RIO2 Limited

2023 ESG Report

Published on July 30, 2024

Rio2 is a mining company with a focus on development and mining operations with a team that has proven technical skills as well as successful capital markets track record.

Disclaimer and Forward Looking Statements

Company Profile

Organizational Profile

Name

RIO2 Limited

Describe nature of activities, brands, products and services

Rio2 is a Canadian listed Junior mining
company with a focus on the acquisition and
development of mining projects into operations
in Latin-America.

Rio2 is currently focused on taking its
greenfields Fenix Gold Project in Chile to
construction and production in the shortest
possible timeframe based on a staged
development strategy, starting the project as a
medium sized mine to generate cashflow, then
expanding the project to an optimal size
incorporating improvements in technology and
climate change.

Rio2 and its wholly owned subsidiary in Chile,
Fenix Gold Limitada, are companies that
believe in high environmental standards and
environmental and social responsibility, with
the firm conviction that it is possible to develop
mining projects aligned with the three axes
(Social, Environment, and Economics) of
sustainable development, to the benefit of all
stakeholders.

As related companies, we reaffirm our
commitment to apply environmental standards
over and above those that are mandated by
regulators, complying with modern best
practice and operating in an environmentally
and socially responsible manner in the
territories where we operate.

Link to Corporate Website

https://www.rio2.com/

Industry Classification

NAICS:
21222 Gold and silver ore mining

Market Capitalization

$0-$100Million USD

Type of Operations

Exclusively non-producing operations

Company Headquarters

Vancouver, Canada

ESG Accountability

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

Alex Black, Executive Chairman of the Board

GRI Reporting Requirements

Choose the statement as to how the organization has aligned their reporting utilizing GRI Standards

The organization has reported with reference
to the GRI Standards for the period defined
below

ESG Reporting Period

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

From

2023-01-01

2023-12-31

External Assurance

Describe your company's policy and practice for seeking external assurance, including whether and how the highest governance body and senior executives are involved

The Company has no active operations and
hence has not obtained external assurance.

Has the report been externally assured

Financial Reporting Period

Does the financial reporting period align with the sustainability reporting period (eg. calendar vs fiscal)

Yes

Geographic Scope of Report

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

Chile

Identify notable exclusions of the geographical and/or business scope of the report, and reference of 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.)

There are no geographic or operational
exclusions in this report.

Reporting Practice

Provide the full contact details (name, title, address, email and/or phone number) for an individual responsible to address questions regarding the report or its contents

Andrew Cox, President & CEO
Alejandra Gomez, Corporate Communications
Consultant.

All questions regarding this report can be sent
to the following email address, info@rio2.com.

Currency

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

USD

Membership of Associations

List of the industry associations, other membership associations, and national or international advocacy organizations in which the organisation participates in a significant role, as well as any economic, environmental, and social charters, principles, or other programmes that the organisation subscribes to or supports, such as the United Nations Global Compact (UNGC), etc.

Fenix Gold, a subsidiary of Rio2, is an
associate of the National Mining Society of
Chile (SONAMI), an institution that brings
together and represents large, medium and
small-scale metallic and non-metallic mining
activity in Chile, and of the Corporation for the
Development of Atacama (CORPROA), a non-
profit private institution made up of regional
companies and entrepreneurs whose purpose is
to design, promote, execute and support
sustainable regional development strategies
that raise the quality of life of the population in
the Atacama Region.

Scale of the Organization

Describe how the organization defines its "Operation"

For the purpose of this report, the "Operation"
is defined as the Fenix Gold development
project.

Report the total number of operations

Report the quantity of products or services provided during the reporting period and provide description (e.g. number of units produced, amount of primary commodity produced, number of services provided, etc.)

Not Applicable.

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

Mineral Resource Types in Scope

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

• Inferred
• Indicated
• Measured

Mineral Reserve Types in Scope

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

• Proven
• Probable

Strategy

Link to company's statements of: Purpose, Vision, Mission and Values; Sustainability/ESG strategy (URL)

https://www.rio2.com/responsibility

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 contributing to sustainable development. (CEO's message for this report)

We are focused on carrying out mining
activities responsibly and respectfully. We have
made our commitment to the environment and
community engagement an integral part of our
strategy.

Message from the CEO

Material Topics

Governance of Material Topics

Describe the process followed to determine the organization's material topics

Material topics were determined through the
four phases described below.

Phase 1: Understanding the organization’s
context. Standards, guides, and all relevant
documentation applicable to the national and
international mining sectors were reviewed and
analyzed.
Phase 2: Identification of actual and potential
impacts. A review and evaluation of the actual
and potential project risks was completed,
resulting from substantial dialogue with
stakeholders and technical, environmental, and
economic analyses.
Phase 3: Stakeholder Engagement. Stakeholder
concerns and expectations were taken into
account, and a consultation process was carried
out with communities, government authorities,
and other relevant actors.
Stage 4: Prioritization of Material Issues. The
most significant and relevant issues reported
were identified by the Company’s
Communications, Environmental, and Social
teams.

How did the organization identify the material topics

• Environmental impact assessment
• Social impact assessment
• Civil society organizations

How did the organization prioritize the impacts based on their significance

Materiality was determined by the Company's
management's experience in mine project
development and information obtained from
various external consultancy firms at the
Company's request while producing the
Environmental Impact Study for the Fenix Gold
Project. The Company also used public
information as a reference.

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

• Civil society organizations
• Governments
• Local communities
• Shareholders and other capital providers

List the organization's material topics

• Environmental Assessment
• Other, please specify

In 2023 Rio2 was focused on filing and awaiting
the Regional Evaluation Commission's decision
on the EIA (Environmental Impact Assessment)
for the Fenix Gold Project and did not
undertake a formal assessment of its material
topics. The Company will undertake such an
assessment when reasonable in relation to its
stage of development.

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

There have been no changes to the material
topics compared to the previous reporting
period.

Supply Chain

Provide a description of the organization’s supply chain, including the types of suppliers (e.g., equipment, consumables, logistics, brokers, contractors, wholesalers, etc.)

During the reporting period, the Fenix Gold
Project focused on the EIA claim process. A
supply chain will be established during the
construction and operation stages of the
project.

Environment

Climate Change - Stewardship

Strategy

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

Yes

The Company engaged an external
independent party to advise and evaluate the
Impact of Climate Change on the Project. This
report was prepared using TCFD and EP4
standard guidance. Financial planning and
details will be provided once the Project enters
the production phase.

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

Yes

Risk Assessments

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

Yes

Risk 1 - Provide details of the most material (financial or strategic) climate-related risks to your operations:

Where in the value chain does the risk driver occur

Direct operations

Risk classification

Acute Physical - Increased severity and
frequency of extreme weather events, such as
storms, cyclones and floods

Time horizon of risk

Medium-term

Likelihood of impact

More likely than not

Magnitude of impact

Medium-low

The financial implications of the risk before action is taken (currency, Millions)

Financial implications will depend on the length
of time required to reestablish Project access
due to road damage from severe weather
events.

Explain your financial estimates of impact

It does not apply to the reporting period as the
Project is not in the production stage.

Primary potential financial impact

Increased indirect (operating) costs

The methods used to manage the risk

Not Applicable

The costs of actions taken to manage the risk (currency, Millions)

If the reporting organization does not have a system in place to calculate the financial implications or costs, or to make revenue projections, please report its plans and timeline to develop the necessary systems to do so

It does not apply to the reporting period.

For the construction and operation phases of
the Project, financial implications will be
calculated and projected.

Risk 2 - Provide details of the most material (financial or strategic) climate-related risks to your operations:

Where in the value chain does the risk driver occur

Direct operations

Risk classification

Availability of water

Time horizon of risk

Medium-term

Likelihood of impact

Unlikely

Magnitude of impact

Medium-low

The financial implications of the risk before action is taken (currency, Millions)

Currently undefined as the Project is not in
operation.

Explain your financial estimates of impact

For the construction and operation phases of
the Project, financial implications will be
calculated and projected.

Primary potential financial impact

Increased direct costs

The methods used to manage the risk

Not Applicable

The costs of actions taken to manage the risk (currency, Millions)

Financial implications and cost will be
calculated for the construction and operation
phases of the Project.

Opportunity Assessments

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

Yes

Opportunity 1 - Provide details of the most material (financial or strategic) climate-related opportunities to your operations:

Where in the value chain does the opportunity driver occur

Direct operations

Opportunity type and classification

Energy source: Other, please specify

There is an opportunity to connect to the
national energy grid (Carrera Pinto substation).

Opportunity time horizon

Medium-term

Opportunity likelihood

About as likely as not

Magnitude of impact

Medium-high

The financial implications of the opportunity before action is taken (currency, Millions)

Currently undefined as it requires a trade-off
study, cost-benefit, and return on investment
timeframe. It is considered an improvement to
the Project once it is in operation.

Explain your financial estimates of impact

Financial implications and cost will be
calculated for the construction and operation
phases of the Project.

Primary potential financial impact driver

Reduced direct costs

The methods used to manage the opportunity

Use of renewable and lower carbon footprint
energy

The costs of actions taken to manage the opportunity (currency, Millions)

Currently unknown.

Opportunity 2 - Provide details of the most material (financial or strategic) climate-related opportunities to your operations:

Where in the value chain does the opportunity driver occur

Direct operations

Opportunity type and classification

Resource efficiency: Use of more efficient
modes of transport

Opportunity time horizon

Medium-to-long term

Opportunity likelihood

More likely than not

Magnitude of impact

Medium-low

The financial implications of the opportunity before action is taken (currency, Millions)

Currently unknown.

Explain your financial estimates of impact

Replace diesel-powered vehicles with electric
powered vehicles for some stages of the
operation.

Primary potential financial impact driver

Reduced direct costs

The methods used to manage the opportunity

Use of renewable and lower carbon footprint
energy

The costs of actions taken to manage the opportunity (currency, Millions)

Currently unknown.

Greenhouse Gas Emissions

Scope 1

Disclose the entity's absolute gross greenhouse gas (GHGs) emissions generated during the reporting period, expressed as metric tonnes of CO2 equivalent (tonne CO₂-e)

Fuel related (CH₄) (tonne)

0.001

Fuel related (N₂O) (tonne)

0.000

Carbon dioxide (CO₂) (tonne CO₂-e)

35.248

Methane (CH₄) (tonne CO₂-e)

0.025

Nitrous oxide (N₂O) (tonne CO₂-e)

0.000

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

Perfluoro methane (CF₄) (tonne CO₂-e)

0.000

Perfluoro ethane (C₂F₆) (tonne CO₂-e)

0.000

Perfluoro butane (C₄F₁₀) (tonne CO₂-e)

0.000

Perfluoro hexane (C₆F₁₄) (tonne CO₂-e)

0.000

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

35.273

GHG emissions for the 2023 ESG Scorecard are
calculated based on estimated fuel and energy
consumption. EPA conversion factors were
utilized to calculate Scope 1 GHG emissions
(CO₂-e) (tonne).

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

0.0000%

In 2023, Chile did not implement an emissions-
limiting regulation or program.

Discuss any change in its Scope 1 emissions from the previous reporting period, including whether the change was due to emissions reductions, divestment, acquisition, mergers, changes in output, and/or changes in calculation methodology (i.e. any changes the entity made to the measurement approach, inputs and assumptions during the reporting period and the reasons for those changes, if any)

Due to the Rejection of the EIA by the Chilean
authority in late 2022, there was a decreased
level of activity at the Project site.
Consequently, there was a reduction in the
emission levels.

In the case that current reporting of GHG emissions to the CDP or other entity (e.g., a national regulatory disclosure program) differs in terms of the scope and consolidation approach used, describe the differences and provide those reported emissions.

It does not apply to the Project during the
reporting period.

The entity may discuss the calculation methodology for its emissions disclosure, such as if data are from continuous emissions monitoring systems (CEMS), engineering calculations, or mass balance calculations

Mass balance calculations were used for Scope
1 emissions disclosure.

Source of the emission factors and the global warming potential (GWP) rates used, or a reference to the GWP source

GHG emissions calculations for this ESG report
are based on US EPA conversion factors
recommended by the GHG Protocol.

Scope 2

If company specific calculations are not available, disclose the gross location-based energy indirect (Scope 2) global greenhouse gas (GHG) emissions to the atmosphere (tonne CO₂-e):

Does the company purchase externally supplied energy (grid electricity)

Yes

Report the total electricity purchased from external suppliers for the reporting year in gigajoules (GJ)

474.048

In what jurisdiction is the source of energy (utility) located

Chile

Conversion factor (see Guidance):

0.250

Source: Ministerio de Energía de Chile, 2023.
Available at: http://energiaabierta.
cl/visualizaciones/factor-de-emision-sic-sing/
(only in Spanish).

Total amount of Scope 2 GHG emissions from purchased electricity (CO₂-e) (tonne)

32.920

Does the company purchase externally supplied heat

Does the company purchase externally supplied steam

Does the company purchase externally supplied cooling

The total amount of gross global Scope 2 GHG emissions (CO₂-e) (tonne)

32.920

Air Emissions

Report emissions of air pollutants that are released into the atmosphere

Emissions of carbon monoxide, reported as CO (tonne)

0.000

Rio2 Limited will begin its air emissions
monitoring program after the approval of its
Environmental Impact Assessment by
government authorities as it enters the
construction phase of the Fenix Project.

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

Energy

Energy Consumption

Total energy consumption within the organization (gigajoules, GJ)

979.538

Report the energy owned and controlled by the organization consumed in gigajoules for the following

979.538

Electricity purchased/generated for consumption (gigajoules, GJ)

474.048

Heating purchased/generated for consumption (gigajoules, GJ)

0.000

Cooling purchased/generated for consumption (gigajoules, GJ)

0.000

Steam purchased/generated for consumption (gigajoules, GJ)

0.000

Non-renewable fuel consumed (gigajoules, GJ)

505.490

Renewable fuel consumed (gigajoules, GJ)

0.000

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)

979.538

Percentage energy consumed that was supplied by grid electricity

48.3951%

Percentage of energy consumed that is renewable energy (does not include purchased grid-mix)

0.0000%

Water Management - Stewardship

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

Neutral

The Fenix Gold Project will use retreated
industrial water from Copiapó.

Indirect use importance rating

Important

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

Vital

The Fenix Gold Project will use retreated
industrial water from Copiapó.

Indirect use importance rating

Important

Risk Assessments

Does your organization undertake a water-related risk assessment

Yes, water-related risks are assessed

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

Yes, only within our direct operations

The Company has identified the two potential
risks below.

1.Regulations becoming more restrictive.
2. Increased costs for the supply of water.

Provide details of identified risk in your direct operations with material financial or strategic impacts: Risk 1

Type of risk

Regulatory

Primary risk driver

Physical - Increased water stress

Primary potential impact

Increased production costs

Risk timeframe

More than 6 years

Magnitude of potential impact

Medium

Likelihood of potential impact

About as likely as not

Potential impact financial figure and explanation

Increased water costs, and the need to use
desalinated water.

Primary response

Secure alternative water supply

Cost of response and description of response

There is desalinated water available in Copiapo.
The cost of desalinated water is estimated to be
three times the cost of the current water
supply.

Provide details of identified risk in your direct operations with material financial or strategic impacts: Risk 2

Type of risk

Other, please specify

Opposition to the use of water supplied by
Nueva Atacama.

Primary risk driver

Physical - Increased water scarcity

Primary potential impact

Increased operating costs

Risk timeframe

More than 6 years

Magnitude of potential impact

Medium

Likelihood of potential impact

About as likely as not

Potential impact financial figure and explanation

Increased water costs, and the need to use
desalinated water.

Primary response

Secure alternative water supply

Cost of response and description of response

Unknown

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 but are
unable to realize them

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

No, and we do not plan to introduce them in the
next two years

Strategy

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

Yes, water-related issues are integrated

If water-related issues are integrated into any aspects of your long-term strategic business plan, please describe further

We are currently identifying alternative water
sources to enable Project expansion,
environmentally approved continental water,
or access to desalinated water via pipelines.

If water-related issues are integrated into any aspects of your long-term strategic business plan, identify the associated long-term time horizon

5-10 years

Water

Water Management

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

0.286

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

0.286

The amount of water consumed in the project
was 0.286 megaliters approximately extracted
from the Can Can well (natural source)

Analyse and list all operations for water risks and identify activities that withdraw and consume water in locations with High (40–80%) or Extremely High (>80%) Baseline Water Stress as classified by the World Resources Institute’s (WRI) Water Risk Atlas tool, Aqueduct

Although the Fenix Gold project is located in a
high-risk area according to the Atlas of Water
Risks' classification, the water for the
operations will be industrially treated
wastewater from the city of Copiapó, and the
Project's plant design contemplates a 100%
reuse of process water.

The physical water quantity risk associated
with the year-on-year variation was classified
as high risk.

It's important to note that the physical,
reputational, and regulatory water risks for the
Fenix Gold project are all rated as low risk.

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

100.0000%

In previous reports, Rio2 reported based on
national Chilean standards. In 2023, the
Company is reporting based on WRI and SASB
guidelines.

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

0.286

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

100.0000%

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

0.286

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

Total number of incidents of non-compliance associated with water quality permits, standards, and regulations, including violations of a technology-based standard and exceedances of quality-based standards (note: only those that resulted in a formal enforcement action(s))

Violations - continuous discharges, limitations, standards, and prohibitions that are generally expressed as maximum daily, weekly average, and monthly average (regardless of their measurement methodology or frequency)

Violations - non-continuous discharges and limitations that are generally expressed in terms of frequency, total mass, maximum rate of discharge, and mass or concentration of specified pollutants (regardless of their measurement methodology or frequency)

Violations - other, please specify

Water and Effluents

Water Consumption

Report the total water consumption from all areas in megalitres

0.286

Report the total water consumption from all areas with water stress in megalitres

0.286

Waste Management

Tailings Storage Facilities Management

Does your company manage Tailings Storage Facilities

The Fenix Gold Project will not generate
tailings.

Innovation

Spending on Research, Development, and Technologies for waste management compliance and improvement ($Millions)

Biodiversity

Management Plan

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

Rio2's biodiversity management plans are
disclosed in Fenix Gold's EIA file, which was
approved in December 2023. Rio2 will
implement biodiversity plans and programs
during construction, which is expected to occur
in Q4 2024.

1.1 Lifecycle stages to which the plan(s) apply

• Exploration and appraisal
• Site development
• Production
• During closure
• Decommissioning

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)

The Biodiversity Plan included in the EIA was
developed by specialized consultants. The plan
and its information have been prepared in
compliance with current regulations, national
guidelines, and international standards.
Furthermore, we have proposed voluntary
commitments that are intricately aligned with
the Project design and our corporate
guidelines.

Impacts

Does access to the site involve traversing a protected area

This disclosure includes all relevant national
categories and designations as well as
internationally recognized protected areas, i.e.
areas designated under the World
Conservation Union (IUCN) designation I-IV,
UNESCO Natural World Heritage Sites,
UNESCO Man, and the Biosphere Reserves,
and wetlands designated under the Convention
on Wetlands of International Importance (the
Ramsar Convention).

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

Yes

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

Neither the Fenix Gold Project nor any of its
facilities cross a protected area.

The Fenix Gold Project is located 3.6 km from
the boundary of the Nevado Tres Cruces
National Park and the Laguna Santa Rosa
Ramsar Site. (See map attached.)

A small area (0.82 km2) of the upper part of the
Fenix Project is located in the pit sub-basin,
which is a contributor basin to the Maricunga
National Park and Salar. However, according to
the modeling and environmental impact
assessment, the potential effects on the
protected area are not significant. This
negligible impact is associated with the possible
decrease in recharge due to specific Project
works. The possible reduction in recharge is
estimated at 0.20 L/s, corresponding to 2.11%
of the total recharge in the sub-basin (9.5 L/s).
At the basin level, the Rajos sub-basin belongs
to the Salar de Maricunga basin, in which water
balances have been carried out by various
sources, estimating the recharge of the Salar de
Maricunga between approximately 1,200 L/s
and 1,600 L/s, for which the possible decrease
in recharge due to the Project works located in
the Rajos sub-basin represents between
0.013% and 0.017%, at the basin level.
Therefore, no risk of reduced water levels is
expected, which qualifies as a non-significant
impact.

Fenix Gold Pit Sub-Basin Catchment

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

0.0000%

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

0.0000%

Social

Scale of the Organization

Direct Employee Information

Total number of full-time employees

Full-time - Male

Full-time - Female

Full-time - Non-binary

Total number of part-time employees

Part-time - Male

Part-time - Female

Part-time - Non-binary

Total number of permanent employees (full-time & part-time)

Permanent employees - Male

Permanent employees - Female

Permanent employees -Non-binary

Total number of temporary employees

Temporary employees - Male

Temporary employees - Female

Temporary employees - Non-binary

Total number of direct employees (includes full-time, part-time, temporary; exclude workers who are not employees)

Direct employees - Male

Direct employees - Female

Direct employees - Non-binary

Employees have chosen not to provide this
information.

Out of the total direct employees, what is the number of non-guaranteed hours direct employees

Non-guaranteed hours - Male

Non-guaranteed hours - Female

Non-guaranteed hours - Non-binary

Non-guaranteed hours - Gender not disclosed

Describe the methodologies and assumptions used to compile the data

The data was compiled using information from
the monthly updated Workforce Reports that
are provided by both affiliated and contracted
companies.

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

The numbers are reported in headcount for
full-time & part-time employees.

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

The numbers are disclosed at the end of the
reporting period.

Provide contextual information necessary to understand the direct employment information provided

We had a reduction in personnel as Fenix Gold
obtained the necessary permits to carry out
construction activities on the project.

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

In the second semester of the reporting year,
there was a progressive decrease in personnel
due to the reasons disclosed above.

Workers Who are Not Employees

Total number of workers who are not employees - Male (full-time, part-time)

Full-time - Male

Part-time - Male

Total number of workers who are not employees - Female (full-time, part-time)

Full-time - Female

Part-time - Female

Total number of workers who are not employees - Non-Binary (full-time, part-time)

Employees have chosen not to provide this
information.

Full-time - Non-binary

Part-time - Non-binary

Total number of workers who are not employees - Gender not disclosed (full-time, part-time)

Confidentiality Constraints

Employees have chosen not to provide this
information.

Total number of workers who are not employees and whose work is controlled by the organization (e.g., suppliers, customers, or other business partners, such as in joint ventures)

Describe the most common types of workers who are not employees and their contractual relationship with the organization

Full-time, permanent employment is generally
the most common type of employment.

The type of work they perform

Consultants responsible for obtaining permits
to begin construction on the project are the
most common type of worker.

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

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

The Company has included part-time
consultants in the headcount.

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

All workers have been reported at the end of
the reporting period.

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

As of the year's second half, there was a
progressive decrease in the number of
personnel due to the rejection of the
Environmental Impact Assessment (“EIA”) for
the Fenix Gold Project in Chile.

Total Workforce

Total workforce (includes direct employees and workers who are not employees)

Total female workforce

Female workforce as percentage of total employed workforce

26.8293%

Total male workforce

Male workforce as percentage of total employed workforce

73.1707%

Total non-binary workforce

Non-binary workforce as percentage of total employed workforce

0.0000%

Workers who are not employees (contractors) as percentage of total employed workforce

26.8293%

Employment

Turnover & Gender Breakdown

Female direct employees

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

Rate of turnover, females

0.0000%

Male direct employees

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

Rate of turnover, males

0.0000%

Non-binary direct employees

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

Rate of turnover, non-binary

Does Not Apply

Report the total number and rate of turnover for all Direct Employees

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

Rate of turnover - direct employees

0.0000%

Turnover & Age Breakdown

Direct Employees aged 30 years old and under

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

As percent of total direct employees

0.0000%

Rate of turnover

Does Not Apply

Direct Employees aged between 30 and 50 years old

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

As percent of total direct employees

56.6667%

Rate of turnover

0.0000%

Direct Employees over 50 years old

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

As percent of total direct employees

43.3333%

Rate of turnover

0.0000%

Identify types of employees captured in the turnover rate calculations

• Direct-hire temporary workers (temporary
workers who are on the company payroll)
• All employees on the payroll

Average age of direct employees

Diversity and Equal Opportunity

Diversity of Governance Bodies

Report the percentage of the diversity categories for the highest governance body and the total workforce per employee type

Board of Directors

Total Board of Directors

Percent Male

100.0000%

Percent Female

0.0000%

Percent Non-Binary

0.0000%

Percent under 30 years of age

0.0000%

Percent between 30 and 50 years of age

0.0000%

Percent over 50 years of age

100.0000%

Percent minority or vulnerable group individuals in the "Board of Directors" category

0.0000%

Diversity of Direct Employees

Senior Management

Total Senior Managers

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

33.3333%

Percent over 50 years of age

66.6667%

Percent of minority or vulnerable group individuals in the "Senior Management Employee" category

0.0000%

Salaried (excluding Senior Management)

Total Salaried (excluding Senior Management)

Percent Male

70.3704%

Percent Female

29.6296%

Percent Non-Binary

0.0000%

Percent under 30 years of age

0.0000%

Percent between 30 and 50 years of age

59.2593%

Percent over 50 years of age

40.7407%

Percent of minority or vulnerable group individuals in the "Salaried Employee" category

0.0000%

Diversity of Workers Who Are Not Employees

Workers who are not employees

Number of Males

Number of Females

Number of Non-Binary

Labour Relations

Collective Bargaining Agreements

Percentage of total direct employees covered by collective bargaining agreements (%)

0.0000%

Rio2 Limited does not have Collective
Bargaining Agreements.

For direct employees not covered by collective bargaining agreements, report whether the organization determines their working conditions and terms of employment based on collective bargaining agreements that cover its other employees or based on collective bargaining agreements from other organizations

The organization determines the working
conditions and terms of employment for all
workers, as there is no collective bargaining
agreement.

Notice Periods

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

6 weeks

Occupational Health and Safety

Work-related Injuries

Injuries - For the total workforce

Number of fatalities as a result of work-related injury

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

0.000

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

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

0.000

Number of recordable work-related injuries

Rate of recordable work-related injuries

0.000

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

No work-related injuries were recorded for the
2023 calendar year. This applies to employees
only.

Number of hours worked

65,047

Lost Time Injuries (LTIs)

Lost Time Injury Rate (LTIR)

0.000

In 2023, Rio2 Limited had a 0.00 fatality rate,
0.00 work-related incident rate, and a 0.00 Lost
Time Incident rate.

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

Number of fatalities as a result of work-related injury

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

0.000

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

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

0.000

Number of recordable work-related injuries

Rate of recordable work-related injuries

0.000

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

No work-related injuries were recorded for the
2023 calendar year. This applies to contractors
only.

Number of hours worked

16,166

Lost Time Injuries (LTIs)

Lost Time Injury Rate (LTIR)

0.000

In 2023, Rio2 Limited had a 0.00 fatality rate,
0.00 work-related incident rate, and a 0.00 Lost
Time Incident rate.

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

Total Hours Worked

81,213

Total number of all work-related injuries

Rate of work-related injuries

0.000

Total Lost Time Injuries (LTIs)

Lost Time Injury Rate (LTIR)

0.000

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

Work-related hazards that pose a risk of high-
consequence injury include those identified
below.

- Driving
- Blows to the hand
- Blows from objects causing head injuries
- Falls from different levels
- Same level falls
-Cuts with sharp and cutting objects
- Particles projection
- Noise exposure
- Exposure to dusts, gases, metallic fumes and
vapors
- Blows with tools
- Entrapment by machinery
- Back pain associated with handling of manual
loads
- Personnel transportation
- Mobile equipment operations
- Falling from suspended loads, mobile cranes,
and overhead cranes
- Fires
- Handling of hazardous substances
- Electrical hazards

How have these hazards been determined

Rio2 utilizes the ISO 45001 methodology to
identify high-potential hazards.

For this purpose, Rio2 applies the Iper matrix
(HIRA, Hazard Identification, and Risk
Assessment in English). This matrix is a
management tool that can be used to identify
hazards and assess risks associated with the
processes of any organization.

This methodology includes:
• On-site registration
• Induction training
• Monitoring and evaluation

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

In this reporting period, Rio2 did not suffer any
high-consequence injuries.

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

For 2023 the actions taken according to the
Hierarchy of Controls were:

-Implementation of Administrative controls
-Delivery of Personal Protection Equipment
-Safe Driving in High Mountains Training; and
-Emergency Preparedness Training.

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

In order to eliminate hazards and minimize
risks during 2023, Rio2 complied with Chilean
Occupational Health and Safety Standards and
Regulations (Chile's Occupational Safety and
Health Law No. 16744 regulates workplace
accidents and occupational diseases). The
Company also implemented plans, and
programs as shown in the attached table. There
were no changes in programs implemented
between 2022 and 2023.

Fenix Gold 2023 Elimination of Work-related Hazards -Safety Regulations, Programs, Standards

Have rates been calculated based on 200,000 or 1,000,000 hours worked

200,000

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

No worker has been excluded from this
disclosure.

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

Rio2 identifies and develops Health and Safety
procedures and protocols based on the
following:

a) Host government regulations on safety
b) Occupational health and risk prevention, and
c) The adequacy of safety standards in
accordance with our operations.

In addition, we hold daily mandatory safety
meetings with all personnel and contractors to
identify risks as operations and activities
change to meet project demands.

When necessary, we hire external consulting
services specialized in risk prevention.

Safety Training

Describe any occupational health and safety training provided to workers, including generic training, as well as training on specific work-related hazards, hazardous activities, or hazardous situations

Occupational health and safety training
provided to workers, including generic training,
as well as training on specific work-related
hazards, hazardous activities, or hazardous
situations include the following.

- General safety induction and re-induction of
personnel.
- Dissemination of safety, occupational health,
environmental, and social management policies.
- Hazard identification and occupational risk
assessment.
- Dissemination of safety events in other
companies: lessons learned.
- Use and handling of fire extinguishers.
- Information on occupational insurance.
- Use of the Pre-use checklist and other
management tools.
- Limits and speed control in vehicles.
- Thunderstorms: evacuation procedure.
- Emergency communications.
- Emergency response booklet.
- Altitude sickness.
- Covid-19 emergency response booklet.
- Code of Conduct.
- Internal Work Regulations.
- Internal Safety Regulations.

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

In 2023, the Company trained workers who
started work but left within the same reporting
year period. The average hours of training in
health, safety, and emergency response for
contract employees is high because several
workers entered after the start and before the
end of the period.

Average hours of health, safety, and emergency response training for (b) workers who are not employees (contractors)

Security, Human Rights and Rights of Indigenous People

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

Please see the attached document for a
description of the social risks related to the
Fenix Gold Project.

Rio2 - 2023 Social Risks Report

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

0.0000%

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

0.0000%

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

0.0000%

There are no percentage of proved reserves
that are located in or near areas that are
considered to be Indigenous peoples’ land.

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

0.0000%

No percentage of probable reserves are located
in or near areas that are considered to be
Indigenous peoples’ land.

Which indigenous rights of communities in which the entity operates or intends to operate are respected, provide a description of the entity's due diligence practices and procedures in the details.

Please see attached disclosure.

Colla Communities Transhumance Routes

Rio2's DD Practices Procedures Indigenous Communities

Which human rights procedures the entity's due diligence practices include, provide description in the details

• Implementation of Voluntary Principles on
Security and Human Rights
• Other, please specify

Please see attached description of human
rights procedures applied by the Company .