Announcement PDF Yangibana Rare Earths and Niobium Project Sustainability Report 2024 Sustainability Report 2024 Contents Acknowledgment Of Country  Message From Our Leadership  About This Report  About Us  Rare Earths and Advanced Technologies  Yangibana Project Snapshot  Hastings As A Sustainable Investment  Sustainability Framework  Materiality Assessment  FY24 Performance  Memberships And Endorsements  United Nations Sustainable Development Goals  The Ten Principles of the UN Global Compact  Governance  Corporate governance structure  Sustainability governance  Ethics & conduct  Risk management  People  Health and safety  Wellbeing  Culture  Inclusion and diversity  Communities  Partnering with traditional owners  Local employment and procurement  Environment  Climate change  Water stewardship  Waste management  Biodiversity  Responsible supply chain  Appendices  GRI content index  Hastings Technology Metals 03 04 05 06 07 07 09 11 12 13 17 17 18 21 22 23 25 25 26 27 28 29 30 31 36 37 38 40 43 44 44 46 47 47 Sustainability Report 2024 | 2 Acknowledgment of Country Hastings Technology Metals acknowledges that our operations are located on land that has belonged to Indigenous peoples for thousands of years and will continue to belong to its traditional owners for generations to come. 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. Hastings Technology Metals Sustainability Report 2024 | 3 Message from our Leadership It is with great pleasure that I present Hastings’ Sustainability Report for Financial Year 2024, providing an overview of our sustainability performance over the past 12 months. We are highly optimistic in a future powered by clean energy and the role that critical minerals play to enable it. With a long-term view, it remains essential to demonstrate sustainable commitments on all three pillars of financial, social, and environmental. This year’s report is reflective of Hastings maintaining its journey, as a sustainable investment to realise the potential of critical minerals in the role of a global shift to low carbon technologies. It is vitally important to me that our people go home to their families safe and sound, both physically and mentally. This year marks the sixth year we continue to achieve zero lost time injury, bringing our total reportable injury frequency rate (TRIFR) to zero, which is lower than the previous year and is well below industry average. I remain proud of all that Hastings has done in supporting our employees’ mental health and wellbeing, from participating in World Mental Health Day and marching against Domestic and Family Violence, to allowing flexible work arrangements for those who require it, and launching our Family and Domestic violence procedure to support victims of FDV. Hastings Technology Metals FY24 has been a busy year and one that saw the launch of our new Vision and Values program, a culture strategy that was developed by our employees, outlining behaviours critical towards achieving our vision to become Australia’s next rare earth company. We continue to gauge our Sustainability performance using credible third party ratings agencies, and in FY24 I am again proud to share that we ranked 4th out of 187 companies in Sustainalytics metals mining sub-industry category, and was in the top 10th percentile of all companies rated by Ecovadis. I am excited on what the future holds for Hastings and would like to extend my heartfelt gratitude to everyone for setting us up for success. Charles Lew Executive Chairman Sustainability Report 2024 | 4 About this report Hastings Technology Metals Ltd is pleased to present our third Sustainability Report disclosing our sustainability performance for the Financial Year ending 30 June 2024. This report covers the sustainability aspects of our Yangibana project site and our Perth office. The content of this report has been prepared in line with the Global Reporting Initiative (GRI) Standards and its Mining & Metals standard. This report also outlines our contribution to the United Nations Sustainable Development Goals (UNSDGs) and the Ten Principles of the United Nations Global Compact (UNGC). In the chapter on Climate Change, this report discusses how we align with the recommendations made by the Task Force on Climate-Related Financial Disclosures (TCFD), as we prepare to align with the Australian Sustainability Reporting Standard (ASRS). Restatements In the last reporting period of FY24 we undertook a significant spatial validation process as part of our Mining Proposal update and submission to the Department of Energy, Mines, Industry Regulation and Safety (DEMIRS). Following this exercise, we have one restatement in this report on the following Biodiversity item: Biodiversity FY23 reported value Restated value Total area of land disturbed 225.9 198.62 The currency used throughout the report is in Australian Dollars (AUD). The content of this report has been reviewed and approved by the company Board of Directors as a voluntary exercise. It has not been externally assured. Hastings Technology Metals Limited is a rare earths company, listed on the Australian Securities Exchange (ASX: HAS), operating in Western Australia and headquartered in Perth. Contact us For more information on the topics covered in this report you can contact us at: Hastings Technology Metals Level 3, 5 Mill Street, Perth WA 6000 www.hastingstechmetals.com/about-us/ Sustainability Report 2024 | 5 About Us Hastings Technology Metals Limited (Hastings or HAS) is a Perth-based rare earths company focused on the development of its 100% owned Yangibana Rare Earths Project. Located 250km north-east of Carnarvon in the Gascoyne region of Western Australia, the Yangibana Project contains one of the most highly valued deposits of Neodymium/Praseodymium (NdPr) in the world with an NdPr to Total Rare Earth Oxide (TREO) ratio of up to 52% in some areas of the orebody. The project provides significant exploration potential including that of heavy rare earths and Niobium as a potential material by-product in the future. Neodymium enables the development of magnets that are three times stronger and a tenth the size of conventional magnets, and made possible miniaturisation of electronic devices such as mobile phones. Such characteristics is essential in the production of wind turbines and battery powered vehicles. Energy saving light bulbs Similar to Neodymium, Praseodymium is used to produce permanent magnets applicable to 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. LCD/PDP screens and displays Wind turbines NdPr are critical elements of the global energy transition Electric vehicles Light rare earths Hastings Technology Metals Headphones and speakers Heavy rare earths Sustainability Report 2024 | 6 Rare Earths and Advanced Technologies The unique chemical and physical properties of rare earths make them a key element for technology development with use in devices such as LED lights, flat screens televisions, computer monitors, smart phones, digital cameras, computer hard disks, rechargeable batteries, catalytic converters, lasers, etc. Most importantly rare earths are essential in the renewable energy and defence technologies. Strategic Investments As at June 2024 we hold 21.5% of shares in TSX-listed Neo Performance Materials Inc – a leading global rare earth processing and advanced permanent magnets producer listed on the Toronto Stock Exchange (“TSX”). In addition, JL Mag - the world’s leading producer of rare earths permanent magnets has agreed to become a 9.8% strategic shareholder of Hastings, subject to regulatory approvals. These strategic shareholdings provide us with the opportunity to realise a full mine-to-magnet supply chain. Yangibana Project Snapshot 100% ownership of the Yangibana Rare Earth Project in the Upper Gascoyne region of Western Australia Broome Stage 1 – Mine and Beneficiation Plant 37,000tpa of concentrate production Port Hedland Dampier Onslow Initial mine life of 17 years Ore Reserve – 20.9mt# Mineral Resource – 29.9mt# Exploration target – 40-60mt Yangibana Mine Site Carnarvon Meekatharra High ratio of NdPr Average NdPr:TREO ratio of 37% over mine life Equivalent to around 3,400tpa of NdPr for use in rare earth magnets Halls Creek Geraldton Stage 1 Yangibana mine and beneficiation plant Kalgoorlie Perth Albany Refer Yangibana Project - Hastings Technology Metals Limited (hastingstechmetals.com) Note#: As per Mineral Resources and Ore Reserves (“MROR”) Statement for Hastings Technology Metals Limited. https://www.investi.com.au/api/announcements/has/03c419a2-4d6.pdf#page=12 Hastings Technology Metals Sustainability Report 2024 | 7 Mining and Processing (Yangibana) Separation and Refining With strategic partners Hastings Technology Metals Separation • Separating and purifying the individual rare earth oxides Mining and Beneficiation (Stage 1) • Extracting approximately 1.1 million tonnes per annum of ore • Ore to be crushed into gravel sized particles •C  rushed ore is milled to a fine sand and processed through a froth flotation circuit to produce rare earth concentrates Metal and alloy creation • Refining separated oxides into metals • Processing into rare earth alloys for use in production of permanent magnets Magnet Manufacturing Hydrometallurgy (Stage 2) • Cracking the concentrate to produce MREC Hastings Technology Metals • 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 2024 | 8 Hastings as a Sustainable Investment Our Yangibana Project is fully permitted for immediate development and is well-timed to meet the forecast supply gap for rare earth elements accelerated by the growth in electric vehicles and wind turbines, both vital for the global energy transition. With an initial mine life of 17 years, our Yangibana Project will become a globally significant source of rare earths, 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. We plan to push forward the energy transition by working with our business partners to ensure that our products will be prioritised for use in the clean energy space. In FY24, we undertook a company-wide structure and cost review to optimise our project’s economics and further de-risk our execution strategy. In line with our prudent approach towards realising our vision, we will first focus on the construction of the Yangibana Project’s mine and beneficiation plant capable of producing up to 37,000 tonnes per annum of concentrate and continue to assess downstream opportunities to capture more of the global rare earth value chain, including the development of a hydrometallurgical plant. This approach will ensure sustainable long-term value creation for our stakeholders as we prudently undertake strategic investment decisions. Case study In FY24, we identified extremely high-grade heavy rare earths mineralisation at the Centipede Range located approximately 30 km from Yangibana’s planned beneficiation plant which will be able to process both light and heavy rare earths. In addition, taking advantage of the presence of niobium minerals in our ore we are expediting our investigation into including a Niobium (Nb) circuit to our project, providing multi-commodity recovery process stream. We are excited by the potential of the Centipede Range as a second ore source for the Yangibana Project and plan to take full advantage of the tremendous exploration potential of the Yangibana region by commencing a staged exploration program in FY25 At Hastings, 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 Rare Earths and Niobium project moves into development and our footprint expands, so will our sustainability challenges. We will continue to publicly report on our performance against these challenges through our Sustainability Report. In 2024, we ranked in the Top 3rd percentile (4th out of 187 companies) in the metals mining sub-industry category by Sustainalytics, and in the Top 10th percentile of all companies rated by Ecovadis. More information can be found in the Membership and Endorsement section of this report. Hastings Technology Metals Sustainability Report 2024 | 9 Boston Consulting Group (BCG) predicted global demand for magnet rare earths is expected to reach 466 kilotons by 2035, up from 170 kilotons in 2022, a threefold increase that amounts to an 8% compound annual growth rate. McKinsey forecast worldwide demand for passenger cars in the battery electric vehicle (BEV) segment will grow sixfold from 2021 through 2030. The Yangibana Project has the potential to supply up to 55 million EVs. Hastings Technology Metals Sustainability Report 2024 | 10 Sustainability Framework At Hastings, we believe in achieving our mission to create value for our stakeholders in a sustainable way, so our present actions do not compromise future generations’ ability to meet their needs. At this early stage of mine development, in preparation for construction, our organisational focus has been to install the necessary governance systems and measures to ensure sustainability is part of our company culture. Our end-to-end approach to our project means that careful consideration has been made on the potential impact of our planned mining activities. Our mine rehabilitation plan ensures the site is safe for post-closure land use, and rehabilitated to the extent that it is conducive for native vegetation to develop over time. &T Governance • ESG Committee includes Executive Chairman, Non-Executive Director and senior executive management team. • Board oversight People Our Governance Our Community Our Environment • Policy implementation programs – Systems – Culture – Stakeholder Engagement • Policies approved by the Board Strategy • Set objectives and targets • Management plans • Implementation • Measure and monitor • Continual improvement Risk Management • Risk assessment • Stakeholder engagement Our mine rehabilitation plan is designed to ensure our site is rehabilitated to the extent that it is conducive for native vegetation to develop over time. Hastings Technology Metals • Identify risks that are material to our business • Business impacts and opportunities • Identify management actions to mitigate risk • Integrate into the broader business Metrics & Targets • Set objectives and short and longer-term targets for material topics • Identify quantitative and qualitative metrics • Measure • Disclose performance metrics in annual Sustainability Report • Aim to continually improve our performance and achieve our targets Sustainability Report 2024 | 11 Materiality Assessment In FY22 a materiality assessment was conducted to identify the key sustainability topics for Hastings and our stakeholders. The materiality assessment considered both the impacts posed by our planned operations as a mining company to external receptors, as well as the internal impact to our operations posed by external factors. The outcome of the materiality assessment inputs into Hasting’s Sustainability Pillars. Tax Transparency Hasting’s Sustainability Pillars Human Rights 1. People – creating a safe and inclusive environment for our employees 3. Environment – mitigating our impacts 4. Governance – operating with integrity and transparency Waste and Tailings Management Risk and Supply Chain Management Go 2. Communities – making a positive contribution to communities Climate Change Ethics and Conduct Water Stewardship Our Focus Areas Biodiversity Cultural Heritage Health and Safety Communities Diversity and Inclusion Topics People We aim to create a healthy workplace that is safe, respectful and inclusive. Health, Safety, and Wellbeing Diversity and Inclusion Talent Attraction and Retention Communities Environment We engage meaningfully with our stakeholders and strive to contribute positively to the communities where we operate. Stakeholder Engagement We seek to understand and mitigate our impact on the environment and responsibly steward our natural resources. Climate Change Local Employment and Procurement Partnering with Traditional Owners Water Stewardship Waste and Tailings Management Biodiversity Mine Closure and Rehabilitation Governance We conduct our business with integrity and transparency. Risk Management Tax Transparency Human Rights Supply Chain Management Cyber-security We review the materiality of these topics on an as-needed basis whenever there are material external or internal changes to ensure they remain relevant. Once we progress to the operational phase of our Yangibana project we plan to formalise the frequency of our materiality assessment exercise. Hastings Technology Metals Sustainability Report 2024 | 12 FY24 Performance From the earliest stage of our sustainability journey towards becoming Australia’s next rare earth producer, we have always believed that setting the right goals and targets can expedite the progress of our sustainability ambition. We take care to ensure our goals are not counter-productive to us managing our resources efficiently, while we continue to show progress year on year. An appraisal of FY24 against FY23 status under Hastings’ four pillars is summarised below: Governance Material topic and objective FY23 Target status FY24 Status Ethics and Conduct Developed a training and awareness program to raise the profile of our Code of Conduct within the business. Set up the foundation to develop online content and migrate Code of Conduct training to an online system for better deployment and tracking of compliance. Developed and rollout our Supplier Code of Conduct. FY24 focused on implementation and monitoring. In FY22 we started our journey towards developing a Human Rights framework by engaging environmental consultants ERM to conduct a Human Rights Risk Assessment and a Social Due Diligence for our Yangibana project. At this early stage of development, our supply chain remains limited. We have decided to put a human rights internal audit on hold until changes in our supply chain warrants an audit to be implemented. To act in an ethically and responsible manner. In FY23 we deferred our plan to conduct an internal audit on human rights compliance against the International Labour Organization Declaration of Human Rights to a more suitable timeframe. We believe we can extract more value out of a full fledge human rights audit when our supply chain is more complex. Rolled-out online Anti-discrimination, bullying and harassment training. Notwithstanding, our human rights journey continue and in FY24 we have implemented all but one of the recommendations outlined in the Human Rights Risk Assessment report by third party environmental consultants ERM on our Yangibana project. We will complete the final recommendation for the establishment of a Modern Slavery Statement once our project proceeds to the development stage as we need to remain prudent in expending our limited resources. Ongoing. In FY24 an online sexual harassment training was conducted by third party provider Lifeline. Project to develop content and migrate all corporate trainings to a fully online learning management system (LMS) was started in Q3 FY24. Formal governance framework established and approved by the board setting a baseline for ethics and conduct. FY24 focused on the implementation, monitoring and updating the framework to fit changes to our organisational structure. Formal two-year review set for all policies. Completed all review of policies that were due in FY24. Policies register to keep track of all policies, review due date, and completion status has been set up. Whistleblower hotline established to strengthening our Whistleblower Policy. Trainings on how to use our Whistleblower Hotline was conducted by our service provider Stopline. Appointed a General Counsel to take specific responsibility for Hastings’ corporate governance behavior. In FY24 our General Counsel maintained strong oversight of our ESG work stream, further reinforcing our environmental and social governance. Hastings Technology Metals Sustainability Report 2024 | 13 People Material topic and objective FY23 Target status FY24 Status Diversity Developed and rolled out two programs to build an inclusive culture. Continued to roll out programs focused on building a diverse and inclusive culture. Please see the People section in this report. Maintained a minimum of 30% female employment participation. We are proud that we maintained this percentage despite having to right-size our operations in Q4 FY24. Didn’t achieve a reduction by 10% in turnover rate for the duration of the construction phase as the construction phase has been delayed. Target is put on hold as construction phase has not commenced. Maintain or exceed FY22 retention rate for this fiscal year. Target is put on hold as construction phase has not commenced. Developed new incentive plan. Remuneration and Incentive procedure implemented and included in annual performance cycle process. Partner with others in the industry to build local capability to support our future operation. This is an ongoing initiative leveraging on our memberships and associations. Health, safety, and well-being Achieved a Lost Time Injury Frequency Rate (LTIFR) of below 2.0 Both our LTIFR and Total Recordable Injury Frequency Rate (TRIFR) in FY24 are zero. Ensure the safety of our people. Implemented the Lifeline ‘Minders’ Program across the business. Increased the number of ‘Minders’ in our business. To have a diverse and inclusive workforce. Attracting and retaining employees To develop and retain employees over the long term. We implemented a talent pooling process designed to inform local workers of future roles availability, enabling them to submit early expression of interests in preparation for our project kick-off. Considering Sexual Harassment session for all employees conducted by Lifeline. Please see the People section in this report. Hastings Technology Metals Sustainability Report 2024 | 14 Communities Material topic and objective FY23 Target status FY24 Status Stakeholder engagement Implement our Stakeholder Engagement Action Plan relevant to this stage of the Project. Ongoing. The Stakeholder Engagement Plan is a multi-year action plan encompassing all stages of our project. Ensure all key stakeholders (including vulnerable groups) are aware of our grievance procedure by communicating the information using three different media year on year. Information on reported grievances and the channel utilised are recorded for analysis to identify areas of improvement. Demonstrate five key benefits of our presence in local communities. Maintained. Zero non-compliances with the Native Title Agreement. Maintained. Advertise opportunities for local businesses via at least three different channels. We ensure we give advanced notice on any request for intent or proposals to the local communities via a pre-established distribution list and through communication with community leaders. Explore the potential to develop an indigenous business (such as bush medicine/food nursery). Deferred until we have adequate resources to expand our community programs. Partnering with Traditional Owners Zero impacts to cultural heritage sites. Maintained. Identify partnerships to record the knowledge of elders in the local region. Ongoing. To respect the land of the traditional owners on which we operate. Develop and implement one cultural heritage arts project. Ongoing. Developed and implemented a cultural heritage training program for our workforce. Maintained. To ensure a two-way communication channel is developed with key stakeholders. Community To realise benefits to local communities where we operate because of our presence. Local employment To ensure we maximise the number of local businesses that we contract for our activities. ^ See section on Our Communities Hastings Technology Metals Sustainability Report 2024 | 15 Our Environment Material topic and objective FY23 Target status FY24 Status Climate Change and Emissions Reduction Continued to implement recommendations of climate change consultant from their verification of the Climate Change Report (FY22) against the TCFD recommendations. We continue to align with the TCFD, as this helps us prepare for complying with the upcoming Australian Sustainability Reporting Standard (ASRS). Deferred the update and revision of our Carbon Reduction Transition Plan. Completed the revision of our Carbon Reduction Plan and Climate Change Transition Risk Assessment document. Define the site water balance and obtain a comprehensive site baseline ahead of operations. Further refinement of our project water requirements and staging of sources has been completed, and ongoing baseline water quality monitoring. This will be an ongoing exercise up to construction phase and throughout the project life, with water a recognized valuable resource. Design Tailings Storage Facilities (TSFs) in accordance with Good International Industry Practice including the Global Industry Standard on Tailings Management. Further work completed on detailed design of our Beneficiation Plant TSF in line with leading principles and guidance. This will be an ongoing exercise up to construction phase and throughout the project life, to ensure strong design, construction and operational management. To establish a climate change governance framework. To produce rare earths elements that contribute to a worldwide transition to e-mobility and renewable energy. To reduce our greenhouse gas emissions footprint in alignment with the Paris Agreement. Water stewardship To understand our baseline water conditions at the Yangibana Project’s mine site and clearly define management goals for groundwater abstraction. Waste and tailings management The TSF shall be built and operated to protect the surrounding environment and the safety of our people For a complete list of quantitative data please refer to our ESG Databook available on our website under the ‘Reports’ section. Hastings Technology Metals Sustainability Report 2024 | 16 Memberships and Endorsements United Nations Sustainable Development Goals Hastings supports the UNSDGs and we believe that we are well positioned to positively contribute to 11 of the UNSDGs through our business model, operations, and conduct. Pillar Topics Our People Health and safety SDG Alignment Inclusion and Diversity Attraction and Retention Our Community Stakeholder Engagement Local Employment and Procurement Partnering with Traditional Owners Our Environment Climate Change and Emissions Reduction Waste and Tailings Management Water Stewardship Biodiversity Mine Closure and Rehabilitation Our Governance Ethics and Conduct Risk Management Human Rights Supply Chain Management Cyber-security Hastings Technology Metals Sustainability Report 2024 | 17 The Ten Principles of the UN Global Compact Hastings became a signatory of the UN Global Compact (UNGC) in 2022 and has been communicating our progress in support of the UNGC Ten Principles annually. The status of our participation can be viewed on the UNGC website. A summary of our commitments to the Ten Principles of UNGC is summarised below: Area Principles Our statement Human Rights 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, contractors, or local communities. Our Code of Conduct and Human Rights Policy, Indigenous People Policy and Community Policy are aligned with the Universal Declaration of Human Rights and Commonwealth Aboriginal and Torres Strait Islander Acts. 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. Australia is signatory to seven key treaties in human rights and various protocols under the treaties. Hastings comply with Australian regulations related to the right to work and rights in work, which upholds the freedom of association and right to collective bargaining. Our Human Resources management system ensures there are communication channels between workers and the administration. Principle 4: the elimination of all forms of forced and compulsory labour. Australian regulations on human rights in conjunction with our human resources and supplier management systems, mitigates the risk of forced labour and child labour. We