Underground mining, page-2

https://www.talgagroup.com/irm/PDF/47146b39-9c1e-42ef-830e-15ef895e5b63/RobustDFSPavesWayForTalgaBatteryAnodeProject

"Sweco Sverige AB Hydrogeology & Surface Water Natura 2000 Consultant"

"The Mine parameters outlined in the DFS focus on a high-grade low-volume operation designed to leave a minimal environmental foot-print upon closure. A detailed Environmental Impact Assessment (EIA) of the Mine operation has been completed and the Environmental Permit application, along with a Natura 2000 impact assessment, was submitted to Swedish authorities in May 2020. A subsequent application for a Natura 2000 permit has been submitted to the relevant agency."

"The licenses are wholly-owned by the Company and are located in forested areas. The area is used for seasonal grazing by local indigenous Sami reindeer herders. The Natura 2000 registered Torne River is located approximately 1km to the south of the current MRE for Nunasvaara South."

"Within the concession area there are established indigenous rights to practice reindeer herding during the winter season with several cooperatives (Sameby) operating in the area."

"This includes a Consultation Plan, already in place, for initial consultation for the Environmental permit and Natura 2000 permit."

"The EIA process should continue to progress as required. For permitting there are risks in achieving consent from the indigenous people. Proper engagement by the developer has been undertaken throughout the project development."

"Applications for both the Exploitation Concession and Environmental Permit were submitted to government authorities May 2020 followed by Natura 2000 permit in February 2021. Assessment of the applications by agencies and the relevant court are expected to take, based on the timing of other assessments, 12 to 18 months."

"The primary permits required to enable development of the mine are an Exploitation Concession (under the Minerals Act) and an Environmental Permit (under the Environmental Code). Due to the location of the mine within the catchment of the Torne and Kalix river system Natura 2000 conservation area, the Environmental Permit considered potential impacts to the Natura 2000 area and a Natura 2000 permit application has been submitted."

"Key risks are achieving consent from the indigenous people and diligently minuting all interactions with these key stakeholders."

"Consultation has been completed with the Sami indigenous groups and constraints have been put on the mining schedule to ensure seasonal reindeer migration and husbandry will be maintained. This includes a commitment to avoid mining activities during periods of the year during which the reindeer movements are expected."

"Active management and monitoring will be required of sedimentation in runoff, discharge from pits and augmentation of the water levels in the lake. Sampling will be required throughout the mine life and beyond to monitor the protection of the Natura 2000 site which is down gradient of some discharge points to the environment."

"Air quality and noise modelling do not predict unmitigable impacts. Mitigation for noise including noise barriers to protect a nature conservation area during construction and during the first phase of production."

"Certain risks have been identified as a requirement for water discharge management and control for Mining infrastructure in context with the potential to impact on the Natura 2000 site (Torne and Kalix River). These areas are being addressed as part of the Environmental Management Plan as the project develops."

"Groundwater modelling has been completed in steady state for a worst-case scenario to inform the EIA. A review is planned to evaluate any further scenarios and combined effects that will be required to inform groundwater management."

"Protected areas will be avoided by the project. Areas with natural values (class 2 and class 3), including those that contain vulnerable species, will be compensated during operations. Any short-term impacts will be rehabilitated following closure. A Natura 2000 assessment has been completed. Further habitat assessments in line with IFC Performance Standards guidelines for natural habitat or critical habitat and related mitigations are planned. A review of red listed species has been completed and various species and habitat surveys are ongoing or planned."