Red Back Mining Inc. - Community

Community

Corporate Social Responsibility

Red Back has been involved in Ghana since 1998 and in Mauritania since 2007. The Company has strived to maintain excellent relationships with local communities and remains committed to ensure that its operations provide long term positive utility to the various local communities in the vicinity of our operations.

Chirano

At Chirano, Red Back's subsidiary Chirano Gold Mines Limited ("CGML") has established a Community Consultative Committee ("CCC") made up of representatives of the local government authorities, traditional councils, farmers, and the security agencies. The mandate of the CCC is to provide an open and transparent forum for discussion and debate on all issues affecting the local communities. Regular well attended meetings are held at Chirano and detailed minutes of these meetings are taken and agreed.

The CCC has proved an effective body and the Company regularly tables its plans as they affect the local communities for CCC consideration prior to implementation such that once action is taken all affected parties are well informed.

The Company has undertaken many initiatives aimed at assisting local communities, including:

Provision of fresh water to numerous villages through the drilling of water wells and provision of hand pumps;
Resettlement and compensation to residents of hamlets disturbed by the Chirano operations. This included the building of a new community for ~ 300 people;
Cell phone access has been brought to the local area via CGML's phone tower;
Electricity supply shortly to be connected to largest of the local villages, a twin village with a population of ~ 3,000 people;
Upgrade and maintenance of access roads from the main highway to various villages; Future provision of computer resource centers for some larger local villages;
Future upgrading of market places in local villages.

CGML Trust Fund

The CGML Trust Fund ("the Fund") has been established for local community projects which is funded at the rate of $1 for each ounce of gold produced.

The mission of the Fund is to promote and facilitate sustainable socio-economic development in the communities in order to improve upon the quality of life of the people. The sole objective of the Fund is to provide money for developmental projects and causes. A board of trustees has been established to manage the Fund and includes representatives of CGML along with local Paramount Chiefs and District Chief Executives.

At the end of every financial year the Community Relations Department meets with all the leaders of the communities within the Project footprint to assess their needs and provide these in order of priority based on money available in the Fund.

Projects and causes to be provided the communities may include alternative livelihood, water and sanitation, health, education and infrastructure.

Since the District Assemblies are by law and convention the ultimate planning agencies for the socio-economic development of the rural communities, discussions will be held with them to ensure that projects and causes to be provided by the Fund meet the applicable guidelines of the Ghana Education Service, the Ghana Health Service and the Community Water and Sanitation Agency.

The projects to be undertaken would be such as to contribute to the Growth and Poverty Reduction Strategy of Ghana and achievement of the United Nations' Millennium Development Goals.

Every proposed project that would be provided to the communities will be submitted to the Board of Trustees for approval, after which tenders would be invited from local contractors and suppliers.

Tano-Suraw Agribusiness Growth Initiative

The Tano-Suraw Agribusiness Growth Initiative (TAGI) is a community based integrated agricultural development project. TAGI aims to stimulate long term economic growth and improve the livelihood of communities in the Wiawso area by strengthening agricultural productivity, improving farm management skills, increasing market linkages and supply chain interventions as well improving access to microfinance. The project has been designed by African Connections Ghana Limited (AC) in collaboration with (CGML) and in partnership with five communities in the Sefwi area namely; Kwawkrom, Anyinase, Paboase, Akoti, and Etwebo.

CGML is committed to providing training and resources that are needed to ensure that the requirements of their social responsibility policy are met through partnership with stakeholders in appropriate community development programmes. In respect of this social responsibility framework, TAGI has been designed and tailored towards the provision of farm management training and skills acquisition and other training to help TAGI participants gain access to finance and market opportunities. The overarching goal of TAGI is to create "economies of scale" while integrating small scale farmers into local and regional supply chains and training farmers to produce for available markets. Tasiast

Tasiast Mauritanie Limited S.A. ("TMLSA") (Red Back's subsidiary) operates in an area where the only local communities are nomadic. Tasiast is part of the Benichab subdistrict which is located some 200 miles from the site and is the base of a Mayor and a District Official called the Hakem.

Following consultation with the local authorities a number of projects were identified resulting in the development of an Action Plan officially aimed at assisting local communities in Benichab and other parts of Mauritania, including:

Provision of financial assistance to local women's cooperatives
Provision of community camels and food for the needy during the Muslim feasts of Fitr and Adha
Provision of fresh water to numerous villages through the drilling of water wells and provision of hand pumps;
Scholarships for children from needy families to study at local schools;
Scholarships for two Mauritanians to study at French mining schools;
Building school blocks and a new clinic;
Provision of medical services at the site clinic for local nomadic familes.

TMLSA Trust Fund

The Company is in the process of establishing the TMLSA Trust Fund ("the Fund"), which will be used for funding local community projects in Benichab at the rate of $1 for each ounce of gold produced.

The mission of the Fund will be to promote and facilitate sustainable socio-economic development in the communities in order to improve upon the quality of life of the people. The sole objective of the Fund will be to provide money for developmental projects and causes. A board of trustees will be established to manage the Fund and shall include representatives of TMLSA along with local District representatives..

Projects to be funded in the communities may include alternative livelihood, water and sanitation, health, education and infrastructure.

Every proposed project will be submitted to the Board of Trustees for approval, after which tenders would be invited from local contractors and suppliers. Lundin for Africa

Red Back, as a Lundin Group Company, has close ties to Lundin for Africa, the philanthropic arm, of the Lundin Group of Companies. LFA supports participatory grassroots initiatives across Africa that encourage and enable sustainable community development. LFA support focuses on four primary areas:

Improved Food Security and Sustainable Livelihoods
Technical and Vocational Training
Financial Services for the Poor
Private Sector Development

A globally-minded family of philanthropists, the Lundins have personally donated to causes at home, abroad, and through the social programs of their many companies to improve the lives of those around them. It was therefore a natural evolution to create a charitable foundation to bring increased attention both to the promise and perils of Africa.

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