Project

The start of construction for the Volta Grande Project depends on lifting the Construction License suspension (LI) and on FUNAI's approval of the Indigenous Component of the Basic Environmental Plan (PBA-CI). Since the LI was suspended by the Brazilian courts in 2017, the Company has been working diligently to have the suspension lifted. This has proved to be and continues to be a protracted, complex, and litigious process involving the courts, State and Federal agencies, and other stakeholders. While the Company cannot control the timing, it continues to work diligently, collaboratively, and transparently to progress the licensing process. The Company expects to start preconstruction activities as soon as the suspension is lifted, and all the necessary regulatory and Governmental agencies have provided Belo Sun with the authority to proceed. If Belo Sun is allowed to proceed and the Company has the required capital funding in place, it expects to initiate activities within a matter of months. Construction is expected to take 24 to 36 months, depending on the availability of critical path equipment, contractors, and the completion of the detailed engineering.

The estimated lifespan of the Volta Grande Project is a minimum of 17.2 years.

The Project will be powered through a connection to the Xingu Altamira Equatorial substation.

The project aims to foster local development by prioritizing local suppliers and generating local employment opportunities. It will include vocational training programs in partnership with local entities, provide education and health facilities for local communities, and target employment from the local areas. Additionally, Belo Sun's consistent engagement with local communities and Indigenous Peoples, including consultation sessions and the establishment of a long standing information center, reflects its commitment to inclusive growth.

The Company will be prioritizing a workforce from the region. For any worker that requires accommodation, lodgings will be built near the site. These structures will later serve as offices or be dismantled.

The Company takes its responsibility for environmental stewardship seriously and is designing and engineering the mine to minimize the environmental impact of the operation.

All water used at the mine will be sourced through rainwater capture and will be recycled onsite between the tailing facility and the processing plant. Consequently, the mine will not take water from the Xingu River or other bodies of water in the region and will not affect the level, quality or flow of water in the river.

The proposed tailings dam will be an engineered facility using a downstream design, the safest design available in the industry. The facility is to be constructed on highly stable solid rock in a natural valley. The tailings dam will be built to meet the highest international standards and best practices in construction, monitoring, maintenance, risk management, and mitigation.

The Company is a designee for certification under the International Cyanide Management Code, a globally recognized certification program developed to enhance the protection of human health and the environment in the production, transportation and use of cyanide in the gold and silver mining industries.

The Company is committed to working with Government agencies and other stakeholders on helping to mitigate and reverse the environmental damage caused by illegal mining and illegal logging in the region.

The Company is also considering opportunities for the Volta Grande Gold Project to reduce its carbon emissions footprint, minimize noise and dust emissions, and reduce operating costs. For example, Belo Sun has evaluated near-pit crushing and conveyor transport of mine waste to reduce truck requirements. For mine truck haulage, the Company is evaluating the use of less carbon intensive fuels. For the processing circuit, the Company is investigating the incorporation of high-pressure grinding rolls and secondary crushing rather than semi autogenous grinding milling.

Belo Sun's Closure Plan, developed in collaboration with Brandt, outlines a comprehensive strategy for restoring the mining site post-project. The plan, complying with legal requirements, focuses on safely closing the mine, restoring environmentally degraded areas, and engaging with local communities to minimize residual liabilities. Key objectives include selecting future site uses through participative processes, ensuring environmental recovery, and integrating socio-economic aspects. The plan incorporates various programs for waste management, restoration and reforestation, aimed at returning the site to agricultural use. The detailed actions, timelines, and responsible parties for each program are elaborated in Belo Sun's Closure Plan documentation.

The Volta Grande Project is designed to have no impact on the Xingu River's water levels and quality. The Project utilizes rainwater collected in containment lakes which is then used and recycled within the operational processes, negating the need for river water extraction. This approach aligns with the company's commitment to sustainable water management and environmental protection, ensuring the preservation of the Xingu River.

The current tailings dam design of the Volta Grande Project will be constructed with a focus on stability and safety. The dam is located in a geologically stable area, featuring a downstream raising system, and is situated in an area of extremely solid rock within a natural valley. This design ensures greater stability and safety throughout the lifespan of the project and beyond. The company adheres to national and international safety standards and best practices for tailings dams. It includes advanced safety features in the design and engages in continuous monitoring and maintenance, aligning with the best national and international practices in dam safety.

Belo Sun plans to monitor and report its social and environmental impact through a robust Environmental Management System (EMS). Key components of the EMS will include environmental policy formulation, impact analysis, action implementation and operation, monitoring and corrective action, managerial review, and continual improvement. The EMS will be in place during both the construction and operational phases of the project, ensuring comprehensive environmental and social impact monitoring and reporting.

The Volta Grande Project is expected to have a significant economic impact both locally and nationally. The Project aims to foster local development by prioritizing local suppliers and generating employment opportunities. It will include vocational training programs in partnership with local entities, provide education and health facilities for local communities, and target employment from the local areas. Additionally, Belo Sun's consistent engagement with local communities and Indigenous Peoples, including consultation sessions and the establishment of a long standing information center, reflects its commitment to inclusive growth. The Project is also projected to substantially boost the GDP of Senador José Porfírio and increase tax revenues, benefiting both the local and national economy.

The Volta Grande Project is poised to create a substantial number of jobs, with an estimated 10,000 direct and indirect positions available during the installation phase. During the operational phase, the project will generate approximately 600 direct jobs and an additional 1,500 indirect jobs. This influx of employment opportunities will significantly impact the local employment rate. In addition to job creation, the Project is committed to enhancing the skills of the workforce through various training programs, contributing to the overall skill development in the region.

Belo Sun is confident in Brazil’s economic future and wants to be a part of the country’s evolution as a major player in the global mining industry. The Company believes the Federal and State agencies recognize that the scale of the Project, in addition to the operation's direct economic, financial and employment benefits, will support social development and economic diversification of the central-western region of the State of Pará.

Belo Sun has professional and transparent relationships with Federal and State agencies involved in the regulation of the Project and enjoys positive and constructive relationships with the host Government, local communities, and Indigenous Peoples in the Project vicinity, all of whom support the development of the Project.