25 Nov

Evolution commits to sector leading ESG framework

Level 1, Emerald House, 1202 Hay Street, West Perth WA 6005 | T: +61 8 9200 4960 | ASX:EV1 | ev1minerals.com.au ASX:EV1 | 2 5 November 2021 EVOLUTION ENERGY MINERALS LTD ASX ANNOUNCEMENT Evolution ’s sector - leading ESG Framework underpins commitment to become a s ustainable g raphite s uppl ier HIGHLIGHTS • Evolution has committed to an ESG Framework designed to meet the requirements of key stakeholders, in cluding financiers and graphite customers • With large pools of ‘green capital’ seeking to be deployed, Evolution’s ability to a ccess development finance is highly dependent on ESG performance • Implementation of the ES G Framework will see the Company become a supplier of choice to customers who are becoming increasingly focused on sustainability of raw materials • Digbee ESG TM has been engaged to provide an independent third party validated assessment of Evolution’s ESG performance • An independent ESG Committee has been established, which will assess the Company’s ESG performance and advise the Board on ESG matters • Evolution’s ESG - focused cornerstone investor, ARCH Sustai nable Resources Fund, brings significant ESG capability • Specialist consultant engaged to assess carbon footprint a s part of Company’s review of delivering a carbon neutral mining operation for international markets.” Evolution Energy Minerals (“ Evolution ” or the “Company”) is pleased to announce that the Company has adopted an Environmental, Social and Governance ( “ ESG ” ) Framework designed to ensure that Evolution is ‘investment - ready’ for global investment funds ahead of a final investment decision in H2 2022. The ESG Framework will be applied across all aspects of the Company’s activities and in particular to the financing and development of the Chilalo Graphite Project ( “ Chilalo ” or the “ Chilalo Project ” ) . Evolution Executive Chairman, Trevor Benson, commented : “ As we focus our efforts on progressing Chilalo to a final investment decision in H2 2022, it is imperative that we are integrating an ESG Framework in to our way of thinking and how we do business. We are committed to having the ESG Framework embedded across all aspects of our operations in the coming six months and consider the independent and transparent assessment of our ESG performance to be a key element of the ESG Framework, as we strive to bec ome a net zero carbon mine producing sustainable graphite for the green economy.” Purpose of the ESG Framework C apital markets are increasingly focus ed on ESG performance , with significant pool s of capital unable to be deployed until companies demonstrat e adherence to ESG criteria . T he Company’s cornerstone investor, ARCH Sustainable Resources Fund LP ( “ ARCH SRF ” ) , is an ESG - focused investor that raises and invests private capital in emerging markets to deliver long - term sustainable value. The investment deed between the Company and ARCH SRF specifically caters for co - investor rights for ARCH SRF ’s investors and the ESG Framew ork is critical to facilitating further investment . TORRENSMINING.COM PAGE 2 OF 4 EVOLUTION ENERGY MINERALS LTD ASX:EV1 ev1minerals .com.au Amanda van Dyke, Managing Director of ARCH SRF, commented : “ ARCH believes that a mining company’s ability to produce sustainable metals , while having demonstrable ESG credentials , together gives it the best chance of success . T he link between strong ESG practices and creating value has never been stronger. We looked at the entire graphite universe and came to the conclusion that Evolution has the ability to be a truly sustainable company that will positi vely contribute to the global transition to net zero. We are very excited about participating in Evolution’s development journey and it transitioning to a premier producer of sustainable graphite. ” Regulatory changes are forcing western graphite customers, such as those in the European Union ( EU ), to become increasingly focused on the sustainability of raw material supplies. An example is the EU Taxonomy Regulation 1 which is a classification system for sustainable activities aimed at assisting th e EU to meet its climate and energy targets for 2030. As the Company ramps - up its engagement with customers, a demonstrated commitment to ESG performance is central to meeting customers’ requirements and expectations , eventually positioning Evolution as a supplier of choice into these countries . Establishment of the ESG Committee The Company has established an independent ESG Committee to drive the integration of the ESG Framework into the Company’s business, to assess ESG performance and to advise the Board in relation to matters which involve ESG considerations or impact the Company’s ESG credentials . The members of the E SG Committee are ARCH SRF’s nominee to the Evolution board of directors, Amanda van Dyke, non - executive director, Phil Hoskins, and an independent ESG specialist who is yet to be appointed. The ESG Committee , which is supported by a dedicated ESG Committe e Charter , oversees performance against the Company’s ESG program and in the event of a material breach of ESG standards, members of the Evolution board of directors may be required to stand for re - election. Through its relationship with ARCH SRF, Evolution is able to access ARCH SRF ’s Head of ESG, Melanie Mann, who has over 18 years of experience working with financial institutions, advising them on their strategic approaches to ESG risk and opportunity management as well as transaction and portfol io management . ESG Framework The Company’s ESG Framework includes the development and adoption of key policies and plans as shown below. Environmental Social Governance (Updated) Environmental and Social Action Plan (Updated) Re location Action Plan Corporate Governance Code Biodiversity Action Plan Stakeholder Engagement Plan Anti - Bribery and Corruption Policy Pollution P revention and Low Carbon Emissions Policy Cultural Heritage Management Plan Gender and Diversity Policy Climate Change Physical a nd Transitional Risk Assessment Modern Slavery Policy Engagement of Digbee ESG TM to monitor ESG performance Occupational Health and Safety Policy Local Content and Procurement Policy A s development activities at Chilalo gain momentum, Evolution has commenced a n accelerated community engagement program . The Company recognises that it is a guest in Tanzania and ensur ing that the living standards of the communities around the Chilalo Project receive lasting benefit from the Company’s activities, is vital to the Company’s social licence to operate. To this end, Evolution plans to shortly recommence work 1 https://ec.europa.eu/info/business - economy - euro/banking - and - finance/sustainable - finan ce/eu - taxonomy - sustainable - activities_en TORRENSMINING.COM PAGE 3 OF 4 EVOLUTION ENERGY MINERALS LTD ASX:EV1 ev1minerals .com.au to update the R elocation A ction P lan and will do so in accordance with IFC standards . The Company has engaged local Tanzanian experts to work with international consultants in this process. The Company has engaged MinViro to assess the carbon footprint associated with the Company’s proposed mining operation at Chilalo as part of a process being undertaken by Evolution to investigate how a net zero carbon mining operation can be achieved at Chilalo. Measuring ESG performanc e is essential In order to support the Company’s commitment to ESG and to provide a third party validated assessment of ESG performance, E volution has engaged Digbee ESG TM ( “ Digbee ” ) . D i gbee i s an on - demand data, research and ESG platform for the mining industry endorsed by the industry's leading stakeholders , including financiers such as Black Rock, Orion Mining Finance and ARCH SRF . Digbee ’s independent assessments are aligned with key global ESG standard setter s including the World Bank, IFC, t he International Raw Materials Association and the United Nations. Their assessments will enable E volution’s ESG program to be measured, transparently reported and benchmarked , which will allow the Company to identify areas for improvement and to promote the Company as an attractive investment proposition for a wide range of ESG - focused fund managers and financiers . This announcement has been approved for release by the Evolution board of directors . For further information please contact: Trevor Benson Michael Bourguignon Executive Chairman Executive Director tbenson@ev1minerals.com.au mbourguignon@ev1minerals.com.au T: +61 8 9200 4960 T: +61 8 9200 4960 TORRENSMINING.COM PAGE 4 OF 4 EVOLUTION ENERGY MINERALS LTD ASX:EV1 ev1minerals .com.au ABOUT EVOLUTION Evolution is committed to supplying sustainable graphite solutions for the global green economy and in doing so, create the first net zero carbon graphite mine. A DFS confirmed the opportunity to produce high - quality flake graphite at Chilalo and the Compa ny intends to apply Chilalo flake graphite to downstream processing to produce battery anode material, expandable graphite, micronised graphite and graphite foil. The Chilalo Project hosts a high - grade mineral resource of 20.1Mt at 9.9% total graphitic car bon (TGC) for 1,991 Kt of contained graphite, as shown in the table below. Chilalo Mineral Resource Estimate 2 Domain JORC Code Classification Zone Million Tonnes (Mt) TGC (%) Contained Graphite (Kt) High Grade Indicated Main 9.2 10.6 982 North - East 1.0 9.5 100 All 10.3 10.5 1,082 Inferred Main 7.4 9.5 704 North - East 2.3 8.8 205 All 9.8 9.3 908 Indicated + Inferred All 20.1 9.9 1,991 Low Grade Inferred Main 37.8 3.4 1,282 North - East 9.5 4.1 394 All 47.3 3.5 1,677 High Grade + Low Grade Indicated + Inferred All 67.3 5.4 3,667 The Mineral Resource was estimated within constraining wireframe solids using a core high - grade domain defined above a nominal 5% TGC cut - off within a surrounding low - grade zone defined above a nominal 2% TGC cut - off. The mineral resource is quoted from all classified blocks above a lower cut - off of 2% TGC within these wireframe solids. Differences may occur due to rounding. 2 The Chilalo Mineral Resource estimate was reported by Evolution in the prospectus dated 28 September 2021, as supplemented by a supplementary prospectus dated 6 October 2021 (collectively, the Prospectus). Evolution confirms that it is not aware of any new information or data that materially affects the Chilalo Mineral Resour ce estimate included in the Prospectus and that all material assumptions and technical parameters underpinning the Chilalo Mineral Resource estimate in the Prospectus continue to apply and have not materially changed.
Information on this Website is provided for general information purposes only and is not a substitute for professional advice. ASX Information (including company announcements and prices) is delayed by at least 20 minutes. JSE Information (including company announcements and prices) is delayed by at least 15 minutes. Reliance on the information you access on or from this Website is solely at your own risk. We make no representation or warranty in relation to the future performance of the companies that appear on this Website. Investment in securities involves risk and you should obtain independent professional legal, financial, investment or company advice before acting on any of the information you access on this Website. Using, browsing or otherwise accessing this Website is subject to our Terms and Conditions and our Privacy Policy.

© 2021 Listcorp. ABN 60 166 140 307

Never miss news from Evolution Energy Minerals Limited (ASX:EV1) when you join Listcorp.