The Cyanide Code is a voluntary industry program for companies involved in the primary production of gold or silver using cyanide and companies producing and transporting this cyanide. Minera Penmont is a signatory of the Cyanide Code.

Minera Penmont, believes that open dialogue and public education on cyanide are important tools to improve understanding of the subject. Minera Penmont maintains dialogues with local communities to disseminate practices applied in cyanide management and invite members of communities to raise their questions and concerns.

The principles and objectives of the International Cyanide Management Code reflect the commitment made by Minera Penmont under the following criteria:

• Purchase cyanide from manufacturers employing appropriate practices and procedures to limit exposure of their workforce to cyanide, and to prevent releases of cyanide to the environment

• Protect communities and the environment during cyanide transport

• Protect workers and the environment during cyanide handling and storage, by integral training appropriate workers and personnel to respond to worker exposures and environmental releases of cyanide

• Train workers and emergency response personnel to manage cyanide in a safe and environmentally protective manner, by prepare detailed emergency response plans for potential cyanide releases

• Protect communities and the environment from cyanide through development and implementation of decommissioning plans for cyanide facilities

• Emergency response systems: protect communities and the environment through the development of emergency response strategies sand capabilities

• Dialogue and participate in a public consultation. The disclosure of our operations provide stakeholders the opportunity to communicate issues of concern

• Permanent monitoring and reporting to government authorities

• Independent audits

Engaging communities on responsible cyanide management is essential

As part of the requirements of the Code certification process, the Minera Penmont team, coordinated by Health, Safety, Environment, and Community Relations staff, identifies opportunities to communicate with our stakeholders. We have a permanent program in which we receive families and other community members in our facilities and provide them with information focused on our HESCR Management System and on risks, dangers and responsible cyanide management processes. In 2015 and 2016 we received 1656 people. During the first half of 2017 we have received 399 people.

We actively engage with the Red Cross, the Mexican Social Security Institute (IMSS), the Ministry of Health (SSA), the Firefighters Department of Caborca and the National Emergency Commission for emergency preparedness where we explain our approach to safely manage cyanide and how we are prepared for emergencies.

Moreover, partnering with health authorities and through Chemours, our suppliers specialized in handling and transportation of cyanide, 21 physicians were benefited by participating in the workshops for medical training to respond to cyanide poisoning,

The objective of the workshop is to ensure a correct application of the antidote for cyanide poisoning; the topics covered were:

• Symptoms and signs of CN poisoning

• Chemistry and biochemistry of intoxication

• Pharmacokinetic of cyanide

• Medical evaluation

• First aid

• Treatments

During the week of “World Safety Day”, we organized workshops in the community with the topic: SODIUM CYANIDE: EMERGENCIES WITH HAZARDOUS MATERIALS, where more than 200 people attended. The workshop was delivered by Engineer Gilberto Martinez, specialist in the matter from the prestigious Texas A&M TEEX training center in Houston. Civil protection authorities as Firefighters, Red Cross, and National Emergency Commission participated once again along with students from the University of Sonora from the areas of Chemistry-Biology, Mining and Industrial Engineering.