INDEPENDENCE GROUP NL SUSTAINABILITY REPORT 2017

IGO’s socio-economic contributions can be measured by the dividends we pay, the salaries and other employment benefits we provide to our staff, the money we spend on contractors and consultants, the money we pay in taxes and royalties, and through our Corporate Giving. IGO’s royalty payments form a part of the Western Australian Government’s Royalty for Regions program, with the remainder going to general revenue to fund services such as law enforcement, education, health, roads and community development programs. The Western Australian Government received royalties from the State’s mineral and petroleum producers totalling $4.6 billion in FY16, a decline of 21% on FY15. Royalties from gold increased from $218 million in FY15 to $239 million in FY16, or 9.6%. Royalties from nickel decreased from $83 million in FY15 to $54 million in FY16, or –34.7%. In addition to rent, a tenement holder must generally pay royalties in respect of certain minerals obtained from land that is subject to a mining tenement. Royalties are payable in arrears as they are calculated on the basis of the quantity of minerals recovered in a given year. Royalties payable over the life of a tenement will vary depending on the rate of production. Royalty rates are set by state and territory regulatory bodies for each mineral or metal type. In FY17, IGO spent a total of $438,817 on community development and related projects and activities (Corporate Giving). This equates to approximately 0.10% of total revenue, which is substantially more than IGO’s Corporate Giving target of 0.06% of total revenue. IGO has a land access agreement with the Ngadju people; the native title holders of the land on which the Nova Project is located. In compliance with this agreement, up until the completion of the sale transaction, Sirius made payments to the Ngadju totalling $1,462,944. As noted in the Scheme of Arrangement that gave rise to IGO’s acquisition of Sirius, the transaction resulted in the conversion of the 400,000 Sirius shares to 264,000 ordinary fully paid IGO shares that were allocated to the Ngadju Trust. In FY17, IGO accrued $327,000 which will become payable to the Ngadju prescribed body corporation once they have finalised their trust arrangements. Tropicana’s current budget for community donations/support programs in 2017 was $160,000, excluding the $60,000 cost of cross-cultural awareness programs. SOCIO-ECONOMIC CONTRIBUTIONS IGO supports economic development in the communities where we operate by seeking to invest first locally and then regionally within Western Australia, then nationally and finally internationally. At the Long Operation, our highest value contracts are our off-take agreements with BHP Nickel West (which processes IGO ore), diamond drilling and fuel. At the Jaguar Operation our highest value procurement contracts are our transport contracts, underground mining and drilling services, fuel, gas and catering services. These services and materials are sourced from large, reputable organisations with operations throughout Australia. During the construction of Nova, the highest value contract was for the construction of the processing plant, followed by underground mining and drilling services, fuel and catering services. Construction was completed using Australian- sourced labour, except for those modular components of the processing plant, which were fabricated offshore. During operations our highest value contracts were for underground mining and drilling services. PROCUREMENT 52 — IGO SUSTAINABILITY REPORT 2017

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