AIS Resources Bright Gold Exploration Licence – Obligations and Community Engagement

We have set out below some important information for residents and others in the community that may be affected by exploration activities planned by AIS Resources Ltd (www.aisresources.com)

What are the community engagement requirements of the exploration licence holder which is a joint venture between A.I.S. Resources Ltd and Clarus Resources Pty Ltd.?

In accordance with Section 39A of the MRSD Act, AIS Resources is required to consult with the community throughout the period of the licence by:

1. a) sharing with the community information about any activities authorised by the licence that may affect the community, and;
2. b) giving members of the community a reasonable opportunity to express their views about those activities.

To this end, AIS Resources is committed to working with landholders and others to ensure its plans are accepted and supported by the community.

As a land holder of a property within EL006194, am I entitled to compensation?

AIS Resources must obtain land holder’s consent (either verbally or in writing), or a compensation agreement must be in place before work intended to be carried out within the licence area will be approved by the Department.

Pursuant to Section 85 of the MRSD Act, compensation is payable by the licence holder to the owner or occupier of private land that is affected by any loss or damage sustained as a direct, natural or reasonable consequence of the work undertaken in relation to an exploration licence. Compensation is not payable for the value of the minerals, nor is it a prerequisite for landholder consent. Compensation may be paid to land holders whose land is affected by exploration activities, which is defined by legislation to include land used for entry to the exploration area and includes the surface of the land to the depth of 100 metres.

The following may be considered as loss or damage:

• Deprivation of possession of the whole or any part of the surface of the land; and
• Damage to the surface of the land; and
• Damage to any improvements on the land; and
• Severance of the land from other land of the owner or occupier; and
• Loss of amenity, including recreation or conservation values; and loss of opportunity to make any planned improvement on the land; and
• Any decrease in the market value of the owner or occupier’s interest in the land; and
• Loss of opportunity to use tailings disposed of with the consent of the Minister under section 14(2).

‘Land’ in context of the above is defined by legislation to include land used for entry to the exploration area and includes the surface of the land to a depth of 100 metres. Please note, compensation is not payable for the value of the minerals, nor is it a prerequisite for landholder consent. Further, the requirement to pay compensation or form an agreement does not give landholders the absolute power to control access. If an agreement cannot be reached, the compensation claim may be referred to the Victorian Civil and Administrative Tribunal, in accordance with Part 10 of the Land Acquisition and Compensation Act 1986 (VIC). If the amount of compensation in dispute is greater than $50,000, either party may seek to resolve the matter by taking claim to the Supreme Court of Victoria.

Pursuant to Section 45 of the MRSD Act, a licence holder must not conduct work, other than work using handheld tools, within 100 metres of a dwelling house unless with the consent of the landholder. AIS Resources is aware of this obligation and understand the severe penalties that may be imposed by the Department upon non-compliance.

Fig. 1 – Map of the tenement EL006194

How will concerns for environment and land use impacts be managed or addressed?

All areas in Victoria, unless specifically exempt (for example National Parks, State Parks and Wilderness Areas) are open to exploration and mining licence applications. Before any exploration activities may commence, a work plan addressing environmental risks must be approved by the Department, and a rehabilitation bond must be paid by the licence holder, to the Department. The rehabilitation bond represents security of payment for any rehabilitation work that may be necessary as a result of the exploration activities. Additionally, licence holders are bound by the Department’s Code of Practice for Mineral Exploration (“Code”). The Code provides practical guidance about how activities are to be conducted in order to meet legislative requirements and environmental standards. With respect to rehabilitation, licence holders are required to rehabilitate any land disturbed by the carrying out of work under the licence. Rehabilitation is to be undertaken in accordance with the work plan and licence conditions, which are set by the Department. The licence holder must also consult with the land holder about any proposed rehabilitation. AIS Resources is committed to environmental protection and endeavours to work closely with the Department and landholders to ensure successful rehabilitation and the responsible and sustainable use of any mineral assets which may be found following the grant of EL006194.

Proposed Program of Work – EL006194

AIS Resources will take a staged approach to exploration on EL006194. A program of proposed staged exploration activities is set out below – exploration may be accelerated or moderated dependent upon success, staff availability and funding. Exploration will comprise the following office and field-based work:

• Compilation of historic data from company reports and plans available in the public domain;
• Interpretation of geological data and generation of drill targets;
• Field reconnaissance by geologists to acquire detailed soils, lithological and structural data;
• Airborne and ground based low impact geophysical surveys;
• Geochemical sampling programs comprising collection of small samples of rock or soil; and
• Testing of small priority target areas with reverse circulation or diamond core drilling.
• Close spaced drilling in areas considered to be containing an inferred, indicated or measured resource (pursuant to the definitions of NI 43-101 Canadian Resource Code and Australian JORC codes of measurement).

Should future higher impact exploration activities be planned such as exploration drilling, it will involve a submission of a low impact exploration plan or work plan to Earth Resources Regulation, detailed rehabilitation plans, and monitoring and auditing.

Please do not hesitate to contact AIS Resources via its agent, Tenement Administration Services, on (03) 9553 4692 if you have any questions or queries in relation to EL006194.

Systems for Managing Impact on the Community and Environment – EL006194

AIS Resources recognises that its exploration activities may have environmental and community impacts which will affect its licence to operate in the region of Victoria. AIS Resources is committed to operating in both an ethical and sustainable manner that minimises negative impacts on the community (including landowners and occupiers) and the environment.

AIS Resources will ensure that the proposed exploration program for EL006194 will be well planned and managed to ensure that it has little or no lasting impact on the environment and imposes minimal disruption to the surrounding communities.

To properly manage the impact of the proposed work on the community and environment, all activities will be carried out in accordance with the Licence Conditions and Code of Practice: Standards, Procedures, and Practical Guidance under the Mineral Resources (Sustainable Development Act) 1990 (“Code of Practice”). Among other things, this includes the following practices:

• Ensure that all soil imported into the exploration licence area is free of disease and noxious weeds;
• Every effort will be made to minimise the risk and impacts of spills or leaks;
• Minimise the spread of noxious weeds, pest animals and plant diseases whilst undertaking exploration activities;
• Adhere to any biosecurity protocols that have been adopted on private land;
• Design, install and maintain erosion and sediment controls to prevent erosion of areas of disturbed land and sedimentation of waterways;
• Take all reasonable measures to prevent contamination of the environment from the release of fuels, lubricants and hazardous materials;
• Ensure that spills of hazardous materials are cleaned up as soon as practicable;
• Ensure that Aboriginal Cultural Heritage and non-Indigenous Cultural Heritage is not harmed as a result of works undertaken within the exploration licence area;
• Prior to undertaking any exploration activities, develop and implement a fire response and readiness plan;
• Ensure all waste generated on site is disposed of at an appropriate waste management facility;
• Potentially select, establish and manage campsites to minimise risks to the environment and/or the health and safety of people;
• Ensure that noise generated by exploration activities does not exceed limits set by the Environment Protection Authority and the Local Council;
• Establish dust control measures to prevent adverse impacts as a result of the release of dust, odour and/or emission of light;
• Ensure livestock disturbance, noise, access and exclusion areas as well as rehabilitation issues are addressed in the compensation agreement to the satisfaction of the landowner/occupier;
• Prior to commencing ground intrusive work or work involving the removal or damaging of native vegetation under the definition of low impact exploration, AIS Resources is required by the Code of Practice to submit a rehabilitation bond to the satisfaction of the Minister;
• Where possible, use existing roads and tracks for vehicles and machinery. Exploration works will be planned to use the existing roads as much as possible;
• As is recommended practice, all vehicles, plant and machinery will be thoroughly cleaned prior to mobbing to a new site or location. Soil and organic matter will be removed from vehicles and equipment prior to moving between areas of EL006194;
• AIS Resources will comply with the Environment Protection Act 1970 (VIC) and the State Environment Protection Policy (SEPP): Waters of Victoria (2003) and any other relevant legislation;
• Take all reasonable measures to prevent adverse impacts of establishing costeans, drill holes, bulk sample excavations and trenches to the environment and/or health and safety of people; and
• Ensure that disturbed areas are rehabilitated as soon as possible after the completion of exploration works.

Community Consultation – EL006194

AIS Resources is required by Section 39A of the Mineral Resources (Sustainable Development) Act 1990 (VIC) to consult with the community throughout the period of the licence by:

• Sharing with the community information about any activities authorised by the licence that may affect the community; and
• Giving members of the community a reasonable opportunity to express their views about those activities.

AIS Resources believes the community has the right to be informed and involved in decisions that will affect their area, lifestyles and interests. Accordingly, AIS Resources is committed to establishing a thorough understanding of the concerns and needs of the community, so that these may addressed to the highest degree possible. To do so, AIS Resources is committed to employing methods that allow for inclusive and accessible feedback mechanisms.

AIS Resources will consult with the community (including landowners and occupiers) concerning the proposed exploration licence. AIS Resources is committed to establishing and maintaining good working relationships with all community stakeholders and will consult with community stakeholders regarding a variety of relevant issues, including land access and impact, infrastructure, water, special local land issues, vehicle movements, sensitive flora and fauna, and heritage sites. The community consultation will take place before any disruptive field operations take place.

In accordance with its Community Engagement Policy, published on its website at: www.AIS Resources.com, AIS Resources plans to conduct the following community consultation activities:

• Identify and consult with relevant community, government authorities and employee stakeholders;
• Identify the potential impacts of exploration activities on relevant stakeholders;
• Utilise face to face meetings and one on one conversations, to establish clear, open and ongoing channels of communication with all relevant stakeholders and ensure they are aware of any real and potential impacts;
• Respond to stakeholder concerns in a timely, transparent and effective manner;
• Establish a stakeholder Complaints Register;
• Establishing stakeholder feedback mechanisms and demonstrate how feedback contributes to decision making;
• Maintain records of community engagement activities;
• Inform the chief executive of the municipalities within the exploration licence area of the proposed works and estimate duration, in writing, at least seven (7) days prior to commencing work under an approved work plan and provide further information as appropriate during the term of the licence;
• Respect the rights, cultural beliefs and concerns of all parties having an interest in the land (and waters) within and surrounding the exploration project area;
• If applicable, enlist local knowledge and relevant authorities in the design of the exploration works; and
• Prior to designing and constructing geophysical and geochemical surveys, consult with the private landowner/occupier about the position of gridlines and geophysical lines.

For further information please contact:

Phillip Thomas
President & CEO
C: +61 433 747 380 (International Cellular)
E: pthomas@aisresources.com