CORPORATE ENVIRONMENTAL AND SOCIAL RESPONSIBILITY REPORT

ENVIRONMENTAL PROTECTION AND ENHANCEMENT

We invested 33.7 million pesos in 2014 for programs that aim to protect and enhance the environment, doubling our 14.2 million pesos financial funding for the same programs in 2013. This demonstrates our true commitment to manage the impact of our operations to the environment.

One of the means by which MMDC fulfills such environmental obligation is its continuous support to the government, particularly the National Greening Program (NGP) and Adopt a Mining Forest. Initiated in 2012, the company’s NGP covers all reforestation projects regardless of location, as well as areas reforested with seedlings donated by the company.

In june 2014, the company met its target of reforesting 94 hectares of land under the NGP Areas reforested in excess of this target are considered under Mining Forest Program. For the rest of the year, MMDC was able to rehabilitate and reforest 38 hectares, 26 hectares of which are located in mined-out areas. Three hectares were reforested with mangroves.

MMDC produced 240,000 seedlings to enhance reforestation. The company also maintained 82 hectares of reforested inland areas and 2 hectares of mangrove areas.

Apart from reforestation and rehabilitation, MMDC also implemented activities that aim to prevent, if not minimize, the erosion of disturbed areas and the siltation of water bodies in the vicinity of the mine areas and facilities. Such activities included the construction of 6 additional settling ponds, and maintenance and expansion of 16 existing settling ponds.

Four hectares of bare slopes were covered with coconet, while others were planted with fast-growing grasses. The company also installed a total of 950 meters of silt fences. To minimize the generation of dust, 10 water trucks were used to facilitate regular water spraying of unpaved roads. 29 street sweepers were likewise employed to keep the dust under control. MMDC constantly monitors the noise levels as well as water and air quality in the mine areas and the surrounding communities.

On top of all these, MMDC has undertaken other environmental programs to further strengthen its support to the government and its surrounding communities. MMDC participated in the Adopt a DENR River Project by taking care of Bon-ot River. MMDC vvas also part of a mass tree planting activity entitled The Treevolution: Greening MinDANow in cooperation vvith the DENR-Mindanao Development Authority (MINDA).

We at Marcventures have shown in 2014 that we are serious in accomplishing our goal of performing commercial operations balanced with achieving a sustainable environment through infusion of more resources and effective implementation of planned projects and programs. Mining can, and will always be, a responsible endeavor of the company.