Independent Assurance Report - Heraeus · basis within the framework of our work. ... This independent assurance report has been prepared for the Refiner for the purpose ... Tungs

Engagement: 0.0709092.001

Independent Assurance Report Heraeus Precious Metals GmbH & Co. KG Hanau

Reasonable assurance engagement on the Refiner's Compliance Report for the year ended 31 December 2013

PricewaterhouseCoopers refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.

Independent Reasonable Assurance Report

We have been engaged by Heraeus Precious Metals GmbH & Co. KG, Hanau, (the "Refiner") to perform a reasonable assurance engagement on the Refiner’s Compliance Report prepared by the Refiner for the business group "Heraeus Precious Metals" (HPM) as defined in Table 5 of the Compliance Report for the year ended 31 December 2013 (the "Refiner’s Compliance Report").

The independent assurance scope consists of the Refiner’s Compliance Report.

Responsibilities

The management of the Refiner is responsible for the preparation and presentation of the Refiner’s Compliance Report in accordance with the LBMA Responsible Gold Guidance (version 5) as of January 18, 2013, as well as the Supplement on Tin, Tantalum and Tungsten of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas as of November 2012 (the "Guidance"). This responsibility includes establishing appropriate risk management and internal controls from which the reported information is derived. The criteria identi-fied by management as relevant for demonstrating compliance with the Guidance are the activities described in the Refiner’s Compliance Report.

Our responsibility is to carry out a reasonable assurance engagement in order to express a conclusion based on the work performed.

We conducted our reasonable assurance engagement in accordance with International Standard on Assurance Engagements (ISAE) 3000 Assurance Engagements other than Audits or Reviews of Historical Financial Information issued by the International Auditing and Assurance Standards Board and the supplementary guidance set out in the LBMA Responsible Gold Programme - Third Party Audit Guidance (version 2) as of January 18, 2013 (the "Audit Guidance"). This Audit Guidance requires that we comply with ethical requirements and plan and perform the assurance engagement, under consideration of materiality, to express our conclusion with reasonable assurance.

The procedures selected depend on the practitioner’s judgment. Knowledge of the business activities and the economic and legal environment of the Refiner are taken into account in the determination of evidence-gathering procedures. Internal controls rele-vant to the preparation of the Refiner’s Compliance Report and the evidence supporting the disclosures in the Refiner’s Compliance Report are examined primarily on a test basis within the framework of our work. Within the scope of our work we performed amongst others the following procedures:

Interviews with the compliance officers in charge of the preparation of the Refiner’s Compliance Report.

...

Interviews with management and employees of departments in charge of Recycling, Purchasing, Material Management and Trading.

Inspection of relevant corporate guidelines and documents describing the Management Systems, Due Diligence and Risk Management approach towards a responsible supply chain.

Review of documentation of requirements on the group-wide processes for collecting, analyzing and aggregating data on the supply chain of gold, tin, tanta-lum and tungsten.

Performance of site visits and control testing at HPM locations in Hanau (Germany), Hong Kong (China) and Singapore as part of our sample assessments of relevant systems, processes and controls; including process walkthroughs from supplier selection to materials receipt and lot processing.

Evaluation of the consistency of the statements provided in the Refiner’s Compliance Report with the findings obtained during our engagement.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.

This independent assurance report has been prepared for the Refiner for the purpose of assisting management in determining whether the Refiner has complied with the Guidance and for no other purpose. Our independent assurance report is issued solely to the Refiner in accordance with the terms of our engagement. We do not accept or assume responsibility to anyone other than the Refiner for our work, or for the conclu-sions we have reached in the independent assurance report.

Inherent limitations

Non-financial information, such as that included in the Refiner’s Compliance Report, is subject to more inherent limitations than financial information, given the more qualitative characteristics of the subject matter and the methods used for determining such information. The methods used by the Refiner to comply with the Guidance may differ. It is important to read the Refiner’s conflict minerals supply chain policy available in the download section on HPM’s website:

http://heraeus-precious-metals.com/en/home/heraeus-precious-metals.aspx

Appendix

PwC Appendix

0.0709092.001

Index to appendices Page

Refiner’s Compliance Report………………………………………………………………………… 1

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Documents

Independent Assurance Report - Heraeus · basis within the framework of our work. ... This independent assurance report has been prepared for the Refiner for the purpose ... Tungs