2022 In Review

Generation Mining Advances Marathon Palladium-Copper Project Towards Construction - Seite 3

In August 2022, the Panel delivered its report (the “Report”) on the environmental assessment of the Marathon Project. The Report sets out recommendations for the Company, and the federal and provincial governments, to mitigate or minimize any adverse effects of the Marathon Project. The delivery of the Report was a precondition to the Federal and Provincial governments delivering their decisions on the environmental assessment.

Also in August 2022, Gen PGM entered into an agreement with Hycroft Mining Holding Corporation for the purchase of an unused, surplus SAG mill and ball mill (the “Mills”) for US$12,000,000, of which the first US$1,000,000 was paid by September 30, 2022. The final payment of US$11,000,000 is due not later than March 31, 2023. The agreement for the Mills reduced risks associated with the procurement, logistics and cost-uncertainty associated with some of the long-lead items for the Project.

September saw receipt of the second CAD$20 million payment from the PMPA with Wheaton. During construction of the Marathon Project the remaining C$200 million will be payable in four staged installments which are subject to various customary conditions precedent being satisfied.

November represented the consolidation of a lot of hard work with the ratification by the Biigtigong Nishnaabeg First Nation of the CBA, and announcements by the Federal Minister of Environment and Climate Change and the Ontario Minister of the Environment, Conservation and Parks that the Company’s Marathon Project may proceed.

The CBA between Gen PGM and BN describes the benefits the BN community will receive from the Project and details how the Project’s impact on the community will be mitigated. It includes commitments from the Company regarding environmental management, employment, training and education, business opportunities, social and cultural support, and financial participation.

The Honourable Steven Guilbeault, Federal Minister of Environment and Climate Change, and The Honourable David Piccini, Ontario Minister of the Environment, Conservation and Parks, each announced on November 30, 2022, that the Company’s Marathon Project may proceed, subject to conditions set out in the federal decision statement (the “Decision Statement”) and the provincial approval order (the “Approval Order”), respectively. The Decision Statement and Approval Order were made following a thorough, multi-year, joint federal and provincial environmental assessment process, with input received from Indigenous groups, the public, federal government departments including the Ministry of Environment Canada and Climate Change, Fisheries and Oceans Canada, Natural Resources Canada and Transport Canada, and provincial government departments including Ministry of Northern Development, Mines, Natural Resources and Forestry, the Ministry of Environment, Conservation and Parks, the Ministry of Transportation, the Ministry of Labour, and the Technical Standards and Safety Authority. The government decisions validate the work done to date to develop the Marathon Project as a sustainable, environmentally sensitive, low-cost producer of critical metals that are needed to support emissions controls and the transition to a greener economy.