Liqhobong mine has established a Residue Storage Facility (RSF), and three separate water storage facilities as follows:

All water on site is recycled within its closed system and the RSF3 is not used as a water storage facility.

The following factors are important:

• Construction – The RSF3 was designed by a reputable professional civil engineer and built as a single-compartment valley-type storage facility. The facility is fully impounded with an engineered downstream embankment, which is constructed with coarse tailings and waste rock, while the basin is filled with slimes and grits. Ongoing downstream construction of the impoundment embankment, as mining continues, ensures that the factor of safety against side slope instability increases as the facility increases in height. In addition, stormwater and pool control measures are implemented, and the supernatant water is decanted from the basin daily. The water is stored in dedicated, designated water storage facilities for reuse in the process plant. All households living downstream of the RSF3 and within the zone of influence were voluntarily relocated as part of the Liqhobong Mine Development Project between 2014 and 2016.

• Standards – The RSF3 is managed as per the Global Industry Standard on Tailings Management. The Standard aims at strengthening current practices in the mining industry by integrating social, environmental and technical considerations over the entire tailings facility lifecycle, with the ultimate goal of achieving zero harm to people and the environment. The Standard sets a global benchmark for achieving strong social, environmental and technical outcomes. It elevates accountability to the highest organisational levels and adds new requirements for independent oversight. The Standard also establishes clear expectations around transparency and public disclosure, helping to improve understanding by interested stakeholders.

The Mine has conducted a comprehensive dam breach assessment, undertaken by an independent specialist, to ensure full compliance with the GISTM consequence classification. The Mine has also updated its emergency preparedness and response plan with the findings of the dam breach assessment. Ongoing engagement with downstream interested and affected parties continues to take place as part of the Mine’s normal social and environmental stakeholder engagement process. Further details are available in the Company’s most recent Sustainable Development Report which is available on this website.

The design capacity of the RSF3 is:

WHY IS IT MATERIAL TO US

Failures of Residue Storage Facilities (RSFs), also known as tailings dams or slimes dams, have received increased attention over the past five years due to notable global dam failure incidents which resulted in the loss of life and caused environmental damage. These events underscore the critical importance of implementing the GISTM, to achieve the overarching objective of zero harm to people, the environment, and infrastructure. We prioritise the safety of our team members and communities by diligently addressing potential risks associated with our RSF, emphasising that comprehensive risk management is imperative throughout the entire life cycle of the facility.

The independently conducted Dam Break Analysis for Liqhobong indicates that the RSF3 does not present a credible failure risk due to the embankment width and height of the downstream construction.

Firestone supports the implementation of the GISTM, sponsored by the United Nations Environment Programme (UNEP), Principles for Responsible Investing (PRI) and the International Council on Mining and Metals (ICMM) as best practice. We also acknowledge the work of the Church of England and Swedish state investment funds in driving the development and implementation of this standard.

OUR APPROACH AND PROGRESS

Firestone upholds a firm commitment to ensuring the safe management of our RSF3, with the overarching goal of zero harm to employees, surrounding communities, infrastructure, and the environment. This commitment is realised through implementing risk management-based policies, procedures, and standards, spanning the entire life cycle of our facility – from initial project conception and design, through operation and ongoing construction, to eventual closure and post-closure phases.

Firestone has established appropriate governance structures and appointed key personnel, including the Accountable Executive, Responsible Tailings Facility Engineer, Engineer of Record, and an external Senior Independent Technical Reviewer, in strict accordance with the GISTM guidelines. These roles are meticulously defined with clear delineation of accountabilities and responsibilities as outlined in our standards.

Firestone’s progress in implementation of the GISTM is set out in its most recent Sustainable Development Report which is available on this website.

Firestone has also implemented Critical Control Management, ensuring rigorous oversight of critical controls integral to the overall safety of our RSF3. These critical controls remain effective through close monitoring and verification.

In addition to internal compliance, assurance and performance audits, we engage an external engineer to provide independent assurance on the design and operational standards through quarterly inspections.

Stringent monitoring protocols are vital and encompass a wide array of relevant parameters such as beach width, free-board, slope stability, benches and basin condition, drainage, deposition rates, rates of rise, phreatic surface, structural integrity, pool size and more. These parameters are monitored at daily, weekly, monthly, and quarterly intervals through visual inspections and precise measurements. Moreover, we employ advanced monitoring techniques such as drone surveillance and geophysical surveys employing Electro-Resistivity Tomography (ERT) and Interferometric Synthetic Aperture Radar (InSAR). The latter, InSAR technology, facilitates the detection of even minor movements in the shape, height, and width of RSFs, allowing us to accurately model and analyse surface displacement of the RSF3 embankments.

Firestone has also developed and implemented a comprehensive emergency response plan, coupled with community training and awareness programmes. Through these concerted efforts, we remain committed to the safe and responsible management of our RSF3, ensuring the protection of both people and the environment.