WHO WE ARE

MNG Gold Liberia Inc. is a Turkish-Liberian Company owned by the MNG Group of Companies with Headquarters in Ankara, Turkey. The company is Liberia second commercial gold mining company with concession area located in Kokoyah Statutory District, Bong County, and parts adjacent of Grand Bassa and Nimba Counties. MNG Gold is exploring and developing advance gold mining projects in Turkey and West Africa and is financed by Mr. Mehmet Nazif Gunal (MNG), a Turkish entrepreneur with a wealth in excess of US$2 billion.

Ownership of the Kokoyah Gold Project was acquired from AmLib United Minerals Incorporated, a Liberian registered subsidiary of AmLib Holdings Plc (AmLib) by MNG Gold Liberia Inc. in April 2014.

THE KOKOYAH GOLD PROJECT

The Kokoyah Gold Project is a fifty-five millions United States Dollars ($55,000,000) gold mining and processing venture aims at developing state of the arts gold mining and processing facilities, and providing new employment opportunities in Liberia.

Partial view of MNG Gold Liberia Tailing Pond

The company effectively integrate local human resources and foreign expertise through the adaptation of innovative approaches to commercial gold mining. The project currently employed 345 Liberians and 182 (mainly) Turkish Expatriates.

The major mine infrastructure includes open pits, ore stockpiles, waste rock dumps, processing plant, tailing management facility, mine camp, power generation, and water storage facilities. MNG Gold Liberia’s operation will consist of mining approximately 360,000 tons per annum (TPA) of gold ore and the production of gold bullions through standardize processing technology.

Some Liberian Employees interacting with the Labor Ministry and MNG Gold Liberia’s HR and Govt. & Comm. Rel. Department

OUR CORPORATE SOCIAL RESPONSIBILITY

Since acquiring the Kokoyah MDA from AmLib United Minerals Inc. in 2014, there have been numerous direct benefits to communities and institutions in our operation area. These include road and bridge rehabilitation, compensation to damaged crop owners, local community projects contributions, direct social development fund, scholarship fund, donations to district and county projects, ongoing modern high school and police station construction - with officers’ living quarters - and sustain stakeholders’ engagement processes in enhancing public relations.

Road and Bridge Rehabilitation

As part of our corporate social responsibility to communities in our operation area, in earnly 2015 MNG Gold Liberia rehabilitated a 8.5 km road, along with damaged bridges, beginning from Gbarta to our new camp site in Sayewheh Town, Boinsein District, Bong County.

Part of the Gbarta to Sayewheh Town Road Rehabilitated in 2015

Beginning in November of 2015, MNG Gold Liberia constructed a detour road from David Deans Town - through Dahnway Village - to Sayewheh Town. The old road from David Deans Town to Sayewheh Town pass through our resource area. Therefore, a detour road was required before mining commence. The De Tour is an old road from the South eastern part of David Deans Town through Dahnway Village which links the main road to Sayewheh Town, by-passing where we currently have our open pit.

See the detour road map above

MNG GOLD LIBERIA INC. NGALA GARDENS, OPPOSITE CHINESE

RESTAURANT, CONGO TOWN BACK ROAD, MONROVIA, LIBERIA

www.mnggold.com ben.sayeh@mnggold.com

lloyd.ngwayah@mnggold.com dua.karnga@mnggold.com

DEPARTMENT OF GOVERNMENT & COMMUNITY RELATIONS’ QUATERLY NEWSLETTER 2014 - 2016 MAIDEN EDITION

VOLUME 1 ISSUE #1

By Lloyd N. Ngwayah (BSc), Public Relations Officer, MNG Gold Liberia Inc.

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After the signing of the Damage Crop Claims Waiver Agreement between communities along the Boinsein District Road and MNG Gold Liberia in 2016, the company has started a major rehabilitation of the main Boinsein District Road, beginning from Sayewheh Town, Boinsein District to Zayee Town Kpaii District, Bong County.

The rehabilitation of the road is in partial fulfilment of MNG Gold Liberia’s commitments in the MOU signed between the company and the people of Kokoyah Statutory District. The 36 miles road when completed, will be the first major rehabilitation of feeder road in Boinsein District since the 1980s.

The Main District Road Currently being Rehabilitated

The company had also rehabilitated other roads linking smaller settlements like Bohn Village to the main district road, and currently rehabilitating the Bahn Town to David Deans Town Road. Discussion is ongoing to rehabilitate the feeder road linking Nimba County with Bong County through Niakeh Town, Boinsein District toward the St. John River in Bengland Town, Nimba County; as well as to construct a new road via Sayewheh Town toward Peters Town across the St. John River, linking Grand Bassa County with Boinsein District, Bong County. When completed, these roads will directly enable thousands of people from towns and villages in Bong, Nimba and Grand Bassa Counties to easily access basic social services and carry on local economic activities.

Compensation of Damaged Crop Owners

During the rehabilitation of the Gbarta to David Deans Town Road, several crops were damaged. Farmers along the road claimed they were not consulted prior to the road rehabilitation and therefore demanded compensations from the company. Compensations were made to crop owners based on the Ministry of Agriculture’s Crop Compensation Price Listing.

A total of twelve thousands six hundred and ninety four United States Dollars ($12,694 USD) was initially paid to 22 farmers. An independent evaluator, Earth Environmental Consultants was hired by MNG Gold to conduct the implementation of the Crop Compensation Plan (CCP) on behalf of MNG according to the EPA Regulations.

A Crop Compensation Committee was set up comprising the Ministry of Agriculture, the EPA, the Kokoyah Development Steering Committee, MNG Gold Liberia, and Earth Environmental Consultants to monitor the payment. In total, MNG Gold Liberia

had paid up to thirty-five thousands United States Dollars $35,000 USD in damaged crops compensation as a result of drilling road rehabilitation/construction; our camp site, plant site, open pit, and tailing pond facilities construction; as well as other activities related to our operation.

Damaged Crops Payment Being made to some of the Farmers

Community, District, & County Project Contributions

Beginning July 2014 up to December 31st 2016, the company had contributed cash, chairs, zinc, cements, other materials to community projects, and provision of hand pumps to communities within our operation area. We also donated computers, scanners, generators, and office desks to the administrations of Kokoyah Statutory District and Bong County. In addition to these, during the height of the Ebola epidemic from 2014 to 2015, we also provided several drugs and Ebola preventive materials worth over fifty thousand United States Dollars $50,000 USD to the six main clinics in Kokoyah Statutory District, the Ebola Treatment Center in Gbarnga, Bong County, and the government owned John F. Kennedy Medical Center in Monrovia.

Gowning of Some Members of MNG Gold Liberia Senior Management Team by Local Community Leaders, after Donation to the David Deans Town’s Market Project in 2015

There were also major contributions and donations made to organizations located within our immediate concession area. On April 19, 2015, MNG Gold Liberia donated one thousand United States Dollars ($1,000 USD) and one hundred Bags of cement to the David Deans Town Marketing Association. In December 2015, MNG Gold Liberia through the Office of Bong Senator Jewel Howard-Taylor gave ten thousand United States Dollars ($10,000 USD) as scholarship contribution for Bong County students attending the Bong County Technical College. The company also gave five hundred United States Dollars ($500 USD) to the Boinsein Youth Parliament during its fund raising rally in 2016.

11 teachers of the Sayewheh Town and David Deans Town Public Schools located within these two communities, close to our operation area, are being provided two hundred United States Dollars ($200.00 USD) and one hundred and twenty-five United States dollars ($125.00 USD) each respectively, as monthly stipend. In addition to the teachers’ stipend, MNG Gold Liberia also provided recreation materials for students. Support to these two schools is part of MNG Gold Liberia’s efforts to contribute to the human resource development of the communities where we operates.

Swings & Seesaws Donated to David Deans Town Public School

Swings & Seesaws Donated to Sayewheh Town Public School In continuation with our custom of identifying with our local communities, MNG Gold Liberia periodically distributes rice during Liberia’s Festive Seasons through the Department of Government & Community Relations. Up to December 2016, we have distributed over 400 (25 kg rice bags) to 42 towns and villages directly affected by our operation. These gratuitous donations target the elderly, children, and the disables.

Kids Cheering During Some of our Festive Seasons Rice Donations in Boinsein District

On March 15, 2016, an unprecedented heavy natural storm occured in Boinsein District and other districts in Bong County which distroyed several houses and killed at least 2 people in the district. Communities and families from Boinsein District were worst affected by the storm. These communities, especially David Deans Town, Sayewheh Town, Bahn Town, Dolo Town, Bohn Town, and Queh-Garyeazon Town, plays host to most of our workers and contractors who were made homeless by the storm.

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On March 21, 2016, Representative Tokpah J. Mulbah of our concession’s district and Senator Henry W. Yallah, Chairman of the Bong County Legislative Caucus paid a courtesy visit to the Project Manager Mr. Ozkan Umurhan and requested MNG Gold Liberia’s assistance of 50 bundles of zinc for the storm disaster victims.

Some of the more than 300 Homes Damaged By The March 15, 2016 Storm

Sen. Henry W. Yallah & Rep. Tokpah J. Mulbah Paid Courtesy Visit to MNG Gold Kokoyah Camp after the Storm Disaster

The 50 bundles of zinc were presented to the local District Disaster Management Committee by the Public Relations Officer of MNG Gold Liberia Mr. Lloyd N. Ngwayah.

Rep. Edward W. Karfiah, Sen. Henry W. Yallah & Rep. Tokpah J. Mulbah at the Chemical Spilled Dialogue Forum

An EPA Team Conducting Water Analysis Where the Chemical Accident Occurred

Donation of 50 bundles of Zinc to Storm Disaster Victims by MNG Gold Liberia & Madam Martha Zackpah, one of the Storm Victims thanking MNG Gold Liberia for the Zinc Donation on behalf of the District

Public/Community Relations Processes

One of the contentious issues faced by our operation in 2015 was the relocation of Artisanal Miners (Gold Boys) and their Alternative Livelihood Plan (ALP). In preparation to start mining activities, the Ministry of Lands, Mines and Energy was asked to address the issue of the relocation of Gold Boys from our immediate operation area to elsewhere. In response, the Assistant Minister of Mines, Mr. William Hines held a meeting with the Gold Boys on May 18, 2015 and explained to them that “The title to the Land is now owned by MNG Gold and all other mining activities were Illegals. Therefore, Gold Boys will have to relocate to other areas the Ministry will deem fit”. The conclusion was that MNG Gold will demarcate the area they will start to mine and create a buffer around that area. As mining progress, the company will notify the Ministry to inform the Gold Boys of its plans and the Ministry will act accordingly.

A Team of Senior National Police Officials Visiting MNG Gold Liberia Kokoyah Camp in 2016

A Bird-eye View of MNG Gold Liberia Open Pit

During the meeting, it was agreed that the Ministry of Lands, Mines and Energy, which is the arm of Government responsible for giving out title to land for mining and the regulator of Mining activities, work along with the Gold Boys to work out the Alternative Livelihood Plan in consultation with MNG Gold Liberia.

Cross-section of MNG Gold Liberia Staff, Citizens and Gold Boys listening to the Assistant Minister of Mines

The Memorandum of Understanding (MOU) signed between MNG Gold Liberia and the people of Kokoyah Statutory District stipulates that upon the commencement of commercial production, MNG Gold Liberia should rehabilitate the main district road.

During the Community Liaison and Public Relations Officers initial survey on the road, it was observed that there were cash tree crop farms (Rubber, Cocoa, Coffee, Oil palm, etc.) and some shelters virtually on the road in violation of the Ministry of Public Works (MoPW) regulations which stipulates that: “Crops and shelters (should be) located beyond 20 feet on both sides of Feeder Roads in Liberia”.

MNG Gold Liberia through the Department of Community and Government Relations organized a meeting to discuss the road rehabilitation process and citizens contribution on August 8, 2015 in Yolo Town, Boinsein District. Below is the summary of key outcomes of the stakeholders’ meeting.

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Boinsein District Agreement and Expectations:

1. Agreed to waive all claims for damage

crop compensation during the road

rehabilitation;

2. Agreed to prepare and sign resolution

waiving all damage crop compensation

claims during the road rehabilitation;

3. Expect the road rehabilitation process to

begin when MNG Gold Liberia’s

commercial production start;

4. Expect due care to avoid unnecessary

damage to crops and shelters during the

road rehabilitation; and

5. Expect the road to be rehabilitated

according to the MoPW’s standard with

concrete bridges.

Department of Government and Community Relations - MNG Gold Liberia Assurance:

1. Rehabilitation process on the district

road will start after MNG Gold Liberia’s

commercial production begin;

2. Due care will be taken to avoid damages

to crops where technically possible; and

3. The road will be rehabilitated according

to the MoPW’s standard with reinforce

concrete bridges where applicable.

Crop Owners along the District Road Making Remarks during the Damaged Crops Waiver Meeting

In April 2016, 11 officers of the Liberian National Police were deployed in David Deans Town, the largest community of our operation area in Boinsein District.

During discussion with the Liberian National Police Authority prior to their deployment, MNG Gold Liberia were asked to assist government with a police station, housing facility for the police, and logistic supports during their operation in our concession area.

Crop Owners along the District Road to be rehabilitated Signing the Damaged Crop Claims Waiver Agreement

Upon their arrival, management through the Department of Government and Community Relations provided temporary lodging and depot at the company old Kokoyah Camp.

The company is also providing feeding, logistics and stipend to the assigned police officers. These supports are meant to facilitate the duty of the police in protecting lives and properties in the area since government said it has limited resources for their deployment. Construction of the police station and officers’ quarter are currently ongoing.

The Police Station & Officers’ Living Quarters Nearing Completion

On February 16, 2016, a hired Trailer belonging to the West Africa Transport (WAT) carrying a container containing chemicals (Hydrochloric Acid) for MNG Gold Liberia to its site in Kokoyah, made an accident while ascending a hill near a village called Barkon. The village, located near Botota, provincial Headquarters of Kokoyah Statutory District, contained two houses and a church. The accident resulted into some of the chemical spilling on the side of the road. Upon receipt of the information, MNG Gold Liberia’s Management immediately dispatched a Team of Chemist, Safety, and Environmental Experts to contain and neutralize the spillage, while at the same time contacted WAT of the accident.

According to the police who was the first respondent on the scene: “We asked the residents of the village to leave their houses to move into the church building as a means of precaution since we did not know the type of chemical that was spilled”. The police further informed us that the villagers that were present when the accident occurred were taken to the nearby Government Clinic in Botota for checkup. When we visited the clinic, the Officer-In-Charge (OIC) Mr. Parker Paye initial report was that he did not find any major effects other than “the villagers complaining of feeling nauseous and weak”.

The Liberia Environmental Protection Agency (EPA) was informed about the chemical spillage and on February 20, an Environmental-Social Impact Assessment Team from the EPA conducted an assessment and initial findings showed that aquatic life in the stream near where the accident occurred was not affected. The EPA full report later stated there was no adverse environmental impact.

However during this process, the citizens of the area demanded compensation from MNG Gold Liberia for the spillage, threatening to disrupt the company operations. This gradually created tension between MNG Gold Liberia and the villagers.

On February 24, Hon. Tokpah J. Mulbah, Representative of Bong’s Electorial District #1 where we operate and Senator Henry W. Yallah, Chairman of the Bong County Legislative Caucus, and

Represenatative Edward W. Karfiah, and some of the county and district officials organized a mass meeting with the citizens and invited MNG Gold Liberia and WAT to amicably resolve the chemical spilled situation. After presentations from the villagers, local leaders, county authorities, the EPA, WAT, and MNG Gold Liberia, which was basically what was established by the EPA’s Assessment, the Bong County Legislative Caucus Chairman, Senator Henry W. Yallah along with the two representatives present concluded that the chemical spilled was indeed an accident and the initial environmental mitigation measures taken by the company was timely and professional. He however said that MNG Gold Liberia should have done more to also mitigate the social impacts. The Bong Legislative Caucus therefore instructed MNG Gold Liberia and WAT to provide 20 bundles of zinc, 40 (25KGs) bags of rice, and to construct a hand pump for the villagers. MNG Gold Liberia and WAT have given the 20 bundles of zinc, provided the 40 bags of rice, and constructed a hand pump for the villagers.

MNG Gold Liberia Community Liaison Mr. Dua M. Karnga testing the newly Hand Pump Constructed for Barkon Village

During one of our Regular Rice Donations to Barkon Village during the Chemical Spilled Accident with some Citizens, District Officials, and Visiting UNMIL Officers

Conclusion

Over the last two and a half years, MNG Gold Liberia‘s Relations with stakeholders have significantly improved. Though there were challenges, the Department of Government & Community Relations aim to build on the successes of our engagements and learn from the challenges of the past in ensuring a robust and cordial relationship. MNG Gold Liberia will continue to invest in state of the arts equipment and skills of our workers to ensure a safe, healthy, and productive working environments. The company also aim to strengthen efforts to improve working relationship and welfares for our workers and their families. We will further strengthen our community and public relation efforts in engaging our local and national stakeholders and partners and support meaningful community initiatives of our affected communities, and provide timely public information of our operation.