Responsible Mining

Since December 2020, we have been a proud member of the World Gold Council (WGC) and, as such, have adopted the Responsible Gold Mining Principles (RGMPs), comprising 10 Principles and 51 sub-principles which address key ESG issues material to the gold mining sector. The RGMPs were designed to provide confidence to governments, investors, employees, communities, supply chain partners and civil society that gold is produced responsibly. The work we have completed to adopt all principles and sub-principles is outlined in our Year 3 World Gold Council RGMP Progress Report.

In 2021, the Company became a signatory to the International Cyanide Management Code (ICMC), a voluntary initiative conceived under the guidance of the UN Environmental Program and in collaboration with stakeholders from the former International Council on Metals and the Environment. Serving as a global benchmark, it sets forth best practices and a certification framework ensuring the safe handling, transportation, and disposal of cyanide.

Throughout 2023, we continued to execute against our action plan to align with ICMC standards, and a preaudit assessment in December 2023 demonstrated 85% adherence. We continue to work toward a full certification audit in 2024 in order to demonstrate our excellence and best practice in addressing risks associated with cyanide management.

The Company continues to advance progress to gain certification under the Mexican Industria Limpia (Clean Industry) program — a national, voluntary environmental audit program established by the environmental enforcement agency PROFEPA. The program consists of two components, namely an audit of environmental compliance and a review of good environmental practices. Certificates are granted by PROFEPA for a period of two years. The Company continues to implement an action plan approved by PROFEPA in advance of full certification, and as of December 2023, the action plan was 74.0% complete. Certification under the Clean Industry Standard is expected in 2024.

We recognize the importance of providing clear, comprehensive, and credible information on the impacts of climate change on our business and our own impact on the climate. In 2022, Torex released its inaugural Climate Change Report aligned with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), which is publicly available on our website. We continue to refine our understanding of climate-related financial risks and opportunities and will continue to provide ongoing disclosures aligned with the TCFD to communicate our progress, as outlined on pages 90-93 of our 2023 Responsible Gold Mining Report.

In alignment with international calls for enhanced transparency and governance in tailings management, in 2022 the Company’s Board of Directors approved the adoption of the Global Industry Standard on Tailings Management (GISTM).

Comprising 15 principles and 77 auditable requirements, GISTM sets a comprehensive framework applicable to tailings facilities across the entire mine lifecycle, encompassing operations, closure, and post-closure phases. The Company continues to work towards a full compliance audit with GISTM in 2025, encompassing both its existing Filtered Tailings Storage Facility (FTSF) and the new in-pit tailings facility being constructed as part of the Media Luna Project.

The Voluntary Principles on Security and Human Rights (Voluntary Principles), which were established in 2000, are aimed at guiding companies on ensuring the safety and security of their operations within an operating framework that demonstrates respect for fundamental freedoms and human rights.

In 2023, we continued to educate our site security team on the Voluntary Principles on Security and Human Rights (VPSHR). Four dedicated training sessions were conducted between October 2023 and January 2024, aimed at deepening our security team’s understanding and application of these principles within our specific operational context. In 2024, we will continue to strengthen our commitment to the Voluntary Principles and initiate a second phase of training on the VPSHR for all security contractor personnel.

We have implemented an Environmental and Social Management System (ESMS), which is based on the International Finance Corporation’s (IFC) Environment, Health and Safety Guidelines. Our ESMS is made up of 15 management plans comprising a total of 54 mitigation measures to protect the soil, water, air, flora and fauna on our site. It is implemented by environmental specialists at our operations in Mexico, with oversight from our Executive Team.

Torex is working to support progress on the United Nations Sustainable Development Goals (SDGs). We recognize that we have an opportunity to positively contribute to all 17 of the SDGs as we work hand in hand with local communities and government officials to promote a positive and lasting socioeconomic impact. We have included SDG icons throughout this report where we describe initiatives that support these goals.