SUSTAINABILITY

01

SUSTAINABILITY REPORTING

From the start of 2021, Elixir Energy started measuring its progress on meeting best practice on the important “ESG” (Environmental Social Governance) front, which key stakeholders such as investors and Governments are increasingly demanding.

This progress will be reported regularly on our website and the first report is available here:

  ASX – ESG Report, Elixir Energy –                 January 2021

  ESG Go Dashboard

02

ENVIRONMENT

Elixir Energy’s current primary environmental impact is caused by its exploration and appraisal operations in the South Gobi region of Mongolia.

The Company has recently commenced a process of working with its drilling contractors to measure diesel consumed in the course of its drilling operations. This is the primary source of CO2 emissions from Elixir. In recent years, these scope 1 and 2 emissions have been as follows: 2020 – 88,000 litres of diesel consumed – CO2 emissions of 236 tonnes. 2021 – 249,070  litres of diesel consumed – CO2 emissions of 668 tonnes.

Elixir Energy is currently reviewing carbon offset opportunities in the South Gobi area of Mongolia.

Drilling also uses water and the Company has also recently commenced measuring this.

In 2020, 1,345 tonnes of water were used.

Elixir Energy’s exploration and appraisal activities consume water, largely through drilling processes (and to a lesser extent, water is also used in the camps for our drillers and seismic crews).

Water consumed in prior calendar years has been as follows:

• 2019 – 688 tonnes
• 2020 – 1,627 tonnes
• 2021 – 3,397 tonnes

The Company operates in the arid Gobi region in Southern Mongolia and water is therefore an important issue for local communities.

Elixir Energy and its sub-contractors follow a rigorous regulatory process in accessing local water supplies. This involves:

1. The central administrative environmental body – the Ministry of Environment and Tourism – approving annual Environmental Management Plans based on our annual exploration plan and budget for key field activities such as drilling and seismic surveys.
2. The regional administrative body known as South Gobi Aimag granting annual water use permits to Elixir’s local subsidiary.
3. The Company’s sub-contractors obtaining permits from the smallest local Government administrative units known as Soums for the water sourced in their districts and used in operations.
4. Our Mongolian subsidiary has hired independent environmental auditors in compliance with the Environmental laws and regulations, for auditing our compliance with various environmental laws and regulations. The results of the audits have concluded that water usage has been responsible by our subcontractors. The company will continue to hire independent environmental auditors every 2 years to monitor its responsible water usage in its exploration activities.

As part of its community relations in the South Gobi region, Elixir has from time to time worked with its sub-contractors to fund and drill water wells at locations requested by local communities to be used thereafter for purposes such as watering animal herds.