Orion Minerals Nama Khoi Community Newsletter (English)

NAMA KHOI

MYNuusblad 1st EDITION / MARCH 2022

D e v e l o p i n g a 2 1 st c e n t u r y S o u t h A f r i c a n c o p p e r - z i n c m i n e s

WELCOME TO THE NEWSLETTER

NEWS FLASH

Welcome to the first edition of Orion’s newsletter for the communities of Nama Khoi!

This publication is a way for the company to share updates on Orion and mining, as well as news that impacts our host communities.

Tell us what YOU want included in this newsletter!

Send ideas and suggestions to Victor via WhatsApp on

063 0419870

IN THIS ISSUE

ORION MINERALS COMMUNITY NEWSLETTER

PAGE 1

Message from CEO

2

Who is Orion?

3

What are we doing in Okiep?

4

How will the community benefit?

4

Operational update

5

Meet Victor Cloete

6

How we work

7

Our Community Liaison Office in Springbok

7

Careers portal

7

Suppliers portal

7

Anti-corruption

7

COVID-19

8

Contact us

8

MESSAGE FROM

THE CEO

Greetings to everyone in the Nama Khoi communities.

I hope that you will find this newsletter interesting and useful as we move forward together. I want to use this first newsletter to introduce you to the company and to tell you a little bit about our commitment to responsible mining.

We are very pleased that we can expand our footprint to include the communities of the Nama Khoi Local Municipality following our acquisition of the Okiep Copper Project (OCP) last year. Our OCP is located within the Nama Khoi Local Municipality and will eventually operate in and around Okiep, Nababeep, Springbok, Carolusberg, Bulletrap and Spektakel.

Orion is an Australian company and came to the Northern Cape, South Africa in 2016 to explore and develop mines for copper, zinc, nickel and the associated metals. We have been very successful with our first project, the Prieska Copper-Zinc Mine in Siyathemba, that should commence construction later this year. We have also been looking for opportunities to invest in other mining projects, and believe that the Nama Khoi area, home to the Okiep Copper District, has amazing potential. This copper district has been mined on and off since 1654 and was very productive in the last century. Sadly, it was last mined in 2003, but we are confident that mining can be revived to become a meaningful contributor to the community, the Northern Cape and South Africa.

If all goes well, we see OCP becoming Orion’s second production hub alongside the Prieska Copper-Zinc Project. Both projects are very similar in that they have existing infrastructure like old mine structures, which will allow us to rebuild quicker, and we can explore for more mines in both areas.

By progressing our plans to revive these historical mining operations, we hope to provide a vital source of training and employment in the communities of Nama Khoi. Our presence in the area should also encourage the establishment of secondary supply and service businesses in the province.

We are looking forward to playing a role in the economic revival of the Northern Cape and together with the community, celebrating all that the province has to offer.

Stay well.

This is an area that has delivered significant historical copper production. Okiep’s previous owners produced 30,000 to 40,000 tonnes of copper per year (worth R4.5 – R6 billion at today’s metal prices) for many decades. We believe we may be able to re-establish this scale of production but first we must do further drilling and feasibility work.

Errol Smart / Managing Director and Chief Executive Officer PAGE 2

“We believe that the complementary combination of the advanced Okiep Copper Project with our flagship Prieska Copper-Zinc Project will transform Orion into a significant base metals mining house, accelerating our journey to become a major producer in the Northern Cape region”

WHO IS ORION? Orion Minerals is actively looking for large base metals (copper, zinc and nickel) deposits in South Africa. We have been focused on the Northern Cape Province, which is well known for its rich copper, zinc and nickel resources. We like to take on projects that can be quickly developed into producing mines. While our focus is very much on the base metals we also recognise the potential for other minerals that will also eventually be explored. In the Nama Khoi the Tungsten deposits are also particularly of interest.

GAMSBERG BLACK MOUNTAIN SPRINGBOK COPPERTON

OKIEP COPPER PROJECT

PRIESKA PROJECT

OCP, Springbok

ORION MINERALS COMMUNITY NEWSLETTER

PAGE 3

After recognising the potential at the old Prieska Copper Mine, which was last mined 30 years ago, Orion worked hard to prove the project was worthy of investment.

Since then, our team has been able to buy, drill out, complete a Bankable Feasibility Study and get all regulatory permissions to build a world-class modern mine. The Prieska Copper-Zinc Project is now fully licensed, ready to start construction and if all goes well, begin producing within a few years.

Now we hope to do the same at the Okiep Copper Project.

WHAT ARE WE DOING IN OKIEP? The Okiep Copper Project (OCP) has lots of potential. It could become Orion Minerals second base metals production base, adding to Prieska’s expected production of 22ktpa of copper and 70ktpa of zinc.

Unlike Prieska with one mine and processing facility, the OCP district could host several mines with shared processing and services.

This is how it was run by the former owners.

There are also management and operational synergies between Okiep and Prieska, which are 450km apart but will use many similar machines and consumables.

Orion is known for working fast and it intends to fast-track the processes wherever possible.

We bought the OCP historic geology data and have used this to identify high priority targets that we immediately commenced drilling. We are also applying state-of-theart new technology to identify new deposits

below the surface that the old timers could not find in the past. We have done an airborne electromagnetic survey of the area and continue with ground geophysical surveys and drilling of identified targets.

In the past eight months we completed a scoping feasibility study on the Flat Mines at Nababeep and are looking forward to bringing this project into production with our strategic partners, the Industrial Develop Corporation, as soon as the Mining Right is approved by the Department of Mineral Resources and Energy. We are anxiously awaiting the grant of additional prospecting rights so that we can expand our drilling and feasibility studies.

HOW WILL THE COMMUNITY BENEFIT? By reviving these historical mining operations, Orion will stimulate economic activity in the local and regional economy.

Orion’s operating model is centred on environmental, social and governance best practices and applies those from the beginning at all our projects. This means we do not wait for the operations to begin before working with communities. Right from the start, we seek out broader stakeholder community participation in the mining value chain.

While we are not yet mining, the Social Labour Plan for the Flat Mines project has been acknowledged by the community and has been submitted to the Nama Khoi Municipality for its final endorsement so that the Mining Right application can be granted.

We have also established Trusts that will hold 5% of the shares in the mines for the community and 5% for the employees (who we expect to be predominantly local). Therefore our community are also shareholders and will share in the profits of mining in their municipality.

We intend to extend the community initiatives that have been so successful at our Prieska Project to OCP. At Prieska we set up community engagement and other collaborative forums with local government and commercial enterprises ahead of any mine development.

We also initiated occupational assessments and training programmes to prepare the community for the start of mining operations and continue to encourage the establishment of secondary supply and logistics businesses, as well as community entrepreneurship in the surrounding areas. We aspire to maximise local employment, supplier and contractor opportunities and we will be rolling out learnerships and training programmes as we bring our mines on stream.

PAGE 4

“Orion aims to be a catalyst in its host communities by working for real change and delivering significant community benefit.”

WHY OCP? It produced more than 2 million tons of copper in the past and can again be a major producer There is already a lot of information and data on what is underground and how to mine We see opportunities to explore for more mines in the area Existing infrastructure like the old mine structures and access shafts and tunnels mean we can rebuild quicker Roads and electricity services mean the mine can operate without having to build these first Rapid pathway to production in the next 18-24 months Many similarities with the Prieska Project Operational synergies with the Prieska Project

OPERATIONAL UPDATE Update on the exploration drilling programme

Operational developments A detailed mine plan for the Flat Mines Project is scheduled for completion by the end of the March 2022 Quarter Applications for the establishment of a 10MVA electricity supply point have been submitted to Eskom and the local Nama Khoi Municipality Specialist studies are being completed in preparation for the Water Use Licence Applications The Mining Right Application for the Flat Mines area is at an advanced stage of processing by the Department of Mineral Resources and Energy The reviewed Social and Labour Plan for the Flat Mines project has been presented and discussed with the community and, following community approval, was submitted to the Nama Khoi Municipality for its endorsement

Before buying OCP, Orion collected and analysed the data and records available.

During the pre-acquisition period we carried out extensive due diligence and were able to validate and sign off on about 25% of the historical data that documents mineralisation that remains.

We started confirmation drilling in August 2021 to validate and sign off on the 75% of remaining mineral inventory, that was previously discovered and drilled.

Multiple new Prospecting Right applications have been submitted and are being processed

“Remarkably, the Nous Prospect is the first discovery in the district in more than forty years”

Phase one of the drilling program was designed to target minerals near the surface, close to major infrastructure and near existing mine development with a focus on the Koperberg – Carolusberg area. Over 3,400m of diamond drilling has been completed in 25 holes.

Results from 39 samples have already been received and catalogued and further drill holes are currently being logged and sampled by Orion’s geological team.

These initial results confirm that there is high-grade copper ore remaining, near to surface at Koperberg – Carolusberg.

In addition, a major SkyTEM™ electromagnetic survey was completed in late 2021 and the processed data has identified several more high-priority targets that will now be followed up. In late February 2022, we made an exciting new discovery at the Nous Prospect that provides early encouragement that there is much more copper that remains to be discovered in the district.

ORION MINERALS COMMUNITY NEWSLETTER

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OPERATIONAL UPDATE continued

Borehole opened for water supply to the municipality

Orion recently reopened an existing water borehole at Nababeep. This additional resource has been made available to the Nama Khoi Municipality for community use. This water should go some way to assisting communities who have been experiencing water supply issues amid soaring Northern Cape temperatures.

Last month the Nama Khoi Local Municipality reported Sedibeng Water to the South African Human Rights Commission, saying the water supplier was depriving residents of basic service delivery. According to news reports, at least five towns in the province have been experiencing water access issues over the past few weeks.

MEET VICTOR CLOETE Orion’s Senior Community Social Investment (CSI) Coordinator, Victor Cloete, is well known in the Nama Khoi communities. Victor grew up in Nababeep, attending Roman Catholic schools Sacred Heart in Nababeep and Salesianum in Matjieskloof. He went to the University of the Western Cape where he pursued a Bachelor of Arts but as a student activist he was forced to abandon his studies at the time of the student riots against the apartheid system. Victor later completed his degree through UNISA with majors in history, psychology and sociology.

“During the struggle years at University, I developed a deep-rooted interest in the improvement of the lives of those that were excluded from the social and economic mainstreams and engaged in a concerted effort to gain knowledge of the dynamics of oppression, the impact, and workable solutions. My subject choices at university also boosted this idea to become involved in a greater role to contribute towards the achievement of social and economic justice,” explains Victor, who has been working with mining companies for 29 years.

We asked Victor to tell us more about his work.

What is most rewarding about your work?

The most rewarding aspect of my work is to witness the positive impact of our efforts. These positive impacts are not always measured by infrastructural improvements in poor communities, but also by the change of mindsets, the adoption of a positive outlook and attitude.

What are the biggest challenges?

After University Victor moved to Namibia for 10 years where he worked for Rossing Uranium in Swakopmund. He then returned to South Africa to work for De Beers Diamond Mine in Namaqualand.

The lack of sufficient funding.

The politicisation of development processes.

“It is here that I became actively involved in the aspect of community social investment,” he says, adding that after 7 years as Senior Community Officer in charge of all single accommodation at the mine, he was approached by the then General Manager who asked whether he would like to become involved in community development.

My hope is that Orion Minerals will be able to forge constructive and meaningful partnerships with the Nama Khoi Municipality and local communities, because that will give our development efforts and value addition a boost.

“This is when my active role started in respect of community social development.

There were no guidelines at the time, and I had to involve myself in extensive research about the aspects of community development. I single-handedly developed strategies and built up the portfolio of community development projects at the company, where I became the Community Liaison Manager,” says Victor, who has been immersed in community development for about 18 years.

PAGE 6

What are your hopes for Orion value addition in the Nama Khoi Municipality?

Please tell us something about yourself.

I am married with three children.

I played rugby until I was 34 and still love the game. I also enjoy playing guitar and have a big interest in music.

“In every community, there is work to be done. In every nation, there are wounds to heal. In every heart, there is the power to do it” – Marianne Williamson

HOW WE WORK Our Community Liaison Office in Springbok We are pleased to announce that our Community Liaison Office has been open since October 2021.

The office is on the first floor of the Halsted Building, 333 Lodge Street in Springbok and is open Monday to Friday between 08h00 – 17h00.

Community Liaison Office

Submission of CVs and Supplier registration In preparation for mining activities in the Nama Khoi area, Orion is encouraging interested community members to register on our Careers and Supplier portals.

Careers portal

Community members interested in working for Orion are encouraged to register on our CV database via our website - https://www.orionminerals.com.au/careers/ cv-uploads/ Future vacancies will be advertised on the career page of the website - https://www.orionminerals.com.au/ careers/vacancies/ and on social media.

When submitting your application for an advertised vacancy, note that only those submitted to the recruitment email address provided will be considered.

Please note that you are required to submit complete and comprehensive information if you want to be considered for any upcoming job openings or potential training.

Supplier portal Do you have a business that has the potential to supply good or services that may be beneficial to our projects? Did you know that you can register your interest via our new Orion supplier portal?

our website. Details submitted via this portal will be added to a vendor database that will be consulted as Orion’s needs grow.

While Orion is still in the initial phases of exploration and project development, with limited opportunities at this early stage, we anticipate that further and more frequent opportunities may arise as projects expand.

Please note that completing the registration is not a guarantee of business but will allow the Orion buyers to contact prospective suppliers.

Suppliers will be required to go through further pre-qualification in order to be invited to quote in future.

Companies that are interested in doing business with Orion are invited to submit their details via our vendor registration portal on

Please visit https://www. orionminerals.com.au/ procurement-su on the Orion website to find out more.

Anti-corruption Orion stands with millions of South Africans who know that corruption puts all of our futures at risk. The company abides by strict international bribery and corruption principals and will not enter into any negotiations, contracts or activities that compromise our standing as an honest corporate citizen.

We are 100% committed to ensuring that as much work as possible, and as many contracts as possible, go to individuals and businesses from Nama Khoi. This is non-negotiable for us and will be

non-negotiable for any company that is selected to carry out any of the major contracts at our operations.

Local employees and contractors must compete fairly and get work on merit, not based on affiliation.

Orion will never, ever, compromise procurement or employment governance guidelines. Contracts will be awarded based on how companies meet the requirements of the work – from their expertise and their experience, to their cost, and their compliance with local requirements.

Rest assured that even if a major contract is awarded to a company that is not from Nama Khoi due to requirements for specialist skills or delivery, this does not mean there will not be work and opportunities for subcontracting and employment. Every company that works on our projects will be obliged to use local contractors, local suppliers, and local sub-

We also want to make sure that there will be no gate keeping by parties that promise to secure work or contracts for locals.

employees where local capability exists.

You can learn more here https://anti-corruption.org/, and you can report corruption to the national number 0800 701 701.

ORION MINERALS COMMUNITY NEWSLETTER

PAGE 7

COVID-19 COVID-19 is still a threat – in Nama Khoi, in the Northern Cape, and in South Africa.

While numbers appear low, we have been warned of another wave by April or May. The only way to protect yourself and those you love from infection is to get vaccinated.

We encourage everyone who is eligible to register for a vaccine, those who have received their first vaccine to follow up with their second and those who have received two vaccines to go for their booster shots.

For more information visit - https://sacoronavirus.co.za.

HOW TO CONTACT US Orion has a Community Liaison Office in Springbok.

1st Floor, Halsted Building, 333 Lodge Street, Springbok, 8240

Victor Cloete can be contacted on 063 0419870 or via email on victor.cloete@orionminerals.com.au.

CVs can be submitted via www.orionminerals.com.au/careers and suppliers can register via www.orionminerals.com.au/suppliers.

If you have suggestions for the next newsletter, you can send them to newsletter@orionminerals.com.au PAGE 8