INDEPENDENCE GROUP NL SUSTAINABILITY REPORT 2017

is the expected norm, but because we believe that the interests of the business and our stakeholders are best served by transparent disclosure. This financial year, IGO has continued to improve its business through a steadfast focus on leadership. We expect our people to deliver in accordance with our values. We act in the belief that our leaders, and in particular, our front-line leaders, define our business culture and drive our business performance. This year has seen the successful introduction of IGO’s Leadership Development Program, an activity that is standard fare in large organisations, but is something genuinely special in a comparatively small organisation such as ours. Invariably, mining and exploration processes have both environmental and social impacts. In the face of this reality, we are committed to understanding these impacts and working with our stakeholders to find mitigating measures and solutions. It is with considerable pride that we report that our business experienced no material environmental incidents in FY17 and made significant progress in cleaning-up parts of the historic Teutonic Bore mine; a site abandoned in the 1980s that falls within the domain of our Jaguar Operation. We have also gone from strength to strength in engaging our host communities. At Nova, we have achieved success by engaging in benefit sharing with the Ngadju Traditional Owners through job creation and royalty payments. One of the ever-present issues for the industry is potential workplace injury. We measure our performance using industry-standard metrics that enable both internal and external performance comparisons. Based on these metrics we have seen improvements in some areas and declines in others. However, we remain ever mindful that these statistics reflect trauma suffered by our colleagues and friends. In FY17, IGO’s people experienced three serious injuries where each injured person lost more than ten working days in recuperation. Importantly, beyond those incidents that resulted in injury, we continued to experience too many potentially serious incidents; the type of near misses where someone could have been seriously injured or killed. At IGO, safety is more than a priority; because priorities change, safety is a value. We put safety first. To this end, we continue to pursue an ongoing body of work to improve the safety of our workplace, our systems of work, and the culture to ensure the safety of our people and the community. In the coming year, our Long Operation will transition to care and maintenance while we consider further exploration and value- adding options. We have been working with our employees and our host community at Kambalda to ensure that this process is transparent and enables everyone to plan for their future. Beyond ensuring the day-to-day safe and cost-effective delivery of product from our existing mines, and the transparent planning for closure of mines at the end of mine life, we are also working to maintain a pipeline of new projects to sustain and grow our business. In the mid- term, these opportunities may take the form of acquisitions, while in the longer term we will continue to strive for organic growth through exploration. To this end, in FY17, we consolidated an approximate 12,000km 2 tenement holding on the Fraser Range, in the region of our Nova Operation. In the last twelve months, we have achieved much. We have strengthened our balance sheet and brought the Nova Operation to commercial production levels. We have achieved this while also improving the capacity and effectiveness of our teams and our business processes. This report provides a complete overview of the significant non- financial aspects of our business to enable our stakeholders to more broadly assess IGO’s performance during FY17. Again, we present our key activities and our material impacts, both positive and negative. We have sought to place our activities in the context of the wider industry, the environmental settings in which we operate, and the communities of which we are a part. It is our intention to be transparent in both our objectives and how they are delivered. We encourage and welcome your feedback on this report and on our environment, safety and governance performance in general. $240M CAPITAL INVESTED IN FY17 IGO SUSTAINABILITY REPORT 2017— 03