INDEPENDENCE GROUP NL SUSTAINABILITY REPORT 2017

BACKGROUND The Nova Operation, 100% owned by IGO, was acquired through IGO’s acquisition of Sirius Resources NL (Sirius) in September 2015. Sirius, an ASX-listed minerals exploration and development company, first announced the discovery of the Nova nickel-copper- cobalt deposit in July 2012. Following IGO’s acquisition, an Optimisation Study to a bankable feasibility level was completed in the December 2015 quarter, followed by the decision to accelerate development of the Bollinger orebody in mid 2016. The construction of the processing plant and associated infrastructure, including the tailings storage facility, village, access road and aerodrome were all completed on time and on budget resulting in the first delivery of concentrate being achieved by December 2016. At the end of FY17, the paste fill plant was commissioned and ore production is now taking place over three levels to enable consistent ore feed to the processing plant. Ore is processed using conventional flotation techniques to produce two concentrates (nickel/cobalt sulfide and copper sulfide). Concentrate is stored on site in an enclosed shed prior to being placed in sealed containers for transportation off-site along a private access road to the Eyre Highway. The concentrates are transported south along public roads to the Port of Esperance, or north to the Kalgoorlie Nickel Smelter via Kambalda. The Nova Operation successfully completed the first export of copper and nickel concentrate from the Port of Esperance in June 2017. The Nova Operation achieved commercial production on 1 July 2017. The time between Nova’s discovery and achievement of commercial production was five years. Few projects of Nova’s scale have been developed as fast. CONSUMABLES The main consumables used at Nova in FY17 were diesel, grinding media, lime and explosives. Electricity for the Nova Operation is produced by a 20MW power station, operated by Zenith Pacific, under a build, own and operate contract. The power station is fuelled by diesel. As part of the power station development, a concept 6.7MW solar power station was also considered. Zenith Pacific are currently negotiating with the Australian Renewable Energy Agency (ARENA) to assist in funding this project, which will determine its viability. Raw water is supplied from mine dewatering and several purpose-built water supply bores around the operation. Water sourced from mine dewatering and production bores is pumped to a lined pond for distribution around the site. Water for domestic use is treated at the reverse osmosis plant. Another reverse osmosis plant provides higher quality water for concentrate washing. Surplus water is transferred to the lined tailings storage facility from where it is recycled for use in the process circuit. WASTE The Nova Operation’s principal waste streams are tailings and waste rock. It is anticipated that much of the waste rock will be used for the closure of the tailings storage facility, however a residual waste rock dump may remain, subject to approval. A purpose-built, paddock style, plastic-lined tailings storage facility has been constructed for long-term disposal of tailings. The design incorporates a single main embankment surrounding the facility, with a multi spigot discharge and a composite liner system. Underdrainage has also been installed to aid in consolidating tailings and maximise water recovery and reuse. An on-site landfill facility is used for the disposal of both putrescible and inert waste. CASE STUDY / COMMUNITY NGADJU ENGAGEMENT The Nova Mining Agreement, signed on 4 August 2014 with the Ngadju Traditional Owners, enabled the granting of the Nova Mining Lease. Since that time, the Nova Operation has diligently sought to deliver on its commitments to the Ngadju people. These include the provision of employment, education and business opportunities, and the protection of culturally significant sites within the operational area. Central to this collaboration has been a joint IGO and Ngadju representative committee, known as the Implementation Committee. In recognition of the Nova Operation’s location on Ngadju land, IGO has sought to showcase the rich cultural history of the area. This has included renaming the Nova site’s access road to ‘Pugarn Road’ (pronounced ‘Bugarn’). The Pugarn tree, known locally as the ‘tea tree’ is common in the area and was the preferred tree for shelter by the Ngadju people. In late 2016, the Ngadju community commissioned the Ngadju artist Valma Wicker Schultz to create a locally inspired artwork, which is now proudly displayed on the Nova Concentrate Shed. The painting depicts the various seasons, landscapes, and the flora and flora of the Fraser Range – all important to the Ngadju people. In March 2017, the Nova Operation welcomed a group of Ngadju Elders to tour the site and see the new road signage and artwork. The Nova General Manager and site management team provided an overview of the operations and a tour of the site. This was followed by an overnight stay on the neighbouring Fraser Range Station (i.e. a station familiar to many of the Elders), which brought back fond memories of their childhoods. In FY17, IGO supported a number of Ngadju groups including the Ngadju Dancers on their trip to the Sydney Opera House where they performed in front of a huge crowd. The Ngadju Rangers, established to teach young Ngadju people land management and bush survival skills, also received field and office equipment from the Nova Operation. IGO SUSTAINABILITY REPORT 2017— 33