated

Do the commitments stipulate applying the Precautionary Principle or Approach

Yes

Do the commitments stipulate respecting human rights

Yes

Describe the specific policy commitment to respect human rights

The sustainability policy states:

We consider ourselves guests in the region
where we operate, and therefore, we conduct
ourselves with respect, honoring the human
rights, cultures, traditions, customs, and values
of those affected by our operations.

What are (if any) the internationally recognized human rights that the commitment covers

The policy defines the commitment established
in the United Nations Universal Declaration of
Human Rights and in the Voluntary Principles
on Security and Human Rights.

What are the categories of stakeholders, including at-risk or vulnerable groups, that the organization gives particular attention to in the commitment

The policy aligns with the
commitments outlined in the United Nations
Universal Declaration of Human Rights and the
Voluntary Principles on Security and Human
Rights.

National authorities
Regional authorities
Local authorities
Communities
Local miners
Local suppliers
Ethnic communities
Employees
Media and opinion leaders
Investors

Provide links to the policy commitments, if publicly available, or, if the policy commitments are not publicly available, explain the reason for this

Collective Mining has implemented the
following policies to promote and integrate
responsible business practices throughout all
its operations.

Anti-Bribery and Anti-Corruption Policy

Anti-Hedging Policy

Code of Business Conduct & Ethics

Corporate Disclosure and Insider Trading
Policy

Diversity and Inclusion Policy

Executive Compensation Clawback Policy

Health, Safety and Security Policy

Majority Voting Policy

Sustainability Policy

Report the level at which each policy commitment was approved within the organization, including whether this is the most senior level

All organization policies and commitments are
approved by the Board of Directors.

To what extent the policy commitments apply to the organization’s activities and to its business relationships

The Company demands strict adherence to
policies from all employees, executives, and
Board members always. This requirement
extends to indirect employees, contractors, and
consultants.

Describe how the policy commitments are communicated to workers, business partners, and other relevant parties

Policies are meticulously crafted and shared
with stakeholders at the relevant levels,
articulating their significance and outlining
expectations for compliance. Our Ethics
Hotline stands ready to receive concerns from
all stakeholders. In Colombia, policies are
actively circulated across work fronts and
conveniently accessible on the intranet for
employees to utilize for guidance and
compliance.

Embedding policy commitments

Describe how the organization embeds each of its policy commitments for responsible business conduct throughout its activities and business relationships

The Code of Ethics and Business Conduct is a
guiding principle for all employees, including
direct and indirect staff, contractors, the Board
of Directors, and executives.

This essential Code is introduced during the
employment contract signing, underscoring its
vital terms. Moreover, it is actively shared
throughout the Company and prominently
displayed on internal platforms.

How are responsibilities allocated in order to implement the commitments across different levels within the organization

The Board leads and oversees the CEO, who in
turn guides VPs and managers. The VP of
Sustainability conducts training sessions to
enhance commitments and fine-tune action
plans.

How are the commitments integrated into organizational strategies, operational policies, and operational procedures

All corporate policies are contractually linked
with both direct and indirect employees of the
company, reaffirmed, and shared through the
internal work regulations. Moreover, they are
integrated into strategic planning discussions
within management committees and primary
work committees across various company
divisions.

What implementation training does the organization provide

Employee onboarding is conducted upon entry
to the company or at the start of a contract,
with periodic re-induction for both direct and
indirect employees.

Supply Chain

Estimated Total number of Business Entities in its downstream

Estimated End-Use customers

Types of activities related to the organization’s products and services carried out by the downstream entities (e.g., manufacturing, wholesale, retail);

Mainly specialized services for mining drilling,
laboratory sampling, service providers and
supplies, and property servitudes or rentals.

The nature of its business relationships with the downstream entities

Contractual-Commercial

Geographic location of the downstream entities

Colombia

Report other relevant business relationships

We have 6 strategic alliances with local public-
private institutions for education, local
government cooperation, and rural
development in agriculture.

Describe significant changes in the information reported about business activities, value chain and other business relationships compared to the previous reporting period

No significant modifications are noted.

Material Topics

Governance of Material Topics

Describe the process followed to determine the organization's material topics, including:

i. How has the organization identified actual and potential, negative and positive impacts on the economy, environment, and people, including impacts on their human rights, across its activities and business relationships; provide details

• Economic impact assessment
• Environmental impact assessment
• Social impact assessment
• Grievance mechanisms

ii. How has the organization prioritized the impacts for reporting based on their significance

Prioritization is carried out through survey
results, one-on-one interviews, and semi-
structured interviews with stakeholders such
as community members, local authorities, and
employees.

Specify the stakeholders and experts whose views have informed the process of determining its material topics and provide details

• Civil society organizations
• Employees and other workers
• Business partners
• Non-governmental organizations
• Shareholders and other capital providers
• Suppliers
• Vulnerable groups
• Governments
• Local communities

List the organization's material topics

• Economic Performance
• Market Presence
• Indirect Economic Impacts
• Materials
• Energy
• Water
• Biodiversity
• Emissions
• Effluents and Waste
• Environmental Assessment
• Environmental Grievances
• Employment
• Labor/Management Relations
• Occupational Health and Safety
• Diversity and Equal Opportunity
• Training and Education
• Equal Remuneration for Women and Men
• Supplier Assessment for Labor Practices
• Labor Practices
• Grievance Mechanisms
• Non-discrimination
• Freedom of Association and Collective
Bargaining
• Child Labor
• Forced or Compulsory Labor
• Security Practices
• Indigenous Rights
• Local Communities
• Anti-corruption
• Public Policy
• Grievance Mechanisms for Impacts on
Society
• Emergency Preparedness
• Artisanal and Small-scale mining
• Customer Health and Safety
• Communications

List the organization's non-material topics

Other, please specify

Non-material topics are not defined for the
organization.

Provide reason for considering such topics not material, provide details

Not applicable

Report changes to the list of material topics compared to the previous reporting period

The list remains the same as in the previous
report (2022).

Environment

General Disclosure

Compliance with laws and regulations

Report the total number of significant instances of non-compliance with laws and regulations during the reporting period, and a breakdown of this total by:

Number of instances for which fines were incurred

Number of instances for which non-monetary sanctions were incurred

Report the total number of fines for instances of non-compliance with laws and regulations that were paid during the reporting period

Report the monetary value of fines for instances of noncompliance with laws and regulations that were paid during the reporting period ($Million)

Total number of fines for instances of non-compliance with laws and regulations that occurred in the current reporting period

Total monetary value of fines for instances of non-compliance with laws and regulations that occurred in the current reporting period ($Million)

Total number of fines for instances of non-compliance with laws and regulations that occurred in previous reporting periods

Total monetary value of fines for instances of non-compliance with laws and regulations that occurred in previous reporting periods

Describe the significant instances of non-compliance

Does not apply

Describe how it has determined significant instances of non-compliance

Does not apply

Greenhouse Gas Emissions

Scope 1

Carbon dioxide (CO₂) (tonne CO₂-e)

980.11

Methane (CH₄) (tonne CO₂-e)

0.066

Nitrous oxide (N₂O) (tonne CO₂-e)

0.011

Hydrofluorocarbon-23 (CHF₃) (tonne CO₂-e)

0.000

Hydrofluorocarbon-32 (CH₂F₂) (tonne CO₂-e)

0.000

Sulphur hexafluoride (SF₆) (tonne CO₂-e)

0.000

Nitrogen trifluoride (NF₃) (tonne CO₂-e)

0.000

Perfluoromethane (CF₄) (tonne CO₂-e)

0.000

Perfluoroethane (C₂F₆) (tonne CO₂-e)

0.000

Perfluorohexane (C₆F₁₄) (tonne CO₂-e)

0.000

The total amount of gross global Scope 1 GHG emissions (CO₂-e) (tonne)

985.26

The methodology follows the parameters
outlined by the GHG Protocol scheme for
estimating corporate greenhouse gas emissions
or the "Greenhouse Gas Protocol: Corporate
Standard Accounting and Reporting" (WBCSD,
WRI & SEMARNAT, 2007). Methodological
Levels 1 and 2 were employed for the
calculations, in compliance with the best
practices recommended by the 2006
Intergovernmental Panel on Climate Change
(IPCC, 2008) (IPCC, 2006), for each of the
identified emission source categories.

This methodology is internationally recognized
and meets the requirements specified by the
National Climate Change Policy of the Ministry
of Environment and Sustainable Development
of Colombia (Ministry of Environment, 2017)
for reporting organizational greenhouse gas
inventories at the national level.

The percentage of its gross global Scope 1 GHG emissions that are covered under an emissions-limiting regulation or program that is intended to directly limit or reduce emissions, such as cap-and-trade schemes, carbon tax/fee systems, and other emissions control (e.g., command-and-control approach) and permit-based mechanisms

99.05%

The entity shall discuss its long-term and short-term strategy or plan to manage its Scope 1 greenhouse gas (GHG) emissions

Since 2022, Collective Mining has initiated the
monitoring and reporting of its GHG emissions.

This reporting will be used to assess potential
strategies for reducing GHG emissions.

Carbon Offset

Credits

How much CO₂ (metric tonnes) offset credits were purchased?

700.000

Where were these credits purchased from

Other, please specify

The offset bonds were implemented through
the conservation project "Delfines Cupica
REDD+” a social and environmental initiative
aimed at protecting 103,022 hectares of
tropical rainforest in Colombia. The offset data
corresponds to the calculation of Scope 1 GHG
emissions for the year 2022.

Air Emissions

Report emissions of air pollutants that are released into the atmosphere

Emissions of carbon monoxide, reported as CO (tonne)

0.000

Emissions of oxides of nitrogen (NOx), reported as NOx (tonne)

0.000

Emissions of oxides of sulphur (SOx), reported as SOx (tonne)

0.000

Emissions of Particulate Matter 10 micrometres or less in diameter (PM₁₀), reported as PM₁₀ (tonne)

0.000

Emissions of lead and lead compounds, reported as Pb (tonne)

0.000

Emissions of mercury and mercury compounds, reported as Hg (tonne)

0.000

Emissions of non-methane Volatile Organic Compounds (VOCs) (tonne)

0.000

The measurement of these parameters will
commence implementation starting in the year
2024.

Energy Management

Total energy consumed in aggregate, in gigajoules (GJ) (hydrocarbons and electricity) including the fuel types used (e.g., biomass, hydro-electric power or bioenergy)

17,307.240

Percentage energy consumed that was supplied by grid electricity

1.1782%

Percentage of energy consumed that is renewable energy

1.1782%

Water

Efficiency

Proportion of water reused and recycled by the site to reduce the overall consumptive water demand

12.4721%

Water Management

Disclose the amount of water that was withdrawn from freshwater sources (in thousands of cubic meters)

12.000

Disclose the freshwater withdrawn in locations with High or Extremely High Baseline Water Stress as a percentage of the total water withdrawn

0.0000%

Collective Mining operates in areas that do not
experience high or extremely high baseline
water stress according to the WRI Aqueduct
Risk Atlas.

Disclose water withdrawn in locations with High or Extremely High Baseline Water Stress (in thousands of cubic meters)

0.000

Disclose freshwater consumed in locations with High or Extremely High Baseline Water Stress as a percentage of the total water consumed

0.0000%

Disclose the amount of water that was consumed in its operations (in thousands of cubic meters)

11.871

Total water consumed in locations with high or extremely high baseline water stress (in thousands of cubic meters)

0.000

Was your organization subject to any fines, enforcement orders, and/or other penalties for water-related regulatory violations

Total number of instances of non-compliance, including violations of a technology-based standard and exceedances of quality-based standards

Waste Management

Disclose the total weight of tailings produced (tonne)

0.000

Tailings Storage Facilities Management

Does your company manage Tailings Storage Facilities

Disclose the approach to the development of Emergency Preparedness and Response Plans (EPRPs)

Collective Mining is currently conducting
operations and does not have any Tailings
Storage Facilities.

Innovation

Spending on Research, Development, and Technologies for waste management compliance and improvement

Describe nature of spending on Research, Development and Technologies for waste management compliance and improvement

Does not apply

Biodiversity

Management Plan

List the environmental and biodiversity management plan(s) implemented at active sites

In adherence to environmental mining
standards, Collective Mining implements
environmental guidelines for mining
exploration activities in the Guayabales and
San Antonio projects.

1.1 Mine lifecycle stages to which the plan(s) apply

Exploration and appraisal

1.2 The topics addressed by the plan(s)

• Emissions to air
• Noise impacts
• Waste generation
• Discharges to water
• Hazardous chemical usage
• Natural resource consumption
• Ecological and biodiversity impacts

1.3 The underlying references for its plan(s), including whether they are codes, guidelines, standards, or regulations; whether they were developed by the entity, an industry organization, a third-party organization (e.g., a non-governmental organization, a governmental agency, or some combination of these groups)

Internal team. Taking as reference the
Colombian environmental regulations
established for mining exploration activities.

Impacts

Does access to the site involve traversing a protected area

Do any of the entities concessions share a watershed with a protected area

Provide context and description of site access involving traversing protected areas, and/or watersheds shared with a protected area. Include reference to measures in place to assure access, any proactive programs to support the biodiversity of the protected area, and any formal complaints or compliance issues and related steps to resolve

Does not apply

Percentage of proved reserves in sites with protected conservation status or in areas of endangered species habitat

Does Not Apply

Percentage of probable reserves in sites with protected conservation status or in areas of endangered species habitat

Does Not Apply

Percentage of inferred, indicated and/or measured resources in sites with protected conservation status or in areas of endangered species habitat

Does Not Apply

Social

Scale of the Organization

Describe how the organisation defines its "Operation"

For this report, the "operation" refers to all
resources devoted to the Guayabales and San
Antonio Projects in Colombia.

Report the total number of operations

Employment

Scale of the Organization

Report the total number of direct employees worldwide (exclude contractors)

Report the total number of male direct employees worldwide (exclude contractors)

Report the total number of female direct employees worldwide (exclude contractors)

Report the total number of contract employees worldwide

217

Total number of employees worldwide (include contractors)

300

Total number of female employees and contractors worldwide

Female employees and contractors as percentage of total employees and contractors

23.3333%

Total number of male employees and contractors worldwide

230

Male employees and contractors as percentage of total employees and contractors

76.6667%

Total number of non-binary employees and contractors worldwide

Non-binary employees and contractors as percentage of total employees and contractors

0.0000%

Total number of employees and contractors with gender not disclosed

Employees and contractors with gender not disclosed as percentage of total employees and contractors

0.0000%

Employee Information

Report the total number of direct employees by employment type (permanent and temporary), by gender

Total number of permanent employees

Total number of permanent employees - female

Total number of permanent employees - male

Total number of permanent employees - Non-binary

Total number of permanent employees - Gender not disclosed

Total number of temporary employees

Total number of temporary employees - female

Total number of temporary employees - male

Total number of temporary employees - Non-binary

Total number of temporary employees - Gender not disclosed

Report the total number of non-guaranteed hours employees by gender

Total number of non-guaranteed hours employees - female

Total number of non-guaranteed hours employees - male

Total number of non-guaranteed hours employees - Non-binary

Report the total number of employees by employment type (full-time and part-time), by gender

Report the total number of full-time employees

Report the total number of part-time employees

Total number of full-time employees - female

Total number of part-time employees - female

Total number of full-time employees - male

Total number of part-time employees - male

Total number of full-time employees - Non-binary

Total number of part-time employees - Non-binary

Total number of full-time employees - Gender not disclosed

Total number of part-time employees - Gender not disclosed

Describe the methodologies and assumptions used to compile the data

The information involves monthly tracking and
monitoring of databases for both direct
employees and contractors. Additionally, a
psychosocial risk survey is conducted to
characterize the profile of each employee.

Are the numbers reported in head count, full-time equivalent (FTE), or using another methodology

For this report, employee numbers are
reported based on headcount.

Are the numbers reported at the end of the reporting period, as an average across the reporting period, or using another methodology

The figures represent the total number of
active employees as of December 31, 2023.

Describe significant fluctuations, if any, in the number of employees during the reporting period and between reporting periods

In 2023, there was a 20% increase in direct
employees compared to the previous year. This
growth reflects the company's expansion and
the increase in exploration activities.

Workers who are not employees

Report the total number of workers who are not employees and whose work is controlled by the organization

217

Describe the most common types of worker and their contractual relationship with the organization

Collective Mining’s primary contractors are
involved in drilling activities for mineral
exploration, as well as maintenance and
transportation services.

The type of work they perform

Contractors may provide a range of services
such as drilling, equipment maintenance,
transportation, and general services.

Report the total number of contractors by employment type (permanent and temporary), by gender

217

Total number of permanent contractors

Total number of permanent contractors - female

Total number of permanent contractors - male

Total number of permanent contractors - Non-binary

Total number of permanent contractors - Gender not disclosed

Total number of temporary contractors

208

Total number of temporary contractors - female

Total number of temporary contractors - male

172

Total number of temporary contractors - Non-binary

Total number of temporary contractors - Gender not disclosed

Report the total number of contractors by employment type (full-time and part-time), by gender

217

Total number of full-time contractors - female

Total number of part-time contractors - female

Total number of full-time contractors - male

181

Total number of part-time contractors - male

Total number of full-time contractors - Non-binary

Total number of part-time contractors - Non-binary

Total number of full-time contractors - Gender not disclosed

Total number of part-time contractors - Gender not disclosed

Describe the methodologies and assumptions used to compile the information about workers who are not employees.

Contractors are monitored monthly through
employment reporting databases.

Is the number of workers who are not employees reported in head count, full-time equivalent (FTE), or using another methodology

For this report, employee numbers are
reported on a headcount basis.

Is the number of workers who are not employees reported at the end of the reporting period, as an average across the reporting period, or using another methodology

For this report, employee numbers are
reported on a headcount basis.

Describe significant fluctuations, if any, in the number of workers who are not employees during the reporting period and between reporting periods

The fluctuations in indirect employee growth
are attributed to the increase in mining drilling
activities, which expanded from 22,961 meters
drilled in 2022 to a total of 36,638 meters in
the year 2023.

Turnover

Report the total number and rate of employee turnover during the reporting period, by age group, and gender

All Employees

Total number of turnover (the number that left during the period)

Rate of turnover

19.8675%

Female employees

Total number of turnover (the number of females that left during the period)

Rate of turnover, females

10.7143%

Male employees

Total number of turnover (the number of males that left during the period)

Rate of turnover, males

25.2632%

Non-binary employees

Total number of turnover (the number non-binary that left during the period)

Rate of turnover, non-binary

Does Not Apply

Turnover & Age Breakdown

Employees aged 30 years old and under

Total number of turnover (the number that left during the period)

As percent of total employees

9.0000%

Rate of turnover

22.6415%

Employees aged between 30 and 50 years old

Total number of turnover (the number that left during the period)

As percent of total employees

17.3333%

Rate of turnover

19.7802%

Employees over 50 years old

Total number of turnover (the number that left during the period)

As percent of total employees

1.3333%

Rate of turnover

0.0000%

Identify types of employees captured in the turnover rate calculations

All employees on the payroll

Average age of employees

Diversity and Equal Opportunity

Report the percentage of employees per employee category in each of the following diversity categories

Board of Directors

Total Board of Directors

Percent Male

66.6667%

Percent Female

33.3333%

Percent Non-Binary

0.0000%

Percent under 30 years of age

0.0000%

Percent between 30 and 50 years of age

16.6667%

Percent over 50 years of age

83.3333%

Senior Management

Total Senior Managers

Percent Male

62.5000%

Percent Female

37.5000%

Percent Non-Binary

0.0000%

Percent under 30 years of age

0.0000%

Percent between 30 and 50 years of age

87.5000%

Percent over 50 years of age

12.5000%

Salaried (excluding Senior Management)

Total Salaried (excluding Senior Management)

Percent Male

58.6667%

Percent Female

41.3333%

Percent Non-Binary

0.0000%

Percent under 30 years of age

36.0000%

Percent between 30 and 50 years of age

60.0000%

Percent over 50 years of age

4.0000%

Technical Employees (skilled hourly)

Total Technical Employees

Percent Male

Does Not Apply

Percent Female

Does Not Apply

Percent Non-Binary

Does Not Apply

Percent under 30 years of age

Does Not Apply

Percent between 30 and 50 years of age

Does Not Apply

Percent over 50 years of age

Does Not Apply

Production Employees (unskilled hourly)

Total Production Employees

Percent Male

Does Not Apply

Percent Female

Does Not Apply

Percent Non-Binary

Does Not Apply

Percent under 30 years of age

Does Not Apply

Percent between 30 and 50 years of age

Does Not Apply

Percent over 50 years of age

Does Not Apply

Labour Relations

Collective Bargaining Agreements

Percentage of total direct employees covered by collective bargaining agreements

0.0000%

Notice Periods

Minimum number of weeks’ notice typically provided to employees and their representatives prior to the implementation of significant operational changes that could substantially affect them

Collective Mining adheres to national
legislation and is obligated to notify the
national Ministry of Labor prior to
implementing any significant operational
changes that could substantially impact
workers.

Occupational Health and Safety

Work-related Injuries

Injuries - For all employees

i. Number of fatalities as a result of work-related injury

i. Rate of fatalities resulting from work-related injury. Note: calculating per 200,000 hours worked

0.000

ii. Number of high-consequence work-related injuries (excluding fatalities)

ii. Rate of high-consequence work-related injuries (excluding fatalities)

0.000

iii. Number of recordable work-related injuries

iii. Rate of recordable work-related injuries

0.000

iv. Main types of work-related injury, e.g., confined space, trips, falls, etc.

Does not apply

v. Number of hours worked

170,741

Lost Time Injuries (LTIs)

Lost Time Injuries Rate (LTIR)

0.000

Injuries - workers who are not employees but whose work and/or workplace is controlled by the organization

i. Number of fatalities as a result of work-related injury

i. Rate of fatalities resulting from work-related injury. Note: calculating per 200,000 hours

0.000

ii. Number of high-consequence work-related injuries (excluding fatalities)

ii. Rate of high-consequence work-related injuries (excluding fatalities)

0.000

iii. Number of recordable work-related injuries

iii. Rate of recordable work-related injuries

0.000

iv. Main types of work-related injury, e.g., confined space, trips, falls, etc.

Does not apply

v. Number of hours worked

439,368

Lost Time Injuries (LTIs)

Lost Time Injuries Rate (LTIR)

0.000

Combined (Employees and non-employees, but controlled by the organization):

Total Hours Worked

610,109

Total number of all work-related injuries

Rate of work-related injuries

0.000

Total Lost Time Injuries (LTIs)

Lost Time Injuries Rate (LTIR)

0.000

Report the work-related hazards that pose a risk of high-consequence injury, including

i. How have these hazards been determined

The GTC 45 methodology, a Colombian
technical standard, is employed for identifying
occupational health and safety hazards.

This methodology enables the determination of
associated risks through the documentation of
activities.

ii. Which of these hazards have caused or contributed to high-consequence injuries during the reporting period

Does not apply

iii. Actions taken or underway to eliminate these hazards and minimize risks using the hierarchy of controls

The following activities were implemented:

1. Safe work procedures.
2. Personal protective equipment.
3. Area marking and signage.
4. Specific training on identified risks.

Report on actions taken or underway to eliminate other work-related hazards and minimize risks using the hierarchy of controls

1. Implementation of safe work procedures.
2. Use of personal protective equipment.
3. Area marking and signage.
4. Specific training on identified risks.
5. Specific training for the identified risk profile
at entry.

Whether and, if so, why any workers have been excluded from this disclosure, including the types of worker excluded, e.g., short-term contractors

All employees are included.

Disclose any contextual information necessary to understand how the data have been compiled, i.e., any standards, methodologies, and assumptions used

The organization uses the TRIFR indicator
based on 200,000 man-hours worked by direct
employees and contractors, referencing OSHA
indicators for fatalities, lost time due to injury,
restricted work, medical treatment, and first
aid.

Safety Training

Disclose the average number of training hours provided to its workforce for health, safety, and emergency management training

Average hours of health, safety, and emergency response training for (a) full-time/direct employees

8.69

Average hours of health, safety, and emergency response training for (b) contract employees

12.53

Security, Human Rights and Rights of Indigenous People

Identify the countries of operations within the World Bank's list of “Fragile and Conflict-Affected Situations”

None

Describe the nature of any social risks, for all operating countries, that could have a material risk to operations

Perceived impact on customs, participation,
and water resources.

Percentage of proved reserves that are located in or near areas of active conflict

Does Not Apply

The total amount of proved reserves

Percentage of probable reserves that are located in or near areas of active conflict

Does Not Apply

The total amount of probable reserves

Percentage of inferred, indicated and measured resources that are located in or near areas of active conflict

Does Not Apply

Total amount of inferred, indicated and/or measured resources

Percentage of proved reserves that are located in or near areas that are considered to be indigenous peoples’ land

Does Not Apply

The total amount of proved reserves

Percentage of probable reserves that are located in or near areas that are considered to be indigenous peoples’ land

Does Not Apply

The total amount of probable reserves

Percentage of inferred, indicated and measured resources that are located in or near areas that are considered to be indigenous peoples’ land

Does Not Apply

Total amount of inferred, indicated and measured resources

Describe due diligence practices and procedures with respect to indigenous rights of communities in which it operates or intends to operate

As part of its corporate policies, Collective
Mining has engaged with the nearest
indigenous community located 20 kilometers
from the project site.

This engagement aims to inform stakeholders
about project activities, assess potential
impacts, and foster a dialogue in good faith.

Discuss practices and list procedures while operating in areas of conflict

Not applicable.

Collective Mining does not operate in conflict-
affected areas according to the latest data from
the Uppsala Conflict Data Program.
Furthermore, the company does not utilize
access routes to the project that pass through
conflict zones as defined by the UCDP.

Community Relations

Artisanal and Small-Scale Mining

Number of company operating sites where artisanal and small-scale mining (ASM) takes place on, or adjacent to, the site (not controlled by company/unauthorized)

Collective Mining holds a total of 9,208
hectares in its mining titles and applications. As
part of the ongoing mining formalization
process with traditional miners and national
and regional authorities, a preliminary
operating area of 27.43 hectares has been
designated for small-scale mining, representing
just 0.28% of the company's total area.

Percentage of company operating sites where artisanal and small-scale mining (ASM) takes place on, or adjacent to, the site

Does Not Apply

Report the associated risks and the actions taken to manage and mitigate these risks

Collective Mining is engaging with external
stakeholders and the National Secretary of
Energy and Mines to establish collaborative
agreements facilitating the coexistence of
industrial mining and artisanal and small-scale
mining. The company has commenced
collaboration with artisanal and small-scale
miners to formalize this agreement.

Programs

Report on community relations programs, objectives and achievements in the past 3 years

Our projects focus on key social investment
areas:

1. Water and Territory: Enhancing basic
sanitation and community involvement in
water resource care.
2. Diversity and Field: Strengthening and
diversifying agricultural activities.
3. Community Infrastructure: Developing
public infrastructure for rural development.
4. Education and Competitiveness: Providing
holistic training and fostering multi-
stakeholder dialogues for territory planning
involving community and public/private
institutions.

Community Empowerment: Strengthening
community action boards and implementing
corporate volunteer programs. Highlights over
3 years:
* Building trust with stakeholders.
* Forming 33 regional and local partnerships.
* Empowering 280 women with new skills and
launching 4 ventures.
* Assisting 370 coffee farmers with agricultural
support.
* Providing clean water to over 1.000 people.
* Constructing 298 meters of roadways.
* Supporting 56 Community Action Boards.
* Conducting 150 water source monitoring
activities.
* Engaging 18 women leaders in water
advocacy.
* Involving 30 students in educational
programs.
* Establishing a Tourism Association.
* Forming the first birdwatching club in Supía
Municipality.

Total amount spent on Community Investment Initiatives

Social Management Investment: USD $822,944
Direct Investment by Collective Mining: 35%
Investment from Strategic Partners: 65%
Total Beneficiaries: 1,700 individuals

Discuss the processes, procedures, and practices to manage risks and opportunities associated with the rights and interests of communities in areas where it conducts business

We conducted a stakeholder mapping and risk
assessment to guide an action plan. Our
community engagement strategy focuses on
four key approaches: proactive engagement,
stakeholder dialogue and agreement, joint
evaluation, and maintaining positive
relationships. Additionally, our PQRS system
ensures efficient handling of stakeholder
requests and feedback.

Risks and Opportunities

Disclose the total number of site shutdowns or project delays due to non-technical factors

Disclose the total aggregate duration (in days) of site shutdowns or project delays due to non-technical factors

Governance

Climate Change

Oversight

Is there board-level oversight of climate-related issues within your organization

Yes

Responsibility

Provide the highest management-level position(s) or committee(s) with responsibility for climate-related issues

Chief Executive Officer (CEO)

Nature of primary responsibility

Both assessing and managing climate-related
risks and opportunities

Reporting

Frequency of reporting to the board on climate-related issues

As important matters arise

Incentives

Do you provide incentives for the management of climate-related issues, including the attainment of targets

Other, please specify

Not currently.

Risk and Opportunity Management

Does your organization have a process for identifying, assessing, and responding to climate-related risks and opportunities

No - important but not an immediate business
priority

Risk Assessments

Have you identified any inherent climate-related risks with the potential to have a substantive financial or strategic impact on your business

No - risks exist, but none with potential to have
a substantive financial or strategic impact on
business

Opportunity Assessments

Have you identified any climate-related opportunities with the potential to have a substantive financial or strategic impact on your business

Strategy

Have climate-related risks and opportunities influenced your organization’s strategy and/or financial planning

Yes

Water Management

Quality and Quantity Dependency

Rate the importance (current and future) of freshwater quality and quantity to the success of your business

Direct use importance rating

Important

Indirect use importance rating

Not Applicable

Rate the importance (current and future) of sufficient quantity of recycled, brackish and/or produced water for the success of your business

Direct use importance rating

Important

Indirect use importance rating

Not Applicable

Risk Assessments

Does your organization undertake a water-related risk assessment

No, water-related risks are not assessed

Select the options that best describe your procedures for identifying and assessing water-related risks

i. Coverage

None

ii. Risk Assessment Procedure

Water risks are assessed in an environmental
risk assessment

iii. Frequency of Risk Assessment

Other, please specify

Water-related risks are assessed monthly and
reported to environmental authorities as an
integral component of Collective Mining's
environmental management system.

iv. How far into the future are risks considered

Up to 1 year

Have you identified any inherent water-related risks with the potential to have a substantive financial or strategic impact on operations

Opportunity Assessments

Have you identified any water-related opportunities with the potential to have a substantive financial or strategic impact on your business

Yes, we have identified opportunities, and some
or all are being realized

Opportunity 1

Type of opportunity

Resilience: Increased supply chain resilience

Opportunity timeframe

4-6 years

Magnitude of potential impact

Low

Potential impact financial figure and explanation

Water resilience solutions in the region may
involve investments ranging from 1 to 2 million
dollars and are being implemented in financial
partnership with strategic stakeholders.

Responsibility

Provide the highest management-level position(s) or committee(s) with responsibility for water-related issues

Chief Executive Officer (CEO)

Policy

Does your organization have a documented water policy

Reporting

Frequency of reporting to the board on water-related issues

As important matters arise

Incentives

Do you provide incentives to C-suite employees or board members for the management of water-related issues

Other, please specify

Not currently.

Strategy

Are water-related issues integrated into any aspects of your long-term strategic business plan

Not Applicable

Governance structure and composition

Describe its governance structure, including committees of the highest governance body; e.g., the Board of Directors, the Executives, the Board Environment Committee, Board Safety Committee, the Advisory Committee, etc.

The Board of Directors oversees and
supervises the Company's management,
conducting procedures directly or through
committees like the Audit Committee and the
Corporate Governance, Nominating, and
Compensation Committee.

The Board retains ultimate responsibility for
these matters and all delegated tasks.

Refer to the Board Mandate for further details.

Board Mandate

List the committees of the highest governance body that are responsible for decision making on and overseeing the management of the organization’s impacts on the economy, environment, and people; e.g., the Board of Directors, the Executives, the Board Environment Committee, Board Safety Committee, the Advisory Committee, etc

The Corporate Governance, Nominating, and
Compensation Committee of the Board is
tasked with overseeing the organization's
impacts on the environment, economy, and
people. Please see the committee charter
below for further details.

Corporate Governance, Nominating and
Compensation Committee Charter

Delegation of responsibility for managing impacts

Describe whether the highest governance body has appointed any senior executives with responsibility for the management of organization’s impacts on the economy, environment, and people e.g., is it part of the Governance structure of the company, the CFO or internal audit reporting to the Board

At the executive level, the CEO is accountable
for the company's sustainability initiatives and
performance, providing progress reports to the
board.

The CEO delegates the strategy
implementation to the Vice President of
Sustainability.

Describe whether the highest governance body has delegated responsibility for the management of impacts to other employees;

Consultation Process

Report the processes for consultations between stakeholders and the highest governance body on economic, environmental and social topics, e.g., for most mining companies it would be the executives and operations and not the Board, and if delegated, explain how

The CEO is responsible for reporting
grievances through the mechanisms that are
communicated to the board.

Governance structure and composition

Describe the composition of the highest governance body and its committees by

Number of executive members

Number of non-executive members

Number of independent members

Less than 3 years of tenure of members on the governance body

3-6 years of tenure of members on the governance body

6-9 years of tenure of members on the governance body

More than 10 years of tenure of members on the governance body

Number of other significant positions and commitments held by each member, and the nature of the commitments

For further details regarding other important
roles and responsibilities held by members of
the Collective Mining's Board, please consult
the following link.

Board of Directors

Number of Male governance body members

Number of Female governance body members

Number of members from under-represented social groups

Description of competencies relating to economic, environmental, and social topics

For a description of the Board's competencies
relating to economic, environmental, and social
topics, please refer to the link below.

Board of Directors

Description of stakeholder representation

Does not apply

Board Diversity

Do you have a diversity policy and if so, provide details, link to the policy or attach the file

Collective Mining is dedicated to fostering a
supportive and inclusive culture throughout all
levels of the company, advocating for diversity
and eradicating discrimination in the
workplace. Kindly access the link to review our
Diversity Policy.

Diversity and Inclusion Policy

Chair of the highest governance body

Is the chair of the highest governance body is also a senior executive in the organization

Conflicts of Interest

Describe the processes for the highest governance body to ensure that conflicts of interest are prevented and mitigated

The outlined accountabilities are designed to
guide individual directors in fulfilling their roles
on the Board effectively, ensuring that the
Board fulfills its duties. Key responsibilities
include avoiding conflicts of interest with the
company and maintaining transparency about
personal interests, and conducting all
professional interactions with integrity and
ethical behavior.

For further details, please refer to our Code of
Business Conduct linked below.

Code of Business Conduct & Ethics

Report whether conflicts of interest are disclosed to stakeholders, including, as a minimum, conflicts of interest relating to

Yes

Cross-board membership

Yes

Cross-shareholding with suppliers and other stakeholders

Yes

Existence of controlling shareholder

Yes

Related parties, their relationships, transactions, and outstanding balances

Yes

Collective knowledge of highest governance body

Report measures taken to advance the collective knowledge, skills, and experience of the highest governance body on sustainable development., e.g., board training

As of now, no formal board training has been
conducted; nonetheless, board members
possess significant experience in mining,
including sustainability matters.

Evaluation of Highest Governance Body

Describe actions taken in response to the evaluations, including changes to the composition of the highest governance body and organizational practices

No formal transparency evaluations have been
conducted so far.

Transparency

Describe the role of the highest governance body and of senior executives in developing, approving, and updating the organization’s purpose, value or mission statements, strategies, policies, and goals related to sustainable development

The Board's responsibilities include:

(i) approving and overseeing compliance with
all major policies and procedures under which
the Company operates;
(ii) endorsing policies and procedures to
guarantee that the Company adheres to
applicable laws, regulations, as well as ethical
and moral standards;
(iii) establishing structures and procedures to
maintain the Board's independence from
management;
(iv) ensuring directors uphold confidentiality
regarding the Company's proprietary
information and Board discussions;
(v) fulfilling additional duties as required by law
or stipulated in the Company's governing
documents.

Describe the role of the highest governance body in overseeing the organization’s due diligence and other processes to identify and manage the organization’s impacts on the economy, environment, and people

The Board holds the oversight responsibility for
assessing the systems managing the key risks of
the Company's business. It ensures the
presence of suitable systems to handle these
risks, encompassing insurance coverage,
handling significant litigation, and evaluating
the efficacy of internal controls.

Additionally, the Board will supervise issues
concerning health, safety, and the environment,
along with ensuring compliance with relevant
laws and regulations within these domains.

Describe whether and how the highest governance body engages with stakeholders to support these processes

In addition to maintaining communication with
the CEO to address these matters, the Board's
Corporate Governance and Nominating
Committee (CGNC) serves as the final and
exclusive recipient of the corporate ethics
hotline.

They also annually review the Company's
policies and other guidelines. Additionally,
there is an ethics hotline in place.

Audit Committee Charter

Describe how the highest governance body considers the outcomes of these processes

Upon receiving a Complaint, the Audit
Committee Chair will address reported
matters, take corrective action as needed, and
determine if an investigation is warranted.

The Committee may seek assistance from
internal resources or engage external experts
for the investigation. If impropriety is alleged
against the Audit Committee or its members,
the CEO will investigate and report findings to
the Board.

Ethics

Describe the management system and due diligence procedures for assessing and managing corruption and bribery risks internally and associated with business partners in its value chain

The Audit Committee is responsible for
establishing procedures for confidential and
anonymous submission of concerns related to
accounting, internal controls, auditing,
corporate misconduct, and violations of the
Company's ethical standards and policies.

This whistleblower policy aims to promote
ethical behavior among all employees and
outlines the process for reporting violations or
misconduct, including fraud and abuse, either
directly or anonymously.

The policy also includes mechanisms for
responding to and documenting such
complaints.

Anti-Bribery and Anti-Corruption Policy

Report net production from activities located in the countries with the 20 lowest rankings in Transparency International’s Corruption Perception Index (CPI) (Saleable tonne)

Anti-Corruption

Communication and Training

i) Total number of governance body members that have received training on anti-corruption, broken down by region

ii.) Total percentage of governance body members that have received training on anti-corruption, broken down by region

0.0000%

Total number and percentage of employees that have received training on anti-corruption, broken down by employee category and region

1a. Total number of employees that received training on anti-corruption

1b. Total percentage of employees that received training on anti-corruption

34.9398%

2a. Total number of senior employees that received training on anti-corruption

2b. Percentage of senior employees that received training on anti-corruption

12.5000%

4a. Total number of technical employees that received training on anti-corruption

4b. Percentage of technical employees that received training on anti-corruption

31.4286%

5a. Total number of production employees that received training on anti