Announcement PDF Australia’s next rare earths producer Sustainability Report 2023 S U STA I N A B I L I T Y R E P O RT 2 0 2 3 Contents 2023 Performance Highlights  3 Message from our Leadership  4 About this Report  6 About Hastings  7 Our Approach to Sustainability  13 Our Governance  22 Our People  30 Our Communities  41 Our Environment  50 GRI Content Index  64 Acknowledgment of Country Hastings Technology Metals acknowledges that our operations are located on land that has belonged to Indigenous peoples for thousands of years. We respect and honour their deep connection to Country as well as their traditional knowledge of the natural resources of their land. We pay our respects to them and their culture, and to their elders both past and present. Hastings would like to acknowledge the Traditional Owners of the lands of the Yangibana Project, the Thiin-Mah, Warriyangka, Tharrkari and Jiwarli Peoples and the Whadjuk Noongar People for the Perth office. We pay our respects to their Elders past, present and emerging. 2 | Hastings Technology Metals 2023 PERFORMANCE Highlights 0.0 Lost Time Injury Frequency Rate <2.0 target Supplier Code of Conduct Development and roll-out 40.3% Female participation rate 79% FY23 culture survey response rate, with safety rated most favourably Zero Non-compliance across Native Title, Environmental Regulation and Corporate Governance Eliminating plastic Completed plan to eliminate single use plastic at mine site in FY24 Sustainability Report 2023 | 3 MESSAGE FROM OUR Leadership and renewable energy technologies. We recognise the need to supply these minerals with sustainability in mind and with the safety of our people always at the forefront. As we evolve from junior explorer into a developer, Hastings is proud to continue to outline the progress we have made under our four sustainability pillars. It is with great pleasure that I present Hastings’ Sustainability Report for the 2023 financial year, providing an overview of our accomplishments over the past 12 months and setting out our environmental, social and governance (ESG) objectives as we progress further on the development of the Yangibana Rare Earths Project. Our ESG efforts during FY23 have been assessed by third-party rating entities as part of our commitment to continuous improvement. We received recognition from organisations such as Sustainalytics, where we ranked fourth out of 159 companies in the 2022 diversified metals mining subindustry category, and EcoVadis, where we were ranked in the top five percent of all assessed companies. At Hastings, we believe in a future powered by clean energy and the active role that the mining industry plays in contributing to electrification Our approach to sustainability starts with our unwavering commitment to the wellbeing of our people, to ensure that they come home to their family 4 | Hastings Technology Metals after each and every shift. This year, we are pleased to celebrate five years lost time injury free, meaning our mine site has seen no time lost to injury as a direct result of the management efforts in maintaining a safety culture. Despite the significant increase in work hours from the commencement of early infrastructure works in August 2021 at Yangibana, we have managed to keep a focus on safety, and decrease our Total Recordable Injury Frequency Rate to 3.85 for the year. Our commitment to safety extends beyond physical health, and includes mental wellbeing and the prevention of psychosocial harm. In FY23, we took actions to build a workplace that is free from bullying, harassment and sexual harassment. This included sexual harassment training sessions for team members, as well as implementing a range of safety measures at our recently completed Kurrbili Accommodation Village. Hastings believes in building long-term relationships with our communities through open and transparent engagement and ensuring we are making positive social and economic contributions. This includes partnering with Traditional Owners to protect important cultural heritage and provide employment opportunities for their communities. In October, we completed the fiveyear review of the Yangibana Rare Earths Project Agreement, which was originally signed in November 2017 with the Thiin-Mah, Warriyangka, Tharrkari and Jiwarli (“TMWTJ”) People. As part of this review, the Implementation Committee met on-country at Yangibana to discuss the project progress and ongoing opportunities for Traditional Owners. We were honoured to host TMWTJ Senior Elder Peter Salmon, who took us on a visit to heritage sites around Yangibana. The validation from Peter and other Elders that they were satisfied with the progress under the Agreement is a testament to the effectiveness of our engagement approach and our efforts to protect important heritage sites. The imperative for urgent action on climate change has never been stronger. At Hastings, our vision is to become a leading Australian producer of rare earths to meet the demands of the global transition to renewable energy. At the same time, we also recognise that we need to integrate decarbonisation of our own operations into our business decisions. Our Carbon Reduction Transition Plan outlines our short, medium and longterm targets and during FY23 we have continued to work on integrating the plan and targets into our business strategy. Looking forward, I am excited about the future of Hastings. From humble beginnings we are now on the verge of embarking on construction of the Yangibana Project, and I would like to extend my heartfelt gratitude to all our people and stakeholders for their ongoing commitment to our sustainability goals. Once operational, this project will not only contribute to the global decarbonisation agenda, but also deliver significant long-term value to our communities, Traditional Owners, the Western Australian and national economies, as well as our shareholders. Thank you for your continued support and belief in Hastings. Charles Lew Executive Chairman Sustainability Report 2023 | 5 ABOUT This Report Hastings Technology Metals Limited (“Hastings” or the “Company”) is pleased to present its second Sustainability Report disclosing our sustainability performance for the financial year ending 30 June 2023, aligned with Hastings’ Annual Report 2023. Sustainability refers to the efforts made to protect the planet, prevent climate change, and promote social development without compromising the resources needed for future generations to prosper. This report covers the sustainability aspects of Hastings operations and activities in the Gascoyne and Pilbara regions of Western Australia. Hastings’ Brockman Project is located in the Kimberley Region, consisting of a mining lease tenure of approximately 120sqkm. During FY23, there were no further developments at Brockman to be included in this report. The content has been prepared based on the Global Reporting Initiative (“GRI”) Standards and describes our contribution to the United Nations (“UN”) Sustainable Hastings Technology Metals Limited is a rare earths company, listed on the Australian Security Exchange (ASX: HAS), operating in Western Australia and headquartered in Perth. 6 | Hastings Technology Metals Development Goals (“UNSDGs”). It also aligns with the recommendations made by the Task Force on Climate-Related Financial Disclosures (“TCFD”). The currency used throughout the report is in Australian Dollars (AUD). With respect to our previous publication (Sustainability Report 2022), there has been a restatement of information in relation to the number of new diseases related to health and hygiene exposures. This restatement of information has been updated under the Health and Safety Performance Data Table. The content of this report has been reviewed and approved by the the Company’s Board of Directors as a voluntary exercise. It has not been externally assured. Contact us For more information on the topics covered in this report you can contact us at: Address: Level 6, 197 St Georges Terrace, Perth WA 6000 Website: www.hastingstechmetals.com/about-us/ ABOUT Hastings With a clear focus on developing the world-class Yangibana Rare Earths Project (“Yangibana Project”), Hastings Technology Metals Limited (ASX:HAS) is well-positioned to become Australia’s next rare earths producer. Located 250km north-east of Carnarvon in Western Australia’s Gascoyne region, Hastings’ flagship Yangibana Project covers a total area of 650 square kilometres and is underpinned by one of the world’s most highly valued deposits of neodymium and praseodymium (“NdPr”), with an average life-of-mine NdPr to Total Rare Earth Oxides (“TREO”) ratio of 37% and up to 52% in some areas of the orebody. With an initial mine life of 17 years, the Yangibana Project will become a globally significant source of NdPr, a critical component in the manufacture of permanent magnets used in advanced technology products from electric vehicles (“EVs”) to renewable energy, humanoid robotics, medical applications and digital devices. Fully permitted for first rare earth concentrate (“concentrate”) production in the first half of 2025, the Yangibana Project is well-timed to meet the forecast supply gap for rare earth elements accelerated by the growth in EVs and wind turbines, both vital for the global energy transition. Hastings will develop the project in two stages with an initial focus on the construction of the Yangibana Project’s mine and beneficiation plant to produce up to 37,000 tonnes per annum of concentrate, followed by the construction of a hydrometallurgical plant in Onslow with the capacity to produce up to 15,000 tonnes per annum of mixed rare earth carbonate (“MREC”). Hastings has a strategic shareholding of 20% in TSX-listed Neo Performance Materials Inc – a leading global rare earth processing and advanced permanent magnets producer – providing the Company with the opportunity to explore a mine-to-magnet supply chain. Hastings is committed to developing and operating the Yangibana Project in a sustainable manner. The Company’s strong ESG credentials have been subject to independent third-party ESG ratings, ranking in the top five per cent of companies assessed by EcoVadis and fourth out of 159 companies in the 2022 diversified metals mining subindustry category by Sustainalytics. Once developed, the world-class Yangibana Project will establish Hastings as a significant supplier in the global critical minerals sector and generate strong returns for shareholders, investors and for the Australian economy and local communities. Sustainability Report 2023 | 7 Yangibana Project Snapshot 100% ownership of the Yangibana Rare Earth Project in the Upper Gascoyne region of Western Australia Stage 2 Hydrometallurgical plant Two stages Stage 1 Mine and Beneficiation Plant 37,000tpa of concentrate Stage 2 Hydrometallurgical Plant 15,000tpa of MREC Halls Creek Broome Equivalent to around 3,400tpa Port Hedland Dampier Onslow Onslow Plant Yangibana Mine Site of NdPr for use in rare earth magnets Carnarvon Meekatharra Geraldton Initial mine life of 17 years Kalgoorlie Ore Reserve – 20.9mt Mineral Resource – 29.9mt Exploration target – 40-60mt High ratio of NdPr Average NdPr:TREO ratio of 37% over mine life Perth Albany Stage 1 Yangibana mine and beneficiation plant Electric Vehicles Wind turbines Rare earth magnet demand for EVs Rare earth magnet demand for wind power The Yangibana Project can potentially supply up to The Yangibana Project can potentially supply up to Reducing carbon emmisions by approximately of direct installed wind turbine capacity 180% by 2032 55 million EVs 1.2 billion tonnes compared to internal combustion engines 8 | Hastings Technology Metals 189% by 2032 170GW Our Supply Chain Hastings is focused on the staged delivery of the Yangibana Project, which will produce rare earth elements critical to the global energy transition. Through our strategic 20% shareholding in Neo Performance Materials – a leading global manufacturer of rare earth elements – we have the optionality to pursue a mine-to-magnet business strategy. We are committed to maintaining close ties with our business partners to ensure that our products will be prioritised for use in sustainable technologies, such as wind energy and EVs. Mining and Processing (Yangibana Project) Mining and Beneficiation (Stage 1) • Extracting approximately 1.1 million tonnes per annum of ore • Ore to be crushed into gravel sized particles • Crushed ore is milled to a fine sand and processed through a froth flotation circuit Hydrometallurgy (Stage 2) • Cracking the concentrate to produce MREC Separation and Refining Separation • Separating and purifying the individual rare earth oxides Metal and alloy creation • Refining separated oxides into metals • Processing into rare earth alloys for use in production of permanent magnets Manufacturing • Production of sintered magnets for sale to manufacturers for production of components serving a wide variety of technologies, including EVs and wind turbines Sustainability Report 2023 | 9 What are Rare Earths? Rare earth elements are a group of 17 metallic elements that are found together within the earth’s crust. Despite being found in abundance, they are considered rare as they are difficult to find in high concentrations (pure form). They are often found within other minerals and as such, are generated as a by-product of a different mining process. Despite the challenges to identify, explore and develop a viable rare earths mining operation, their unique chemical and physical properties make them a key element for technology development: • Magnetic: they can store magnetic energy. • Electrical: they can increase the energy density of batteries. • Phosphorescent: they are essential for colour display in digital screens. • Catalytic: they support chemical reactions for catalytic converters. Both the e-mobility industry and the electronic industry require rare earths, used in technology devices such as LED lights, flat screens televisions, computer monitors, smart phones, digital cameras, computer hard disks, rechargeable batteries, catalytic converters, lasers, amongst others. Furthermore, rare earths have applications in clean energy development and defence technology. 10 | Hastings Technology Metals Energy saving light bulbs LCD/PDP screens and displays Wind turbines Electric vehicles Headphones and speakers Neodymium has made it possible to miniaturise electronic devices such as mobile phones. It enables the development of magnets that are three times stronger and a tenth the size of conventional magnets. This is essential in the production of wind turbines and hybrid and electric vehicles. Defence Guidance and Control Light rare earths Smartphones Similar to Neodymium, Praseodymium is used to produce permanent magnets for hybrid and electric vehicles, wind turbines and solar PV panels. It is also used in carbon arc electrodes for lighting and projection, and filtration of infrared radiation. Heavy rare earths Sustainability Report 2023 | 11 Our Strategy Our vision is to become a leading Australian producer of rare earth materials, needed to meet the global transition to renewable energy and advanced technologies. In achieving our vision, we will create value for all our people, communities and shareholders. & Ta ESG Governance  SG Committee includes Executive Chairman, E Independent Non-Executive Director and CEO Our People Our Governance Our Community Our Environment Risk Management • Risk assessment • Stakeholder engagement • Board oversight • Identify risks that are material to our business • Policy implementation programs – Systems – Culture – Stakeholder Engagement • Business impacts and opportunities • Identify management actions to mitigate risk • Integrate into the broader business • Policies approved by the Board Strategy • Set objectives and targets Metrics and Targets • Management plans • Set objectives and short and longer-term targets for material topics • Implementation • Identify quantitative and qualitative metrics • Measure and monitor • Measure • Continual improvement • Disclose performance metrics in annual Sustainability Report • Aim to continually improve our performance and achieve our targets 12 | Hastings Technology Metals OUR APPROACH TO Sustainability Operating sustainably is critical to the future of Hastings and remains a core focus area for the business, as we evolve from exploration to the development of the Yangibana Project. As critical inputs into permanent magnets needed for EVs and wind turbines, the rare earth elements produced by Hastings are vital to the global energy transition. However, we also recognise the inevitable environmental and social impacts of the industry. Hastings believes in end-to-end sustainable mining, where environmental and social risks are minimised and mitigated from development to post-closure. We strive to integrate sustainability into all aspects of our business, maximising positive impacts while minimising potential negative impacts of our activities. As the Yangibana Project moves into development and our footprint expands, so will our sustainability challenges. Our Sustainability Report will be our tool to communicate these challenges and our mitigation strategies. Sustainability Report 2023 | 13 Our Sustainability Pillars Our sustainability pillars and scope were developed through our understanding of the risks and opportunities that impact our business. Pillar Approach Material Topics Our People We aim to create a workplace that is safe, healthy, respectful Health, Safety and Wellbeing and inclusive. We attract and retain talent by developing and People and Culture supporting our people, and putting in place measures to protect their health, safety, and overall wellbeing. Attraction, Development and Retention Our Communities We engage meaningfully with our stakeholders and strive to make a positive contribution to the communities where we operate. Stakeholder Engagement Local Employment and Procurement Partnering with Traditional Owners Climate Change and Emissions Reduction Our Environment We seek to understand and mitigate our impact on the environment and responsibly steward our natural resources. Water Stewardship Waste and Tailings Management Biodiversity Mine Closure and Rehabilitation Ethics and Conduct Risk Management Our Governance We conduct our business with integrity and transparency. Human Rights Supply Chain Management Cyber-security 14 | Hastings Technology Metals CASE STUDY Measuring our ESG performance Operating sustainably is critical to the future of our company. We strive to integrate sustainability into all aspects of our business. In FY22, Hastings’ ESG performance underwent third-party independent ratings, and was ranked fourth out of 159 companies in Sustainalytics’ 2022 diversified metals mining subindustry category. We also achieved the EcoVadis Gold Rating given to companies that are within the top five per cent. We will continue to utilise third party ratings to assess and benchmark our performance in a transparent manner. Agency Rating/ Ranking Agency Rating/ Ranking Sustainalytics ESG rating - ranked fourth out of 159 companies in the 2022 diversified metals mining subindustry category Hastings is listed as a formal supporter of the Task Force on Climate-Related Financial Disclosures Ecovadis Gold Rating - ranked in the top five per cent of companies assessed Hastings is a participant, and has committed to implementation of the Ten Principles of the UN Global Compact Hastings positively assessed against the IFC performance standards (World Bank) Hastings positively assessed against the Equator Principles IV (World Bank) Sustainability Governance Framework Good governance is critical to ensuring we maintain our sustainability aspirations, and our Board of Directors (“the Board”) oversees our sustainability target setting and performance. Supporting the Board is our ESG Committee, with responsibility for developing our sustainability strategy and implementing activities to meet our goals, as well as monitoring our results quarterly. Our ESG Committee comprises: • Charles Lew – Executive Chairman • Neil Hackett – Independent Non-Executive Director • Paul Brown – Chief Executive Officer Standing invitations are issued to: • Teck Lim – Chief Financial Officer • Robert Klug – General Counsel • Pit Wah Chung – GM Audit and Risk Other members of the Senior Executive Team may also be invited by the Committee Chair. The ESG Committee is also responsible for the disclosure of Hastings’ sustainability performance in its annual Sustainability Report. In addition, the Company’s Audit and Risk Committee oversees the material sustainability risks and mitigation actions. Similarly, the Audit and Risk Committee supports the ESG Committee by due diligence in decisions relating to sustainability risks and opportunities. The ESG Committee charter is available on our website. Sustainability Report 2023 | 15 UN Sustainable Development Goals Established in 2015, the UNSDGs are a set of 17 goals, focused on tackling global sustainability challenges. These universal targets address the most urgent global economic, social, and environmental challenges in promoting sustainable development and achieving a global outcome of peace and prosperity for all people and the planet, now and into the future. At Hastings, we support the UNSDGs and the Australian mining industry’s efforts to improve social and environmental governance through our sustainability activities. Through these activities, we believe that we can contribute to 13 of the UNSDGs. Pillar Topics Health, Safety and Wellbeing Our People Inclusion and Diversity Attraction, Development and Retention Stakeholder Engagement Our Community Local Employment and Procurement Partnering with Traditional Owners Climate Change and Emissions Reduction Waste and Tailings Management Our Environment Water Stewardship Biodiversity Mine Closure and Rehabilitation Ethics and Conduct Risk Management Our Governance Human Rights Supply Chain Management Cyber-security 16 | Hastings Technology Metals UNSDG Alignment The Ten Principles of the UN Global Compact Hastings became a signatory of the UN Global Compact (UNGC) in 2022. This report serves to support our Communication on Progress (CoP), that describes our company’s efforts to support the UNGC Ten Principles on human rights, labour, environment, and anti-corruption. Area Human Rights Labour Environment AntiCorruption Principles Our statement Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights. At Hastings, no objective shall be met at the expense of the health, safety and wellbeing of our employees or contractors. Our Code of Conduct and Human Rights Policy are aligned with the Universal Declaration of Human Rights. Principle 2: make sure that they are not complicit in human rights abuses. Our Code of Conduct and associated policies, along with our suppliers screening protocol ensure adherence to the Universal Declaration of Human Rights, and the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work. Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining. We comply to the Australian regulation on Labour Rights and our Human Resources management system ensures the existence of proper communication channels between the workers and the administration. Principle 4: the elimination of all forms of forced and compulsory labour. Our corporate values and human resources management, in conjunction with the Australian regulation on Labour Rights and the Modern Slavery Act prevent the occurrence of all forms of forced and compulsory labour and child labour. Principle 5: the effective abolition of child labour. Principle 6: the elimination of discrimination in respect of employment and occupation. Our corporate values, Code of Conduct, Human Rights Policy, Inclusion and Diversity Policy and Indigenous Peoples Policy, are our handrails in eliminating discrimination and respecting each other. Principle 7: Businesses should support a precautionary approach to environmental challenges. Our Environmental Policy, Climate Change Policy and associated protocols requires us to assess environmental risks associated with our activities and develop appropriate mitigation plans. Principle 8: undertake initiatives to promote greater environmental responsibility. As we move into the production phase, we will be developing training modules that include environmental awareness and management, to strengthen a culture of environmental responsibility. Principle 9: encourage the development and diffusion of environmentally friendly technologies. We actively participate in industry associations and forums to engage with our peers, in order to share and learn good practices in managing environmental risks and impacts. Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery. Our corporate values, Code of Conduct, Anti-bribery and Corruption Policy, Risk Management Policy and Shareholder Communication Policy provide a framework to prevent, identify, report and sanction behaviours that are non-compliant to applicable laws and regulations, and our Code of Conduct. Sustainability Report 2023 | 17 Materiality Assessment In FY21, we conducted a materiality assessment in line with the GRI Standards to identify the key sustainability topics for Hastings and our stakeholders. The material topics and its impacts were reviewed in FY22 and FY23 with no major changes identified. As we progress our business activity from project development to operation and production, we will continue to review the materiality of these topics and reassess them to ensure they are relevant. Impact identification Sustainability pillar Our Governance Material topic Summary of impacts Actual (already occurred)/ Potential (not yet occurred) Positive/ Negative impact Ethics and Conduct Good ethics and conduct ensure we meet our stakeholders expectations. Actual Positive Risk Management Sound risk management is used as a tool to identify and mitigate risk to our business. Actual Positive Supply Chain Management Our ability to influence good corporate governance along our supply chain ensures we meet the expectations of our investors, lenders, regulators, and society in general. Actual Positive Attraction, Development and Retention Our ability to achieve our vision is determined by our ability to attract and retain talented employees. Actual Negative Inclusion and Diversity Ensuring we have a diverse and inclusive workforce improves productivity and innovation to add value for our stakeholders. Actual Positive There are risks to the health, safety and wellbeing of our workforce from our operational activities. Potential Negative We can impact people’s lives by ensuring we enhance human rights of our employees and implement practices that support their well-being. Potential Positive Regularly engaging with our stakeholders ensures we understand their expectations and how we can add value, including significant infrastructure investments and services provided. Potential Positive Our presence on country enables cultural heritage values to be identified and documented. Potential Positive Disturbing land with cultural heritage value. Actual Negative Through the implementation of a Native Title Agreement, the Traditional Owners of the land on which we operate will also benefit from the revenue generated by our activities. Actual Positive Our People Health, Safety and Wellbeing Stakeholder Engagement Our Communities Partnering with Traditional Owners 18 | Hastings Technology Metals Sustainability pillar Material topic Summary of impacts Positive/ Negative impact Our product is used in renewable energy and e-mobility technologies that enable a Actual reduction in greenhouse gas emissions by the end-user. Positive Our activities will generate greenhouse gas that contributes to global warming. Actual Negative Waste and Tailings Management Waste and tailings will contain elevated levels of contaminates that may impact soil and water receptors if they are not managed responsibly. Potential Negative Water Stewardship Our operation requires the abstraction of fresh Actual water in a water stressed region. Negative Biodiversity The construction and operation of our projects Actual will impact flora, fauna and ecosystem values. Negative Climate Change Our Environment Actual (already occurred)/ Potential (not yet occurred) Stakeholder Engagement Health, Safety and Wellbeing Influence on stakeholders assessment and decisions Cultural Heritage Climate Change Ethics and conduct Human Rights Attracting and retaining employees Supply Chain Management Waste and Tailings Management Water Stewardship Cyber security Cyber-security Risk Management Tax Inclusion and Diversity Rehabilitation and Closure Economic Contribution and Performance Biodiversity Significance of Hastings’ economic, environmental and social impacts Sustainability Report 2023 | 19 Our FY23 Performance As we are still in the early stages of development, we continued to work on defining objectives and developing short and long-term targets during FY23. We believe in setting targets that are fit for purpose and can expedite the progress of our sustainability targets. As our business evolves, we will review our targets to ensure they remain aligned with our stakeholders’ expec