25 Nov

Liontown Resources ESG Report - FY2021

i CRITICAL RAW MATERIALS FOR A LOW CARBON ECONOMY LIONTOWN RESOURCES ENVIRONMENTAL, SOCIAL & GOVERNANCE ( ESG ) REPORT FY2021 01 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 CONTENTS 01 A MESSAGE FROM TIM GOYDER, CHAIRMAN 02 02 A MESSAGE FROM TONY OTTAVIANO, MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER 03 03 ABOUT THIS REPORT 06 04 OUR MATERIAL TOPICS 07 05 ABOUT LIONTOWN 08 06 OUR APPROACH TO ESG 13 07 SUSTAINABLE DEVELOPMENT GOALS 15 08 MINING FOR A LOW CARBON ECONOMY 18 09 FROM PROJECT DISCOVERY TO MINE DEVELOPMENT 22 10 OUR PROJECTS 23 11 OUR GOVERNANCE AND ETHICS 26 12 OUR FOCUS ON HEALTH AND SAFETY 33 13 OUR PLAN TO MANAGE WATER RESPONSIBLY 36 14 OUR COMMITMENT TO DIVERSITY AND EQUAL OPPORTUNITY 38 15 OUR FOCUS ON ABORIGINAL ENGAGEMENT 41 16 OUR FOCUS ON ESTABLISHING ENERGY AND EMISSIONS EFFICIENCIES 43 17 OUR PROPOSED WASTE MANAGEMENT APPROACH 45 18 OUR STAKEHOLDERS 47 19 OUR COMMITMENT TO COMPLIANCE 49 20 GLOSSARY 50 21 ACRONYMS 51 22 REFERENCES 53 23 CP STATEMENT 54 24 DISCLOSURES NAVIGATOR: GRI CONTENT INDEX; SASB AND TCFD 55 Cover images: Spodumene sample from Kathleen Valley Aerial survey of Kathleen Valley region 02 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 01 A s a company we decided to focus on and commence reporting on our ESG performance early, to hold ourselves to account and ultimately di?erentiate ourselves for the right reasons. As Chairman, this is an approach that has had my full support and is 100% endorsed, and indeed encouraged by the Liontown Board. With regard to the Kathleen Valley Project, considerable e?ort has been undertaken in terms of the mine’s footprint and the design — future proo?ng the processing plant and infrastructure whilst at all times working closely with the Traditional Owners. Given the work undertaken to date, production will commence with a measured carbon footprint that can be progressively reduced. This has been well received by investors and potential o?-takers alike. Tony Ottaviano’s recent appointment as MD/CEO has also been timely as he’s brought considerable experience to the company as a whole, including ESG, and he and the team are overseeing and managing Liontown’s strategy in this area. Obviously, we’re just at the start of our journey in building a modern 21st century mine at Kathleen Valley. The challenge, outside of having a world class resource, is de?ning clear goals of what we’d like to achieve and simplifying so we deliver on our goals. We are focusing on getting the right mix of innovation, e?ciency, and practicality. Our values: safety, respect, sustainability, integrity, ambition and teamwork, will guide the company as we transition from exploration and development through to the operational phase of Kathleen Valley. At Liontown, we focus upon delivering on our commitments and strategy. I believe we’ve carried this approach with this inaugural ESG report and our sustainability focused approach for Kathleen Valley. I’m extremely happy that we’ve embarked on our ESG journey concurrently with the Kathleen Valley Lithium-Tantalum Project De?nitive Feasibility Study. ESG is an integral part of Kathleen Valley’s development pathway and not an add-on or afterthought. Incorporating the ‘right approach’ from the outset means the work we do now positions us perfectly for the future journey. A MESSAGE FROM TIM GOYDER CHAIRMAN Our values: safety, respect, sustainability, integrity, ambition and teamwork, will guide the company as we transition from exploration and development through to the operational phase of Kathleen Valley. 03 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 02 O ur framework recognises the importance of managing the signi?cant short, medium and long term economic, environmental and social impacts of our ?agship Kathleen Valley Lithium-Tantalum Project. We will balance these impacts to achieve a positive and measurable impact for our host communities, the Kathleen Valley project region, Western Australia, and more broadly, for Australia. It is our aspiration to establish a world- class ESG framework at this stage of Liontown’s development, not because it is something global investors and the market increasingly request; we are doing it because of our values and our strong overall commitment to do the right thing for all stakeholders. With the assistance of expert consultants, we have adopted several internationally recognised standards in our ?rst ESG Report. This means we have established integrated environmental and social benchmarks in our corporate governance, with best-in-class reporting aligned with the internationally-recognised Global Reporting Initiative ( GRI ) Standards, Sustainable Development Goals ( SDGs ) , Sustainability Accounting Standards Board ( SASB ) Standard, and the Task Force on Climate Related Financial Disclosures ( TCFD ) Recommendations. Liontown’s Kathleen Valley Project is uniquely positioned as a globally signi?cant, Tier-1 hard rock lithium resource with the potential to play a key role in the global energy transition by initially becoming a low-cost, long-term supplier of high-quality spodumene concentrate to the global lithium-ion battery industry. As the world economy accelerates delivery on its decarbonisation targets — with a key driver being the electri?cation of global transportation — critical raw materials supply chains to the lithium-ion battery and electric vehicle ( EV ) sectors are experiencing unprecedented growth. We are delighted to present Liontown’s inaugural ESG Report. This document sets out the environmental, social and governance ( ESG ) framework that we have put in place as Liontown prepares for its transition from explorer to developer, and, ultimately, to realise our aspiration of becoming a world-class battery materials producer. A MESSAGE FROM TONY OTTAVIANO MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER Above: Kathleen Valley landscape. Photograph: Tony McDonough 04 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 We have already seen governments around the world ( including the US, Japan, the EU and Canada ) introduce legislation mandating an accelerated shift towards EVs. This will further support strong demand growth for battery materials products over the coming decades, which implies that Liontown will be entering the market at the perfect time, with a major supply de?cit expected in the lithium market by 2024. Against this backdrop, Liontown has enjoyed an exceptionally busy and productive year in FY21 with the delivery of an updated Pre-Feasibility Study ( PFS ) for Kathleen Valley in October 2020, a Downstream Scoping Study ( DSS ) for an integrated mining, processing and re?ning operation. A De?nitive Feasibility Study (DFS) which commenced in FY21, was ?nalised in November 2021. The ESG framework which we developed during the year has included a strong focus on positive and meaningful engagement with Traditional Owners and other local stakeholders as part of our long-term social licence to operate, minimising future carbon emissions, water usage and land disturbance and ensuring that our corporate governance is consistent with industry best-practice. We have established a Climate Strategy Roadmap, which will be formalised over the next 12 months that puts us on a trajectory to achieve net zero emissions by 2034. There is no doubt that achieving this objective will be challenging. However, we are well positioned to embrace this challenge through a commitment to adopt proven technology within realistic time frames. As part of the DFS, we are designing and building a state-of-the-art project for the future with 60% renewable power, a bio-fuel ready mine and transport ?eet and a redesigned mine plan with a focus on reduced ground disturbance incorporated by the time we deliver ?rst production in 2024 to reduce Scope 2 emissions. By 2029, we aim to have >75% renewable power, an upgraded mining ?eet with electric trucks and 50% biofuel-powered road transport and light vehicle ( LV ) ?eet. And by 2034, we will be targeting 100% renewable power and a 100% electric or clean fuel powered mining and LV ?eet. The fact that a signi?cant proportion of ore feed at Kathleen Valley will come from underground mining gives the Project a huge competitive advantage in terms of reducing the environmental and social impacts typically associated with open pit mining and assisting us to achieve best-in-class reductions in Scope 1 and Scope 2 emissions much faster. Apart from our net zero ambition, we have focused hard on minimising our future net water requirements and have selected a number of Sustainable Development Goals that we will contribute to, and we recognise the importance of setting targets as an integral part of our ESG Framework once we start production in 2024. CHAPTER 02 We are designing and building a state-of-the-art project for the future with 60% renewable power. Schematic of site layout with wind and solar farm. 05 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 CHAPTER 02 In summary, Liontown is on an exciting and rapid growth path. The next 3-5 years will be an exciting and transformational time for the Company as we make a Final Investment Decision, secure project funding and commence construction at Kathleen Valley. Given the current highly competitive environment for people, equipment and services in the Western Australia resource sector, there will be a number of signi?cant challenges to address and manage along the way. We also envisage that the pathway to achieving our key ESG goals will not always be smooth. However, we are committed to embracing these challenges with enthusiasm, integrity, commitment and resilience — and with a ?rm belief that we have a unique opportunity to create a world-class, 21st century Australian mining company, which can make a big contribution to making the world of tomorrow a cleaner and better place. We have established a Climate Strategy Roadmap, which will be formalised over the next 12 months that puts us on a trajectory to achieve net zero emissions by 2034. Right: Spodumene deposits at Kathleen Valley. Above: Kathleen Valley landscape. Photographs: Tony McDonough ULTIMATELY, THIS WILL BE BECAUSE OF THE MATERIALS THAT WE PRODUCE — AND THEIR ESSENTIAL ROLE IN THE GLOBAL ENERGY TRANSITION — AND THE WAY THAT WE DO IT IN A MEASURED, PROFESSIONAL AND RESPONSIBLE MANNER THAT AIMS TO DELIVER POSITIVE OUTCOMES FOR ALL OF OUR STAKEHOLDERS. 06 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 03 This report summarises Liontown’s strategy and performance on the Company’s most critical issues for the period 01 July 2020 to 30 June 2021. It is the Company’s ?rst environmental, social and governance ( ESG ) report. The Board of Directors ( BOD ) has formally reviewed this report and is satis?ed with the sustainability topics disclosed. Scope The report summarises the performance of the Company’s assets as of 30 June 2021. These are the Kathleen Valley Lithium-Tantalum Project, Buldania Lithium Project, Moora/Koojan Gold- Copper-PGE-Nickel Project and Toolebuc Vanadium projects. Note: Kathleen Valley Lithium-Tantalum Project mine output ?gures within this report re?ect those within the De?nitive Feasibility Study ( DFS ) undertaken after 30 June 2021, to publish accurate ?gures that align with current public documentation. Similarly, this report references strategic activities that have occurred after 30 June 2021 to align with current communications in the public domain. Report focus on Kathleen Valley Lithium-Tantalum Project The report has a speci?c focus on the Kathleen Valley Lithium-Tantalum Project as this is the Company’s most advanced project. In future years, the report focus will change to re?ect the activity of other assets within the Company’s portfolio at that time. Reporting disclosures The report utilises the following sustainability standards, sector disclosures, frameworks and reporting recommendations: Global Reporting Initiative (GRI) Standards GRI G4 Mining and Metals Sector Disclosures Sustainable Development Goals (SDGs) framework Sustainability Accounting Standards Board (SASB) Standard for Metals & Mining Task Force on Climate Related Financial Disclosures (TCFD) Recommendations The report has been prepared in accordance with the GRI Standards: Comprehensive Option. Applying the GRI Reporting Principles for de?ning report content Stakeholder inclusiveness Each member of the Company’s BOD and senior management team participated in a materiality assessment for this report. Liontown engages in active and targeted stakeholder engagement on a daily basis, and we have identi?ed the Company’s core stakeholder groups, the primary communication means, the themes of interest to them, and the Company’s response. We have utilised the most widely recognised sustainability reporting instruments to ensure that we are meeting the expectations and information demands of our various stakeholder groups on sustainability. Sustainability context ESG is a critical strategic platform for Liontown. We have provided context for how Liontown, in its capacity as a future lithium miner, ?ts into the global market framework of the transition to a low carbon economy by referencing authoritative research. When we discuss the signi?cance of material issues in this report, we are transparent about the actual and potential present and future implications of our actions and will adopt a pragmatic approach to managing these impacts in the most sustainable manner possible. The sustainability reporting instruments chosen are deemed to be the most acceptable in the marketplace and will enable us to benchmark our performance against that of others in the sector. Materiality A materiality assessment was conducted for Liontown by an external consultant. A series of detailed one on one interviews was held with each member of the Company’s BOD and the senior manage- ment team. This e?ort yielded more than a ?nal list of material subjects; it also allowed for expert input into the report’s content, including future challenges for the organisation and sector. The materiality assessment process was informed by topic inputs taken from the sustainability standards, sector disclosures, frameworks, and reporting recommendations used and consolidated into ‘like’ themes. Interviewees individually identi?ed and prioritised the topics, which then went through a calculation methodology to determine the ?nal list. The identi?ed issues are inextricably tied to the Company’s ESG strategy. Completeness The report addresses Liontown’s most material sustainability impacts, to which the Company currently contributes directly and anticipates contributing to in the future as the Company moves from lithium explorer to miner. We intend to implement a plan to increase awareness of our upstream supplier impacts in the future through our procurement procedures, but have not yet established a timeline for this action. Additionally, we must identify how to analyse the downstream consequences of our activity. Our aim with this report is to provide a comprehensive and transparent document that holds us accountable to our stakeholders publicly. External assurance External assurance has not been sought for this report, however, in FY22, Liontown will investigate the Initiative for Responsible Mining Assurance ( IRMA ) for potential incorporation into its suite of ESG governance tools. Contact Queries regarding this report can be directed to: Adam Smits Chief Operating O?cer info@ltresources.com.au ABOUT THIS REPORT AT THE TIME OF PUBLISHING THIS REPORT, LIONTOWN’S MOORA/KOOJAN PROJECT HAS BEEN DEMERGED INTO MINERALS 260, A WHOLLY OWNED ENTITY OF LIONTOWN RESOURCES. IN ADDITION, THE TOOLEBUC VANADIUM PROJECT HAS BEEN DIVESTED. 07 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 04 Our material topics in order of importance identi?ed through the materiality assessment are: GOVERNANCE, ETHICS, INTEGRITY & TRANSPARENCY WATER MANAGEMENT DIVERSITY & EQUAL OPPORTUNITY INDIGENOUS RIGHTS GREENHOUSE GAS EMISSIONS & ENERGY MANAGEMENT WASTE, WASTEWATER & HAZARDOUS MANAGEMENT COMPLIANCE WITH ECONOMIC, ENVIRONMENT & SOCIAL REGULATIONS ECONOMIC IMPACTS ON THE LOCAL COMMUNITY OCCUPATIONAL HEALTH & SAFETY STAKEHOLDER ENGAGEMENT OUR MATERIAL TOPICS 01 02 03 04 05 06 07 08 MOORA PROJECT BULDANiA PROJECT 08 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 05 Liontown Resources Limited ( Liontown ) is a publicly listed exploration and development company with a focus on battery metals. The Company has the fourth largest attributed hard rock lithium resource globally by ownership, with a Tier-1 deposit at its ?agship Kathleen Valley Lithium-Tantalum Project in Western Australia, and a second lithium deposit at its Buldania Lithium Project, also in Western Australia. The Toolebuc Vanadium Project in Queensland (divested at the time of publication, subject to completion) is the company’s other project. The Moora/Koojan Gold-Copper-PGE-Nickel Project in Western Australia was demerged in October 2021, with tenements divested into the separate entity Minerals 260 Limited. Liontown is headquartered in Perth, Western Australia. PERTH KALGOORLiE ABOUT LIONTOWN KATHLEEN VALLEY LiTHiUM TANTALUM PROJECT TOOLEBUC VANADiUM PROJECT 09 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 CHAPTER 05 NOTE: THERE IS NO MINERAL RESOURCE CURRENTLY DELINEATED AT THE MOORA/KOOJAN PROJECT MINERAL RESOURCE ESTIMATES & ORE RESERVES KATHLEEN VALLEY LiTHiUM TANTALUM PROJECT MiNERAL RESOURCE ESTiMATE APRiL 2021 CUT-OFF Li 2 O% RESOURCE CATEGORY MILLION TONNES Li 2 O % Ta 2 O 5 PPM 0.55 MEASURED 20 1.3 145 INDICATED 109 1.4 130 INFERRED 27 1.3 113 TOTAL 156 1.4 129 ORE RESERVE ESTiMATE NOVEMBER 2021 CATEGORY RESOURCE CATEGORY MILLION TONNES Li 2 O % Ta 2 O 5 PPM UNDERGROUND PROVED — — — PROBABLE 65.4 1.34 119 SUB-TOTAL 65.4 1.34 119 OPEN PIT PROVED 2.7 1.30 141 PROBABLE 0.5 0.93 148 SUB-TOTAL 3.2 1.21 142 TOTAL 68.5 1.34 120 BULDANiA LiTHiUM TANTALUM PROJECT MiNERAL RESOURCE ESTiMATE NOVEMBER 2019 CUT-OFF Li 2 O% RESOURCE CATEGORY MILLION TONNES Li 2 O % Ta 2 O 5 PPM 0.5 INDICATED 9.1 0.98 45 INFERRED 5.9 0.95 42 TOTAL 14.9 0.97 44 TOOLEBUC VANADiUM PROJECT MiNERAL RESOURCE ESTiMATE* JULY 2018 RESOURCE CATEGORY MILLION TONNES V 2 O 5 % INFERRED 83.7 0.30 TOTAL 83.7 0.30 TOWNSViLLE TOOLEBUC BRiSBANE MOUNT iSA * REPORTED ABOVE A V 2 O 5 CUT-OFF GRADE OF 0.25%. TONNAGE AND GRADES HAVE BEEN ROUNDED TO REFLECT THE RELATIVE UNCERTAINTY OF THE ESTIMATE I REPORTED ABOVE A Li 2 O CUTOFF GRADE OF 0.5% II TONNAGE AND GRADES HAVE BEEN ROUNDED TO REFLECT THE UNCERTAINTY OF THE ESTIMATE I TONNAGES AND GRADES ARE DILUTED AND REPORTED AT Li 2 O CUT-OFF GRADE OF 0.5% (OPEN PIT) AND 0.7 —1.2% (UNDERGROUND) AND USES A US$740/ DMT FOB SC6.0 PRICING ASSUMPTION II TONNAGES AND GRADES HAVE BEEN ROUNDED 10 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 CHAPTER 05 PROJECT TENEMENT NUMBER REGiSTERED HOLDER NATURE OF iNTERESTS KATHLEEN VALLEY M36/264 M36/265 M36/459 M36/460 LRL ( AUST ) PTY LTD WHOLLY OWNED SUBSIDIARY OF LIONTOWN RESOURCES LTD 100% ALL METAL RIGHTS EXCEPT NICKEL E36/879 M36/696 ( APPLICATION ) 100% ALL METAL RIGHTS L36/236 L36/237 L36/248 ( APPLICATION ) 100% ACCESS ONLY BULDANiA E63/1660 LRL ( AUST ) PTY LTD 100% E63/856 P63/1977 M63/647 M63/676 (APPLICATION) AVOCA RESOURCES PTY LTD UNDER THE TERMS OF THE BULDANIA LITHIUM RIGHTS AGREEMENT 100% OF RIGHTS TO LITHIUM AND RELATED METALS SECURED BY LITHIUM RIGHTS AGREEMENT MOORA* E70/5217 E70/5286 E70/5287 ERL ( AUST ) PTY LTD 100% KOOJAN* E70/5312 E70/5337 E70/5429 E70/5450 E70/5515 E70/5516 P70/1743 COOBALOO MiNERALS PTY LTD 0% RIGHT TO EARN 51% SECURED BY BINDING TERM SHEET TOOLEBUC** EPM/26490 EPM/26491 EPM/26492 EPM/26494 EPM/26495 LiONTOWN RESOURCES LTD 100% ALL METAL RIGHTS PREFIXES DENOTE THE FOLLOWING: E: EXPLORATION LICENCE ( WESTERN AUSTRALIA ) ; M: MINING LEASE ( WESTERN AUSTRALIA ) ; L: MISCELLANEOUS LICENCE ( WESTERN AUSTRALIA ) ; EPM: EXPLORATION PERMIT MINERALS ( QUEENSLAND ) TENEMENTS OWNERSHIP AS AT 30 JUNE 2021 *DEMERGED IN OCTOBER 2021 **DIVESTED IN OCTOBER 2021 (SUBJECT TO COMPLETION) 11 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 CHAPTER 05 Employees 14 employees 11 men 3 women 13 located in Western Australia 1 located in New South Wales - Net loss - $10,567,106 - from continuing operations Supply chain At this predevelopment phase of operations, suppliers are limited to: exploration and water drilling contractors, engineering, environmental and other professional services consultants. Membership Liontown is a member of the Association of Mining and Exploration Companies ( AMEC ) 12 LiONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE ( ESG ) REPORT FY2021 Sustainability has to be real, measurable and actually make a di?erence. At Liontown we like to be measured on what we actually do and sustainability is at the heart of everything we do. SUSTAINABILITY ADAM SMITS CHIEF OPERATING OFFICER 13 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 06 Liontown is committed to establishing a strong environmental, social and governance ( ESG ) foundation. ESG is central to our strategy and we are determined to demonstrate sustainability leadership in the mining and metals sector from the outset of planned operations. We acknowledge that the mining sector has at times had a super?cial approach to sustainability, and we want to do better. W e believe that our business is more than mining. It’s important to think about the bigger picture of sustainability, how we ?t into this and how we contribute to environmental and social sustainability while at the same time operating an economically viable mining operation. Conscious change is important across this essential but often divisive sector, and this is what we intend to pursue. The implementation of ESG as one of our core business principles establishes Liontown as a legitimate and credible operation, and underpins our legal and social licence to operate. Establishing trust is critical in interactions with all of our stakeholders and we want to be accountable across all of our actions. We are fortunate in our current position as an exploration company that we have been able to approach ESG with a clean slate and a small team. This means that the Company’s ESG fundamentals have been established early, and will provide a valuable blueprint for our Company as employee numbers grow and we transition to production. ESG commitments matter. In FY21, we set out to establish Liontown’s ESG foundations, and we have achieved a great deal. We have designed our ESG framework, ?nalised our ESG Statement, and published policies that address our approach to climate change and Aboriginal engagement as well as signi?cantly updated our Environment and Health and Safety policies. We have begun implementation of a three year plan to progressively build on ESG disclosure. In this, our ?rst ESG Report, we have taken a signi?cant step in ESG disclosure by incorporating a series of best practice sustainability reporting instruments in response to stakeholder expectations. OUR APPROACH TO ESG These include the Global Reporting Initiative ( GRI ) Standards, Sustainability Accounting Standards Board ( SASB ) , Sustainable Development Goals ( SDGs ) and the Task Force on Climate Related Financial Disclosures ( TCFD ) Recommendations. While the GRI Standards disclosures, complemented by SASB disclosures, serve as the foundation for this report, additional work is required to e?ectively integrate the SDGs and TCFD into reporting. This will be a primary objective prior to production. SOCIETY: COMMUNITY & PEOPLE ECONOMIC VALUE CREATION GOOD GOVERNANCE ENVIRONMENTAL STEWARDSHIP GOVERNANCE MECHANISM COMMITMENT ESG PILLAR 14 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 CHAPTER 06 NET ZERO BY 2034 ( *CURRENT AMBITION PRIOR TO UNDERTAKING CLIMATE SCENARIO MODELLING ) CLEAR COMMITMENTS TO ENVIRONMENTAL GOVERNANCE FOCUS ON MITIGATING ENERGY AND EMISSIONS, WATER, WASTE, EFFLUENT & HAZARDOUS MATERIALS, LAND DISTURBANCE & BIODIVERSITY IMPACTS COMPLIANCE ENVIRONMENT POLICY CLIMATE CHANGE POLICY TREAT ALL STAKEHOLDERS WITH DECENCY, CARE & RESPECT HEALTH, SAFETY & WELLBEING EFFECTIVE STAKEHOLDER ENGAGEMENT EMBRACE DIVERSITY OF PEOPLE & THOUGHT ABORIGINAL ENGAGEMENT POLICY HEALTH AND SAFETY POLICY DIVERSITY POLICY COVID-19 POLICY STRONG GOVERNANCE FOUNDATIONS SUSTAINABILITY LEADERSHIP HONESTY, ETHICS, INTEGRITY & TRANSPARENCY ESG DISCLOSURE COMPLIANCE CODE OF CONDUCT WHISTLEBLOWER PROTECTION POLICY SHAREHOLDER COMMUNICATION AND INVESTOR RELATIONS POLICY RISK MANAGEMENT POLICY SECURITIES TRADING POLICY POLICY ON CONTINUOUS DISCLOSURE POLICY ON ASSESSING THE INDEPENDENCE OF DIRECTORS PROCEDURE FOR THE SELECTION, APPOINTMENT AND ROTATION OF EXTERNAL AUDITOR INTERNET & EMAIL POLICY SOCIAL MEDIA POLICY PRIVACY POLICY TREASURY POLICY SUCCESSION PLAN POLICY COMPENSATION, MEANINGFUL EMPLOYMENT, TRAINING & CONTRACTING OPPORTUNITIES FOR TJIWARL NATIVE TITLE HOLDERS PAYMENT OF FAIR WAGES TO ALL EMPLOYEES EQUAL REMUNERATION FOR ALL EMPLOYEES IN SIMILAR ROLES BASED ON EXPERIENCE STRONG RETURN ON SHAREHOLDER INVESTMENT NATIVE TITLE AGREEMENT ASX CORPORATE GOVERNANCE PRINCIPLES & RECOMMENDATIONS ANNUAL REPORTING ENVIRONMENTAL STEWARDSHIP SOCIETY: COMMUNITY & PEOPLE ECONOMIC VALUE CREATION GOOD GOVERNANCE ESG FRAMEWORK 15 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 In 2016, as part of the 2030 Agenda for Sustainable Development, the Sustainable Development Goals ( SDGs ) took e?ect. The SDGs serve as a road map to a more sustainable future and a bene?cial framework for addressing the world’s most pressing sustainability concerns. T he SDGs have helped Liontown in framing risk, impact, and opportunity within a framework that re?ects a clear global focus and will aid in communicating how the organisation will address these concerns. We have taken the ?rst step towards implementing a ‘principled prioritisation’ approach, which has assisted us in prioritising our SDG targets based on an assessment of the risks and bene?ts to people and the environment across the Company’s major operational phases, from lithium exploration to future mining operations. The second phase in this approach will be to design bene?cial programs that will aid in achieving the goals. This exercise will assist us in connecting our own future targets with a global perspective. The majority of our targets will be set in 2025 following the ?rst full year of operation at Kathleen Valley — the Company’s ?rst planned operational asset. 07 SUSTAINABLE DEVELOPMENT GOALS POSiTiVE & NEGATiVE iMPACTS ON PEOPLE & THE ENViRONMENT SUSTAiNABLE DEVELOPMENT GOALS & LiNKED SDG TARGET LiONTOWN’S iMPACT OUR POTENTiAL RiSKS TO PEOPLE & THE ENViRONMENT EXPLORATION, DEVELOPMENT & OPERATIONAL PHASES Mining in a water-stressed area Management of wastewater impacts Occupational health & safety for employees & contractors Waste management 16 OUR FUTURE POSiTiVE iMPACTS ON PEOPLE & THE ENViRONMENT DEVELOPMENT & OPERATIONAL PHASES Education opportunities for employees Focus on gender diversity 60% renewable energy target LiONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE ( ESG ) REPORT FY2021 POSiTiVE & NEGATiVE iMPACTS ON PEOPLE & THE ENViRONMENT SUSTAiNABLE DEVELOPMENT GOALS & LiNKED SDG TARGET LiONTOWN’S iMPACT OUR CURRENT POSiTiVE iMPACTS ON PEOPLE & THE ENViRONMENT LiNKED TO BUSiNESS ACTiViTY EXPLORATION PHASE Native Title Agreement ( NTA ) negotiations Reporting ESG Performance Focus on governance NTA negotiations 17 LiONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE ( ESG ) REPORT FY2021 POSiTiVE & NEGATiVE iMPACTS ON PEOPLE & THE ENViRONMENT SUSTAiNABLE DEVELOPMENT GOALS & LiNKED SDG TARGET LiONTOWN’S iMPACT OUR FUTURE POSiTiVE iMPACTS ON PEOPLE & THE ENViRONMENT DEVELOPMENT & OPERATIONAL PHASES Provision of good employment conditions NTA negotiations Employee diversity Focus on mitigating impact across all environmental parameters Supply chain contribution to the low carbon economy CHAPTER 07 18 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 The 2015 Paris Agreement was a historic international agreement that gave the impetus for countries to signi?cantly decrease global greenhouse gas emissions with the goal of limiting global temperature rise to 2°C above pre-industrial levels this century, while pursuing a 1.5°C target ( 2021 United Nations Framework Convention on Climate Change, 2015 ) . The understanding behind the accord was that the problem of climate change is extremely urgent and that a worldwide response is necessary to achieve large reductions in global emissions. T he International Panel on Climate Change ( IPCC ) ’s latest ?ndings indicate that, unless major reductions in carbon dioxide ( CO 2 ) and other greenhouse gas emissions are achieved in the near future, global warming of 1.5°C and 2°C will be reached within the 21st century ( IPCC, 2021 ) . To achieve a low-carbon future, an immense shift to clean energy is required. Manufactured as part of a suite of low carbon technologies, batteries will be instrumental in setting the course for the availability of critical minerals for the foreseeable future. The World Bank states that without minerals, a low- carbon future will not be possible ( The World Bank Group, 2017 ) . Over 20 countries have set electri?cation objectives or imposed bans on internal combustion engines ( ICEs ) , while eight countries in addition to the European Union have made net zero commitments to contribute to a low carbon future ( International Energy Agency, 2021 ) . Liontown’s Kathleen Valley Lithium- Tantalum Project is ideally placed to be a key player in the global energy transformation, which is gaining momentum as major auto-makers and players in the lithium-ion battery supply chain continue to ramp up their commitments to help reduce the global carbon footprint. Challenges The clean energy revolution will require a much greater use of mineral resources than fossil fuel power generation. Mining consumes a large percentage of the world’s energy, and it commonly occurs in areas with water scarcity. Another important factor is the mineral intensity of low-carbon technologies. Regardless, only a minor ( 6% ) share of emissions generated by fossil fuel technologies comes from mineral- intensive low-carbon technologies. If we are to meet the Paris Agreement, we must deploy technologies to reduce emissions, and it will mean we have to use more minerals as a result. The mining industry must work to decrease the carbon and material footprints associated with the minerals it supplies. Innovation is required to reduce the energy, water, and land required to extract these minerals, as well as the sector’s carbon and environmental footprints. Identifying and comprehending the new risks that climate change presents to the supply chains of battery technology — from the extraction of a mineral or metal to its ultimate end use — will be critical for all stakeholders involved ( The World Bank Group, 2017 ) . 08 MINING FOR A LOW CARBON ECONOMY Liontown spodumene 19 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 Electric mobility’s rapid expansion and the automotive industry’s adoption of batteries to power EVs are transforming the battery industry. Consequently, the size of lithium-ion battery material sourcing and manufacturing is expected to increase signi?cantly over the coming years. In 2021, the worldwide battery market accelerated, with roughly 200 super-sized lithium ion battery cell factories planned through 2030. This also takes the total capacity in the pipeline for 2030 to 3.4TWh, up from 755 GWh in 2020 ( Benchmark Minerals Intelligence, 2021 ) . China now has the highest demand for EV batteries. It is predicted to continue to be the largest market in this decade, followed by Europe and the US. Concerns over lithium availability have grown in 2021 in response to the burgeoning EV market, with national and regional policies and incentives aimed at speeding up the adoption of electric mobility ( Metalbulletin, 2021 ) . LITHIUM MARKET DEFICIT EXPECTED BY 2024 Marketplace Lithium is a critical worldwide commodity due to its use in batteries that power not just electric vehicles ( EV ) but also a wide variety of personal electronic devices, although EVs are anticipated to become the primary end-use for lithium-ion batteries ( LiBs ) ( International Energy Agency, 2021 ) . The lithium market is primarily driven by the manufacture of LiBs which is a signi?cant factor in the increase in demand for lithium. Consumer demand for EVs is being fueled in large part by their ability to lower carbon dioxide emissions and other pollutants when compared to internal combustion engine ( ICE ) vehicles. A total of 10 million electric cars were in use on the roads globally by the end of 2020 and registrations rose by 41% in 2020, despite the worldwide pandemic. EV sales in Europe surpassed China’s for the ?rst time, with global sales also seeing a substantial rise ( 4.6% ) . Additionally, the global stock of electric bus and truck registrations saw increases in major markets, with the former expanding to 600,000 units and the latter growing to 31,000 ( International Energy Agency, 2021 ) . CHAPTER 08 PRODUCTION AT KATHLEEN VALLEY IS EXPECTED TO COMMENCE IN 2024, COINCIDING WITH A FORECAST MARKET DEFICIT THAT IS EXPECTED TO CONTINUE AND GROW BEYOND 2024. LIONTOWN HAS THE OPTIONALITY TO FURTHER INCREASE PRODUCTION TOWARDS THE END OF THE DECADE TO CAPITALISE ON THIS WIDENING DEFICIT. SOURCE: ROSKILL, LITHIUM: OUTLOOK TO 2031 REPORT ( 18TH EDITION ) , 2021 GLOBAL LiTHiUM MARKET BALANCE BATTERY GRADE 2021—31 kt LCE BATTERY GRADE SUPPLY / DEMAND BALANCE 2020—30 kt LCE 2021 750 1500 2250 500 ( 500 ) ( 1500 ) ( 2500 ) 3000 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 DEMAND SUPPLY 20 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 CHAPTER 08 The role of lithium in electric vehicle batteries Compared with other battery technologies, LiBs have a higher energy density, a lower self-discharge rate, and exhibit no memory e?ect. As the name suggests, lithium ions (Li + ) are the key element in the functioning of LiBs. During battery charging, these ions are released from the cathode, travel through an electrolyte, typically a lithium salt solution, and are absorbed by the anode. The reversing of this process creates an electrical current, allowing the electrical energy stored in the battery to be released and utilised. There are currently no other battery technologies that can compete with the LiB’s energy storage ability. Consequently, lithium minerals are anticipated to remain a critical resource for production of rechargeable batteries for some time to come (IEA, 2021). ADAPTED FROM: SAMSUNG SDI, THE FOUR COMPONENTS OF A LITHIUM-ION BATTERY, RETRIEVED 20 OCTOBER 2021, HTTPS://WWW. SAMSUNGSDI.COM/COLUMN/TECHNOLOGY/ DETAIL/55272.HTML?LISTTYPE=GALLERY GLOBAL ACTION ON BATTERIES ELECROLYTE THE MEDIUM WHICH HELPS THE MOVEMENT OF IONS SEPARATOR PREVENTS CONTACT BETWEEN CATHODE & ANODE JAPAN GREEN GROWTH STRATEGY ( DECEMBER 2020 ) FOCUSES ON LOWERING THE COST OF BATTERIES AND ON ACHIEVING NET-ZERO EMISSIONS THROUGHOUT A VEHICLE’S LIFECYCLE BY 2050. EUROPEAN UNION EUROPEAN GREEN DEAL ( DECEMBER 2020 ) AIMS TO MODERNISE EU BATTERY LEGISLATION IN ORDER TO ENSURE THE SUSTAINABILITY AND COMPETITIVENESS OF THE EU’S BATTERY VALUE CHAINS; WILL ESTABLISH GLOBAL STANDARDS FOR ENVIRONMENTAL AND SOCIALLY RESPONSIBLE BATTERIES ACROSS THE BATTERY LIFECYCLE. CANADA & EUROPEAN UNION NEW STRATEGIC AGREEMENT ( JUNE 2021 ) TO COLLABORATE ON CRITICAL MINERAL SUPPLY CHAINS EUROPEAN COMMISSION APPROVAL OF A EUR 2.9 BILLION SUPPORT PACKAGE ( 2021 ) FOR RESEARCH AND INNOVATION PROGRAM SPANNING THE ENTIRE BATTERY VALUE CHAIN CATHODE AS THE SOURCE OF LITHIUM IONS, DETERMINES THE CAPACITY AND THE AVERGAGE VOLTAGE OF A BATTERY ANODE STORES AND RELEASES IONS FROM THE CATHODE, ALLOWING THE PASSAGE OF CURRENT THROUGH AN EXTERNAL CIRCUIT 21 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 CHAPTER 08 ADAPTED FROM LAROCCA, G.M., GLOBAL VALUE CHAINS: LITHIUM IN LITHIUM-ION BATTERIES FOR ELECTRIC VEHICLES: OFFICE OF INDUSTRIES WORKING PAPER ID-069 JULY 2020 P.8 Hard rock concentrate vs brine concentrate Lithium is primarily extracted from two distinct sources: hard rock concentrate and brine. While both technologies ultimately can be used to generate re?ned lithium, they di?er signi?cantly in their extraction and re?ning processes due to a variety of reasons. Hard rock lithium is mined via open pit or underground mines located primarily in Western Australia. The hard rock deposits produce a typical 6% lithium oxide concentrate that is then re?ned to a lithium hydroxide product ( typically in China ) . In contrast, brine extractions concentrate lithium salts using solar evaporation ponds followed by further re?nement to lithium carbonate and are primarily located in South America. Both lithium carbonate and lithium hydroxide are precursor materials i.e. materials for battery production. At our Kathleen Valley Lithium-Tantalum Project, we will take the approach of open-cut mining in the startup phase ( one to two years ) followed by underground mining for the majority of the mine-life. LIONTOWN: FOCUS ON CRITICAL RAW MATERIALS TO MEET GLOBAL DEMAND DiSCOVERY GEOLOGISTS IDENTIFY ECONOMICALLY VIABLE LITHIUM DEPOSITS MiNiNG LITHIUM ORES AND BRINE CONCENTRATES ARE EXTRACTED PROCESSiNG LITHIUM ORES AND BRINE CONCENTRATES ARE UPGRADED TO A HIGHER GRADE CONCENTRATE REFiNiNG PROCESSED LITHIUM IS CONVERTED INTO A REFINED LITHIUM COMPOUND BATTERY MANUFACTURiNG BATTERIES REQUIRE REFINED LITHIUM COMPOUNDS IN THE CATHODE AND ELECTROLYTE END USE APPLiCATiONS END USERS CONSUME THE BATTERIES IN AUTOMOTIVE, TECHNOLOGIES, AND OTHER INDUSTRIES LITHIUM PROCESSING FLOW CHART UPSTREAM DOWNSTREAM Until recently, lithium had not been considered critical due to its lower economic importance as a result of lesser demand. However, with the rise in electric vehicle and energy storage demand, this has changed. Lithium will be critical in assisting the transition to a low-carbon economy due to its use in lithium-ion batteries. Tantalum ( Kathleen Valley Lithium-Tantalum Project ) Tantalum is a silver-colored, hard, and extremely corrosion-resistant transition metal with a high density. Tantalum occurs in the same pegmatites as lithium. Tantalum is a critical component in EV computer and audio systems, with capacitor applications of tantalum dominating the market. Lithium ( Kathleen Valley Lithium-Tantalum Project and Buldania Lithium Project ) Lithium is the lightest of all the solid metals. It is highly combustible and reactive, and it readily bonds with other metals. Lithium has an exceptional ability to conduct electricity, making it a preferred component for batteries. The two primary lithium compound products for cathode material manufacture in non-rechargeable and rechargeable batteries are lithium carbonate and lithium hydroxide ( CRM Alliance, n.d. ) . While lithium doesn’t occur as a pure metal in nature, it is found in igneous rocks ( pegmatites ) and in mineral springs ( through salt lakes ) . The minerals that contain the most lithium are spodumene, petalite, lepidolite, and amblygonite. The Company’s Kathleen Valley lithium deposit is a spodumene- hosted deposit. C ritical Raw Materials ( CRMs ) are metals and minerals that are economically and strategically vital to a particular industry or sector, but have a high risk associated with supply ( Roskill, 2021 ) . Liontown’s primary objective is to mine lithium in order to help meet the world’s xponentially growing demand for these metals for usage in the lithium battery supply chain. All of the metals that Liontown is currently exploring have been designated as critical by the European Union, the United States, Japan, and Australia. 22 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 09 Building a mine is a lengthy and complex activity. Between preliminary geological mapping and mine operation, it can take many years, and the sector is subject to more regulatory requirements than any other Australian industry. GEOLOGICAL MAPPING TARGET IDENTIFICATION APPLY FOR, AND, IF SUCCESSFUL RECEIVE EXPLORATION TENEMENTS FIELDWORK GROUND TRUTHING DEFINE WORK PROGRAM DRILLING AND ASSAY DRILL/DEFINE RESOURCE RESOURCE ESTIMATE ( IF MINERAL IS PRESENT ) APPLY FOR MINING LICENCES SCOPING STUDY +/- 40% ACCURACY PRE-FEASIBILITY STUDY +/- 25% ACCURACY DEFINITIVE FEASIBILITY STUDY +/-15% ACCURACY METALLURGICAL TESTWORK PROCESS FLOWSHEET DEVELOPMENT CAPITAL ESTIMATE OPERATING COST ESTIMATE MINE PLAN SCHEDULE ENVIRONMENTAL SURVEYS RESERVE ESTIMATE NET PRESENT VALUE ( NPV ) + INTERNAL RATE OF RETURN ( IRR ) + ESG METRICS PERMITTING & APPROVALS FINAL INVESTMENT DECISION NATIVE TITLE AGREEMENT GOVERNMENT FUND & BUILD PROJECT OPERATE MINE FROM PROJECT DISCOVERY TO MINE DEVELOPMENT H E R I T A G E A G R E E M E N T YEARS 1 TO 3 DISCOVERY YEARS 4 TO 7 PROJECT DEVELOPMENT YEARS 8 TO 10 PROJECT EXECUTION & COMMENCEMENT OF OPERATIONS 23 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 Our primary objective is to discover and mine critical raw materials that are used to create low-carbon technologies. Our 100%-owned Kathleen Valley Lithium Project is located on four granted Mining Licences and one Mining Licence application, approximately 680 km north-east of Perth and 400 km north of Kalgoorlie in the Eastern Gold?elds of Western Australia. The project has rapidly emerged as a Tier-1 battery metals asset. Acquired in 2016, once operational, our De?nitive Feasibility Study ( DFS ) has identi?ed that the mine life will be approximately 22+ years and will initially process 2.5 Mtpa of lithium ore to produce approximately 500 ktpa of lithium 6% spodumene concentrate. There is a planned capacity increase by year six of operation to 4 Mtpa to produce approximately 700 ktpa of 6% concentrate. The DFS builds on from the PFS that was completed in October 2020. Lithium mineralisation occurs within Kathleen Valley’s spodumene-bearing pegmatites, which are part of a series of metal pegmatites found within the region’s ma?c and sedimentary rocks. At the project site, twenty mineralised pegmatite bodies have been found. Mining will commence via an open pit for the ?rst two years, and then transition to an underground mine that will provide all the ore feed for the processing plant. Additionally, Liontown published a Downstream Scoping study (DSS) in November 2021 for an integrated re?nery at Kathleen Valley. A re?nery would produce value-add battery grade precursor products such as lithium hydroxide and lithium sulphate. An updated version of this study was released in November 2021 together with the DFS and a revised execution strategy. 10 OUR PROJECTS KATHLEEN VALLEY PROJECT TiMELiNE Q4 2018 ° ° ° ° ° ° ° ° ° ° MAIDEN MRE Q1 2019 ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° SCOPING STUDY Q3 2019 ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° UPGRADED MRE Q4 2019 ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° PFS; MAIDEN ORE RESERVE Q1 2020 ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° INTERIM MRE UPGRADE Q2 2020 ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° MRE UPDGRADE Q4 2020 ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° UPDATE PFS & DSS Q4 2021 ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° DFS Q2 2022 ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° EARLY DESIGN WORKS / FID Q3 2022 ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° DETAILED DESIGN Q4 2023 ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° CONSTRUCTION Q1 2024 ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° COMMISSIONING Q2 2024 ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° PRODUCTION Adopting an integrated mining, processing and re?ning operation would allow the Company’s spodumene concentrate to be processed onsite rather than shipped o?shore for processing. The Kathleen Valley Lithium-Tantalum Project’s location is ideal for an integrated project due to its proximity to critical infrastructure such as power and gas, the local availability of critical consumables such as acid from the nearby mining and logistics hub of Kalgoorlie, and, most importantly, a suitable land area for tailings. Additionally, signi?cant ?nancial bene?ts would be realised as a result of decreased operating costs versus a standalone spodumene plant Kathleen Valley Western Australia Lithium-Tantalum Project 24 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 Buldania Western Australia Lithium Project The Buldania Project is the Company’s second hard-rock lithium project in Western Australia, located in the southern part of the Eastern Gold?elds Province. The project is located approximately 600 km east of Perth and 200 km north of the regional port of Esperance. Liontown has been actively exploring the Buldania Project since early 2018 after acquiring 100% of the rights to lithium and related metals from Avoca Resources Pty Ltd ( a wholly-owned subsidiary of Karora Resources ) . Eight mineralised pegmatites have been identi?ed at the Anna deposit. The next phase of exploration at Buldania will comprise geological mapping, soil sampling and follow up drilling. Moora/Koojan JOINT VENTURE Western Australia Gold-Copper-PGE-Nickel Project Liontown commenced its maiden drilling program at Moora in December 2020. The Moora project forms a 467 km 2 area located approximately 150 km north-north east of Perth, in the emerging precious and base metal mineral province Julimar. All exploration licences are held by ERL ( Aust ) Pty Ltd and joint venture interests. The project is prospective for nickel, copper, platinum group elements and gold. Geochemical sampling has de?ned two broad zones of gold anomalism. At Angapena, a 900 m long bedrock gold anomaly is present at the Northern Zone, and a 2,000 m long copper-gold anomaly has been delineated. In January 2021, Liontown increased its exploratory footprint in the growing Julimar mineral province to 1,068 km 2 by entering into a Joint Venture ( JV ) Agreement with Lachlan Star Resources, granting the Company the ability to earn up to 51% interest in the adjoining Koojan Project ( 601 km 2 ) . Note: At the date of publishing this report, a demerger of the Moora/Koojan Project has been completed, with tenements divested into the separate entity: Minerals 260 Limited Toolebuc Queensland Vanadium Project The Toolebuc Vanadium Project is located around 400 km west of Townsville in north-western Queensland. It consists of ?ve approved Exploration Permits ( EPMs ) spanning an area of roughly 1,000 km 2 . Vanadium mineralisation is evident in the Cambridge deposit, which spans 5 km long by up to 3 km wide region within the Toolebuc formation’s marine sediments. The deposit has a reasonable potential of being mined in the future, taking into account the deposit’s attributes, as well as the project’s proximity to existing infrastructure, which includes a gas pipeline, a major highway, and a railway connecting to Townsville Port. Note: At the date of publishing this report, the Toolebuc assets have been divested. (subject to completion) CHAPTER 10 Peter Jemerson, Field Assistant, Kathleen Valley Photograph: Tony McDonough I’ve worked with Liontown for over three years, mostly on the Kathleen Valley project. It’s an amazing feeling to be involved in any major discovery, but with lithium it feels just that little bit more special knowing it’s going to be to a commodity used as part of a global strategy for a greener future. It makes this mine part of the solution, not the problem. ’’ INTEGRITY 25 LiONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE ( ESG ) REPORT FY2021 Liontown genuinely believes that it can contribute to sustainability and is approaching ESG for the right reasons. CLINT McGHIE COMPANY SECRETARY 26 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 Businesses and investors alike are becoming increasingly concerned with the impact of sustainability on their operations and investments. This increased focus is motivated by a better understanding of how sustainability-related factors can a?ect economic growth, asset performance, and ?nancial markets in general. T he Company believes that how a business manages its environ- mental and social responsibilities reveals a lot about how well it is run. A strong commitment to corporate governance demonstrates the type of leadership and management necessary to ensure a business’s long- term ?nancial viability. Liontown has established strong governance structures and a commitment to operating with a strong sense of environmental and social responsibility. It is ingrained in our ethos. Our early commitment to good governance will narrate the Company’s long-term success — it serves as the foundation for the Company’s activities and is a critical underlying principle and core business value. The majority of Liontown employees cite the Company’s commitment to good governance and ethics as a reason for their employment. This is critical for a successful business. We already possess these characteristics and do not wish to lose them. We do not believe in shortcuts and are adamant that all activities and decisions should be carried out correctly the ?rst time, which will extend to making the best long-term decisions. This is the only way to earn and retain the trust of our shareholders and other stakeholders, as well as to safeguard their interests. The Board of Directors ( BOD ) is committed to and instills a culture of good governance and ethics throughout the organisation. The majority of policies are reviewed annually, and board members self- and cross-assess their governance performance on an annual basis, as required by the ASX. Additionally, the Board is actively involved in risk planning and review, and review the Company’s risk matrix on a six-monthly basis. Adjustments are made as necessary. The primary mechanism for advice and concern about ethics is the Company’s Code of Conduct and Whistleblowing Protection Policy. With Liontown now included within the ASX 300, we will need to ensure that our Audit committees adhere to the structure requirements of Recommendation 4.1 ( under Principle 4: Safeguard the integrity of Corporate Reports ) and prior to the start of FY2023, which will be a priority over the next 12 months. Additionally, we will need to establish a measurable objective for FY23 of having at least 30% of its directors of each gender within a speci?ed period. All governance policies can be viewed at: https://www.ltresources.com.au/ corporate-governance 11 AUDIT COMMITTEE COMPRISED OF TWO BOARD MEMBERS RISK COMMITTEE THE FULL BOARD PERFORMS THE FUNCTION OF THIS COMMITTEE NOMINATION COMMITTEE THE FULL BOARD PERFORMS THE FUNCTION OF THIS COMMITTEE REMUNERATION COMMITTEE COMPRISED OF THREE BOARD MEMBERS OUR GOVERNANCE & ETHICS BOARD OF DIRECTORS 27 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 CHAPTER 11 I n FY21, we made a concerted e?ort to establish our vision and values. Liontown is at an important juncture in its development as a resource company focused on critical raw materials that will contribute to a more sustainable future. By establishing and adhering to a clear vision and values, we can hold ourselves accountable for our actions and mitigate negative impacts on the environment and society. Managed sessions addressing vision and values were facilitated by an external consultancy. The aim of the sessions was to seek input and buy-in from Liontown sta?, and were led by the MD/CEO, with the ?nal vision and values approved by the Board The vision and values will be communicated to all new employees during the onboarding process, and new employees will receive them during the onboarding and induction process. Our Code of Conduct ( the Code ) serves as the primary governance mechanism for our purpose and values. It outlines the Company’s commitment to conducting business with integrity, honesty, and fairness in all aspects of its operations. The Code outlines our approach to: shareholder responsibility; compliance with applicable laws; licence conditions and stock exchange listing rules; con?icts of interest; asset protection; con?dentiality protection; environment and sustainability; ?nancial reporting ethics and insider trading. OUR VISION & VALUES SAFETY Do no harm. In all our activities we must send everyone home safe, every day. This relates to our employees, contractors, suppliers and to the communities in which we operate. SUSTAINABILITY Sustainability must be a core concept in all our operations. With our customers, we work towards a circular economy in which the raw materials we produce are used e?ciently and responsibly. AMBITION We don’t just want to do well; we want to do better. We plan well and act on these plans, but then we study to identify how we can improve for next time. The challenge of constant improvement is what motivates us. We set objectives and then discover how these can be achieved. RESPECT Our work involves many relationships and many stakeholders with diverse objectives. We ensure all voices are respectfully heard and work toward solutions that balance the interests of all stakeholders. INTEGRITY We have many stakeholders who expect great things from us. We must deliver on our commitments while meeting their high standards of conduct. We have the courage to do the right thing, even when it is the harder thing. We don’t take ‘shortcuts’. TEAMWORK We are a group of people who get together to do important work. We are inclusive. We celebrate our diversity. We have fun. 28 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 CHAPTER 11 Responsibilities W hile the Board of Directors ( BOD ) is ultimately responsible for the Company’s ESG performance, the senior management team is advancing the ESG agenda and advising the Board on pertinent strategic directions. The Board’s substantial interest in negotiating the Tjiwarl Native Title Agreement ( NTA ) and their intense focus on emissions reduction once the Kathleen Valley mine is operational are exceptions to this rule. Consultations with the board and senior management on ESG issues have primarily focused on internal operational issues relating to the Kathleen Valley Lithium-Tantalum Project and engagement with the Tjiwarl Aboriginal Corporation ( Tjiwarl AC ) . The day-to-day management of ESG issues is likely to shift in FY22, with the expected hiring of an ESG executive to assume the ESG responsibilities currently overseen by our Chief Operating O?cer ( COO ) . The entire Board serves in the capacity of a Nomination Committee. In addition to its other responsibilities, the Board’s role as a Nomination Committee is to examine Liontown’s selection and appointment practices and to ensure that the Board has an appropriate balance of skills, knowledge, experience, independence, and diversity to e?ectively discharge its duties and responsibilities. Our Nomination Committee Charter includes a board skills matrix that covers critical sustainability elements such as the environment, health and safety, and people and culture, but does not explicitly address ESG. Our Risk Committee Charter contains annual action points for determining whether the risk management framework adequately addresses contemporary and emerging risks, such as sustainability and climate change. Knowledge A component of the Company’s ESG work this year was to provide initial ESG training to the Board, which was delivered by an external consultant. Additionally, Board members and senior management completed a self- assessment of their ESG knowledge, demonstrating a base understanding and recognition of the need for additional skills in this area. Additionally, they identi?ed speci?c areas where they believe they can improve their ESG knowledge. Governance tools Although ESG terminology is a relatively new concept for the Company, we have already integrated a broad range of ESG related topics into our daily strategy. In FY21, we built upon our previous understanding of the interconnected nature of environmental, social, and governance issues, as well as a recognition of the growing importance of ESG to a broad range of our stakeholder groups. This has been demonstrated through the publication of our ?rst ESG Statement; our inaugural Climate Change Policy; and our inaugural Aboriginal Engagement Policy. All policies will be reviewed annually and amended as required. Our traditional governance mechanisms, such as the BOD and relevant Committee charters, have not yet been updated to re?ect the Company’s ESG focus. Engaging with the Board Due to the small size of our BOD and senior management team, we can maintain an open door policy. There is a culture of trust in which anyone can discuss concerns with anyone, and we promote an environment where people are not afraid to challenge the status quo. For both internal and external stakeholders, our Whistleblower Protection Policy serves as the formal mechanism for resolving any grievances that cannot be resolved through conversation. Ongoing negotiations on the Tjiwarl NTA were the most pressing ESG issue for the Board in FY21. Remuneration The Company’s senior management team is compensated through short- and long-term incentive plans based on achievement of KPIs, including ESG, health and safety, and Kathleen Valley ESG-related project study objectives and milestones. The Company puts the Remuneration Report included in its Annual Financial Report to the vote of Shareholders at each Annual General Meeting ( AGM ) . The Directors’ Report contains the Remuneration Report, which sets out the remuneration policy for the Company and the remuneration arrangements in place for executive Directors, speci?ed executives and non-executive Directors. The Shareholder’s vote is advisory only and does not bind the Directors. If the Company’s Remuneration Report receives a ‘no’ vote of 25% or more ( Strike ) at two consecutive AGMs, Shareholders will have the opportunity to remove the whole Board, except the managing director ( if any ) . At the AGM, the Chair allows a reasonable opportunity for Shareholders as a whole to ask about, or make comments on the Remuneration Report. The Company’s Remuneration Report did not receive a Strike at the 2020 annual general meeting. Votes were 99.84% For the Remuneration Report and 0.16% Against. Ratio of the highest paid individual to the median annual total compensation for all employees (excluding the MD/CEO): 3.31 Highest paid individual: Tony Ottaviano (MD/ CEO ) – remuneration in 2021 includes sign-on incentives Median annual total compensation for all employees, except the MD/CEO ( excludes casuals but includes share-based payments ) : $289,932 Ratio of the annual total compensation of the highest-paid individual to the median annual total compensation for all employees: 3.06 Ratio of the % increase in annual total compensation for the MD/CEO to the median percentage increase in annual total compensation for all employees ( excluding the MD/CEO ) : 0.72 ESG GOVERNANCE IN FY21, WE BUILT UPON OUR PREVIOUS UNDERSTANDING OF THE INTERCONNECTED NATURE OF ENVIRONMENTAL, SOCIAL, AND GOVERNANCE ISSUES. 29 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 CHAPTER 11 Climate Risk Governance Monthly Board meetings allow for discussion of climate risks and opportunities. Our recently approved Climate Change Policy highlights our obligations to climate change, which include developing a climate change strategy for FY22 and FY23. The Company’s BOD is committed to a low-carbon future and has pledged to using an initial 60% renewable energy target once the mine is operational with a view to increase this percentage as the Kathleen Valley mine ramps up. Signi?cant work has been expended determining the proportion of solar and wind energy required to meet this quota. The BOD has set the goal of operating as a net zero carbon emitter by 2034, pending the setting of baseline metrics based on climate scenario modelling. In FY22, we will conduct a review of our governance systems to ensure that climate change issues are ?rmly embedded. The COO and Risk Committee of Liontown are currently responsible for assessing and managing the Company’s approach to climate-related risks and opportunities. The COO reports to the CEO who is an executive member of the BOD. The Board is advised on climate-related problems by senior management, which is informed in turn by professional third-party experts. We are committed to reporting on our progress towards establishing a solid foundation for our response to climate change, and have adopted the Financial Stability Board’s Task Force on Climate Related Financial Disclosure ( TCFD ) Recommendations to guide us. Along with providing critical information to investors and other stakeholders, these actions will position us to respond to potential regulatory changes in the coming years. These changes are likely, and we will strengthen our position in response to climate change reporting expectations and guidance set forth by regulators such as the Australian Securities and Investments Commission ( ASIC ) and the Australian Securities Exchange ( ASX ) . We have completed an initial mapping of our current activities against the TCFD recommended disclosures, and will progress this over the next two years. C limate change is a reality and a complex global existential issue that all organisations must address. Liontown accepts the science of global climate change as articulated by the Intergovernmental Panel on Climate Change ( IPCC ) and understands the critical nature of achieving the Paris Agreement’s goals. Climate change has far-reaching environmental, social, and economic implications for industry and society, and it is our responsibility to establish a transparent and proactive corporate response to climate change. The minerals that Liontown intends to mine are critical for addressing climate change because they directly contribute to the decarbonisation technologies required to mitigate climate risk. We are mining solely for the purpose of obtaining lithium and tantalum. Despite this, we operate in an industry that has historically had a high energy and emissions footprint, and we intend to mine in a water-stressed region where existing mining activities occur. We are committed to mining all metals in our portfolio responsibly and ethically. This includes energy, emissions, and water management practises that are best in class. While baseline metrics for these parameters have not been established, we aspire to achieve net zero operations by 2034. To accomplish this, we must establish and maintain a robust climate governance framework. It is critical to consider these issues now. The more we can do to comply with climate change protocols early – which is critical – the further ahead we will be if we begin this work now. Additionally, having a clear ESG strategy that takes climate change impacts into account is crucial for our ability to attract capital and investment in our business. CLIMATE GOVERNANCE LIONTOWN’S GOAL IS TO MAKE CLIMATE CHANGE GOVERNANCE AN INHERENT PART OF ITS COMPANY, NOT AN AFTERTHOUGHT. 30 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 CHAPTER 11 Climate Risk Strategy Liontown’s strategic time horizons to plan and act on climate-related threats and opportunities are based on the mine operation schedule of approximately 22+ years. We are committed to a cleaner environmental future through the use of our product, which is a critical component of advancing battery technology, and by our investigation of low carbon energy solutions for our operations and infrastructure. Additionally, when we convert to underground mining, the design of our operations will have a smaller energy and emissions footprint, as well as a lower water and land disturbance footprint, when compared to traditional open-cut mining processes. We have considered the ?nancial implications of incorporating carbon adaptation and mitigation technologies such as underground mining ?eet electri?cation and fuel substitution; material transportation to port; cost trade-o?s for a renewable energy mix on-site; and a water recycling plant. These technologies, where and when applicable in the future, may be included into our capital budgeting and capital allocation processes. We have a substantial amount of work ahead of us to guarantee that Liontown’s approach is robust in the face of various climate-related scenarios. Although there has been no formal risk and opportunity analysis to date, one will be undertaken prior to the commencement of production. We will undertake climate scenario planning and prepare a formal transition strategy for achieving our net-zero emissions goal of 2034. CLIMATE GOVERNANCE Climate Risk Management We presently lack a structured process for assessing climate-related risks, and climate-related concerns are not included in our risk register. Climate risks and opportunities will be factored into our governance instruments as part of a comprehensive assessment scheduled for FY22. We are closely monitoring new regulatory and market-based reporting requirements, fully aware that this is an expectation of investors, capital providers, and our eventual downstream customers. Climate Risk Targets We have reported on current and historical energy and emissions usage across all four sites in this, our ?rst ESG report. In this investigation phase, we have mostly focused on supplier utilisation, but we have also incorporated modelling for future energy and emissions usage. Once the Kathleen Valley Lithium- Tantalum Project has commenced mining in 2024, a data baseline will be established from which formal energy and emissions targets, including reduction targets, can be established in 2025. This will also be the case for water and waste data. SHORT TERM 2021 — 2024 WHITHIN THIS HORIZON, LIONTOWN WILL TRANSITION FROM EXPLORATION TO PRODUCTION. MEDIUM TERM 2024 — 2029 WHITHIN THIS HORIZON, A CRITICAL DEVELOPMENT PHASE WILL TAKE PLACE, WITH THE FIRST YEAR OF PRODUCTION FINISHED UTILISING OPEN-CUT MINING TECHNIQUES. AS WE TRANSITION TO UNDERGROUND MINING IN MID-2025, A CONSOLIDATION PHASE AND EVALUATION WILL OCCUR. AT THIS POINT IN TIME, TECHNOLOGY IS LIKELY TO UNDERGO SOME PROFOUND TRANSFORMATIONS. LONG TERM 2030 — 2046 WITHIN THIS LONGER TERM HORIZON, THE MINE WILL HAVE BEEN FUNCTIONING FOR SEVERAL YEARS AND WILL HAVE IMPLEMENTED CARBON ABATEMENT SYSTEMS. TIME HORIZON 31 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 CHAPTER 11 E ?ective risk management requires strong governance foundations, and stringent risk assessment is critical for the Kathleen Valley Lithium-Tantalum Project. Liontown’s approach to assessing risk spans the Company; the project; dedicated safety assessments with the exploration team, and environmental assessment. We have conducted the following assessments to date with relation to the Kathleen Valley Lithium-Tantalum Project: Project Kathleen Valley Lithium-Tantalum Project risk assessments in December 2019 to inform the PFS and updated in September 2020 Safety Exploration team safety risk assessments and risk register review sessions ( January 2019, February 2020, September 2020, and June 2021 with a third-party provider ) Environment Risk register updates occurred in February 2020, September 2020, and February 2021, and were presented to the Board, in addition to an enterprise risk management session with managed third parties in June 2021. Risk register updates occurred in February 2020, September 2020, and February 2021, and were presented to the Board, in addition to an enterprise risk management session with managed third parties in June 2021. SUMMARY OF EXISTING MINE SITE BASELINE ENVIRONMENTAL STUDIES STUDY DATE CONSULTANT DESCRiPTiON FLORA & VEGETATION NOVEMBER 2018 BOTANICA RECONNAISSANCE SURVEY OF MINING AND EXPLORATION TENEMENTS JULY 2021 BOTANICA TARGETED FLORA & VEGETATION SURVEY FAUNA NOVEMBER 2018 BOTANICA LEVEL 1 SURVEY OF MINING AND EXPLORATION TENEMENT JULY 2021 BOTANICA TARGETED FAUNA SURVEY ECOHYDROLOGY OCTOBER 2019 AQ2 ASSESSMENT OF GROUNDWATER DEPENDENT ECOSYSTEMS ALONG JONES CREEK. WASTE ROCK CHARACTERISATION AUGUST 2019 MBS GEOCHEMICAL CHARACTERISATION OF WASTE ROCK LIKELY TO BE GENERATED BY THE PROJECT SEPTEMBER 2021 MBS WASTE ROCK AND LOW GRADE ORE GEOCHEMICAL CHARACTERISATION TAILINGS CHARACTERISATION OCTOBER 2019 MBS GEOCHEMICAL CHARACTERISATION OF TAILINGS LIKELY TO BE GENERATED BY THE PROJECT SEPTEMBER 2021 MBS SPODUMENE CONCENTRATE TAILINGS GEOCHEMICAL CHARACTERISATION SURFACE WATER ASSESSMENT OCTOBER 2019 AQ2 ASSESSMENT TO SUPPORT THE PFS AUGUST 2020 KNIGHT PIÉSOLD FLOOD MODELLING FOR JONES CREEK & KATHLEEN VALLEY MINE AREA RISK MANAGEMENT Safety is at the centre of how we operate. We are a team and closely work together to make sure we all come home safely to our families. 32 LiONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE ( ESG ) REPORT FY2021 JAMIE DAY EXPLORATION MANAGER SAFETY 33 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 A primary objective in the mining business is to maintain a safe work environment. A strong emphasis on health and safety is critical to the management of any activity, but especially in mining, where hazards are ubiquitous. People are crucial, and when it comes to our workers’ and contractors’ health and safety, we want them to leave work in the same or better condition in which they arrived, both physically and psychologically. H ealth and safety issues can also have a ?nancial impact in that safety problems are costly and result in unplanned downtime. The Kathleen Valley Lithium-Tantalum Project will take a safety-?rst position, emphasising the signi?cance of safety to everyone and the responsibility of everyone at every level to report unsafe events and practices. Without a robust group of onsite supervisors capable of identifying and enforcing safe work practices, developing a worksite safety culture is impossible. Additionally, line management will be asked to set an example and take part in a range of on-site safety activities. Safety training Safety training will be a priority for all employees, especially for the project’s high-risk operations. Communication and collaboration will continue to be the primary toolsets utilised to strengthen site safety. Our primary focus on safety during this exploratory phase is on the exploration crew, which is currently comprised of three contractors and led by Liontown’s Exploration Manager. For these contractors, on-the-job training has been the primary focus including forklift operation, safe lifting, ?rst aid, and four-wheel drive o?-road operation, primarily delivered in FY20. In FY21, no external safety speci?c training was conducted. Safety management systems Numerous management systems will be developed and deployed to address safety risks associated with the project. Although we do not yet have a formal Occupational Health and Safety Management System ( OHSMS ) , our current system for managing safety risks complies with all applicable safety regulatory standards. This method protects the Company’s employees, contractors, site visitors, and suppliers. This present system will be improved in FY22 to accommodate the construction phase of the project, which will begin in 2022. This is part of a plan to transition the Company’s data management systems to an integrated systems architecture. Additionally, we anticipate hiring a dedicated Project Safety Manager at this time. A draft safety execution plan for the Kathleen Valley Lithium Tantalum Project is currently under review and will be revised in FY22. Safety risk management We maintain a separate exploration risk record in which the primary safety- related activities are designated as drilling; drilling and machinery; driving; quad bike use, and other general activities. Typically, our exploration manager logs, identi?es, and, if possible, resolves safety hazards and risks on the spot. If it is determined that an engineering control or purchase is required, a suitable decision is taken. A good illustration of this is the discovery that we lacked an on-site de?brillator, which was quickly remedied. Additionally, we identi?ed the following actions during the year: training ?eld sta? in ?rst aid; investigating self- insurance options for vehicles driven at night; lightning detectors and monitors for drillers; adverse weather lighting; establishing standard operating procedures for high lift jacks, manual handling, and dust exposure; and crisis and emergency scenario planning. Safety Communication We have an open door approach when it comes to safety concerns, which is easy given our small sta? size. Our Exploration Manager is the ?rst point of contact, with our MD/CEO ultimately responsible for safety. Forms for site entry, site inductions, twice-daily scheduled contacts with the Exploration Manager, and a six-monthly update of the safety risk register all contribute to our approach to safety at the Company. We have also amended our Health and Safety Policy, which now clearly respects employees’ and contractors’ ‘right to say no’ if they believe their employment is unsafe. Additionally, our Whistleblower Protection Policy outlines options for anyone who is uncomfortable approaching Liontown directly regarding perceived unsafe work. Safety meetings, time out for safety, and toolbox talks are proactive measures taken by project leadership to raise safety risk awareness and contribute to the development of a safety culture. We disclose all safety data to Western Australia’s Department of Mines, Industry Regulation, and Safety in accordance with regulatory standards. 12 OUR FOCUS ON HEALTH & SAFETY 34 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 CHAPTER 12 Safety data We have identi?ed a lost time injury frequency rate ( LTIFR ) of <2 as part of our short and long term incentive schemes. In FY22, we will establish explicit safety targets and will incorporate key performance indicators into building and construction contracts as we near mine construction. Additionally, and beginning in FY23, we will execute our approach to providing occupational health and safety services to employees and contractors, as well as address construction-related concerns such as air quality. We will track LTIFR and medically treated injury frequency rates ( MTIFR ) as lead indicators and will communicate them during safety meetings and inductions. LTiFR, MTiFR & TRiFR iNJURY COUNT HOURS WORKED 60 2018 2018 2018 2019 2019 2019 27.67 53.35 2 7084 11,957 8206 6798 11,858 13,255 24,178 15,004 TRIFR ALL INJURY DATA PRESENTED RELATES TO CONTRACTORS. LIONTOWN EMPLOYEES EXPERIENCED NO INJURIES 2019 DATA SHOWS INJURIES OVER 36,135 HOURS WORKED LIONTOWN EMPLOYEES LTIFR CONTRACTORS MTIFR 2020 2020 2020 2021 2021 2021 40 2.0 20,000 30,000 20 1.0 10,000 0 0 0 0.5 INJURIES PER MILLION HOURS INJURIES HOURS WORKED 35 LiONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE ( ESG ) REPORT FY2021 Working with Liontown has allowed me to pave a path towards having a career in the mining industry. LINDA VORAVONG FIELD ASSISTANT AMBITION 36 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 Although water is a vital component of the Kathleen Valley Lithium Tantalum Project, it is a limited and costly resource. Due to the project’s location in a dry and water-stressed environment, we must be prudent with our water consumption. A fter people, water is our second most crucial strategic resource. In Western Australia, good water is a rare commodity, and we must cherish and protect every litre. The project requires an adequate supply of good quality water, and where we obtain our water is critical to the project’s viability – obtaining high-quality local water will make a signi?cant di?erence to the bottom line. Management of water sources and runo? is of signi?cant importance in the cultural and heritage areas in which we operate, and it is the fundamental concern of the Tjiwarl Native Title Holders. Jones Creek, a seasonal stream that runs through the project site, is signi?cant to the Tjiwarl since it is one of the group’s main songlines, and interactions with it are extremely sensitive. We will not be drawing water from Jones Creek, but our primary priority will be to prevent run-o? into the creek. 13 OUR PLAN TO MANAGE WATER RESPONSIBLY We have consumed very little water during the exploration phase of the project; however, as the project progresses through subsequent stages, our consumption will increase. We are actively reviewing our water use to that of our peers and identifying opportunities to conserve and recycle water in our project planning. Our COO and onsite Processing Manager will be responsible for water management at the project. AS DESCRIBED IN OUR AMENDED ENVIRONMENTAL POLICY, WE ARE COMMITTED TO THE FOLLOWING: Respect the importance of water to Tjiwarl Native Title Holders, especially in the vicinity of the Jones Creek ( above ) area — a culturally sensitive area of particular signi?cance Use best practice water management methods to reduce water volume requirements Recycle and reuse water throughout operations where possible Minimise water loss from evaporation, leaks and waste Above: Ngulu Wuri (Jones Creek) 37 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 CHAPTER 13 Water sourcing Due to the vital nature of water in the lithium mining process, we must identify sources of high-quality water. To date, our primary operations have included initiating bore drilling for water extraction, undertaking initial water modelling and conducting a water balance. Water extraction modelling will ultimately form part of our licensing conditions with Western Australia’s Department of Water and Environmental Regulation ( DWER ) . A bore?eld developed on current mine licences, exploration licences and regional targets has been proposed to supply the raw water demand for the process plant. This will be supplemented by water obtained from mine dewatering and return ?ows from the process plant tailings storage facility ( TSF ) . Numerous water investigations have been conducted and will continue. Many water sources and locations within the mining and exploration leases have been identi?ed, with the intention of de?ning and fully evaluating several additional sources as part of the project’s development. In FY22, we will begin a regional water exploration e?ort on leases in and around Kathleen Valley. Our next step will be to conduct detailed water modelling based on the results of this exploration. Water recycling Water is a critical component of our operation, and we cannot a?ord to waste scarce resources. Once the mine is operational, we intend to maximise water recycling from the tailings dam and from paste ?lling processes. We are exploring the use of plastic lining for the tailings dam during this planning phase to enable more e?cient water recovery. We have already analysed the internal streams in the water balance modelling to guarantee that as much water as feasible can be recycled, hence reducing the mining process’s net water intake. This includes treated wastewater from the mining camp. The only water that will be discharged is to the tailings dam. A small percentage of water will go underground as part of the paste-?lling process and used for dust suppression. Site surface water management Storm water runo? from the mine area and associated infrastructure will be controlled to minimise the area’s environmental impact. Flooding from adjacent streams will be diverted away from mine infrastructure ( waste rock dumps, open pits, process plants, roads and mine camp infrastructure, for example ) . Additionally, run-o? generated by mining infrastructure – potential ‘dirty water’ – will be controlled to ensure that any water discharged from mine areas has no adverse e?ect on the downstream environment especially to the Jones Creek area. Cement grouting will be used to seal all applicable exploration drill holes beneath tailings storage, mine waste dumps, and at hole locations that could impact the proposed underground development. Water data We are closely monitoring peer data on water consumption to determine how we can optimise our performance to be best in class. We will develop a baseline for water usage at the end of 2024, following the completion of our ?rst year of mining, in order to de?ne speci?c water reduction targets. To ensure more accuracy, targets will be de?ned on a production unit basis rather than an absolute amount. 38 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 W e encourage individuals to question the status quo and recognise that variety in terms of gender, cultural background, age, and experience fosters innovation and results in a better outcome. Providing opportunities to all individuals will be a primary focus as Liontown grows, and it will aid in the establishment of a better business. Currently, we have ground to make up in diversity, despite the fact that conversations are occurring. We recognise the fact that our Board is predominantly composed of one demographic group. We have taken a step in the right direction with Jennifer Morris OAM agreeing to join the Board of Directors (BOD), as a Non-Executive Director, subject to shareholder approval in November 2021. Our performance in the area of gender diversity lags behind, despite the fact that this is a crucial and visible area of e?ort for ASX-listed companies. We intend to align our gender diversity targets with the ASX recommendations to set measurable diversity objectives by 30 June 2022 that will include achieving no less than 30% of each gender on the Board within a speci?ed period. We have critical mechanisms in place, including our Diversity Policy and our Native Title Agreement ( NTA ) discussions with the Tjiwarl, which are well advanced, and reporting on our diversity performance in accordance with the ASX Corporate Governance Principles and Recommendations. Our Diversity Policy is evaluated on an annual basis, and amended as required. We intend to hire the best people for the job, including students and graduates, and we are committed to providing training and employment opportunities for Tjiwarl Native Title Holders. Diversity will become a greater focus in FY22, when we anticipate hiring a People Manager to advance diversity within the organisation. Currently, our MD/CEO and COO are in charge of human resource functions. 14 We recognise the critical importance of diversity and equal opportunity in our workforce makeup. We want to allow multiple perspectives because we recognise that if we take a singular path, we will miss out on valuable opportunities. It is not always desirable for everyone to agree, and we require a cross-section of society. OUR COMMITMENT TO DIVERSITY & EQUAL OPPORTUNITY We will also focus on updating our data maintenance management system in FY22 to an integrated systems architecture that will include a human resources module for people management, including diversity measures. This will simplify our current employment practises and establish the systems required for a developing organisation. Concerns about diversity are addressed informally through our open door policy, which extends all the way to the Chairman. For those who feel uncomfortable speaking up about diversity and equal opportunity issues in person, our Whistleblower Protection Policy serves as a guide. In FY21, no instances of discrimination were reported. 39 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 CHAPTER 14 AGE NUMBER WOMEN MEN BOARD OVER 50 6 — 6 EMPLOYEES BY AGE AND GENDER UNDER 30 — — — 30 — 50 8 2 6 OVER 50 6 1 5 PERMANENT PART TIME BOARD STRATEGIC SENIOR MANAGEMENT EXPLORATION SUPERVISOR FINANCE TECHNICAL NON MANAGEMENT ADMINISTRATION OPERATIONS PERMANENT FULL TIME DIVERSITY STATISTICS EMPLOYEES BY TYPE EMPLOYEES BY FUNCTiON EMPLOYEES BY LEVEL LIONTOWN EMPLOYS AN ADDITIONAL THREE FIELD CONTRACTORS NOT INCLUDED IN THE ABOVE FIGURES, TWO MEN AND ONE WOMAN, WHICH REPRESENTS 18% OF THE COMPANY’S WORKFORCE WE HAVE NOT PROVIDED A RATIO OF BASIC SALARY AND REMUNERATION OF WOMEN TO MEN AS THERE ARE NO LIKE FOR LIKE ROLES IN EACH EMPLOYEE LEVEL 02 WOMEN 0 0 0 0 0 0 0 0 01 02 01 01 02 02 01 01 03 MEN 06 04 05 03 02 08 40 LiONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE ( ESG ) REPORT FY2021 Respect means to treat others the way you want to be treated. It’s more than just words, it’s also listening and action. Showing respect to the Native Titleholders of our Kathleen Valley Lithium Project ( the Tjiwarl ) , has not only allowed a foundation for a strong and collaborative relationship, but by listening and acting we have ended up with an even better project than we ?rst envisaged. RESPECT ANTHONY CIPRIANO NON - EXECUTIVE DIRECTOR 41 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 Kathleen Valley Lithium-Tantalum Project The Tjiwarl have been recognised by the Federal Court of Australia to hold the common law native title over the area covered by our project (Tjiwarl Determined Native Title Claim (WC11/7)). We must always be mindful of this and respect the heritage and cultural values of the Tjiwarl Native Title Holders. Mining, if not planned or managed properly, can have a considerable negative environmental impact, including disturbance of land, ?ora and fauna, and water. The Tjiwarl have a strong connection to the area in which we propose to mine, and an important seasonal watercourse, Jones Creek, is a part of their songline and dreamtime. Songlines include the laws and stories that govern the Tjiwarl. The biodiversity in this area is intrinsically linked to Tjiwarl culture – animals, rock formations, trees, and plants – and we are acutely aware of this cultural relationship. The proposed area of our Kathleen Valley Lithium-Tantalum project tenure is largely contained inside existing mining leases. However, the Company has applied for an additional mining lease (M36/696) to include additional resources and infrastructure, including a planned camp and solar array. Our proposed mining activities through the Kathleen Valley Lithium-Tantalum Project will connect with registered Aboriginal Heritage sites and those identi?ed through heritage surveys involving Tjiwarl native title holders, and in consultation with the Tjiwarl Native Title Holders we will submit for formal Section 18 (Aboriginal Heritage Act) clearance over the proposed mining regions in order to comply with applicable government regulations. The Kathleen Valley Lithium-Tantalum Project Native Title Agreement (NTA) was signed on 17 November 2021. The NTA was negotiated with the Tjiwarl over a two and half year period. Importantly, as part of this process, input from the Tjiwarl was incorporated into the project design and layout from the outset. The NTA will be used to support the Tjiwarl Sustainability Framework. The Tjiwarl Sustainability Framework focuses on the following areas: Protecting Native Title Education Employment and Training Healing and Health Land Management – including ranger program, environmental management and protecting cultural ecological values Business Development and contracting opportunities Law and Culture Securing an NTA now triggers the ability to ?nalise remaining project permitting. We have gained a greater appreciation for the Tjiwarl’s signi?cant connection to the land and our obligation to minimise our damage as a result of our interactions with them. This has been facilitated by the Tjiwarl’s cultural training for Liontown, which will continue throughout the duration of the project. There are four planned stages of cultural induction, and training will be required of all Company employees and contractors working on-site for 5 days or longer. Tjiwarl and Liontown have been engaged in constructive negotiations throughout the development of the project to date, and we have signed a number of agreements with the Tjiwarl prior to the NTA. We are partnering with the Tjiwarl Aboriginal Corporation RNTBC (Tjiwarl AC) to mitigate the project’s impact on Aboriginal sites and have completed a series of ethnographic (cultural mapping) and archeological surveys to acquire a better knowledge of the cultural heritage landscape in the planned development region. Cultural heritage protection is a critical aspect that is addressed by a Cultural Heritage Management Protocol that details all project operations. Together with the NTA, this Protocol will serve as the framework for the Company’s relationship with the Tjiwarl. We have published our Aboriginal Engagement Policy, for which we requested input from the Tjiwarl Aboriginal Corporation. In FY21, there were no abuses of Indigenous rights. Liontown’s primary non-?nancial concern is e?ective and culturally appropriate engagement with the Traditional Owners. Permission to mine in Western Australia is often conditional on the Traditional Owners retaining rights and interests in land or waters under their traditional laws and customs, which are recognised by common law. 15 OUR FOCUS ON ABORIGINAL ENGAGEMENT 42 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 CHAPTER 15 Meeting with members of the Tjiwarl Aboriginal community at Ngulu Wuri (Jones Creek) Moora/Koojan Gold- Copper-PGE-Nickel Project The Yued are Native Title Claimants with respect to the Moora Project land ( WC1997/071 ) . Although their claim has not been determined ( i.e., no native title rights have been con?rmed ) , they retain rights as registered claimants. Liontown entered into a Heritage Agreement with the South West Aboriginal Land and Sea Council Aboriginal Corporation, which acts on behalf of the Yued Agreement Group. Toolebuc Vanadium Project There are no registered native title claims for this project site. While we do not currently have a formal procurement strategy in place, in order to meet the de?ned objectives outlined in our NTA, we will acquire necessary products and services from certi?ed Tjiwarl enterprises in the future. Registered Aboriginal Sites in the Kathleen Valley Lithium Tantalum Project area. There are 20 registered heritage sites within the project area. Each site has signi?cant heritage characteristics which may include artefacts/scatter, ceremonial signi?cance, grinding patches, grooves and mythological importance.. Buldania Lithium- Tantalum Project Buldania is situated on tenements that are subject to the Ngadju Determined Native Title Claim ( WCD2014/004 ) . Avoca, the tenement holder, has an access agreement with the Ngadju people that will apply to the exploratory activities of Liontown. Economic impacts for the Tjiwarl It is critical for us to reinvest in the communities from whom we extract resources. Along with the compensation we will pay under the NTA, employment opportunities for the Tjiwarl will help generate a direct economic outcome for the community. Our modest team has not yet hired members of the local community during this exploration period. We hope to make a positive contribution to the community where the mine is located by assisting the community in prospering. We wish to be recognised in the region as a good corporate citizen committed to providing opportunities for the local community. This will contribute to the Company’s social licence to operate. 43 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 16 N ow that we are in development phase, we must plan for this now with our strategy and capital spending to guarantee that the Kathleen Valley Lithium-Tantalum Project is intended to reach this net zero target. It is not enough for us to produce lithium to contribute to the low carbon economy; we must also demonstrate accountability for our own energy and emissions consumption along the lithium value chain. To this end, we have made the following commitments: Invest in low-carbon renewable energy sources and energy e?ciency measures to help mitigate emissions Maintain an emphasis on energy e?ciency throughout the mine’s development and operation phases Establish baseline data and set targets for energy and emissions reductions after the ?rst year of operation We have invested signi?cantly in preparing the Kathleen Valley Lithium- Tantalum Project to be a ‘green’ operation, which is crucial on a number of fronts: A high level of interest among debt/ equity providers in our strategy for decreasing energy consumption and accompanying emissions The cost reductions that our operational e?ciency will generate Eventually, we will be able to label our product’s total carbon emissions, indicating that our role in reducing the energy and emissions associated with our lithium is critical throughout the supply chain It will become increasingly necessary for us to demonstrate to our consumers how we manage energy and emissions and how we are lowering our impact We can be agile in our selection of less carbon intensive technology as it becomes available We released our inaugural ESG Statement and Climate Change Policy in 2021, as well as a signi?cant update to the Company’s Environmental Policy. While the entire Liontown team is accountable for energy and emissions management, our MD/CEO and COO serve as custodians in this area, with ultimate accountability resting with the Board of Directors. Environmental management components are incorporated into both our short and long term incentive schemes. Energy and emissions sources The primary source of Scope 1 and 2 emissions will be generated during the mining and processing of our ore at the Kathleen Valley project. Transit of our concentrate product from the mine, about 680 km to Geraldton Port, will require a signi?cant amount of heavy haulage which will contribute to Scope 3 emissions. While we will initially run trucks powered by conventional diesel fuel, we are already exploring the option of transitioning to biofuel or battery technology. This will be pursued further as part of transport tender negotiations. With regards to our underground mining ?eet, we aspire to electrify these ?eets as the technology becomes commercially available and are closely following technological improvements in this area. These criteria will be incorporated into future contracts. Kathleen Valley Lithium-Tantalum Project Power Supply When considering preliminary and preparatory power supply choices for the project, we purposely avoided diesel generation in favour of a hybrid/renewable mix. Our objective is to build a 60% renewable energy mix as part of a hybrid energy strategy. The greater the share of renewable energy, the lower the emissions. Liontown will be one of the ?rst green?elds mines in Australia to employ this method. We commissioned in the reporting year to explore available power supply so that we could make the most prudent option possible about energy supply and cost. As part of the study, the following options were considered: Grid-connected power supply Purchase and construction of our own gas power station Purchase and construction of our own hybrid power station (gas/wind, battery and solar) Independent Energy Providers ( IPP ) with a fully integrated hybrid power station Proposals were analysed, and total operating costs with varied renewable energy shares were calculated. All solutions were compared on the basis of their fuel costs, solar output, and wind resource in the region. The total estimated online power requirement for the entire facility, including underground mining, is approximately 20-25MW. An IPP hybrid solution was deemed the best option for the project. To correspond with the mine’s construction phase in late 2022, a formal tender for this work will be issued in FY22. We are committed to setting an industry standard for energy and emissions e?ciency and to becoming the best in class. Liontown plays a critical role in mitigating climate change, and our ambition is to reach net zero emissions by 2034. OUR FOCUS ON ESTABLISHING ENERGY & EMISSIONS EFFICIENCIES BASIS OF ESTIMATE: — ALL FIGURES BASED ON POWER GENERATION DETAILED IN 2021 DEFINITIVE FEASIBILITY STUDY (DFS) — ALL CALCULATION BASED ON MINING AND PRODUCTION SCHEDULE DETAILED IN 2021 DFS — ALL CONVERSION FACTORS TAKEN FROM THE NATIONAL GREENHOUSE ACCOUNTING FACTORS (2021) — ALL FIGURES BASED ON PRODUCTION OF 2.5MTPA, WITH PRODUCTION INCREASE TO 4.0MTPA OCCURRING IN 2029, PER 2021 DFS 44 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 CHAPTER 16 Energy and emissions data Our energy and emissions data in this report are from drilling and exploration activities and re?ect the level of activity throughout each time period. Conversion factors are calculated using the National Greenhouse Accounts Factors: 2021 from the Australian Government’s Department of Industry, Science, Energy and Resources. The data we include in the future will evolve signi?cantly to re?ect the project’s activities at that speci?c time. Additionally, we have modelled future Scope 1 and 2 greenhouse gas emissions as the Kathleen Valley Lithium-Tantalum Project progresses through the exploration, development, and operational phases. The factors in these assumptions relate to the anticipated emissions from mining, processing, construction, and transportation. We intend to develop a baseline for energy and emissions data in 2024, following our ?rst year of mining, which will enable us to establish speci?c reduction targets. ENERGY USAGE ( GJ ) : ALL DIESEL 2018 2019 2020 2021 KATHLEEN VALLEY 10,191 26,094 14,010 1,708 BULDANIA 5,909 6,007 0 0 MOORA/KOOJAN 0 0 266 1,900 TOOLEBUC 0 0 0 0 TOTAL ( GJ ) 16,100 32,101 14,276 3,608 DIESEL CONVERSION FACTOR IS 38.6 GJ/kL EMiSSiONS PROFiLE 2018 2019 2020 2021 SCOPE 1 GHG EMISSIONS ( TONNES CO 2 -e ) KATHLEEN VALLEY 714 1,829 982 120 BULDANIA 414 421 0 0 MOORA/KOOJAN 0 0 19 133 TOOLEBUC 0 4,369 0 0 TOTAL SCOPE 1 1,128 6,619 1,001 253 CH 4 EMISSIONS ( TONNES CO 2 -e ) KATHLEEN VALLEY 26 68 36 4 BULDANIA 15 16 0 0 MOORA/KOOJAN 0 0 1 5 TOOLEBUC 0 169 0 0 TOTAL CH 4 41 253 37 9 N 2 O EMISSIONS ( TONNES CO 2 -e ) KATHLEEN VALLEY 53 135 73 9 BULDANIA 31 31 0 0 MOORA/KOOJAN 0 0 1 10 TOOLEBUC 0 323 0 0 TOTAL N 2 O 84 489 74 19 TOTAL ( TONNES CO 2 -e ) 1,253 7,361 1,112 281 KATHLEEN VALLEY LiTHiUM-TANTALUM PROJECT FORECAST SCOPE 1 AND 2 EMiSSiONS PROFiLE 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 SCOPE 1 GHG EMISSIONS ( TONNES CO 2 -e ) 12,362 22,986 20,127 10,809 11,690 12,511 12,966 17,902 19,249 21,083 SCOPE 2 GHG EMISSIONS ( TONNES CO 2 -e ) 3,239 4,659 30,201 33,003 39,480 45,957 45,957 53,524 58,064 58,064 FORECAST TOTAL ( SCOPE 1 AND 2 TONNES CO 2 -e ) 15,601 27,645 50,328 43,812 51,170 58,468 58,923 71,426 77,313 79,147 Photograph: Tony McDonough 45 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 C urrently, the primary source of waste is non-process related and this exploration phase has generated no waste. Once the construction phase begins, and subsequently, when the mine becomes operational, the volume of waste generated will increase signi?cantly. Waste management is an area where we will need to exercise extreme caution to keep our licences, as it is regulated by the 1978 Mining Act ( WA ) . Our objective goes beyond regulatory compliance; we want to be proactive with an innovative and robust waste management strategy. Our preliminary approach to waste management is inextricably linked to our water management strategy which places a premium on recycling as much water as possible. For instance, water from the mine camp will be returned to a wastewater treatment plant and then used in the tailings dam, which contains mining waste. Mining and associated waste are a signi?cant source of concern, as they can result in widespread land disturbance and have a long-term impact on the environment. We are extremely cautious about waste and hazardous materials management, and have conducted numerous studies to determine the mine’s waste impact once it is operational. We must address the long-term implications of a mining life of 22+ years for Kathleen Valley. The Company will be required to make a long-term rehabilitation commitment, and our stakeholders are interested in our strategy. Our updated Environmental Policy outlines our waste commitments, which are to: Engage with Tjiwarl Native Title Holders to address waste, e?uent and hazardous materials risks on land and in water Minimise waste from metal extraction processes Responsibly dispose of hazardous waste, including tailings Remediate land and water courses if negatively impacted Currently our COO and Exploration Manager are in charge of the Company’s waste management strategy for Kathleen Valley. Waste rock and tailings Waste rock is the most prevalent type of waste generated by mining operations. Along with the ore, waste rock is removed as part of mining operations. Waste rock is composed of host rock and target minerals in concentrations that are insu?cient for commercial recovery. Liontown will generate a relatively minor volume of waste rock during the project construction phase, as well as during the open-cut mining phase prior to operations transitioning to underground mining. All of the waste rock generated in the construction phase will be used in building the Tailings Storage Facility ( TSF ) and the plant run of mine ( ROM ) pad. When a mine concentrates and extracts the minerals from the ore, a tailings waste stream is produced. Tailings from the process plant will be thickened and then pumped to the underground ?ll plant or to an above ground TSF which keeps them isolated from the surrounding environment. Tailings that are pumped underground are combined with cement to form a paste ( paste?ll ) and placed in voids created by underground mining operations. Paste?ll ?lled voids are a key part of the mine plan as they provide ground support during and post underground mining operations. Importantly though, the placement of tailings underground increases water recycling from tailings by up to four times compared to placement in a TSF. In 2019, we engaged environmental consultants to conduct the project’s initial geochemical analysis of waste rock and associated tailings. The ?ndings suggested that tailings will be largely benign and unlikely to represent a risk to the environment, and hence will not require specialised tailings dam lining systems beyond those used as standard in the mining industry. We have undertaken extensive geotechnical engineering to minimise ground disturbance and have considerably advanced our paste?ll program by engaging highly regarded geotechnical engineers to manage this process. We are currently undertaking testwork to determine the best mix of cement, tailings, and water for our underground paste?ll. This means that we will be able to determine the mix strength required to obtain the optimum regional ground support. We commissioned a comprehensive study of the tailings dam’s design, completed in October 2021. An interim/ temporary waste dump is included in the mine plan. Waste data We have not yet collected waste data due to the small amount of waste generated during the exploration phase. During FY22 and FY23, we will establish a systematic waste data gathering methodology to coincide with the start of the project’s construction phase in FY22. Construction waste statistics will be included in our FY23 ESG Report. Mine waste reduction targets will be established once we have begun our development phase in 2024, which will take place following a full year of mining operations. Spodumene concentrate, the primary product of the Kathleen Valley Project, is a benign substance, and does not create any signi?cant risks from an environmental or health perspective. As a result of the ore’s negligible sulphur content, no hazardous compounds are found in the process tail, and the resulting wasterock is non-acid forming ( NAF ) . 17 OUR PROPOSED WASTE MANAGEMENT APPROACH 46 LiONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE ( ESG ) REPORT FY2021 TEAMWORK SUSANA SCHWINKOWSKI ASSISTANT ACCOUNTANT The way our people collaborate productively and e?ectively with each other is instrumental to our success at Liontown. 47 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 E ?ective stakeholder participation is crucial throughout the project, especially during the exploration phase, and our major objective is to guarantee that each stakeholder group receives the right information at the right time. We want to avoid surprises and ensure that everyone understands what Liontown is doing. We do not want to engage with stakeholders for the ?rst time when there is an issue. We make an e?ort to arrive early and explain what we’re doing in advance. In FY21, our engagement activities were primarily centred on negotiating a Native Title Agreement ( NTA ) with the Tjiwarl community and building and maintaining a strong relationship with the investor/shareholder community. Liontown’s primary stakeholders are those who have signi?cant in?uence over the design of our projects. Our primary project focus in FY21 was the Kathleen Valley Lithium-Tantalum Project, and we have identi?ed the groups necessary to ensure its success. We anticipate that relationships with these stakeholders will evolve as the project moves into the construction and development phase. 18 OUR STAKEHOLDERS 48 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 CHAPTER 18 STAKEHOLDER GROUP HOW WE ENGAGED MAiN TOPiCS DiSCUSSED OUR RESPONSE TJiWARL NATiVE TiTLE HOLDERS DAILY EMAILS & PHONE CALLS FACE TO FACE MEETINGS AT A MINIMUM OF EVERY FOUR TO EIGHT WEEKS COMMUNITY PRESENTATIONS CONTINUED NTA NEGOTIATIONS, INVOLVING MAJOR TOPICS SUCH AS CULTURALLY SENSITIVE LOCATIONS IN TERMS OF COUNTRY; PROJECT WATER USAGE; ONGOING FINANCIAL BENEFITS; COMPENSATION FOR LOSS OF COUNTRY; & JOB OPPORTUNITIES LIONTOWN’S ABORIGINAL ENGAGEMENT POLICY WE WILL CONTINUE TO WORK WITH THE TJIWARL TO REACH A NTA THAT IS ACCEPTABLE TO ALL PARTIES WE ASKED THE TJIWARL ABORIGINAL CORPORATION TO CONTRIBUTE TO OUR DRAFT ABORIGINAL ENGAGEMENT POLICY iNVESTORS/ SHAREHOLDERS REGULAR ASX ANNOUNCEMENTS AS COMMERCIALLY SENSITIVE INFORMATION IS RELEASED ANNUAL GENERAL MEETING ( AGM ) EXTRAORDINARY GENERAL MEETINGS ( EGM ) WEBINARS CONFERENCES PROJECT STATUS PRICING SENSITIVE NEWS STATUTORY PREPARATION SHARES ARE PERFORMING WELL & WE WILL CONTINUE TO UPDATE THE ASX DEBT/EQUiTY PROViDERS PROJECT FUNDERS/ ENABLERS AS PER INVESTOR / SHAREHOLDER GROUP ESG THE FREQUENCY OF ENGAGEMENT IS EVOLVING STATUS OF SHAREHOLDER RETURNS LIONTOWN’S ESG STRATEGY AS PER INVESTOR/SHAREHOLDER GROUP WE ARE FORMALISING OUR APPROACH TO ENVIRONMENTAL, SOCIAL, & GOVERNANCE ISSUES, INCLUDING STRATEGY, & ARE COMMITTED TO TRANSPARENCY MiNiNG iNDUSTRY GROUPS ( AMEC ) EMAILS ( MONTHLY ) ATTENDANCE AT EVENTS REGULAR MEETINGS THIS GROUP IS INTERESTED IN THE LITHIUM ENERGY SECTOR & TOPICAL AREAS. THEY RECOGNISE LIONTOWN'S EVOLUTION & GROWTH, AS WELL AS OUR SHIFT FROM EXPLORER TO DEVELOPER. WE ARE PLEASED TO SHARE PROGRESS ON TECHNICAL DEVELOPMENTS WITH INDUSTRY GROUPS KEY SUPPLiERS KEY CONSULTANTS THAT CONTRIBUTE TO THE DEFINITIVE FEASIBILITY STUDY ( DFS ) & SITE INVESTIGATIONS ( ENVIRONMENTAL & MINING) DAILY EMAILS, PHONE CALLS & IN-PERSON MEETINGS SUPPLIER CERTAINTY COVID TRAVEL RESTRICTIONS SKILLS SHORTAGE WE MUST COMMIT TO OUR SUPPLIERS TO ASSURE THEIR CONTINUED SUPPORT IN ORDER TO MAINTAIN OUR POSITION IN THE LINE LOCAL, STATE & FEDERAL GOVERNMENT REGULAR IN PERSON MEETINGS & EMAIL REGULATIONS & LEGISLATION GENERAL PROJECT ENABLERS I.E., FUNDING FOR GERALDTON PORT & GOVERNMENT FUNDED R&D INITIATIVES RAISE AWARENESS OF THE KATHLEEN VALLEY LITHIUM-TANTALUM PROJECT PERMITS & APPROVALS WE WILL ENSURE CLEAR LINES OF COMMUNICATION AT ALL LEVELS OF GOVERNMENT EMPLOYEES REGULAR SMALL GROUP MEETINGS WEEKLY OR FORTNIGHTLY MANAGEMENT MEETINGS STRATEGY & RISK MEETINGS AS REQUIRED CEO HAS MONTHLY ONE ON ONE MEETINGS WITH EACH SENIOR MANAGER INCREASING THE LIONTOWN TEAM TO PREPARE FOR BEING A DEVELOPER AND PRODUCER ENSURING APPROPRIATE SKILLSETS EMPLOYEES ARE CRITICAL TO LIONTOWN'S SUCCESS, & WE ARE COMMITTED TO ASSISTING THEM IN PERFORMING AT THEIR BEST BOARD REGULAR MEETINGS BETWEEN THE BOARD, SENIOR MANAGEMENT & COMMITTEES COO PROVIDES WEEKLY & MONTHLY ESG UPDATES TO THE BOARD ESG IS A DEFINED ITEM IN THE BOARD AGENDA SHAREHOLDER INFORMATION REQUIREMENTS CULTURAL HERITAGE INDUCTION WITH THE TJIWARL ABORIGINAL CORPORATION ESG WE WILL ACT IN THE INTEREST OF SHAREHOLDERS WE ARE COMMITTED TO RESPECTING THE CULTURE & TRADITIONS OF THE TJIWARL ABORIGINAL COMMUNITY WE ARE KEEN TO PROGRESS ESG ACROSS THE BUSINESS FUTURE OFFTAKERS EVENTUAL CUSTOMERS FOR OUR LITHIUM CONCENTRATE AS PER INVESTORS/SHAREHOLDERS; DEBT & EQUITY PROVIDERS DAILY EMAILS & PHONE CALLS PRODUCT SPECIFICATIONS DATA PROVISION VOLUME & TIMING OF SUPPLY PRICING MECHANISMS WE ARE AIMING FOR THE HIGHEST QUALITY PRODUCT WE WILL PROVIDE FUTURE OFFTAKERS WITH ALL NECESSARY INFORMATION 49 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 Compliance with environmental, social, governance, and economic regulations is critical to maintaining a sound governance foundation. We cannot control what we cannot quantify and demonstrate compliance with. F ailure to comply could be catastrophic for Liontown, not just economically, but also reputationally, morally, and socially. Vigilance is critical, and our governance mechanisms establish a solid foundation for complying with the multitude of regulations to which we are subject. Rather than treating compliance as a tick-box exercise, we strive to meet or exceed regulatory requirements in order to demonstrate our responsibility as a corporate citizen. The mining sector is regulated at all stages of operation and is one of the most heavily regulated industries in Australia. Mineral extraction is regulated by Federal ( Commonwealth ) , State, and local government agencies. Mine regulation is primarily regulated by state governments, which are responsible for the following: Land administration Granting of mineral exploration and mining titles Mine operation regulation ( including environmental and occupational health and safety ) Royalty collection on minerals produced Commonwealth laws also apply, but they are primarily concerned with indirect policy intervention and regulation. Local governments are responsible for addressing local community needs and approving certain applications. In addition to mining regulations, Liontown ?les an Appendix 4G and Corporate Governance Statement ( reporting against the 4th Edition of the ASX Corporate Governance Principles and Recommendations ) concurrently with its annual report to the ASX under Listing Rule 4.7.3. In FY21, we had no environmental, social or economic non-compliances. We are committed to implementing appropriate ESG due diligence mechanisms and will launch an ESG scorecard in FY22 to communicate our ESG performance to internal and external stakeholders. 19 OUR COMMITMENT TO COMPLIANCE Spodumene sample from Kathleen Valley. Photography: Tony McDonough 50 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 GLOSSARY AMBLYGONiTE A mineral consisting of basic lithium aluminium phosphate ASSOCiATiON OF MiNiNG AND EXPLORATiON COMPANiES ( AMEC ) An Australian industry association whose membership comprises explorers, emerging miners, producers and a wide range of businesses and service providers ASX 300 A stock market index that measures the performance of the top 300 companies listed on the ASX AUSTRALiAN SECURiTiES AND iNVESTMENTS COMMiSSiON ( ASiC ) An independent Australian Government body that administers the Australian Securities and Investments Commission Act 2001 ( ASIC Act ) AUSTRALiAN SECURiTiES EXCHANGE ( ASX ) Australia’s primary securities exchange operated by ASX Limited BiOFUEL Any fuel that is derived from biomass ( plant or algae material or animal waste ) . It is considered to be a source of renewable energy. CATHODE A cathode is the electrode from which a conventional current leaves a polarised electrical device CLiMATE SCENARiO PLANNiNG A technique in the ?eld of climate change adaptation and policy used to inform decision-making under uncertainty DEFiNiTiVE FEASiBiLiTY STUDY ( DFS ) A feasibility study undertaken to a high degree of accuracy ( +15% ) which may be used as a basis for raising ?nance for the construction of a project DOWNSTREAM SCOPiNG STUDY ( DSS ) A desktop feasibility study undertaken to a relatively low degree of accuracy ( +35% ) which may be used as a basis for further studies and test work on downstream processing of lithium concentrate DETERMiNED NATiVE TiTLE CLAiM A claim of Native Title that has been recognised by law. Native Title exists where Aboriginal people have maintained a traditional connection to their land and waters substantially uninterrupted since Australian sovereignty. ECOHYDROLOGY An interdisciplinary ?eld that studies the interactions between water and ecosystems ELECTROLYTiC SOLUTiON An electrolyte is a substance that produces an electrically conducting solution when dissolved in a polar solvent, such as water FiNANCiAL STABiLiTY BOARD An international body that monitors and makes recommendations about the global ?nancial system HYDROGEOLOGiCAL The occurrence, distribution, and movement of groundwater iNTERNAL RATE OF RETURN A metric used in ?nancial analysis to estimate the pro?tability of potential investments iNTERNATiONAL PANEL ON CLiMATE CHANGE ( iPCC ) An intergovernmental body of the United Nations responsible for advancing knowledge on human- induced climate change iON Any atom or group of atoms that bears one or more positive or negative electrical charges KL 1000 litres KTPA Kilo tonnes per annum LEPiDOLiTE A mineral of the mica group containing lithium Li 2 O Lithium oxide LiTHiUM CARBONATE A lithium compound which associates with carbonates to become a salt. Its main industrial use is to produce rechargeable batteries, by using lithium carbonate as a primary compound which is converted into those which serve as a cathode and electrode. LiTHiUM HYDROXiDE Lithium hydroxide monohydrate is a re?ned lithium product used in the production of cathode material for lithium-ion electric vehicle batteries LOST TiME iNJURY FREQUENCY RATE ( LTiFR ) The number of lost-time injuries within a given accounting period, relative to the total number of hours worked in that period. 20 51 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 CHAPTER 20 MEDiCALLY TREATED iNJURY FREQUENCY RATE ( MTiFR ) Work related injuries that require medical treatment MiNERAL RESOURCE A concentration of solid material in or on the Earth’s crust of economic interest MTPA Million tonnes per annum NATiONAL GREENHOUSE ACCOUNTS FACTORS Guidance provided by the Australian Government’s Department of Industry, Sciences, Energy and Resources that provides methods to help estimate greenhouse gas emissions. NATiVE TiTLE AGREEMENT ( NTA ) Native title is the designation given to the common law doctrine of Aboriginal title in Australia, which is the recognition by Australian law that Indigenous Australians ( both Aboriginal Australian and Torres Strait Islander people ) have rights and interests to their land that derive from their traditional laws and customs. NET PRESENT VALUE ( NPV ) The di?erence between the present value of cash in?ows and the present value of cash out?ows over a period of time. NPV is used in capital budgeting and investment planning to analyse the pro?tability of a projected investment or project. OPEN-CUT MiNiNG A surface mining technique of extracting rock or minerals from the earth from an open-air pit ORE RESERVE The parts of a mineral resource that can be economically mined PARiS AGREEMENT A legally binding international treaty on climate change to limit global warming to well below two degrees Celsius ( 2°C ) above pre-industrial times, and as close to 1.5°C as possible PEGMATiTE An igneous rock, formed by slow crystallization at high temperature and pressure at depth, and exhibiting large interlocking crystals PETALiTE A mineral, lithium aluminium silicate, occurring in colourless or white foliated masses: an important source of lithium. PRE-FEASiBiLiTY STUDY ( PFS ) A preparatory study required to enable funders to undertake a successful feasibility study for a particular investment opportunity RUN OF MiNE ( ROM ) PAD Area designated for storage/stockpiling of ore received from the mine prior to processing SCOPE 1 GHG EMiSSiONS Direct greenhouse ( GHG ) emissions that occur from sources that are controlled or owned by an organisation ( e.g. on-site fossil fuel combustion and ?eet fuel consumption ) SCOPE 2 GHG EMiSSiONS Indirect emissions from sources that are owned or controlled by an organisation ( e.g. emissions that result from the generation of electricity, heat or steam purchased by the organisation from a utility provider ) SCOPE 3 GHG EMiSSiONS Indirect greenhouse gas emissions other than scope 2 emissions that are generated in the wider economy. They occur as a consequence of the activities of a facility, but from sources not owned or controlled by that facility’s business. ( e.g. employee travel; emissions associated with contracted solid waste disposal and wastewater treatment ) SCOPiNG STUDY An initial appraisal carried out early in the life of a resource project. They are based on initial drilling and informed assumptions, and commonly include an elementary mine plan. SPODUMENE A pyroxene mineral consisting of lithium aluminium inosilicate and is a source of lithium. Ta 2 O 5 Tantalum pentoxide TAiLiNGS STORAGE FACiLiTY A structure built for the purposes of storing the uneconomical ore and water from the mining process TENEMENT Collective mining rights that include prospecting licences, exploration licences, retention licences and mining leases TiER-1 Tier-1 deposits are company-making mines and are large, long life and low cost. (Source: MinEx Consulting© October 2021 UNDERGROUND MiNiNG Various underground mining techniques used to excavate hard minerals, usually those containing metals. V 2 O 5 Vanadium oxide WATER BALANCE A mathematical model that accounts for all in?ows and out?ows of water from the processing of the lithium bearing ore 52 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 AGM Annual General Meeting AMEC Association of Mining and Exploration Companies ASiC Australian Securities and Investment Commission ASX Australian Securities Exchange BOD Board of Directors CEO Chief Executive O?cer COO Chief Operating O?cer CP Competent Person CRM Critical raw DFS De?nitive Feasibility Study DMT Dry metric tonnes DSS Downstream Scoping Study DWER Department of Water and Environmental Regulation ( Western Australia ) E Exploration licence EGM Extraordinary General Meeting EPM Exploration permit ESG Environmental, Social and Governance EU European Union EV Electric vehicle FEED Front end engineering and design FiD Financial investment decision FY Financial year FOB Free On Board – Per Incoterms GHG Greenhouse gas GRi Global Reporting Initiative GJ Gigajoules iCE Internal combustion engine iEA International Energy Agency iPCC International Panel on Climate Change iRR Internal Rate of Return JV Joint venure KL Kilo Litre KM Kilometre KTPA Kilotonnes per annum L Miscellaneous licence L Litre LiB Lithium-ion battery LTiFR Lost time injury frequency rate M Mining lease MRE Mineral Resource Estimate MTPA Megatonnes per annum MTiFR Medically treated injury frequency rate NAF Non-acid forming NPV Net Present Value NTA Native Title Agreement OHSMS Occupational Health and Safety Management System PFS Pre-Feasibility Study PGE Platinum group elements PPM Parts per million R&D Research and development ROM Run of mine SASB Sustainability Accounting Standards Board SDG Sustainable Development Goals TCFD Task Force on Climate Related Financial Disclosures TRiFR Total recorded injury frequency rate TSF Tailings storage facility WA Western Australia 21 ACRONYMS A, B, C... 53 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 REFERENCES 2021. Climate Change 2021: The Physical Science Basis. Contribution of Working Group I to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change. IPCC. https://www.ipcc.ch/report/ar6/wg1/ Accessed 9 November 2021 2021. The Paris Agreement. [online] Paris: United Nations Framework Convention on Climate Change. https://unfccc.int/process-and-meetings/the-paris-agreement/the-paris-agreement Accessed 9 November 2021 Benchmark Mineral Intelligence, 2021. Global battery arms race: 200 gigafactories; China leads. https://www.benchmarkminerals.com/membership/global-battery-arms-race-200-gigafactories-china-leads-2/ Accessed 9 November 2021 Department of Industry, Science, Energy and Resources, 2021. National Greenhouse Accounts Factors: Australian National Greenhouse Accounts. Commonwealth of Australia. https://www.industry.gov.au/sites/default/?les/August%202021/document/national-greenhouse-accounts-factors-2021.pdf Accessed 9 November 2021 https://www.crmalliance.eu/. 2021. Lithium. https://www.crmalliance.eu/lithium Accessed 9 November 2021 International Energy Agency, 2021. Global EV Outlook 2021: Accelerating ambitions despite the pandemic. IEA Publications. https://iea.blob.core.windows.net/assets/ed5f4484-f556-4110-8c5c-4ede8bcba637/GlobalEVOutlook2021.pdf Accessed 9 November 2021 LaRocca, G., 2020. Global Value Chains: Lithium in Lithium-ion Batteries for Electric Vehicles. Washington: O?ce of Industries, U.S. International Trade Commission. Roskill, 2021. Lithium: Outlook to 2031 report (18th Edition). Samsungsdi.com. 2021. https://www.samsungsdi.com/column/technology/%20detail/55272.html?listType=gallery Accessed 9 November 2021 World Bank Group. 2017. The Growing Role of Minerals and Metals for a Low Carbon Future. World Bank, Washington, DC. © World Bank. http://documents1.worldbank.org/curated/en/207371500386458722/pdf/117581-WP-P159838-PUBLIC-ClimateSmartMiningJuly.pdf 2 License: CC BY 3.0 IGO. Accessed 9 November 2021 www.metalbulletin.com. 2021. OUTLOOK: Securing lithium biggest challenge to battery supply chain in H2 2021. https://www.metalbulletin.com/Article/4002802/OUTLOOK-Securing-lithium-biggest-challenge-to-battery-supply-chain-in-H2-2021.html Accessed 9 November 2021 22 54 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 CP STATEMENTS 23 The Information in this Report that relates to Ore Reserves, Production Target and De?nitive Feasibility Study (DFS) for the Kathleen Valley Project is extracted from the ASX announcement “Kathleen Valley DFS con?rms Tier-1 global lithium project with outstanding economics and sector- leading sustainability credentials” released on 11 November 2021 which is available at www.ltresources.com.au The Information in this Report that relates to Mineral Resources for the Kathleen Valley Project is extracted from the ASX announcement “Strong progress with Kathleen Valley De?nitive Feasibility Study as ongoing work identi?es further key project enhancements” released on 8 April 2021 which is available at www.ltresources.com.au . The Information in this Report that relates to the Downstream Scoping Study (DSS) is extracted from the ASX announcement “Updated Downstream Scoping Study Highlights Next Growth Horizon for Kathleen Valley Project” released on 11 November 2021 which is available at www.ltresources.com.au . The Information in this Report that relates to Mineral Resources for the Buldania Project is extracted from the ASX announcement “Liontown announces maiden Mineral Resource Estimate for its 100%-owned Buldania Lithium Project, WA” released on 8 November 2019 which is available at www.ltresources.com.au . The Information in this Report that relates to Mineral Resources for the Toolebuc Vanadium Project is extracted from the ASX announcement “Liontown Announces Maiden 84Mt Vanadium Resource for Toolebuc Project, NW Queensland” released on 30 July 2018 which is available at www.ltresources.com.au . The Company con?rms that it is not aware of any new information or data that materially a?ects the information included in the original market announcements and that all material assumptions and technical parameters underpinning the estimates or production targets or forecast ?nancial information derived from a production target (as applicable) in the relevant market announcements continue to apply and have not materially changed. The Company con?rms that the form and context in which the Competent Person’s ?ndings are presented have not been materially modi?ed from the original market announcements. Forward looking statements This Report contains forward-looking statements which are identi?ed by words such as ‘may’, ‘could’, ‘believes’, ‘estimates’, ‘targets’, ‘expects’, or ‘intends’ and other similar words that involve risks and uncertainties. These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that, as at the date of this Report, are considered reasonable. Such forward- looking statements are not a guarantee of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, the Directors and the management. The Directors cannot and do not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this Report will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements. The Directors have no intention to update or revise forward-looking statements, or to publish prospective ?nancial information in the future, regardless of whether new information, future events or any other factors a?ect the information contained in this Report, except where required by law or the ASX listing rules. Disclaimer Whilst care has been exercised in preparing and presenting this Report, to the maximum extent permitted by law, Liontown Resources Limited and its representatives: Make no representation, warranty or undertaking, express or implied, as to the adequacy, accuracy, completeness or reasonableness of this Report; Accept no responsibility or liability as to the adequacy, accuracy, completeness or reasonableness of this Report; and Accept no responsibility for any errors or omissions from this Report. Authorisation This Report has been authorised for release by the Board. DISCLOSURES NAVIGATOR 24 The following table is a navigational tool that aligns the GRI Standards 2016 with the relevant Sustainability Accounting Standards Board ( SASB ) Standards disclosures from the Metals & Mining Sustainability Accounting Standard ( October 2018 ) and the Task Force on Climate Related Financial Disclosures ( TCFD ) ( 2016 ). GRi DiSCLOSURE iMPACT BOUNDARY SASB DiSCLOSURE TCFD DiSCLOSURE PAGE/REFERENCE/ MORE iNFORMATiON GRI 101 FOUNDATION: 2016 GRI 102: GENERAL DISCLOSURES 2016 ORGANiSATiONAL PROFiLE 102-1: NAME OF THE ORGANISATION N/A COVER PAGE 102-2: ACTIVITIES, BRANDS, PRODUCTS & SERVICES N/A EM-MM-000.A: PRODUCTION OF (1) METAL ORES & (2) FINISHED METAL PRODUCTS PP.08 -10, 23, 24 102-3: LOCATION OF HEADQUARTERS N/A P.08 102-4: LOCATION OF OPERATIONS N/A PP.08, 10, 23, 24 102-5: OWNERSHIP & LEGAL FORM N/A P.08 102-6: MARKETS SERVED N/A PP.18, 19, 21 102-7: SCALE OF THE ORGANISATION N/A EM-MM-000.A: PRODUCTION OF (1) METAL ORES & (2) FINISHED METAL PRODUCTS EM-MM-000.B: TOTAL NUMBER OF EMPLOYEES, PERCENTAGE CONTRACTORS PP.08, 09, 11, 39 102-8: INFORMATION ON EMPLOYEES & OTHER WORKERS N/A EM-MM-000.B: TOTAL NUMBER OF EMPLOYEES, PERCENTAGE CONTRACTORS P.39 THERE WERE NO SIGNIFICANT VARIATIONS IN EMPLOYEE/ CONTRACTOR NUMBERS IN FY21. DATA IS MANUALLY COMPILED. 102-9: SUPPLY CHAIN N/A P.11 102-10: SIGNIFICANT CHANGES TO THE ORGANISATION & ITS SUPPLY CHAIN N/A THERE WERE NO SIGNIFICANT CHANGES TO LIONTOWN & ITS SUPPLY CHAIN DURING FY21. 102-11: PRECAUTIONARY PRINCIPLE OR APPROACH N/A PP.29, 30, 36, 37, 43-45 102-12: EXTERNAL INITIATIVES N/A PP.13, 15-17 102-13: MEMBERSHIP OF ASSOCIATIONS N/A P.11 GRI CONTENT INDEX; SASB & TCFD 55 LiONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 56 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 GRi DiSCLOSURE iMPACT BOUNDARY SASB DiSCLOSURE TCFD DiSCLOSURE PAGE/REFERENCE/ MORE iNFORMATiON STRATEGY 102-14: STATEMENT FROM SENIOR DECISION-MAKER N/A STRATEGY: A) DESCRIBE THE CLIMATE RELATED RISKS & OPPORTUNITIES THE ORGANISATION HAS IDENTIFIED OVER THE SHORT, MEDIUM & LONG TERM PP.02-05 102-15: KEY IMPACTS, RISKS & OPPORTUNITIES N/A STRATEGY: A) DESCRIBE THE CLIMATE RELATED RISKS & OPPORTUNITIES THE ORGANISATION HAS IDENTIFIED OVER THE SHORT, MEDIUM & LONG TERM STRATEGY: B) DESCRIBE THE IMPACT OF CLIMATE RELATED RISKS & OPPORTUNITIES ON THE ORGANISATION’S BUSINESSES, STRATEGY & FINANCIAL PLANNING STRATEGY: C) DESCRIBE THE RESILIENCE OF THE ORGANISATION’S STRATEGY, TAKING INTO CONSIDERATION DIFFERENT CLIMATE RELATED SCENARIOS, INCLUDING A 2°C OR LOWER SCENARIO RISK MANAGEMENT: A) DESCRIBE THE ORGANISATION’S PROCESSES FOR IDENTIFYING & ASSESSING CLIMATE RELATED RISKS RISK MANAGEMENT: B) DESCRIBE THE ORGANISATION’S PROCESSES FOR MANAGING CLIMATE RELATED RISKS RISK MANAGEMENT: C) DESCRIBE HOW PROCESSES FOR IDENTIFYING & ASSESSING & MANAGING CLIMATE RELATED RISKS ARE INTEGRATED INTO THE ORGANISATION’S OVERALL RISK MANAGEMENT METRICS & TARGETS: C) DESCRIBE THE TARGETS USED BY THE ORGANISATION TO MANAGE CLIMATE RELATED RISKS & OPPORTUNITIES & PERFORMANCE AGAINST TARGETS PP.02-05, 13, 21, 29, 30 ETHiCS & iNTEGRiTY 102-16: VALUES, PRINCIPLES, STANDARDS & NORMS OF BEHAVIOUR N/A EM-MM-510A.1: DESCRIPTION OF THE MANAGEMENT SYSTEM FOR PREVENTION OF CORRUPTION & BRIBERY THROUGHOUT THE VALUE CHAIN P.27 102-17: MECHANISMS FOR ADVICE & CONCERNS ABOUT ETHICS N/A PP.26, 27 GOVERNANCE 102-18: GOVERNANCE STRUCTURE N/A GOVERNANCE: A) DESCRIBE THE BOARD’S OVERSIGHT OF CLIMATE- RELATED RISKS & OPPORTUNITIES. PP.26, 28, 29 102-19: DELEGATING AUTHORITY N/A GOVERNANCE: A) DESCRIBE THE BOARD’S OVERSIGHT OF CLIMATE- RELATED RISKS & OPPORTUNITIES. PP.28, 29 102-20: EXECUTIVE LEVEL RESPONSIBILITY FOR ECONOMIC, ENVIRONMENTAL & SOCIAL TOPICS N/A GOVERNANCE: A) DESCRIBE THE BOARD’S OVERSIGHT OF CLIMATE- RELATED RISKS & OPPORTUNITIES. GOVERNANCE: B) DESCRIBE MANAGEMENT’S ROLE IN ASSESSING & MANAGING CLIMATE RELATED RISKS & OPPORTUNITIES PP.28, 29, 33, 36, 38, 43, 45 102-21: CONSULTING STAKEHOLDERS ON ECONOMIC, ENVIRONMENTAL & SOCIAL TOPICS N/A P.28 102-22: COMPOSITION OF THE HIGHEST GOVERNANCE BODY & ITS COMMITTEES N/A PP.26, 28 ANNUAL REPORT 2021: PP.19, 23 102-23: CHAIR OF THE HIGHEST GOVERNANCE BODY N/A P.02 57 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 GRi DiSCLOSURE iMPACT BOUNDARY SASB DiSCLOSURE TCFD DiSCLOSURE PAGE/REFERENCE/ MORE iNFORMATiON GOVERNANCE CONTINUED... 102-24: NOMINATING & SELECTING THE HIGHEST GOVERNANCE BODY N/A P.28 102-25: CONFLICTS OF INTEREST N/A P.27 102-26: ROLE OF HIGHEST GOVERNANCE BODY IN SETTING PURPOSE, VALUES & STRATEGY N/A GOVERNANCE: A) DESCRIBE THE BOARD’S OVERSIGHT OF CLIMATE- RELATED RISKS & OPPORTUNITIES P.27 102-27: COLLECTIVE KNOWLEDGE OF HIGHEST GOVERNANCE BODY N/A GOVERNANCE: A) DESCRIBE THE BOARD’S OVERSIGHT OF CLIMATE- RELATED RISKS & OPPORTUNITIES PP.28, 29 102-28: EVALUATING THE HIGHEST GOVERNANCE BODY’S PERFORMANCE N/A P.28 102-29: IDENTIFYING & MANAGING ECONOMIC, ENVIRONMENTAL & SOCIAL TOPICS N/A GOVERNANCE: A) DESCRIBE THE BOARD’S OVERSIGHT OF CLIMATE- RELATED RISKS & OPPORTUNITIES GOVERNANCE: B) DESCRIBE MANAGEMENT’S ROLE IN ASSESSING & MANAGING CLIMATE RELATED RISKS & OPPORTUNITIES RISK MANAGEMENT: A) DESCRIBE THE ORGANISATION’S PROCESSES FOR IDENTIFYING & ASSESSING CLIMATE RELATED RISKS RISK MANAGEMENT: B) DESCRIBE THE ORGANISATION’S PROCESSES FOR MANAGING CLIMATE RELATED RISKS PP.28-30 102-30: EFFECTIVENESS OF RISK MANAGEMENT PROCESSES N/A RISK MANAGEMENT: A) DESCRIBE THE ORGANISATION’S PROCESSES FOR IDENTIFYING & ASSESSING CLIMATE RELATED RISKS METRICS & TARGETS: A) DESCRIBE THE METRICS USED BY THE ORGANISATION TO ASSESS CLIMATE RELATED RISKS & OPPORTUNITIES IN LINE WITH ITS STRATEGY & RISK MANAGEMENT PROCESS PP.26, 28-31 102-31: REVIEW OF ECONOMIC, ENVIRONMENTAL & SOCIAL TOPICS N/A GOVERNANCE: A) DESCRIBE THE BOARD’S OVERSIGHT OF CLIMATE- RELATED RISKS & OPPORTUNITIES GOVERNANCE: B) DESCRIBE MANAGEMENT’S ROLE IN ASSESSING & MANAGING CLIMATE RELATED RISKS & OPPORTUNITIES PP.29, 30, 48 102-32: HIGHEST GOVERNANCE BODY’S ROLE IN SUSTAINABILITY REPORTING N/A GOVERNANCE: A) DESCRIBE THE BOARD’S OVERSIGHT OF CLIMATE- RELATED RISKS & OPPORTUNITIES GOVERNANCE: B) DESCRIBE MANAGEMENT’S ROLE IN ASSESSING & MANAGING CLIMATE RELATED RISKS & OPPORTUNITIES RISK MANAGEMENT: A) DESCRIBE THE ORGANISATION’S PROCESSES FOR IDENTIFYING & ASSESSING CLIMATE RELATED RISKS P.06, 28, 29 102-33: COMMUNICATING CRITICAL CONCERNS N/A P.28 102-34: NATURE & TOTAL NUMBER OF CRITICAL CONCERNS N/A P.48 102-35: REMUNERATION POLICIES N/A P.28 ANNUAL REPORT 2021: PP.27-38 102-36: PROCESS FOR DETERMINING REMUNERATION N/A P.28 ANNUAL REPORT 2021: PP.27-38 102-37: STAKEHOLDERS’ INVOLVEMENT IN REMUNERATION N/A P.28 102-38: ANNUAL TOTAL COMPENSATION RATIO N/A P.28 102-39: PERCENTAGE INCREASE IN ANNUAL TOTAL COMPENSATION RATIO N/A P.28 58 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 GRi DiSCLOSURE iMPACT BOUNDARY SASB DiSCLOSURE TCFD DiSCLOSURE PAGE/REFERENCE/ MORE iNFORMATiON STAKEHOLDER ENGAGEMENT 102-40: LIST OF STAKEHOLDER GROUPS N/A P.48 102-41: COLLECTIVE BARGAINING AGREEMENTS N/A NO LIONTOWN EMPLOYEES ARE EMPLOYED ON COLLECTIVE BARGAINING AGREEMENTS. 102-42: IDENTIFYING & SELECTING STAKEHOLDERS N/A P.47 102-43: APPROACH TO STAKEHOLDER ENGAGEMENT N/A EM-MM-210A.3: DISCUSSION OF ENGAGEMENT PROCESSES & DUE DILIGENCE PRACTICES WITH RESPECT TO HUMAN RIGHTS, INDIGENOUS RIGHTS, & OPERATION IN AREAS OF CONFLICT EM-MM-210B.1: DISCUSSION OF PROCESS TO MANAGE RISKS & OPPORTUNITIES ASSOCIATED WITH COMMUNITY RIGHTS & INTERESTS 102-44: KEY TOPICS & CONCERNS RAISED N/A PP.22, 27, 28, 33, 38, 40, 41, 47, 48 REPORTiNG PRACTiCE 102-45: ENTITIES INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS N/A ANNUAL REPORT 2021: PP.47, 61 102-46: DEFINING REPORT CONTENT & TOPIC BOUNDARIES N/A PP.06, 55-65 102-47: LIST OF MATERIAL TOPICS N/A P.07 102-48: RESTATEMENTS OF INFORMATION N/A THERE ARE NO RESTATEMENTS OF INFORMATION AS THIS IS THE COMPANY’S FIRST ESG REPORT 102-49: CHANGES IN REPORTING N/A THERE ARE NO CHANGES IN REPORTING AS THIS IS THE COMPANY’S FIRST ESG REPORT 102-50: REPORTING PERIOD N/A P.06 102-51: DATE OF MOST RECENT REPORT N/A THIS IS THE COMPANY’S FIRST ESG REPORT 102-52: REPORTING CYCLE N/A ANNUAL REPORTING CYCLE 102-53: CONTACT POINT FOR QUESTIONS REGARDING THE REPORT N/A P.06 102-54: CLAIMS OF REPORTING IN ACCORDANCE WITH THE GRI STANDARDS N/A P.06 102-55: GRI CONTENT INDEX N/A PP.55-65 102-56: EXTERNAL ASSURANCE N/A P.06 59 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 GRi DiSCLOSURE iMPACT BOUNDARY SASB DiSCLOSURE TCFD DiSCLOSURE PAGE/REFERENCE/ MORE iNFORMATiON GRI 200: ECONOMIC GRI 201: ECONOMIC PERFORMANCE 2016 MANAGEMENT APPROACH MANAGEMENT APPROACH 2016: 103-1; 103-2; 103-3 N/A ANNUAL REPORT 2021 TOPiC SPECiFiC DiSCLOSURES 201-1: DIRECT ECONOMIC VALUE GENERATED & DISTRIBUTED LIONTOWN ANNUAL REPORT 2021: PP.48-64 201-2: FINANCIAL IMPLICATIONS & OTHER RISKS & OPPORTUNITIES DUE TO CLIMATE CHANGE LIONTOWN GOVERNANCE: B) DESCRIBE MANAGEMENT’S ROLE IN ASSESSING & MANAGING CLIMATE RELATED RISKS & OPPORTUNITIES STRATEGY: A) DESCRIBE THE CLIMATE RELATED RISKS & OPPORTUNITIES THE ORGANISATION HAS IDENTIFIED OVER THE SHORT, MEDIUM & LONG TERM STRATEGY: B) DESCRIBE THE IMPACT OF CLIMATE RELATED RISKS & OPPORTUNITIES ON THE ORGANISATION’S BUSINESSES, STRATEGY & FINANCIAL PLANNING RISK MANAGEMENT: A) DESCRIBE THE ORGANISATION’S PROCESSES FOR IDENTIFYING & ASSESSING CLIMATE RELATED RISKS RISK MANAGEMENT: B) DESCRIBE THE ORGANISATION’S PROCESSES FOR MANAGING CLIMATE RELATED RISKS RISK MANAGEMENT: C) DESCRIBE HOW PROCESSES FOR IDENTIFYING & ASSESSING & MANAGING CLIMATE RELATED RISKS ARE INTEGRATED INTO THE ORGANISATION’S OVERALL RISK MANAGEMENT METRICS & TARGETS: C) DESCRIBE THE TARGETS USED BY THE ORGANISATION TO MANAGE CLIMATE RELATED RISKS & OPPORTUNITIES & PERFORMANCE AGAINST TARGETS PP.29, 30, 43 201-3: DEFINED BENEFIT PLAN OBLIGATIONS & OTHER RETIREMENT PLANS LIONTOWN ANNUAL REPORT 2021: P.30 201-4: FINANCIAL ASSISTANCE RECEIVED FROM GOVERNMENT LIONTOWN ANNUAL REPORT 2021: P.44 GRI 202: MARKET PRESENCE 2016 MANAGEMENT APPROACH MANAGEMENT APPROACH 2016: 103-1; 103-2; 103-3 N/A PP.41, 42 TOPiC SPECiFiC DiSCLOSURES 202-2: PROPORTION OF SENIOR MANAGEMENT HIRED FROM THE LOCAL COMMUNITY LIONTOWN P.42 60 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 GRi DiSCLOSURE iMPACT BOUNDARY SASB DiSCLOSURE TCFD DiSCLOSURE PAGE/REFERENCE/ MORE iNFORMATiON GRI 300: ENVIRONMENTAL GRI 302: ENERGY 2016 MANAGEMENT APPROACH MANAGEMENT APPROACH 2016: 103-1; 103-2; 103-3 N/A METRICS & TARGETS: A) DESCRIBE THE METRICS USED BY THE ORGANISATION TO ASSESS CLIMATE RELATED RISKS & OPPORTUNITIES IN LINE WITH ITS STRATEGY & RISK MANAGEMENT PROCESS METRICS & TARGETS: C) DESCRIBE THE TARGETS USED BY THE ORGANISATION TO MANAGE CLIMATE RELATED RISKS & OPPORTUNITIES & PERFORMANCE AGAINST TARGETS PP.30, 43, 44 TOPiC SPECiFiC DiSCLOSURES 302-1: ENERGY CONSUMPTION WITHIN THE ORGANISATION LIONTOWN; CONTRACTORS EM-MM-130A.1: (1) TOTAL ENERGY CONSUMED; (2) PERCENTAGE GRID ELECTRICITY; (3) PERCENTAGE RENEWABLE P.44 LIONTOWN IS NOT CURRENTLY USING RENEWABLE ENERGY & DIESEL IS THE PRIMARY ENERGY CONSUMPTION IN OPERATIONS. 302-2: ENERGY CONSUMPTION OUTSIDE OF THE ORGANISATION LIONTOWN; CONTRACTORS P.44 302-3: ENERGY INTENSITY N/A THIS DISCLOSURE WILL ONLY BE RELEVANT ONCE PRODUCTION HAS COMMENCED 302-4: REDUCTION OF ENERGY CONSUMPTION N/A NOT APPLICABLE AS REDUCTION OF ENERGY CONSUMPTION STRATEGY HAS NOT COMMENCED 302-5: REDUCTIONS IN ENERGY REQUIREMENTS OF PRODUCTS & SERVICES N/A NOT APPLICABLE AS REDUCTION OF ENERGY CONSUMPTION STRATEGY HAS NOT COMMENCED GRI 303: WATER & EFFLUENTS 2018 MANAGEMENT APPROACH MANAGEMENT APPROACH 2016: 103-1; 103-2; 103-3 N/A METRICS & TARGETS: A) DESCRIBE THE METRICS USED BY THE ORGANISATION TO ASSESS CLIMATE RELATED RISKS & OPPORTUNITIES IN LINE WITH ITS STRATEGY & RISK MANAGEMENT PROCESS METRICS & TARGETS: C) DESCRIBE THE TARGETS USED BY THE ORGANISATION TO MANAGE CLIMATE RELATED RISKS & OPPORTUNITIES & PERFORMANCE AGAINST TARGETS PP.30, 36, 37 303-1: INTERACTIONS WITH WATER AS A SHARED RESOURCE N/A PP.36, 37 303-2: MANAGEMENT OF WATER DISCHARGE-RELATED IMPACTS N/A PP.36, 37 TOPiC SPECiFiC DiSCLOSURES 303-3: WATER WITHDRAWAL LIONTOWN EM-MM-140A.1: (1) TOTAL FRESH WATER WITHDRAWN THIS DISCLOSURE WILL ONLY BE RELEVANT ONCE PRODUCTION HAS COMMENCED 303-4: WATER DISCHARGE LIONTOWN THIS DISCLOSURE WILL ONLY BE RELEVANT ONCE PRODUCTION HAS COMMENCED 303-5: WATER CONSUMPTION LIONTOWN EM-MM-140A.1: (2) TOTAL FRESH WATER CONSUMED, PERCENTAGE OF EACH IN REGIONS WITH HIGH OR EXTREMELY HIGH BASELINE WATER STRESS THIS DISCLOSURE WILL ONLY BE RELEVANT ONCE PRODUCTION HAS COMMENCED 61 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 GRi DiSCLOSURE iMPACT BOUNDARY SASB DiSCLOSURE TCFD DiSCLOSURE PAGE/REFERENCE/ MORE iNFORMATiON GRI 305: EMISSIONS 2016 MANAGEMENT APPROACH MANAGEMENT APPROACH 2016: 103-1; 103-2; 103-3 N/A EM-MM-110A.2: DISCUSSION OF LONG-TERM & SHORT-TERM STRATEGY OR PLAN TO MANAGE SCOPE 1 EMISSIONS, EMISSIONS REDUCTION TARGETS, & AN ANALYSIS OF PERFORMANCE AGAINST THOSE TARGETS GOVERNANCE: B) DESCRIBE MANAGEMENT’S ROLE IN ASSESSING & MANAGING CLIMATE RELATED RISKS & OPPORTUNITIES RISK MANAGEMENT: A) DESCRIBE THE ORGANISATION’S PROCESSES FOR IDENTIFYING & ASSESSING CLIMATE RELATED RISKS RISK MANAGEMENT: B) DESCRIBE THE ORGANISATION’S PROCESSES FOR MANAGING CLIMATE RELATED RISKS RISK MANAGEMENT: C) DESCRIBE HOW PROCESSES FOR IDENTIFYING & ASSESSING & MANAGING CLIMATE RELATED RISKS ARE INTEGRATED INTO THE ORGANISATION’S OVERALL RISK MANAGEMENT METRICS & TARGETS: A) DESCRIBE THE METRICS USED BY THE ORGANISATION TO ASSESS CLIMATE RELATED RISKS & OPPORTUNITIES IN LINE WITH ITS STRATEGY & RISK MANAGEMENT PROCESS METRICS & TARGETS: C) DESCRIBE THE TARGETS USED BY THE ORGANISATION TO MANAGE CLIMATE RELATED RISKS & OPPORTUNITIES & PERFORMANCE AGAINST TARGETS PP.29-31, 43, 44 TOPiC SPECiFiC DiSCLOSURES 305-1: DIRECT (SCOPE 1) GHG EMISSIONS LIONTOWN EM-MM-110A.1: GROSS GLOBAL SCOPE 1 EMISSIONS, PERCENTAGE COVERED UNDER EMISSIONS- LIMITING REGULATIONS METRICS & TARGETS: B) DISCLOSE SCOPE 1, SCOPE 2, & IF APPROPRIATE, SCOPE 3 GREENHOUSE (GHG) EMISSIONS, & THE RELATED RISKS P.44 SCOPE 2 EMISSIONS WILL BE REPORTED AFTER THE FIRST FULL YEAR OF MINING OPERATIONS 305-2: ENERGY INDIRECT (SCOPE 2) GHG EMISSIONS CONTRACTORS METRICS & TARGETS: B) DISCLOSE SCOPE 1, SCOPE 2, & IF APPROPRIATE, SCOPE 3 GREENHOUSE (GHG) EMISSIONS, & THE RELATED RISKS THIS DISCLOSURE WILL ONLY BE RELEVANT ONCE PRODUCTION HAS COMMENCED 305-3: OTHER INDIRECT (SCOPE 3) GHG EMISSIONS CONTRACTORS METRICS & TARGETS: B) DISCLOSE SCOPE 1, SCOPE 2, & IF APPROPRIATE, SCOPE 3 GREENHOUSE (GHG) EMISSIONS, & THE RELATED RISKS LIONTOWN HAS YET TO DETERMINE A SCOPE 3 REPORTING METHODOLOGY 305-4: GHG EMISSIONS INTENSITY N/A THIS DISCLOSURE WILL ONLY BE RELEVANT ONCE PRODUCTION HAS COMMENCED 305-5: REDUCTION OF GHG EMISSIONS N/A NOT APPLICABLE AS EMISSIONS REDUCTION STRATEGY HAS NOT COMMENCED 305-6: EMISSIONS OF OZONE DEPLETING SUBSTANCES (ODS) N/A ODS ARE NOT APPLICABLE TO THE COMPANY’S OPERATIONS 305-7: NITROGEN OXIDES (NO X ), SULPHUR OXIDES (SO X ) & OTHER SIGNIFICANT AIR EMISSIONS LIONTOWN P.44 62 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 GRi DiSCLOSURE iMPACT BOUNDARY SASB DiSCLOSURE TCFD DiSCLOSURE PAGE/REFERENCE/ MORE iNFORMATiON GRI 306: WASTE 2020 MANAGEMENT APPROACH MANAGEMENT APPROACH 2016: 103-1; 103-2; 103-3 METRICS & TARGETS: A) DESCRIBE THE METRICS USED BY THE ORGANISATION TO ASSESS CLIMATE RELATED RISKS & OPPORTUNITIES IN LINE WITH ITS STRATEGY & RISK MANAGEMENT PROCESS METRICS & TARGETS: C) DESCRIBE THE TARGETS USED BY THE ORGANISATION TO MANAGE CLIMATE RELATED RISKS & OPPORTUNITIES & PERFORMANCE AGAINST TARGETS PP.29, 30, 45 306-1: WASTE GENERATION & SIGNIFICANT WASTE-RELATED IMPACTS LIONTOWN P.45 306-2: MANAGEMENT OF SIGNIFICANT WASTE-RELATED IMPACTS LIONTOWN P.45 TOPiC SPECiFiC DiSCLOSURES 306-3: WASTE GENERATED LIONTOWN EM-MM-150A.1: TOTAL WEIGHT OF TAILINGS WASTE, PERCENTAGE RECYCLED EM-MM-150A.2: TOTAL WEIGHT OF MINERAL PROCESSING WASTE, PERCENTAGE RECYCLED THIS DISCLOSURE WILL ONLY BE RELEVANT ONCE PRODUCTION HAS COMMENCED 306-4: WASTE DIVERTED FROM DISPOSAL LIONTOWN EM-MM-150A.1: TOTAL WEIGHT OF TAILINGS WASTE, PERCENTAGE RECYCLED EM-MM-150A.2: TOTAL WEIGHT OF MINERAL PROCESSING WASTE, PERCENTAGE RECYCLED THIS DISCLOSURE WILL ONLY BE RELEVANT ONCE PRODUCTION HAS COMMENCED 306-5: WASTE DIRECTED TO DISPOSAL LIONTOWN THIS DISCLOSURE WILL ONLY BE RELEVANT ONCE PRODUCTION HAS COMMENCED G4 SECTOR DiSCLOSURES: MiNiNG & METALS MM3: TOTAL AMOUNTS OF OVERBURDEN, ROCK, TAILINGS, & SLUDGES & THEIR ASSOCIATED RISKS LIONTOWN EM-MM-150A.1: TOTAL WEIGHT OF TAILINGS WASTE, PERCENTAGE RECYCLED EM-MM-150A.3: NUMBER OF TAILINGS IMPOUNDMENTS, BROKEN DOWN BY MSHA (MINE, SAFETY & HEALTH ADMINISTRATION) HAZARD POTENTIAL THIS DISCLOSURE WILL ONLY BE RELEVANT ONCE PRODUCTION HAS COMMENCED GRI 307: ENVIRONMENTAL COMPLIANCE 2016 MANAGEMENT APPROACH MANAGEMENT APPROACH 2016: 103-1; 103-2; 103-3 N/A P.49 TOPiC SPECiFiC DiSCLOSURES 307-1: NON-COMPLIANCE WITH ENVIRONMENTAL LAWS & REGULATIONS LIONTOWN EM-MM-140A.2: NUMBER OF INCIDENTS OF NON-COMPLIANCE ASSOCIATED WITH WATER QUALITY PERMITS, STANDARDS, & REGULATIONS P.49 63 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 GRi DiSCLOSURE iMPACT BOUNDARY SASB DiSCLOSURE TCFD DiSCLOSURE PAGE/REFERENCE/ MORE iNFORMATiON GRI 400: SOCIAL GRI 403: OCCUPATIONAL HEALTH & SAFETY 2018 MANAGEMENT APPROACH MANAGEMENT APPROACH 2016: 103-1; 103-2; 103-3 N/A P.33 403-1: OCCUPATIONAL HEALTH & SAFETY MANAGEMENT SYSTEM LIONTOWN P.33 403-2: HAZARD IDENTIFICATION, RISK ASSESSMENT, & INCIDENT INVESTIGATION LIONTOWN P.33 403-3: OCCUPATIONAL HEALTH SERVICES LIONTOWN THE COMPANY HAS NOT YET DESIGNED AN OCCUPATIONAL HEALTH SERVICES PROGRAM 403-4: WORKER PARTICIPATION, CONSULTATION, & COMMUNICATION ON OCCUPATIONAL HEALTH & SAFETY LIONTOWN P.33 403-5: WORKER TRAINING ON OCCUPATIONAL HEALTH & SAFETY LIONTOWN EM-MM-320A.1: (4) AVERAGE HOURS OF HEALTH, SAFETY, & EMERGENCY RESPONSE TRAINING FOR (A) FULL-TIME EMPLOYEES & (B) CONTRACT EMPLOYEES P.33 403-6: PROMOTION OF WORKER HEALTH LIONTOWN THE COMPANY HAS NOT YET DESIGNED A WORKER HEALTH PROGRAM 403-7: PREVENTION & MITIGATION OF OCCUPATIONAL HEALTH & SAFETY IMPACTS DIRECTLY LINKED BY BUSINESS RELATIONSHIPS LIONTOWN CONTRACTORS EMPLOYED BY THE COMPANY ARE INCLUDED IN THE COMPANY’S OHS MANAGEMENT TOPiC SPECiFiC DiSCLOSURES 403-8: WORKERS COVERED BY AN OCCUPATIONAL HEALTH & SAFETY MANAGEMENT SYSTEM LIONTOWN P.33 403-9: WORK RELATED INJURIES LIONTOWN EM-MM-320A.1: (1) MSHA ALL- INCIDENCE RATE, (2) FATALITY RATE, (3) NEAR MISS FREQUENCY RATE (NMFR) LIONTOWN EXPERIENCED NO FATALITIES IN FY21 403-10: WORK RELATED ILL HEALTH LIONTOWN THERE WERE NO CASES OF WORK RELATED ILL HEALTH IN FY21 GRI 405: DIVERSITY & EQUAL OPPORTUNITY 2016 MANAGEMENT APPROACH MANAGEMENT APPROACH 2016: 103-1; 103-2; 103-3 N/A P.38 TOPiC SPECiFiC DiSCLOSURES 405-1: DIVERSITY OF GOVERNANCE BODIES & EMPLOYEES LIONTOWN P.39 405-2: RATIO OF BASIC SALARY & REMUNERATION OF WOMEN TO MEN LIONTOWN P.39 64 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 GRi DiSCLOSURE iMPACT BOUNDARY SASB DiSCLOSURE TCFD DiSCLOSURE PAGE/REFERENCE/ MORE iNFORMATiON GRI 406: NON-DISCRIMINATION 2016 MANAGEMENT APPROACH MANAGEMENT APPROACH 2016: 103-1; 103-2; 103-3 N/A P.38 TOPiC SPECiFiC DiSCLOSURES 406-1: INCIDENTS OF DISCRIMINATION & CORRECTIVE ACTIONS TAKEN LIONTOWN P.38 GRI 411: RIGHTS OF INDIGENOUS PEOPLES 2016 MANAGEMENT APPROACH MANAGEMENT APPROACH 2016: 103-1; 103-2; 103-3 N/A EM-MM-210A.3: DISCUSSION OF ENGAGEMENT PROCESSES & DUE DILIGENCE PRACTICES WITH RESPECT TO HUMAN RIGHTS, INDIGENOUS RIGHTS, & OPERATION IN AREAS OF CONFLICT PP.22, 38, 41, 42 LIONTOWN DOES NOT OPERATE IN AREAS OF CONFLICT TOPiC SPECiFiC DiSCLOSURES 411-1: INCIDENTS OF VIOLATIONS INVOLVING RIGHTS IF INDIGENOUS PEOPLES LIONTOWN P.41 G4 SECTOR DiSCLOSURES: MiNiNG & METALS MM5: TOTAL NUMBER OF OPERATIONS TAKING PLACE IN OR ADJACENT TO INDIGENOUS PEOPLES’ TERRITORIES, & NUMBER & PERCENTAGE OF OPERATIONS OR SITES WHERE THERE ARE FORMAL AGREEMENTS WITH INDIGENOUS PEOPLES’ COMMUNITIES LIONTOWN EM-MM-210A.2: PERCENTAGE OF (1) PROVED & (2) PROBABLE RESERVES IN OR NEAR INDIGENOUS LAND PP.41, 42 TOTAL NUMBER OF OPERATIONS EQUAL THREE GRI 413: LOCAL COMMUNITIES 2016 MANAGEMENT APPROACH MANAGEMENT APPROACH 2016: 103-1; 103-2; 103-3 N/A EM-MM-210B.1: DISCUSSION OF PROCESS TO MANAGE RISKS & OPPORTUNITIES ASSOCIATED WITH COMMUNITY RIGHTS & INTERESTS EM-MM-210B.2: NUMBER & DURATION OF NON-TECHNICAL DELAYS PP.22, 41, 42 THERE WERE NO NON-TECHNICAL DELAYS IN FY21 TOPiC SPECiFiC DiSCLOSURES 413-1: OPERATIONS WITH LOCAL COMMUNITY ENGAGEMENT, IMPACT ASSESSMENTS, & DEVELOPMENT PROGRAMS LIONTOWN PP.41, 42 413-2: OPERATIONS WITH SIGNIFICANT ACTUAL & POTENTIAL NEGATIVE IMPACTS ON LOCAL COMMUNITIES LIONTOWN PP.41, 42 G4 SECTOR DiSCLOSURES: MiNiNG & METALS MM6: NUMBER & DESCRIPTION OF SIGNIFICANT DISPUTES RELATING TO LAND USE, CUSTOMARY RIGHT OF LOCAL COMMUNITIES & INDIGENOUS PEOPLES LIONTOWN THERE WERE NO DISPUTES RELATING TO LAND USE IN FY21 MM7: THE EXTENT TO WHICH GRIEVANCE MECHANISMS WERE USED TO RESOLVE DISPUTES RELATING TO LAND USE, CUSTOMARY RIGHTS OF LOCAL COMMUNITIES & INDIGENOUS PEOPLES, & THE OUTCOMES LIONTOWN NOT APPLICABLE. THERE WERE NO DISPUTES RELATING TO LAND USE IN FY21 65 LIONTOWN RESOURCES —— ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT FY2021 GRi DiSCLOSURE iMPACT BOUNDARY SASB DiSCLOSURE TCFD DiSCLOSURE PAGE/REFERENCE/ MORE iNFORMATiON GRI 419: SOCIOECONOMIC COMPLIANCE 2016 MANAGEMENT APPROACH MANAGEMENT APPROACH 2016: 103-1; 103-2; 103-3 N/A P.49 TOPiC SPECiFiC DiSCLOSURES 419-1: NON-COMPLIANCE WITH LAWS & REGULATIONS IN THE SOCIAL & ECONOMIC AREA LIONTOWN P.49 ADDITIONAL TOPICS IDENTIFIED AS MATERIAL THAT HAVE NO TOPIC SPECIFIC DISCLOSURES IN THE GRI STANDARDS GOVERNANCE, ETHiCS, iNTEGRiTY & TRANSPARENCY MANAGEMENT APPROACH 2016: 103-1; 103-2; 103-3 LIONTOWN EM-MM-510A.2: DESCRIPTION OF THE MANAGEMENT SYSTEM FOR PREVENTION OF CORRUPTION & BRIBERY THROUGHOUT THE VALUE CHAIN PP.26-30 STAKEHOLDER ENGAGEMENT MANAGEMENT APPROACH 2016: 103-1; 103-2; 103-3 LIONTOWN PP.47, 48 66 LiONTOWN RESOURCES LiMiTED ABN 39 118 153 825 LEVEL 2, 1292 HAY STREET WEST PERTH, WA, 6005 AUSTRALIA T +61 8 6186 4600 LTRESOURCES.COM.AU Core samples at Kathleen Valley Photograph: Tony McDonough

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