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Details of Applications

Exploration License (EL) area EL007352 in Central Victoria, Australia, is under application by Fosterville Gold Mine Pty Ltd (FGM), which is wholly owned by Agnico Eagle Mines (AEM or the Company) (Figure 1). The application area comprises 10km2, and is contiguous with License EL006504 also held by FGM.

Application license EL007352, 10 km2 (10 graticules) in size, is located approximately 40 km east south east of Bendigo and 1 km south of Heathcote.

On grant of the EL, FGM will continue its responsible exploration in the region to discover high-grade gold mineralization. Through its substantial commitment to exploration in the area over the past several years, FGM has gained valuable knowledge of structural controls of gold mineralization at Fosterville, and the Company intends to leverage that knowledge in its greenfields exploration programs.

The EL applications were submitted to the Department of Jobs, Precincts and Regions (DJPR) for a license term of 5 years.

Work Program Details

After grant of the EL application it will be explored as extensions to exploration targeting programs underway or being designed for other Fosterville district tenements held by FGM or as standalone programs. The exploration will make use of knowledge gained at the Fosterville operation and ongoing technical studies.

The discovery of economic quantities of visible-gold at Fosterville as well as the previously demonstrated gold hosted by arsenopyrite and pyrite, increases the spectrum of exploration potential for the surrounding district. The structural controls for emplacement of significant mineralization are well understood by the Fosterville geological team, and this local knowledge will be used during exploration of the new tenements on grant.

Work programs on the EL applications are focused on obtaining high-quality geophysical datasets to help define and refine targets which can then be followed up with drilling.

Initial phases of data collection and collation of all historical datasets, incorporating open file and any accessible privately held sources, including any available drill samples, will be followed up by assessment and re-analysis where possible.

Broad area, low-impact geophysical surveys may be conducted over the EL application area, including gravity, magnetic and electromagnetic surveys which will be used to identify subsurface targets for further evaluation. Smaller-scale ground based geophysical surveys may also be carried out.

Geochemical sampling will be conducted where suitable geological conditions exist and these results will also be used to refine targets.

Drilling will be conducted on identified high priority targets.

The type of drilling that may be proposed to test for gold targets will vary on consideration of depth of target, structural/mineralisation information required, and local access limitations. In some instances, air core or reverse circulation percussion drilling may be used to confirm near surface gold mineralization, but in other instances diamond drilling to assess structures/stratigraphic controls to mineralisation and its style is more appropriate.

Depending on drill target success, subsequent mineral resource definition program would include a significant portion of diamond drilling for mineral resource estimation and other studies.

System for Managing Impacts of the Proposed work on the Community

On grant of the tenement FGM will conduct exploration in full consultation with the land managers, DJPR and consult experts in areas of flora, fauna and cultural heritage as required. Within the tenements varying land holdings may require additional permitting to conduct exploration activity. For each work program the potential for environmental and community impacts are assessed and appropriate mitigation/control measures are allocated, peer reviewed and further discussed with stakeholders. Land will not be accessed without appropriate consent of the land manger, or permission of private landowner.

FGM Mine acknowledges the Traditional owner rights of the Registered Aboriginal Parties across our exploration licence areas. Engagement will consider and demonstrate respect for Indigenous People, their customs and their Country. Respect for elders, the land, the animals and ancestors is a fundamental aspect of Indigenous Culture and the consultation team will acknowledge this during the process.

FGM also has policies that apply directly to the management of Health, Safety and Environment.

Community Engagement

FGM is committed to developing, strengthening, and enhancing relationships based on open and honest communication with landholders, local communities and stakeholders in and around its operations. The Company endeavours to form trust and ensure timely provision of information whilst promoting meaningful participation, assisting with shaping decisions and actions to improve the outcomes for all of those involved. Stakeholder and community engagement processes are designed to be purposeful and focused on meaningful engagement with different groups, providing tailored engagement to different stakeholders, according to their needs.

Mutual respect and trust with our local communities is critical to our success and a key requirement of our responsible approach to exploration. Throughout engagement and development activities, we strive to deliver sustainable long-term benefits to the communities in which we operate.

The Company has a well-established and effective community engagement program that aims to be:

Purposeful - Engagement activities will be purposeful and communicated clearly with stakeholders. Focused and meaningful engagement will be undertaken, considerate to stakeholders’ objectives, environment, expertise, and influence.

Relevant - A range of engagement techniques will be used to ensure the approach is appropriate and relevant. The most suitable engagement methods will be selected, streamlining processes to define and lead effective stakeholder engagement activities. Evaluation of each activity will occur to ensure a process of continuous improvement.

Open and Honest - Information shared throughout the engagement process will be open and honest. Timely provision of information will occur to promote meaningful participation and foster trusted relationships.

Inclusive - Engagement activities will be inclusive through acknowledging and respecting the expertise, perspective and needs of stakeholders. Stakeholders will be invited to participate in proactive engagement activities and the Company will be open to alternative views and consider stakeholder feedback on its activities. The Company will endeavour to meet the different communication needs and preferences of stakeholders, wherever possible.

Responsive - Stakeholder participation will be acknowledged in a timely and responsive manner. The Company will respond to stakeholders within a reasonable timeframe, while proactively acknowledging and addressing stakeholders’ needs and concerns.

Communication with stakeholders occurs before, during and after completion of the exploration program to ensure that FGM maintains and improves on an effective community engagement consultation process.

For further information please contact:

Fosterville Gold Mine Community Team

Phone number: +61 (0)3 5439 9000

FGM.Community@kl.gold