Excellon Resources’ 2021-2022 TSM performance highlights include a level A for most indicators for the eight protocols reported for both operations units in Mexico. The Company’s strongest performance was in the Aboriginal & Community Relationships, Safety and Health, Tailing Management, Energy and GHG management, and Water Stewardship Protocols.

Both units in Mexico used the 2019 version of the Indigenous and Community Relationships protocol. Our self-assessment scores for 2021 to October 2022 were A to AA level (except for the indicator: Effective Indigenous Engagement and Dialogue, which context does not apply to any of our projects).

The Community of Interest (COI) groups are periodically revised and updated as needed. An annual communication program is in place to gather the COI’s perception and feedback regarding the Company. In the last four years, the Company has implemented a program called Excellon Te Escucha and an anonymous grievance mechanism that has helped improve conflict resolution with local communities and other stakeholders.

Protecting the health and safety of employees and contractors is part of Excellon’s culture and a non-negotiable aspect of our business. The 2021-2022 years were unique, challenging times due to COVID-19. Nevertheless, Excellon’s health and safety team demonstrated remarkable resilience and improved from level B to level A in most of the indicators reported for the Safety and Health protocol.

The Company has been working on implementing the MAC Tailing Management Framework. Proudly, now Excellon can confirm the Tailings Management System implemented at our Miguel Auza unit meets the MAC requirements. A third international consulting firm developed a dam Breach Analysis, an Annual Safety Inspection, and an updated Operation, Maintenance, and Surveillance Manual for our Tailing Management Facility II.

For the beginning of 2022, for the first time, the Company put in place a program to share with the COI our Corporate Responsibility (CR). Policy which includes Tailing Management as a key environmental aspect of our operations. This program will be gradually implemented and will depend on the Company’s plans for the unit.

Other areas with improved performance are Energy and Green House Gases (GHG) management and Water Stewardship, which scored mostly A. For both units, the GHG emissions were less than 250,000 GJ, so we were not required to report on indicators 1 or 3 of this protocol.

Understanding that the water aspect has a special concern in the area, since the beginning of operations, the Company has placed the responsibility for the water administration of both units at a senior manager level.

More than 50% of the water used in the processing plant is recycled in Miguel Auza. In Platosa, the water management has been carefully designed to avoid water waste at all costs, keeping daily records of the pumping water system from La Platosa and working closely with the local stakeholders whose main interest is using this water.

To improve our operation’s performance levels, the Company will continue reviewing and updating policies and operation standards to ensure that we cover all aspects required by the TSM’s protocols, with special attention to Climate Change management. We are planning to review the CR Policy and devise a strategy with defined actions and targets to improve the Climate change aspect.