Community Report 2013-2014

Evolution Mining Limited is a leading, growth focused Australian gold company formed in November 2011. We own and operate five gold mines in Queensland and Western Australia, holding a 100% interest in all of our operations. Evolution has developed a track record of consistent performance and delivering to production and cash cost guidance.

Our consistent delivery to our shareholders is important; however, just as important is our delivery on our commitments to the communities in which we operate. Evolution Mining is a relatively new face in our communities and our first priority has been to understand what it means to be a good neighbour and a valued member of the community.

We have been seeking feedback from our community stakeholders on our current level of engagement and contribution and the opportunities for us to improve. This has been done primarily through the recently conducted stakeholder satisfaction assessment survey.

We invited 150 community stakeholders to participate in the survey and over 70% gave their time to do so. This is a positive response and to those of you who took the time to take part, we thank you for your input and feedback. Your participation has provided valuable information which will shape the direction of our community initiatives and programs going forward.

The following pages contain a snapshot of some of our current community initiatives and details of our future commitments to the community in response to feedback from the survey. More details of the site specific results from the survey have been distributed prior to this report and are available by contacting our operation in your local community.

We look forward to continuing our dialogue with you on Evolution’s performance in the community.

Evolution Mining Community PrinciplesEvolution recognises that the success of our operations is closely linked to the way in which we interact with our communities. To help ensure we have positive and value-adding engagement with our community stakeholders, Evolution developed the following community principles. We encourage our stakeholders to provide feedback at any time on how we are performing in relation to our community principles.

• Everyone plays a role in building positive Community Relations.

• We consider our community impact with each decision that we make.

• We strive to ensure that every interaction with our community stakeholders is positive and aligned with our values.

• We communicate regularly with our stakeholders with integrity in an open, timely and transparent way.

• We work closely with our stakeholders, we share ideas and we actively seek opportunities to collaborate.

• We value our stakeholders, respect their beliefs, backgrounds and aspirations and we strive to achieve outcomes of mutual benefit.

Evolution: working with our communities to achieve their future aspirations.

Our OperationsEvolution has five wholly owned operations: Cracow, Pajingo, Mt Rawdon and Mt Carlton in Queensland, and Edna May in Western Australia. Gold Production for the year ended 30 June 2013 totalled 392,920 ounces of gold equivalent. Evolution is forecasting production for the year ending 30 June 2014 between 400,000–450,000 ounces gold equivalent.

Our Community Report

Evolution has been involved in a variety of community projects since we formed in November 2011. We have made a commitment to working with our communities to achieve their future aspirations. We believe that by supporting community-led initiatives that address specific community needs and provide long-term, sustainable outcomes for the local community, we can make a positive difference beyond the life of the mine.

We contribute to the community in several ways, predominately through sponsorships, donations and partnerships with local organisations and events. We also provide local employment, local procurement, emergency services and royalties via the Royalties for Regions programs. The Survey indicated these contributions are highly valued.

Below are some highlights of our recent contributions.

Cracow – Indigenous Trainee program. This program was established in 2005 and has since trained 23 indigenous youth from the local Traditional Owner group, the Wulli Wulli People. In 2013 Evolution committed to continuing the program and added an extra position each year to the number of trainees at site. They also introduced the role of Indigenous Mentor to enhance the experience for trainees at site.

Pajingo – Ladies Pamper Days in partnership with Frontier Services. 2013/14 will be remembered for many things but for many Queenslanders it will be remembered for one of the most crippling droughts on record. Drought takes its toll on communities and especially those families living on the land. Evolution partnered with Frontier Services to host events to bring local ‘women of the bush’ together to catch up, enjoy some light relief and indulge in a massage, a haircut or a spa treatment.

Mt Rawdon - Mt Perry Dump Truck PullThe premier annual event for Mt Rawdon and the Mt Perry community each year is the Mt Perry Dump Truck Pull. Evolution helps organise and run this event and many of our employees participate on the day. With the mission of raising funds for youth suicide prevention in the region and the school chaplaincy programs this year over $17,000 was raised. The event not only raises funds for a great cause, it also draws a crowd of ~500 people into Mt Perry, supporting the local economy.

Evolution Community Contribution Highlights

Edna May – Westonia 100 year celebrations and the Hood-Penn MuseumEvolution was proud to be a key partner in Westonia’s 100 year celebrations in 2014. The small regional community with a strong history in agriculture and mining swelled to more than twice its size for the school reunion weekend and the opening of the Hood-Penn Museum. The Museum is a fitting piece to accompany the historical town with state of the art displays including a modelled mine shaft that simulates an underground blast.

Mt Rawdon – School partnerships Mt Rawdon has placed a priority on supporting education for youth in the district, particularly through the schools in Mt Perry and Gin Gin. School tours are conducted at the site and employees also visit the schools to talk with the students about careers in mining. In 2013 eight Mt Perry students competed for the first time in a regional robotics competition, each supported by an Evolution employee who volunteered their time to coach and mentor the students with their projects through to the final Maryborough Technology Challenge where the Mt Perry teams ended up taking home first and second in both the search & rescue and the sumo competitions.

Mt Carlton – Emergency Services and SafetyMt Carlton is a relatively isolated site and shares boundaries with several local landholders. With the nearest hospital being 200km away, access to emergency services is critical. Evolution offers emergency services resources to our neighbouring landholders and has responded to emergencies such as snakebites and horse riding accidents, providing first aid and monitoring until rescue helicopter services arrived. Road safety has also been identified as a priority at Mt Carlton, with extra safety measures put in place on the access road and free UHF radios offered to all locals who use the same road.

Pajingo – Metal Mates provides Townsville hospital with equipmentThrough participation in Working Wonders’ Metal Mates program, Pajingo Operations were able to donate $27,000 to Townsville Children’s Hospital to purchase equipment for kids with acquired brain injuries whilst in rehabilitation. This equipment included feeding chairs, showering chairs and aids, iPads and the purchase of the unit’s first wheelchairs specifically made for children.

Cracow – Social AssistanceThe historical mining township of Cracow has limited access to services and an aging population. When Evolution became the owner of the local mine, we continued to provide Cracow residents with a regular supply of treated water. Evolution also delivers meals to the door of local elderly residents every week.

Evolution commissioned Banarra, specialists in social sustainability, to undertake a stakeholder satisfaction assessment (‘the Survey’) on our behalf. The Survey was conducted in February 2014 with the purpose of better understanding our stakeholders’ perceptions of Evolution and our five operations. The following six key performance elements were rated for each operation to assess current levels of satisfaction with that aspect of our performance:

1. Level of Satisfaction

2. Level of Support

3. Stakeholder Engagement and Inclusiveness

4. Business Conduct (Respect, Ethics and Trust)

5. Responsiveness and Transparency

6. Community Commitment and Contribution.

The Survey was distributed by hard copy, telephone and online to a sample of representatives from a range of community stakeholder groups, including: business owners, community organisations, government bodies, industry and advocacy groups, landholders, local residents, service providers, suppliers of goods and services, and Traditional Owners.

The process of preparing, conducting and analysing the Survey occurred through the following steps:

Step 1: Profile our operations and communities

Step 2: Identify goals and key focus areas of community satisfaction

Step 3: Develop stakeholder database and engage with the community

Step 4: Undertake survey process and analysis with third party (Banarra)

Step 5: Analyse results and identify opportunities for improvement

Step 6: Develop work plans and commitments to community in response to survey

Step 7: Prepare report and present to participating stakeholders and wider community

Step 8: Review feedback and assess the survey process.

Stakeholder Survey Objectives and Approach

Our CommunitiesEach of our five operations is set amongst vibrant rural communities. We value the unique relationship and partnering opportunities that each community presents. We encourage a tailored approach in the way our sites and communities engage and collaborate.

CRACOW EDNA MAY MT CARLTON MT RAWDON PAJINGO

Shire Banana Westonia Whitsunday North Burnett Charter Towers

Communities Cracow Theodore

WestoniaMerredin

GumluAyrHome HillBowenCollinsville

Mt PerryGin Gin

Charters Towers

Traditional Owners

Wulli Wulli None identified Birriah Port Curtis Coral CoastWakka Wakka

KudjulaBirriah

Industries BeefGrainsCotton

Grains BeefIrrigation

BeefTimber

BeefEducation

Overall, Evolution Mining and our operations were perceived as being strong economic contributors to the local area and strong supporters of local community organisations and events. The Survey indicated that Evolution has a good reputation both amongst our immediate neighbours and our neighbouring communities. It also indicated that generally our stakeholders want Evolution to develop, grow and operate successfully as a means to increased economic and social benefits for the region.

However, some key areas for improvement were highlighted by Survey participants. Analysis of the Survey results identified seven (7) key areas for Evolution Mining to focus our attention on:

1. Engagement and Communication

2. Cultural Awareness

3. Community Complaints and Grievances

4. Local Business and Economic Development

5. Youth Education and Career Development

6. Community Investment

7. Mine Closure and Community Sustainability

In response to this feedback, Evolution Mining has made a commitment to addressing each of these areas, as outlined below. We will be increasing our avenues of proactive engagement with our community stakeholders and we also encourage you to engage with your nearest operational site’s leadership and community teams to discuss further how these might apply in your community.

1. ENGAGEMENT AND COMMUNICATIONSurvey results indicated that our current approach to communication and engagement does not always meet the community’s needs. In particular, we are not always tailoring our information to accommodate the community’s preferred communication methods, timing and content of information.

Evolution Mining is taking action to address this by reviewing our current engagement activities and identifying opportunities to develop better communication material to update the community of our activities. Reports such as this one are the first step in that commitment.

Each of our operations is conducting a review to identify opportunities for increased and/or more

effective engagement activities relevant to their community. Particular effort will be focussed on identifying a variety of communication methods to reach all of our stakeholders.

Resources and training will also be provided for all employees that engage with community stakeholders to increase the effectiveness and performance of our engagement and communication efforts.

2. CULTURAL AWARENESS AND ENGAGEMENT The need for increased sensitivity and cultural awareness when dealing with indigenous stakeholders was identified within the Survey results.

We will be placing even greater emphasis on cultural awareness training across Evolution, particularly for those people at our sites who engage directly with our indigenous stakeholders.

In addition to providing general cultural awareness programs for all Evolution employees, we will continue to work with our Traditional Owner groups as each site to develop tailored and locally appropriate training for the employees and contractors at each of our operations.

We will continue our regular engagement with Traditional Owner groups via the nominated Native Title committee members and we will seek feedback for opportunities to improve.

3. COMMUNITY COMPLAINTS AND GRIEVANCESSurvey results indicated that we need to improve

our responsiveness to local community complaints

and concerns.

Action has been taken to address this issue and improve

our overall handling of complaints and addressing

community concerns. A complaint management system

has been implemented at all of our operations and this

has been linked across the organisation to ensure that

there is clear accountability and follow up items are

addressed in a timely way.

We have also strengthened our policy and procedures

for how we receive, record and respond to complaints

and we believe this will contribute to a positive

improvement in our responsiveness and better

outcomes achieved for community members that take

the time to provide us with their feedback.

Outcomes of the Survey

4. LOCAL BUSINESS AND ECONOMIC DEVELOPMENT

The Survey provided a clear message that anything we can do to contribute to local business viability and the local economy would be greatly valued.

A lot of early stage work has been undertaken recently by our procurement team in conjunction with our community relations team to seek opportunities to maximise local economic participation. We are also developing strategies to assist in increasing the capacity of local business to take advantage of opportunities our operations may present.

We are working with our community stakeholders to identify opportunities to partner on Shared Value projects that deliver long-term sustainable outcomes that will continue to benefit the community long beyond the life of the mine. These projects are focused on economic development, education and health outcomes for our local communities.

We are committed to continuing this work to bring about tangible benefits for the local economies around our operation sites.

5. YOUTH EDUCATION AND CAREER DEVELOPMENT

Engaging local youth in education and local career development opportunities was identified in the Survey as important for the rural communities in which we operate. We will continue to look for ways to grow local employment and training opportunities, particularly for the youth.

At several of our operations we are the major local employer. In addition to providing an opportunity for people to continue to work and live in their local communities, we provide a variety of scholarship and apprenticeship opportunities each year. These vary from site to site and following the Survey feedback we are reviewing these programs and looking for further opportunities to improve.

We will continue to seek opportunities to participate in local career expos, visit and support local schools, facilitate field trips, volunteer at youth events and support local school programs.

6. COMMUNITY INVESTMENTSurvey respondents expressed that they appreciate and value the current level of community investment at each of our operations. Nevertheless it was generally hoped that we would continue to enhance this aspect of our community contribution.

Evolution is constantly looking at ways to enhance the outcome from our community investment by ensuring our support helps to deliver the best possible outcomes relevant to our communities and their needs.

We have committed to working with our communities to identify larger scale community projects that will deliver shared value for both Evolution and the community. We plan to implement at least one of these projects in the coming financial year. This investment is in addition to the local sponsorship and donation activities at each of our sites.

In response to the Survey feedback we are also looking at how we can provide more flexibility and innovation to our current sponsorship and donations programs, including more volunteering opportunities and community partnership activities.

7. MINE CLOSURE AND COMMUNITY SUSTAINABILITY

Survey results indicated some stakeholders feel uncertain about the effects of mine closure on their community and the community’s preparedness for mine closure.

Our commitment to building in sustainability principles in all our community programs and investment activities is made with community sustainability in mind. Evolution also commits to increased participation in local forums and community planning with local government and community organisations. We will communicate our mine closure and planning in a transparent and timely way with the best information we have available during our community engagement activities.

SYDNEY OFFICELevel 30175 Liverpool StreetSydney, NSW 2000Ph: 02) 9696 2900

PERTH OFFICELevel 3, 1 Altona StreetWest Perth,Western Australia, 6005Phone: 08) 6216 9700

EDNA MAY OPERATIONS22 Wolfram StWestonia WA 6423Ph: 08) 9046 8000Email: emo.communityrelations@evolutionmining.com.au

CRACOW OPERATIONSTheodore RoadCracow QLD 4719Ph: 07) 4993 7900Email: community.cracow@evolutionmining.com.au

PAJINGO OPERATIONSClermont HighwayPO Box 1435Charters Towers QLD 4820Ph: 07) 4793 1200Email: pjo.communityrelations@evolutionmining.com.au

MT CARLTON OPERATIONSStrathalbyn Road, BogiePO Box 306Bowen QLD 4805Ph: 07) 4422 0100Email: mco.communityrelations@evolutionmining.com.au

MT RAWDON OPERATIONSSwindon RoadMT Perry QLD 4671Ph: 07) 4156 2222Email: MRO_reception@evolutionmining.com.au

EVOLUTION MINING CONTACT DETAILS