Hummingbird Regulatory News (HUM)

Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector: Mining

06 June 2023

Hummingbird Resources plc

("Hummingbird" or the "Company")

2022 Sustainability Report

Hummingbird Resources plc ("Hummingbird" or the "Company") (AIM: HUM), is pleased to announce the release of the Company's 2022 Sustainability report. The full report can be viewed on the Company's website https://www.hummingbirdresources.co.uk/.

Key highlights:

· Measurable and significant benefits to the host countries which Hummingbird operates in:

o  $438,123 spent on community and livelihood projects in Mali

o  0.84 LTIFR with 0 fatalities at Yanfolila, Mali

o  >2.5 million lost time injury ("LTI") free hours in 2022 at Kouroussa Gold Project in Guinea

o  $15.2 million of estimated economic contribution to host nations in taxes and duties

o  85% of process water recycled

o  90% national employment at operations

o  10,000 trees planted annually in Yanfolila through the Hummingbird Tree Initiative

· Responsible gold mining focus, with several key achievements:

o  Successfully achieved full compliance with the World Gold Council's Responsible Gold Mining Principles ("RGMPs"). The result of significant work over the past three years on improving ESG integration and monitoring, this is a significant step on the ESG journey which the Company can take pride in.

o  Improved measurement practices for GHG emissions, with continued assessment of options for reducing the carbon intensity across the Company's' operations. Key emissions reduction strategies include a 7MW solar PV system and heat recovery system to be installed at the Kouroussa site, which is expected to have a significant impact on emissions, while also saving cost.

o  Continued to support initiatives which are having a positive impact on the ground, working in tandem with community needs. Initiatives including water infrastructure to provide vital sources of water, the market garden programme to provide an alternative source of livelihood for around 900 people in local communities, primarily women, continued sponsorship of teachers to support the education system, the ongoing poultry farm project which provides skills for young people, spraying programmes to prevent malaria, and improvements to local road infrastructure. The Hummingbird Tree Initiative now successfully plants 10,000 trees a year, creating a source of income while providing skills in plant propagation.

o  The Single Mine Origin (SMO) Gold initiative, of which Hummingbird is a founding member, continued to be adopted by miners and manufacturers in 2022. The SMO certification provides assurance of our responsible operation for our whole supply chain, including end consumers.

Dan Betts, Interim Chair and CEO of Hummingbird, commented:

"I am pleased to share with you progress we have made over the past year and beyond on sustainability issues, demonstrating our ongoing commitment to improving our performance as we continue to advance towards a high level of Environmental, Social and Governance ("ESG") disclosure. Strong ESG performance is essential to the sustainable success of our business, as it underpins our social licence to operate, and serves as the foundation of our important relationships with the communities and governments of our host nations. Our core value of responsible mining underpins our internal practices, and our focus on providing a positive lasting legacy in the regions where we operate.''

Sustainability Report Highlights

Hummingbird's 2022 Sustainability Report has been prepared with guidance from an external sustainability consultancy firm. A materiality assessment process reviewed key issues for the mining sector in order to determine their materiality to the company. The determination of material topics and their importance in turn inform the disclosures in the Sustainability Report (''Report''), ensuring that the Report addresses all topics which are determined to be most material to mining companies by recognised ESG frameworks.. In future reports, we will consider different frameworks to align our sustainability disclosures against in addition to the RGMPs and intend for our 2023 sustainability report to be our first report to address the recommendations of the Task force on Climate-related Financial Disclosures ("TCFD").

Environment

Our approach to environmental management is to avoid, reduce, mitigate, and compensate our impacts wherever possible, with our objective being to protect and conserve the natural environment, and to continually improve our performance.

Greenhouse gas ("GHG") emissions and energy efficiency.

* Numbers are displayed in rounded form meaning sum totals may differ by a value of 1

Water management. 

· Water is essential for mining activities and is used at many different stages in our operations, including ore processing. Good management of water and robust water efficiency measures are critical for protecting the surrounding environment, and for ensuring that there is enough water for other users.

Yanfolila Water Management

Tailing storage facility ("TSF") management. 

· Tailings are the residual by-product of mining activities, and are stored in Tailings Storage Facilities (TSF). Tailings facilities need to be properly managed in order to ensure their stability and to prevent seepage, given that tailings contain residual hazardous chemicals from processing activities. Due to the significant environmental impact they can have, good management of tailings is one of our highest priorities.

· The Yanfolila TSF is subject to monthly internal review and monitoring, a third-party review of the dam's design, and construction and continued operation is completed in compliance with the Global Industry Standard on Tailings Management (GISTM). The TSF is independently audited quarterly by a chartered engineer, and independently audited annually by Knight Piésold, a specialist geotechnical consultancy, in order to ensure alignment with established international standards and practices, and to make any recommendations for changes in operating practices.

· Knight Piésold designed and was the engineering company for the TSF construction at the Kouroussa project. Once in operations, the Kouroussa TSF will mirror the same tailings management as at Yanfolila.

Biodiversity. 

· Our mines are located at sites with ecological and biodiversity-related sensitivities, with the potential for our operations to have a significant impact on local wildlife and ecology. In accordance with our Environmental Policy, we are committed to avoiding or mitigating our biodiversity impacts, and we seek to rehabilitate and protect the environments where our operations are located. We do not undertake exploration or mining activities on UNESCO World Heritage Sites.

Our management of biodiversity begins during the planning stage of each project, with environmental procedures and protections integrated into ongoing plans. Each site is subject to an Environmental and Social Impact Assessment (ESIA) from an early stage, followed by the development of Biodiversity Management Plans (BMP). ESIAs help us to determine the impacts our operations may present, which in turn informs our environmental approach for each site.

o  At the Yanfolila site, a number of ESIA studies have been completed over the years, including an ESIA study in 2013 followed by an independent Rapid Wildlife Assessment in 2015, an ESIA study in Sanioumale East in 2021 ahead of the 2022 resettlement programme and an ESIA study in 2022 at the Komana East Underground Location.

o  An ESIA was performed at the Kouroussa site as a prerequisite to obtaining environmental authorisation for mine development. An updated ESIA report was the initiated in 2020, which provided the basis for the site's Biodiversity Management Plan.

o  In 2022 an ESIA was completed for the Dugbe site by Pasofino, in accordance with the Liberian Environmental Protection Agency's (EPA) Environmental and Social Impact Assessment Procedural Guidelines (2017). The ESIA involved primary environmental and social data collection by a team of Liberian and international specialists, and built on data available from the previous ESIA study of the site completed in 2015.

Following the ESIA, an Environmental and Social Management Plan (ESMP) has been developed that outlines the management required to mitigate negative impacts and optimise positive impacts from the project, which along with the ESIA has been submitted to the Liberian EPA.

Social and country economic highlights

Local communities. 

· Education at Yanfolila, Mali

o  Since 2016 we have sponsored 12 teachers at local schools to assist in the delivery of education to some of Mali's poorest rural communes, improving the education system in a region covering 10 villages. At the Sanioumale site, we have recently provided salaries for three teachers, and paid for the construction of three additional classrooms.

o  We have additionally partnered with Malian NGOs to offer vocational training programmes to youths, with topics including both trade skills and basic business schools.

· Market Gardens

o  Since commencing operations at Yanfolila, we have supported the development of local community market gardens servicing 16 villages. In the communities surrounding the Yanfolila mine, these provide sustainable alternative livelihoods and agricultural skills for over 900 people, mainly local women.

o  We provide support for water infrastructure and the wells required to operate the garden, building infrastructure and maintenance and supplying tools and training in agriculture techniques.

o  Planning is underway for future community livelihood programmes at Kouroussa, with an agreement reached with the community to develop a market garden programme with accompanying wells.

Community Healthcare

o  In partnership with Critical Care International ("CCI") we continued to deliver our annual malaria Indoor Residual Spraying ("IRS") campaigns.

o  The IRS treated five satellite villages of the mine during the rainy season, Bougoudalé, Tiémba, Lèba, Soloba and Komana, with a total of over 2,000 structures sprayed and 10,457 individuals protected.

o  Hummingbird also supported the construction and continues to support the running of a community health centre in Bougoudalé, details of which are given on page 33.

o  Additionally, through CCI we run educational workshops to inform employees and local communities on topics including infectious disease, maternity, and sexual health.

o  A summary of expenditures in 2022 at Yanfolila on both community investments and livelihood projects is given below:

Training

All employees and contractors are required to complete Hummingbird's safety training modules in hazard awareness, job safety analysis, basic fire response, and first aid and chemicals awareness. We provide role-specific training for roles with higher risk, including for the handling of cyanide. Site safety managers are responsible for maintaining safety training records.

In 2022, training hours were 13,464 (2021: 6,230 hours) above our target of 11,400 hours annually. In 2023,

we expect to continue to meet our safety training target.

Training Hours

Local and national employment focus. 

· The involvement of local people working within our mine and across our projects is central to our vision of sustainable and responsible mining. We prioritise local and national recruitment at both sites to help build talent and skills in our organisation and to contribute to our positive impact on local, regional, and national economies and communities.

· At both operational sites we are committed to ongoing nationalisation plans for all positions and national succession plans for roles currently held by international employees.

· At Yanfolila, 94% of all site employees, including contractors, are Malian nationals. Out of all Malian employees, 37% are from local communities, an improvement on 35% in 2021.

· At Kouroussa, 83% of all site employees, including contractors, are Guinean nationals. Out of all Guinean employees, 63% are from local communities.

Ethical business

Anti-bribery and Corruption

At Hummingbird, we have no tolerance for bribery and corruption. Bribery is a crime which has a major negative economic, political and environmental impact on societies, and diverts public resources from priorities such as education, infrastructure and health.

Our Anti-bribery and Corruption Policy is part of the Code of Conduct, which is shared with and signed by all employees upon commencement. This policy applies to all employees and provides instruction on the principles and behaviours in relation to bribery which must be adhered to. The policy details the whistleblowing channels through which concerns can be raised, and includes an option for confidential reporting of incidents.

We require all employees to complete anti-bribery training upon commencement and sign a declaration in relation to Conflict of Interest and the Gift & Hospitality register, and complete updated training annually. Training courses cover our expectations of employee behaviour, and how to effectively recognise and report instances of potential misconduct.

We have Code of Conduct and Anti-bribery and Corruption classroom trainings at sites, run by our HR teams, in order to ensure that employees who do not have access to computers, who are on rotation, or who have low literacy have access to regular training.

Whistleblowing

We take any misconduct in relation to our Policies seriously, and intends to maintain a culture of openness and accountability. Employees at all levels are encouraged to speak up in relation to suspected wrongdoing on issues including bribery, corruption, dangers to health and safety, or any other breach of internal policies and procedures. Our Whistleblowing Policy recommends that staff raise issues with their line managers, and includes a confidential line of reporting available at all hours, with contact options for email and phone included to report issues directly to the Chair of the Audit Committee, the Company Secretary, and the CEO.

Modern Slavery

In compliance with the UK Modern Slavery Act 2015, Hummingbird publishes an annual Modern Slavery Statement, approved by the Board, which describes the steps taken towards seeking to ensure that there is no slavery or human trafficking within our business or at any stage of the supply chain. Respect for human rights and total compliance with laws on forced labour and trafficking are conditions of our Supplier Code of Conduct, with due diligence carried out on key suppliers as part of the tender process. There were no reported cases of modern slavery during 2022 for Hummingbird.

Qualified persons

"We're pleased to have worked closely with Hummingbird Resources on the development of their 2022 Sustainability Report, and to have created a report which reflects the efforts made by the company towards having a positive lasting impact on the people and environments of its host nations. As part of preparing the report Sillion carried out a materiality assessment, and calculated Hummingbird's Scope 1 and 2 greenhouse gas emissions for the first time, preparing these in line with the GHG Protocol Corporate Accounting and Reporting Standard. We're looking forward to assisting Hummingbird further as the company continues on its sustainability journey."

- Joe Beviss, Senior Sustainability Consultant, Sillion

**ENDS**

Notes to Editors:

Hummingbird Resources plc (AIM: HUM) is a leading multi-asset, multi-jurisdiction gold producing Company, member of the World Gold Council and founding member of Single Mine Origin (www.singlemineorigin.com). The Company currently has two core gold projects, the operational Yanfolila Gold Mine in Mali, and the Kouroussa Gold Mine in Guinea, which will more than double current gold production when in production, scheduled for first gold pour the end of Q2 2023. Further, the Company has a controlling interest in the Dugbe Gold Project in Liberia that is being developed by joint venture partners, Pasofino Gold Limited. The final feasibility results on Dugbe showcase 2.76Moz in Reserves and strong economics such as a 3.5-year capex payback period once in production, and a 14-year life of mine at a low AISC profile. Our vision is to continue to grow our asset base, producing profitable ounces, while central to all we do being our Environmental, Social & Governance ("ESG") policies and practices.

For further information, please visit hummingbirdresources.co.uk or contact: