INDEPENDENCE GROUP NL SUSTAINABILITY REPORT 2017

Once an open pit operation operated by Seltrust-MIM Joint Venture, the Teutonic Bore operations progressed to underground mining activities during the early 1980s. This comprised a tailings storage facility, a run-of- mine pad, a process plant, waste rock dump and residential camp. Rehabilitation was carried out by Mt Isa Mines on the waste rock dump, the process plant area, and a portion of the run-of-mine, which was signed off by the former Department of Mines and Petroleum in 1997. IGO has committed to progressively rehabilitating the remaining areas of the historic Teutonic Bore facilities in conjunction with the development of the Triumph deposit, located 5km north of the existing Jaguar Operation. As part of the Teutonic Bore site is the responsibility of the Department of Mines, Industry Regulation and Safety, IGO has been discussing a collaborative rehabilitation effort with the department, to achieve the best possible rehabilitation outcomes. Current plans for rehabilitation involve using waste from the decline and overburden from the Triumph box cut to cap the Teutonic Bore tailings storage facility. When the Triumph underground mine requires backfill, the preferred option will be to source fill material from the potentially acid generating low grade ore stockpiles and historically contaminated areas of the Teutonic Bore site, returning potentially acid generating material underground, thereby mitigating ongoing environmental risk. In addition to rehabilitation planning, the clean-up of the Teutonic Bore scrap yard has been completed, with the removal of over 500t of disused waste material including steel, from site. An estimated 400t of waste has been sent off site for recycling via a local contractor, with the remaining waste being disposed to licenced landfill facilities. The synchronous development of the proposed Triumph deposit and rehabilitation of the Teutonic Bore facilities has the potential to further reduce closure costs, which IGO will be exploring in the future. CASE STUDY / TEUTONIC BORE (JAGUAR OPERATION) NOVA OPERATION An updated MCP, aligned to Western Australia’s current mine closure guidelines, was submitted to the DMIRS in February 2017. Nova Operation completed the majority of construction during FY17 and the final footprint and final landform designs were incorporated into the updated MCP. The operation has an estimated nine year mine life, with the next MCP revision to occur in FY20. In FY17, IGO’s closure cost estimates were independently audited as part of the annual financial audit conducted by BDO. IGO’s MCPs are not currently subject to independent audits. IGO anticipates its MCPs will be made publically available through the DMIRS’s website following approval in FY18. JAGUAR OPERATION The Jaguar Operation MCP was updated in FY17 and submitted to the Department of Mines and Petroleum in June 2017. The updated MCP included outcomes from a geochemistry analysis, landform and cover modelling, and a revision of the closure cost estimate. IGO also held a number of meetings with the DMIRS to discuss the identified closure liabilities associated with the historic Teutonic Bore pit, and the waste rock dump and tailings dam, located to the north of the Jaguar Operation. Remediation of this legacy site continued in FY17 and IGO is working with the DMIRS to facilitate additional rehabilitation in FY18 and beyond. LONG OPERATION The Long Operation MCP was updated and submitted to the Department of Mines and Petroleum in March 2017, following a request by the Department in late 2016. The Long MCP was approved by the DMIRS on 25 May 2017. The updated MCP included updating aerial photography of operations, a comprehensive soil and geochemical analysis, conceptual cover modelling and closure cost breakdown. In addition to this, IGO completed an optimisation study of proposed closure strategy to revise the cost estimate for closure. IGO is currently working with BHP Nickel West regarding its closure planning for the Kambalda concentrator tailings dam located on IGO’s mining lease. In 2017, IGO has announced that operations at Long will cease and the mine will be placed into care and maintenance. IGO has and will continue to consult with the workforce and provide community updates. MINE REHABILITATION FUND IGO, like many other mining companies, pays a Mining Rehabilitation Fund Levy to the Government of Western Australia (refer to www.dmp. wa.gov.au/19344.aspx ). In FY17, IGO’s levy payments totalled $217,183. MINE CLOSURE PLAN CLOSURE COST LIABILITY REPORT INTERNAL AND EXTERNAL CLOSURE COST ANALYSIS Estimated cost of closure Nova Operation $34.3M Tropicana Gold Mine $20.3M* Jaguar Operation $12.4M Long Operation $5.5M Total $72.6M * The value reported in 2016 for Tropicana included 100% of closure costs. This figure represents IGO’s 30% share. IGO SUSTAINABILITY REPORT 2017— 87