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12 May 2024

FOR: Employees of Greenstone Resources Corporation

RE: Message from President Anthony B. Quijano

Dear Associates:

On behalf of Greenstone Resources Corporation, I would like to express my regret over the loss of personal property in our host Barangay Siana following the unforeseen failure of the embankment of Tailings Storage Facility 3 today in Tubod. The evacuated community arising from this sudden, unfortunate incident are now temporarily housed in the gymnasiums of Tubod and Mainit Municipalities, pending the rebuilding of their homes and the determination of safety in the area.

Please be advised that he company shall voluntarily suspend its mining operations in order to expedite its emergency response activities, to closely examine what has transpired, and to ensure the absolute safety of our beneficiary communities.

On the day of the incident, there was a series of earthquakes – the strongest of which was a magnitude 4.0 quake in nearby Hinatuan, Surigao del Sur – which we need to extensively investigate the extent to which this has contributed to the failure of the facility.

Earlier, we received reports of cracks in the Siana Barangay Road, which runs along the foot of the TSF3 embankment. The area was immediately cordoned off by our first responders and barangay officials followed by the evacuation of the immediate community.

While evacuation was well underway, we were able to monitor cracks on the backfilled portion of the TSF. Full evacuation was then completed prior to the failure of the facility – and fortunately – there were no reported casualties arising from the incident due to the immediate evacuation.

The structure was constructed on top of an older tailings storage facility built by Suricon pre-1990 and extended upward by former operator, Australia’s Red5, which began construction in 2010.

While the facility was practically not utilized by our operations since our restart in 2022, it was dewatered to prevent seepage into its embankment. It was likewise backfilled with waste material to reinforce the structure, as part of its complete rehabilitation.

Our personnel have vigorously monitored daily weather conditions in the area. We are likewise monitoring movements on the facility and will produce hourly reports and give alerts if there will be further movements within the facility.

Our Mine Operations and Safety & Health Departments along with Greenstone’s top management team continue to extensively assess and check for any other slope faults that may cause another incident in order to initiate the necessary preventive measures within the Siana Gold Project MPSA, particularly in TSF3, before the resumption of any mine operations.

Greenstone will likewise rebuild the households that have been damaged as a result of the incident today and provide all the necessary assistance to the affected community in order to bring their livelihoods and living conditions back to normal.

In light of this incident, we reaffirms our commitment to a resilient community and will continue to ensure that all mitigating measures are in place to ensure its safety. Moreover, we will continue to work with our host local government units, the Provincial Disaster Risk Reduction and Management Office and the Department of Environment and Natural Resources’ Mines and Geosciences Bureau (DENR-MGB) for the overall safety and sustainability of all our beneficiary communities.

Finally, I would like to call for unity, solidarity and understanding during these challenging times. I am confident that we will recover quickly and rebuild the communities that we serve.

Sincerely,

Anthony B. Quijano
President

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