Baffinland’s overall approach to responsible operations and its core values align well with the overarching expectations of Towards Sustainable Mining. Working closely with the affected communities and other stakeholders, Baffinland is committed to operating the Mary River Mine in an environmentally and socially responsible manner.

Baffinland’s focus continues to be on avoiding or minimizing the environmental impacts of its operations while enhancing the many benefits the Project brings to an economically depressed area of Canada. Expansive environmental and socio-economic monitoring programs, management plans, policies and procedures are deployed to safeguard the land and people in the Qikiqtaaluk Region. These efforts incorporate industry-leading marine and terrestrial mitigation measures, based on a combination of scientific and traditional Inuit knowledge, also known as Inuit Qaujimmajatuqangit (IQ). Baffinland supports socio-economic development through Inuit employment, training, career advancement, and local contracting, demonstrating meaningful community benefits and positive impacts on skills, livelihoods, and regional economic opportunities.

Baffinland commenced operations in the fall of 2014, marking 2025 the 11^th  year that the Company has mined and shipped iron ore through the Milne Port. Six million tonnes per annum transportation limits were permitted along the Northern Transportation Corridor between 2018 and 2024.In 2025, Baffinland pivoted to focus on optimizing the operation at a 4.2 mtpa throughput and advance the Steensby Component of the Approved Project. In 2026, the Company has maintained a laser focus on the Steensby Component, which includes the Steensby Railway extending between the Mine Site and a Port in Steensby Inlet (Steensby Port) and shipping along the Southern Shipping route. The construction and operation of the Steensby Components will  enable increased mining and a longer shipping period, alongside the potential to reduce emission intensity by optimizing ground transportation via railway.

Baffinland is committed to achieving sustainability-driven operational excellence, underpinned by our company Mission, Vision and Values. We are committed to meeting the rigorous environmental and socio-economic expectations for operating a mine in Nunavut. This includes compliance with our terms and conditions and commitments within the Nunavut Impact Review Board Project Certificate No. 005, the Nunavut Water Board-issued water license(s), and the Inuit Impact and Benefit Agreement as well as the Commercial Lease Agreement between Baffinland and the Qikiqtani Inuit Association (QIA). Additionally, we adhere to the requirements outlined in multiple federal and territorial authorizations and regulations.

Accordingly, Baffinland has consistently performed well on most of the protocols applicable to its operations (excludes Tailings Management Protocol reporting since no tailings are produced at the Mary River Mine), with most indicator scores ranging between “A” and “AAA”. There are challenges to operating in a remote, harsh arctic environment where there is no opportunity to connect to an existing power grid. The mine thus relies on diesel for power generation and for operation of mobile equipment. Since 2019, Baffinland has implemented a robust fuel reduction initiative as part of its continuous improvement plan, in line with the company’s GHG reduction goals. This initiative continues to be part of current operations and ongoing expansion projects.

Baffinland has demonstrated AAA across “Communities of Interest” since 2017

and continues to make this one the primary focus of the organization for maintaining strong social license to operate.

Baffinland is proud to be the first mine in Canada to offer mental health services 24/7 to employees at site. Baffinland has taken this industry-leading step to support employee mental health and the commitment is making a real difference, in an environment where rotational work can be challenging. 

In 2023, Baffinland completed its second external verification of 2023 TSM self-assessment results. The process included document review, site-based interviews, Community of Interest interviews, and reporting. The verifier confirmed that the many sustainability programs developed by the Company were established to meet the strict regulatory regime of operating a mine in Nunavut, which in so doing, supports the strong TSM performance in “Indigenous and Community Relationships”, “Biodiversity Conservation Management” and “Water Stewardship” protocols.

In 2025, Baffinland published its inaugural self-assessment results under the Equity, Diversity and Inclusion in Workplaces protocol. The Company achieved an AA rating for the corporate indicator, reflecting a well-established strategy and comprehensive implementation plans to support a more equitable, diverse, and inclusive workplace. At the facility level, Baffinland demonstrated measurable progress in advancing and implementing effective processes, resulting in an AA rating. Baffinland’s long-standing commitment to rigorous monitoring, reporting, and performance evaluation is further evidenced by a AAA rating within this indicator.

The self-assessment results for the year are consistent with the findings of the 2023 External Verification.

In 2026, Baffinland remains committed to strong performance, adopting of leading practices, and implementing goals identified through the 2023 External Verification process.