PRODIGY GOLD NL — Environmental & Social Information 2021

Aug 23, 2021

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2021 Environment Social Governance Report

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This report summarises Prodigy Gold’s sustainability initiatives and provides an overview of its ongoing commitment to sustainability. This annual report covers operations from 1 July 2020 to 30 June 2021.

The objective of this report is to voluntarily and transparently disclose data. In the preparation of this report guidance has been taken from the GRI reporting standards. The report aims to simplify the language and provide information that is accessible to a broader part of the community that regulatory documentation typically prescribes.

Material Topics

Material topics reflect an organisation’s most significant economic, social and environmental impacts. The topics selected for reporting come from stakeholder engagement, and areas of focus for permitting and reporting. Our management, directors, and company commitments and management approach is outlined for each topic. The report should be considered along with the numerous policies, statements, and plans available in the corporate governance section of our website.

• A. Health and Safety

For more information on this report, contact:

Jutta Zimmermann

Company Secretary

• B. Stakeholder Engagement

• C. Indigenous Interests

• D. Environmental Performance

Prodigy Gold NL

Level 1 / 141 Broadway Nedlands, WA, 6009

admin@prodigygold.com.au

E. Water

F. Diversity

G. Local Communities

Prodigy Gold NL is an Australian public company listed on the Australian Stock Exchange.

Reporting boundary and scope

This report covers Prodigy Gold’s exploration and development activities on the Tanami, Reynolds Range and North Arunta Projects located in the west of the Northern Territory.

Terminology

In this report, the terms:

‘Prodigy Gold’, the ‘company’, ‘our’, ‘us’, and ‘we’ refer to Prodigy Gold NL.

ESG refers to environment social and governance.

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About the Company

Prodigy Gold is a mineral exploration and development company focused on the discovery of large gold deposits in the Tanami Region of the Northern Territory. The gold ore would be extracted via open pit mines or underground mines. The gold would likely be recovered from ore through grinding, gravity concentration and dissolution with cyanide before gold bars are ultimately produced for sale.

To accelerate the discovery of gold resources the company has brought in other companies through joint ventures, including Newmont and IGO. These companies bring technical expertise and experience in exploring for gold, copper and nickel and other base metals. While our company and our joint venture partners may use different language to describe what we do and how we do it, our values are shared. Prodigy Gold is committed to responsible exploration, development, operations and closure and is focused on conducting its business in harmony with stakeholders’ and the wider community’s desire to conserve and protect the natural environment and community interests.

Our team is well experienced, and has been exposed to exploration and mining practices around the world. We know the acceptable standards to operate by and understand our regulatory obligations and always strive to exceed these.

A Regulated Process

Prodigy Gold has been working in the Northern Territory for over 13 years. We are governed by many laws and regulations. As we are predominantly operating within Indigenous Protected Areas, and on Aboriginal Freehold Land the Commonwealth Aboriginal Land Rights Act (NT)

(ALRA) and Commonwealth Environment Protection and Biodiversity Conservation Act (EPBC) are set standards for land access and environmental approvals processes. The Corporations Act , ASX Listing Rules and 4th Edition Corporate Governance Principles and Recommendations guide our company policies.

Additionally key Northern Territory laws relating to our activities include the Mining Management Act, Mineral Titles Act , Environment Protection Act and Aboriginal Sacred Sites Act. Exploration Agreements with Traditional Owners through the Central Land Council also outline, consultation, meetings, work approvals and reporting as laid out in ALRA.

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Rehabilitated access road encouraging re-growth

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A. Health & Safety:

incidents, hazards and near misses are considered and appropriate mitigations put in place.

Our commitment to health & safety

Prodigy Gold is committed to achieving high standards of health and safety. Prodigy Gold supports a co-operative and open work environment that promotes excellence in health and safety and provides a safe and healthy work environment for all employees, contractors and visitors, ensuring that our operations and/or activities do not place them, or the wider community, at undue risk.

Navigating the COVID-19 Pandemic

FY2021, more so than any other year in recent times, has emphasised the importance of ensuring a safe environment for our workforce, and of protecting the health of the local communities we interact with.

The continuance of the COVID-19 pandemic this year has caused considerable disruption to workforces globally and has forced companies across all business sectors to implement strict health and safety measures to protect their employees.

Prodigy Gold engages with both the Northern Territory Government and the Central Land Council on an ongoing basis implementing safety measures that protect not only our workforce, but the broader Australian community.

The implementation and frequent review of our COVID19 management plan has provided our employees with the confidence to continue working in their roles throughout the pandemic and we are pleased to report there have been no COVID-19 related safety incidents reported this year.

Performance & Future Planning

Management completed an update of the Exploration and Corporate Risk Registers. This update ensures that

During the year in review, Prodigy Gold undertook a review of all emergency, and crisis management plans and reviewed them against the programs and protocols in place across our peer operators. As a result of this review two way satellite messaging capability has been introduced this field season.

Our company is continuing to look for ways and solutions to drive improvements across our health and safety practices, and continues to educate our staff and contractors on best safety practices to ensure they all return home safely after

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Geologist recording drillhole information

completing their workday. Prodigy Gold can report that no reportable safety incidents occurred during FY2021. Two LTI’s were reported. The injured employee and contractor both fully recovered and returned to work.

The company has commenced using skidsteer loaders. Risk identification, procedures and training in the use of company equipment as well as first aid training has been provided and will continue to be the focus for FY2021.

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B. Stakeholder Engagement:

Prodigy Gold acknowledges that it conducts mineral exploration and mining on land owned by Traditional Owners and that Prodigy Gold’s access to this land is guided through processes with the Central Land Council. Prodigy Gold is committed to a close working relationship with the Central Land Council, the communities and the Traditional Owners and is committed to offer employment opportunities to people in local communities and the promotion of knowledge, understanding and respect for Indigenous Australians traditions and culture.

Prodigy Gold is committed to responsible exploration, development, operations and closure and is focused on conducting its business in harmony with stakeholders’ and the wider community’s desire to conserve and protect the natural environment and community interests.

Unfortunately, due to the COVID-19 pandemic, several of our planned stakeholder engagement meetings were postponed, however the company continues to engage through alternative communication channels whilst interactions are limited.

Our exploration agreements with Traditional Owners through the Central Land Council ensure the Traditional Owners understand the potential ultimate impact of our activities to allow them to give informed consent before we start any exploration.

Prodigy Gold’s stakeholders defined

Prodigy Gold defines stakeholders as groups or individuals that have either a direct or indirect interest in our daily operations .

2021 Actions

A mine liaison meeting in conjunction with an on-country meeting was held in May 2021 at Twin Bonanza with representatives of the Traditional Owners, Central Land Council, Prodigy Gold and Davidson Gold attending. The managing director and exploration manager presented an update of recent activities and proposed future work.

All programs completed during the year had CLC approval. These clearances typically involve anthropologists and key representatives from the communities responsible for land checking the areas we propose for work. These approvals identify culturally significant sites. The company has systems to ensure staff are aware of the need to protect these sites and the areas to avoid to ensure these sites remain undisturbed.

Mine management plans have been submitted with the NT government for all 2021 activities. Some projects are operating on 2019 management plans due to delays in assessment by the NT government.

**Stakeholder Groups **	People Involved	Prodigy Gold’s Engagement
Our entre workforce	Direct employees, contractors, part- tme workers,consultants	In-person meetngs, inductons, contracts, policies andprocedures
Local communites	Traditonal Owners, Central Land Council, pastoralists	In-person meetngs, mine liaison meetngs, communityevents,work areaprogram approvals
Government	Northern Territory and Federal departments	In person meetngs, community events, government consultaton,mine managementplans
Local businesses	Including shop owners, drilling	In-person meetngs, community events
Investors	Shareholders	5 In-person meetngs, ASX reportng, AGM’s, Presentatons

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C. Indigenous Peoples:

Working alongside the Indigenous Peoples

We fully support the rights of the Traditional Owners to protect and get value for their land. We want to create value for all stakeholders. We recognise this is an important decision for the Traditional Owners to let us come onto their country, and also to make the decision as to whether the risks and impacts are worth the benefit to them, and future generations.

Prodigy Gold is proud of its relationships and partnerships with the indigenous peoples of the Northern Territory, and our interaction and engagement with these groups is of utmost importance.

Prodigy Gold has a vested interest in protecting the values, traditions and sacred sites cherished by local indigenous groups and we have in place a clear framework to ensure our operational objectives are constantly in line with the expectations of the Traditional Owners.

A key component of our Indigenous peoples engagement are ‘on country’ meetings and sacred site surveys which are funded by the company and provide assistance for the Traditional Owners to access their country, be informed about the activities completed and planned, and likely impacts and remediation conducted by the company.

In addition to NT Government approved permits and plans, the company is required to submit Work Area Programs for approval from the Central Land Council.

These programs further mitigate the risk to culturally significant sites, and give the opportunity for Traditional Owner input into our work.

2021 Actions

Prodigy Gold held regular consultations during the year with members of the Central Land Council to provide an open forum for discussion and planning. Engagement with local communities is prescribed in Exploration Agreements required under the Aboriginal Land Rights

Act 1976. These agreements are administered by the Central Land Council.

These consultations have provided the company with valuable insight and knowledge.

On-country meetings were held with Traditional Owners during the year coordinated by the CLC. The Board visited the Balgo community, our closest settlement, in June 21.

The company can report that numerous clearance certificates were provided during the year to protect heritage sites and ensure Traditional Owners are aware of where Prodigy Gold is operating.

The company has put in place a plan to undertake cultural awareness training held by our Traditional Owners in their community for our staff during CY2021.

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Reviewing map information in the field.

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D. Environmental Performance:

The company conducts it activities under an approved annual Mine Management Plan for exploration, and an approved Care and Maintenance and Mine Closure Plan for mining. The latter two plans have received NT EPA approval and outline mitigation and control measures to be used to prevent and minimise environmental impacts. The plans are revised on an annual basis, to reflect the change in project status of the Old Pirate Project to care and maintenance, the completion of rehabilitation of the minesite and landforms and take into account risk input from government agencies and stakeholders that were consulted during the period.

Within and subsequent to the plan approvals are:

• Biodiversity Management Plan;

• Water Management Plan;

• Mine Closure Plan;

• Care and Maintenance Plan;

• Erosion and Sediment Control Plan;

• Hazardous Substances Management Plan;

• Vehicle Management Plan;

• Social Impact Management Plan;

• Cultural Heritage Risk Management Plan;

• Fire Management Plan;

• Ground Disturbance Management Plan;

• Noise Management Plan;

• Biting Insects Management Plan;

• Air Quality Management Plan;

• Emergency Response Management Plan; and

• Waste Rock Dump Management Plan

Improving our focus on project rehabilitation

During FY2021, Prodigy Gold deployed additional resources across our rehabilitation projects to bring rehabilitation of drilling sites up to date. Where possible the company rehabilitates on completion of a program.

We commenced using a tablet based system with QField software to streamline the capture of field photos, tracks cleared, and rehabilitation status.

Summary of our rehabilitation work this year

Rehabilitation of previous drill holes was completed at Tulsa, Reward, Bonanza and Lake Mackay to allow regrowth over the summer wet season.

The EPA agreed to reduce rehabilitation monitoring for Twin Bonanza to photo monitoring which was completed by Prodigy’s exploration manager.

Staff surveyed several sites such as Reynolds’s Range to undertake rehabilitation work programs that had been overlooked by previous owners.

One reportable hydrocarbon spill occurred during the reporting period. This minor spill was immediately remediated under the guidance of our environmental consultants and no further action was requested by the Northern Territory Government.

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Red Bud Mallee
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E. Water:

Prodigy Gold’s commitment to protecting water quality continues to be at the forefront of our environmental planning efforts. Pleasingly, during the 2020 financial year, Prodigy Gold demonstrated that water drawn down by the company has a lesser impact than the seasonal variation of the climate in the Northern Territory. This provides our team with tremendous confidence and validates our water protection and management plans.

Two water bores have been decommissioned to stage 1. Water usage through the year remained well below the 15L/s that requires licensing of an active bore.

Water is managed under an Environment Management Plan for the mining project and Mine Management Plans for exploration projects. The company has a Water Management Plan based on hydrogeological modelling of groundwater aquifers, water accounting, level monitoring and annual quality monitoring.

Previous water monitoring is in line with the company’s care and maintenance closure plan. No breaches to the water management plan occurred during the 2021 financial year.

F. Diversity:

Prodigy Gold actively seeks to attract a diverse range of skills and cultures to the business, with a specific commitment to employ staff from the lands on which we operate. Two staff had been sourced from a local community, however commencement of employment continues to be delayed by safety concerns and permit restrictions due to the COVID-19 pandemic.

The company’s diversity policy is available on the company website. Our policy is to recruit and manage on the basis of qualification for the position and performance, regardless of gender, age, nationality, race, religious beliefs, cultural background, sexuality or physical ability. It is essential that the company employs the appropriate person for each job and that each

person strives for a high level of performance. There have been no exceptions to the policy this financial year. No executive staff or director positions were added or replaced during the year.

Organisatonal Level	Female %
The Whole Organisaton	22%
Technical Staf	0%
Administraton Staf	100%
Senior Executves	50%
Board Members	0%

The chairman monitors the adequateness of the diversity policy. The Board is responsible for developing the measurable objectives and strategies to meet the objectives of the Diversity Policy. The company is responsible for implementing, monitoring and reporting on the measurable objectives. These measurable objectives include the achievement of:

• a diverse and skilled workforce, leading to continuous improvement in service delivery and achievement of corporate goals;

• a workplace culture characterised by inclusive practices and behaviours for the benefit of all staff;

• equal employment and career development opportunities;

• a work environment that values and utilises the contributions of employees with diverse backgrounds, experiences and perspectives through improved awareness of the benefits of workforce diversity and successful management of diversity; and

• awareness in all staff of their rights and responsibilities with regards to fairness, equity and respect for all aspects of diversity.

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G. Local Communities:

A commitment to give back to the local communities The local communities in the Tanami Region of the Northern Territory are at the forefront of our planning and decision making and the input we receive from these local groups provides our team with immense value and knowledge.

Prodigy Gold operates mindful of supporting employment and businesses in local communities it operates in as much as possible. This is achieved through a number of ways such as sourcing local suppliers for essential supplies, contracting local workers and providing opportunities for community members to engage with the company and provide feedback on how we can give back to the local people.

Prodigy Gold’s expenditure during the 2020 financial year was approximately ~$5 million. ~80% is spent for exploration of our Northern Territory tenements.

CLC engagement

The company has been engaging with the CLC mining

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Tony at Territory Hirex supplies our field consumables

officers to promote employment and business

opportunities for local residents. The company applies a bias towards local contractors in its tender process.

2021 Actions

The CFO continues to engage with employment service companies in Alice Springs with a view to increase the number of employees sourced from the communities in the areas the company operates.

The company has created simplified pathway to employment for the local community via making contact with the company by phone, email, or letter, without needing to follow the standard application process.

Two people from local remote communities were offered positions with the company. Unfortunately these had to be suspended due to COVID-19 restrictions on interaction with people in at risk communities and Western Australian border COVID-19 restrictions.

Access agreements outlining a code of conduct for exploration are in place with two pastoral stations. Pastoral stations provided earthwork services on Tanami Projects and the North Arunta Project.

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Andrew and Natasha at Alice Hosetech supply our equipment parts

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