Fresnillo PLC — Environmental & Social Information 2015

Apr 15, 2015

Social and Sustainability

Letter from the Chairman of HSECR

"Fresnillo plc's commitment to create long-term value is based on sustainable development."

Rafael Mac Gregor

Chairman, Health, Safety, Environment and Community Relations Committee

The Health, Safety, Environment and Community Relations (HSECR) Committee assists the Board in reviewing management's performance on HSECR matters.

The HSECR Committee met twice during 2014 to evaluate the performance and maturity of the HSECR System.

Highlights for 2014

The Company sincerely regrets to report one fatality in a work-related accident during the year

The HSECR System´s progress and evolution was validated by PricewaterhouseCoopers (PwC); the System reached an overall maturity of 83.7% vs 75.5% for 2013, well on track to achieve full maturity by 2016 as planned

Fresnillo, Ciénega and Penmont received integrated certification in ISO 14001 and OHSAS 18001 standards

Launch of the 'SafeStart' programme to reinforce safety awareness and develop personal safety skills of employees and contractors. This initiative targets the human factors that are involved in the majority of incidents and accidents

Implementation of information systems to further support health, safety and community relations processes

Goals for 2015

Roll out the 'SafeStart' programme at all operating units

Stricter enforcement of contractors' occupational health practices to align with the Company's policies

Further training in response to environmental contingencies, including simulations or real-life situations

Continue to monitor and review carbon emissions and water targets Increase collaboration amongst the Company's business units and NGOs for community development projects

More direct and effective coordination with operational units for early detection of any deviations and implementation of remediating measures

In the Social and Sustainability Performance section, shareholders will be able to obtain further detail and information about HSECR performance in 2014

Adopted some new industry best practices in stakeholder engagement; implemented a new information system to support reviewed processes

Updated community investment priorities, strategy and policies

Community relations team participated in trainings to reinforce engagement skills and the use of the information system, helping unify criteria across the Company

The Committee, on behalf of the Board, will continue to emphasise to Company management the importance of on-going progress towards HSECR goals and objectives, achieving excellence on HSECR matters and maintaining safety at the forefront of the Company's priorities.

Very truly yours

Rafael Mac Gregor

Chairman, Health, Safety, Environment and Community Relations Committee

Sustainability: Advance and enhance the sustainability of our business

Sustainability objective	Highlights
Health	Pages 81-82 of the Annual report
Fresnillo plc is fully committed to the overall health and wellbeing of employees and contractors. A preventive approach to health continues to be emphasised.	– All operating units and exploration projects standardised occupational health processes and revised their matrices regarding health risk and training requirements – Promotion of healthier lifestyles became a priority of the Health Department – Penmont became the first unit certified as a 'Healthy Company' by the Mexican Health Authorities – The Company maintained its commitment to work alongside Health Authorities to support preventive care initiatives in the communities where we operate
Safety	Pages 83-85 of the Annual report
Safety remains a top priority for Fresnillo plc.	– After reviewing a root cause analysis regarding the single fatality that occurred, the Committee requested that the Company reinforce safety procedures – Implementation of the Safety Action Plan remains a priority – Total Recordable Injury Rate and the Lost Time Injury Frequency Rate showed a slight deterioration in 2014 vs. 2013 but continued to demonstrate a favourable trend – More contractors were enrolled in the 'Self-Management' programme of the Mexican Labour Ministry, a voluntary programme designed to promote a culture of self-evaluation through continuous improvement of health and safety
Environment	Pages 86-91 of the Annual report
The Company is committed towards operating in a sustainable way. The Company monitors and measures environmental progress with various certifications including ISO 14001, the International Cyanide Management Code and the Clean Industry award by the Mexican Environment Protection Agency.	– A leakage of a limited amount of solution containing cyanide occurred in late December 2014 at one of Noche Buena's operations. The Company reported that this incident was immediately controlled within Company facilities by personnel at Noche Buena – Herradura successfully completed the re-certification process for the International Cyanide Management Code – The Company conducted an evaluation of safety conditions at our tailings dams with positive results – Public reporting to (i) the Climate Change and Water Programmes of the Carbon Disclosure Project (CDP) as well as (ii) the Mexican Greenhouse Gases disclosure project 'GEI Mexico' – Monitoring of carbon emissions as well as water performance became permanent elements of HSECR Committee meetings
Community relations	Pages 92-93 of the Annual report
The Company strives to maintain good relations and best practices in the communities where it operates.	– A qualitative assessment of community perception was conducted to identify possible areas of opportunity, which resulted in improved understanding of community needs and response mechanisms – Engagement of key stakeholders in the organisation to raise awareness on the most common sources of conflict between communities and the mining industry – Operating units and exploration projects kept track of community investment with the support of new IT systems – Preliminary screening of NGOs to detect new partners in community development