Announcement PDF ASX Announcement ASX: CMG 10 October 2024 ESG Report Critical Minerals Group Limited (ASX:CMG) (CMG or the Company) is pleased to provide its inaugural Environmental, Social and Governance Report (ESG Report). The attached ESG Report and the associated Databook are available on the Company’s website at: https://www.criticalmineralsgroup.com.au/investor This announcement was approved for release by the board of CMG. For Further information: Scott Winter, Managing Director info@criticalmineralsgroup.com.au (+61) 755 555 077 criticalmineralsgroup.com.au (+61) 755 555 077 Level 4, 10 Eagle Street, Brisbane QLD 4000, Australia info@criticalmineralsgroup.com.au ESG Report Leading the way in the renewable energy transition 24 Acknowledgement of Country We acknowledge the Mayi and Mitakoodi people who are the Traditional owners and custodians of the land on which our project and tenements are located, and pay our respects to Indigenous Elders past, present and emerging. About this Report Critical Minerals Group (CMG) is committed to purposefully including Environmental, Social, and Governance (ESG) in our operations, positioning and ongoing strategy. To demonstrate our alignment with ESG the following report has been compiled to define how we plan to integrate ESG, involve our stakeholders during the process, and communicate and report our progress to both internal and external stakeholders. For further information on the data collected and mapped against ESG reporting frameworks, please refer to the CMG Website. If you have any feedback or queries, please contact us at info@criticalmineralsgroup.com.au Our Reporting Suite ESG Report Annual Report 24 Annual Report Leading the way in the renewable energy transition 24 ESG Report Contents Letter to Shareholders  FY24 Highlights  Company Overview Critical Minerals Group Our Vision and Values Our Strategy 4 5 6 6 8 9 Our Leadership 10 Our Operations 14 Overview14 Our Role in the Global Energy Transition 16 ESG Strategy 18 ESG Roadmap and Policy 19 Our ESG Reporting Frameworks 20 Our Stakeholders 23 Our Material Topics 24 Environmental24 Social26 Governance27 Disclosures GRI Content Index 29 Glossary31 Our Head Office Level 4, Gold Tower, 10 Eagle Street Brisbane, QLD 4000, Australia ABN : 1234 567 189 Email: info@criticalmineralsgroup.com.au Phone: (07) 5555 5077 Website: www.criticalmineralsgroup.com.au ESG Report FY24 3 Letters to Shareholders Message from the Managing Director Dear Shareholder, It is with great pride and a deep sense of responsibility that I present to you our inaugural ESG Report for the financial year 2024. As a leading developer of vanadium, our company is acutely aware of the pivotal role our operations will play in the global transition to a more sustainable energy future. At the heart of our strategy is a steadfast commitment to Environmental, Social, and Governance (ESG) principles, which are integral to our current and future endeavors. Vanadium is a critical mineral with immense potential to revolutionise energy storage solutions and enhance the efficiency of renewable energy systems. As we advance our development activities, we are driven by the knowledge that our work supports the transition to cleaner energy sources and contributes to a more sustainable world. ESG is not just a framework for us; it is a fundamental pillar of our operations, guiding every decision and shaping our strategy. In FY24, we have made significant strides in building strategic partnerships that align with our ESG commitments. Notably, we have forged alliances with key industry players and stakeholders who share our vision for a sustainable future. These partnerships are instrumental in advancing our projects, enhancing our operational practices, and ensuring that we adhere to the highest standards of environmental stewardship and social responsibility. Our ESG strategy is designed to provide a robust platform for long-term success. Environmentally, we are dedicated to minimising our ecological and carbon footprint, increasing our efficient energy usage and implementing practices that protect and preserve natural resources. Socially, we prioritise the well-being and development of our employees and local communities, fostering an inclusive and supportive work environment. Governance-wise, we uphold transparency, integrity, and ethical conduct in all our business practices, ensuring that our operations meet the highest standards of accountability and risk management. As we continue to develop our vanadium resources and downstream manufacturing facility, our commitment to sustainability principles will remain unwavering. We are confident that this approach will not only drive our success but also contribute meaningfully to the broader goal of a sustainable energy future. Thank you for your continued support and engagement. Together, we are building a foundation for enduring success and a brighter, more sustainable future. Sincerely, Scott Winter Managing Director 4 criticalmineralsgroup.com FY24 Highlights ESG Highlights 1 Published ESG Roadmap 2 Completed Inaugural Materiality Assessment 3 Published ESG Policy 4 Released First ESG Report Operational Highlights Q1 FY24 ᴑ Commence comprehensive ESG review ᴑ Second Lindfield Drilling program completed Q2 FY24 ᴑ High Purity Alumina technology licence with Lava Blue ᴑ Lindfield Project Scoping Study completed ᴑ First round of ecological surveying completed Q4 FY24 ᴑ Significant increase to Lindfield Mineral Resource Estimate ᴑ Completion of second round of ecological surveying ᴑ Two additional vanadium exploration tenements granted ᴑ Commenced Traditional owner engagement process Q3 FY24 ᴑ Commence Lindfield Project feasibility studies with Sedgman Prudentia ᴑ Commenced investigations into long term power sourcing and management on site, including from renewable sources ᴑ Successful metallurgical testing and planning for Pilot Plant ᴑ Commenced planning for vanadium electrolyte manufacturing facility ESG Report FY24 5 Company Overview About CMG Critical Minerals Group (‘CMG’ or the ‘Company’) is a Brisbane based company developing a vanadium mine and processing operation in the Julia Creek region of North Queensland and a vanadium electrolyte manufacturing facility in Brisbane. We aspire to be a leading Australian Vanadium battery product manufacturing company and our strategy is deeply aligned with the ongoing global energy transition and the opportunities it presents. CMG was founded on our outlook for a global shift to decarbonisation and electrification, which is firmly underpinned by our business strategy and ESG principles. We’re focused on vanadium as an essential critical mineral required for energy storage to support the energy transition. The rising standard of living of a growing global population is expected to continue to drive demand for vanadium and other critical minerals for years to come. This demand for critical minerals will help the world transition through the decarbonisation and electrification phase and CMG is well-positioned to meet this new economy mineral demand as the world turns towards a more renewable future. 6 criticalmineralsgroup.com CMG aims to drive value through the establishment of a key part of the value chain for the development of vanadium flow batteries. With the secure longterm supply of vanadium pentoxide from the vanadium tenements CMG are developing in North Queensland and the construction of a downstream manufacturing facility to produce vanadium electrolyte, CMG are well positioned to take advantage of the growing demand for long duration battery installations domestically and internationally. ESG Report FY24 7 Company Overview Our Purpose, Vision and Company Objectives Purpose Vision To support global communities through an energy transition that will deliver a more sustainable and responsible future. To be known as the leading high quality manufacturer of Vanadium battery products for the energy storage market and deliver responsible and robust returns. ESG Vision Engaging with communities, partners and the environment ethically and responsibly to meet the demand for minerals required to achieve a net zero future. 1 Ethics and Accountability 2 Mineral Traceability 3 Community and People 4 Environmental Management Objectives Premium Producer Delivering high purity Vanadium to manufacture Electrolyte for batteries with no rejections. 8 Responsible Upholding a quality ESG standard whilst establishing operations using renewable energy, engaging traditional owner and local communities to help deliver an Australian made manufactured outcome. criticalmineralsgroup.com Robust Returns Delivering returns through downstream manufacturing of vanadium electrolyte and enabling the extraction of adjacent minerals (HPA, Mo) within the resource. Strategy CMG’s organisational purpose is to support global communities through an energy transition that will deliver a more responsible and sustainable future. We do this by acquiring and developing vanadium and associated critical mineral deposits that support our downstream manufacturing of high purity vanadium battery products (vanadium electrolyte). As energy markets across the globe shift towards wind, solar and geothermal production, the need for reliable energy storage is also increasing. Added to the Critical Minerals list in 2022, Vanadium is a large contributor to the renewable energy transition. Vanadium is the key component of Vanadium Redox Flow Batteries (VRFB’s), the only proven stable, reliable, and cost-effective long term battery storage solution. CMG is focused on developing a secure value chain from the resource to the refined high purity vanadium electrolyte to support our customers and partners in contributing meaningfully to the renewable energy transition. CMG’s operations are inherently linked to ESG, as the work we undertake manufacturing vanadium battery products contributes meaningfully to the energy storage market. Our strategy is guided by three strategic pillars; to provide a secure and efficient supply, to add value through downstream manufacturing, to prioritise sustainable delivery and in doing so always maintaining a market leading position through innovation, strategic partnerships and strong leadership. CMG works within the framework of the following strategic pillars. Secure Efficient Supply Downstream Value Creative Sustainable Delivery ᴑ Develop and Operate ᴑ Market strategy Electrolyte, HPA ᴑ Install Solar farm with vanadium battery ᴑ Strategic partnerships in vanadium battery value chain ᴑ Integration of traditional owner services Strategic Partnerships Innovation ᴑ Optimal Mining Operation Approvals ᴑ Develop secondary product stream – HPA, other by-products ᴑ Downstream manufacturing of vanadium electrolyte ᴑ Uphold ESG policy and reporting framework Market Leading Strong Leadership ESG Report FY24 9 Our Leadership Board Our board and leadership team includes members with extensive experience across the industries of mining, resources and energy, both domestically and internationally. Each board member holds an executive position within either one of our strategic partners or a related industry association. The adept skillset of the board is invaluable for navigating the opportunity of meeting the demand of critical minerals for the global energy transition. Alan Broome, AM William Scott Winter Date of appointment: 18 October 2021 Date of appointment: 10 July 2023 Qualifications: Qualifications: Mr Broome, AM is a fellow of the Australian Institute of Company Directors, the Australian Institute of Mining and Metallurgy and the Institute of Materials, Minerals and Mining and a chartered fellow of the Institute of Directors New Zealand. Mr Winter holds a Bachelor of Engineering – Mining (Honours), a Graduate Diploma - Applied Finance and Investment (Securities Institute Australia) and an MBA from Melbourne Business School. Experience and expertise: Mr Winter is an experienced mining engineer with almost 30 years working in Australia and internationally across all aspects of mining exploration, development, engineering, financing and operations. After early years at MIM, BHP and then managing mining, construction and major projects at Thiess, Mr Winter progressed to C-suite roles including CEO and MD of MACH Energy Australia, COO for Mineral Resources Ltd (ASX: MIN), CEO (Surface) at Perenti Group and Interim CEO and Director at Jupiter Mines Ltd (ASX: JMS). Non-Executive Chair Mr Broome, AM is a professional director and business advisor with over 40 years of experience in the metals, mining and energy industries. A metallurgist by training, he had an extensive background in steel production before the mining industry as managing director of a major Australian coal industry owned group. Mr Broome, AM has extensive knowledge of the mining industry accumulated through involvement with mining technology companies, government agencies and major international mining companies in promoting Australian mining and developing global trade. Currently the Chairman Emeritus of Austmine and Micromine. He is the Non-Executive Chairman of Strategic Minerals Plc, New Age Exploration Limited (ASX: NAE), and Nuenz Limited. He is also a Non-Executive Director for UON Energy. Mr Broome received the Order of Australia (AM) for services to mining in 2000, and has received multiple awards during his career. Mr Broome, AM also previously sat on the Mineral Resources Sector Advisory Council of the CSIRO and is now an Associate of the CSIRO. He was also previously a director of the New Zealand Coal Association. Mr Broome, AM is an independent director. 10 criticalmineralsgroup.com Managing Director and Chief Executive Officer Experience and expertise: Mr Winter has extensive project and mine development experience which has included early financing, construction procurement and operational startup. Mr Winter is not considered to be an independent director. Art Malone Steven Kovac Stuart McClure Date of appointment: 6 May 2022 Date of appointment: 6 May 2022 Date of appointment: 7 December 2022 Qualifications: Qualifications: Qualifications: Mr Malone holds a Diploma of Engineering – Mechanical. Mr Malone is also a member of the Australian Institute of Company Directors. Mr Kovac holds a Bachelor of Engineering (Mining) Hons and a Master of Business Administration (Executive). Mr Kovac is also a graduate of the Australian Institute of Company Directors. Mr McClure holds a Bachelor of Business majoring in finance and is a qualified financial adviser holding RG146, ADA 1 & 2. Mr McClure is also a member of the Australian Institute of Company Directors. Experience and expertise: Experience and expertise: Mr Kovac is employed by Idemitsu Australia Pty Ltd in the role of Chief Executive Officer. Idemitsu Australia Pty Ltd, through its wholly owned subsidiary Idemitsu Lindfield Pty Ltd is a substantial holder of the Company. Mr McClure has over 17 years of finance and corporate advisory experience with a focus on early-stage through to middle-market corporate advisory transactions. Mr McClure is also an experienced resource executive holding positions across several critical mineral exploration companies. Mr McClure is not considered to be an independent director. Non-Executive Director Experience and expertise: Mr Malone was appointed as an independent non-executive Director of CMG on 6 May 2022. Mr Malone is a senior energy and resource professional with a background in engineering compliance, with projects and operations management. He has over 16 years’ experience in the resources sector, managing large scale projects for listed companies and private entities. Mr Malone is currently the managing director of Graphinex Pty Ltd, and non-executive director of CopperX Pty Ltd and Core Uranium Limited. He was previously the chief operating officer for Doriemus Plc. Mr Malone has extensive resource experience across the entire value chain from greenfield exploration through to development, mining and processing throughout Australia and abroad. He has experience in negotiating joint venture transactions, asset sales, mergers and acquisitions and procuring investment funding for projects. Non-Executive Director Mr Kovac has over 23 years’ experience in the resources sector including more than 14 years in senior management and executive roles. Non-Executive Director Mr Kovac is Non-Executive Director of Delta Lithium Ltd and Vecco Group Pty Ltd, and is also a Director of Low Emission Technology Australia Ltd. He serves on the New South Wales Minerals Council Executive Committee and is a Fellow of the Australian Institute of Mining and Metallurgy and of the Mine Managers Association of Australia. Mr Kovac is not considered to be an independent director. Mr Malone is considered to be an independent director. ESG Report FY24 11 Our Leadership Leadership Scott Winter Nicola Semler Adam Gallagher Jasmine McCormack Pratyush Jagdishwala Mr Winter was appointed as the Managing Director and CEO in August 2023. He is an experienced mining engineer with almost 30 years working across all aspects of mining exploration, development, engineering, financing and operations. Ms Semler is a Metallurgical Engineer with an extensive background in the mining and resources industries, both in Australia and internationally. Her experience encompasses greenfields and brownfields project development, commissioning, operations, cultural transformation, strategic and operational business planning and mine closure. Mr Gallagher is an experienced company secretary with a broad corporate skillset, having held the roles of company secretary, CEO and director on a number of ASX-listed companies. Ms McCormack is an experienced Communications and Investor Relations professional with experience in the not-for-profit sector, financial services, distribution, and manufacturing. Mr Jagdishwala is a financially and commercially astute chartered accountant with over 20 years experience within audits, corporate finance, private equity and industry. Managing Director & CEO After early years at MIM, BHP and then managing major projects at Thiess, Scott progressed to C-suite roles including CEO and MD of MACH Energy Australia, COO for Mineral Resources Ltd (ASX:MRL), CEO (Surface) at Perenti Group and Interim CEO and Director at Jupiter Mines Ltd (ASX:JMS). 12 Chief Technology Officer criticalmineralsgroup.com Company Secretary He holds a Graduate Diploma in Applied Corporate Governance and Information Systems, a Master in Commerce and a Bachelor of Economics, and is a Fellow of the Governance Institute of Australia. Communications and Investor Relations Ms McCormack holds a Bachelor of Mass Communication majoring in Public Relations and Media and Communication, and is currently studying a Graduate Certificate in Corporate Governance and Risk Management Financial Consultant He has hands-on experience in the waste management industry, education sector, service industry and retail / manufacturing industries. Pratyush has been involved in various M&A transactions, IPOs, capital raising, restructuring, financial transformation and integration projects. In addition, Mr Jagdishwala has gained considerable experience in automation of month-end reporting, developing smart KPIs for businesses, working capital & cash flow management and forecasting. ESG Report FY24 13 Our Operations Overview 14 criticalmineralsgroup.com Vanadium Copper The Lindfield Vanadium Project Critical Minerals Group is the 100% owner of the Lindfield Project, a 295 km2 tenement in northwest Queensland, located near the town of Julia Creek. As one of the leading vanadium prospects in Australia, this project has a JORC 2012 Mineralised Resource Estimate of 713 mt at 0.32% V2O5, 3.4% Al2O3 and 130 g/t Mo. The vanadium is partially contained in the oxide zone which has significant benefits ᴑ V2O5 grades are typically higher in the oxide zones than the deeper fresh zones ᴑ Other minerals are present, including aluminosilicates (source of alumina for HPA) and Molybdenum (Mo) ᴑ Reduced mining costs and potential environmental impacts due to a low strip ratio. Copper is on the Australian Strategic Materials List due to its importance for the global transition to net zero and broader strategic applications, specifically the priority technologies which are outlined in the Australian Critical Minerals Strategy. Critical Minerals Group holds two tenements which are prospective for copper. They are not the currently the main strategic priority for the Group. Figtree Creek and Lorena Surrounds Project The Figtree Creek project is a 70km² tenement in northwest Queensland and the Lorena Surrounds project is a 51km² tenement in northwest Queensland, both located near the town of Cloncurry. Figtree Creek and Lorena Surrounds are both the subject of a farm-in agreement with True North Copper Limited. CMG has 3 additional tenements within a 40km radius of the Lindfield Project which are also prospective for Vanadium, HPA, and Molybdenum and will benefit from the learnings and results of our existing exploration in the region. These include Whinmoor (EPM28631), Lara Downs (EPM28635) and Lindfield North (EPM28636). Upper Horizon outcropping on surface in areas Surface Waste TLB_A (Upper Horizon) TLB_B (Mid Horizon) TLB_C.D (Lower Horizon) ESG Report FY24 15 Our Operations Our Role in the Global Energy Transition The global energy transition is being driven by the need to reduce energy-related carbon emissions to mitigate climate change and attempt to limit the increase in global temperatures. The success of this transition depends on the scale and timeliness of the transition away from fossil-fuel based energy sources to zero-carbon based sources of which renewable energy and long duration battery storage VRFB’s are playing an increasingly significant part. At the same time, the demand for electricity is increasing, driven by the continued rise in global population, electrification of the global vehicle fleet and sharply increasing data storage energy requirements. Renewable energy sources (solar and wind) are inherently unstable due to their variable nature. In addition, their supply is not constant over a 24-hour period. This is driving the need for grid-scale energy storage, both for grid stability and for those periods when renewable energy is not being generated, refer figure 1. A significant and increasing portion of this battery storage is being supplied by VRFB’s. VRFB’s play three main roles in the grid, as shown in figure 2. The increasing demand for VRFB’s is illustrated in figures 3 and 4, showing that even in a conservative case, an additional ~20GWhr of storage capacity is required globally by 2030, with multiple industry analysts projecting demand continuing to escalate through to 2050 and beyond. 60 Floating offshore wind Fixed offshore wind 50 Onshore wind Solar PV 40 Solar Thermal Hydropower 30 Biomass Geothermal 20 Nuclear Gas-fixed 10 Oil-fixed Coal-fixed 0 1980 1990 2000 2010 2020 2030 2040 Figure 1: World electricity generation by power station type PWh/yr 16 criticalmineralsgroup.com 2050 Critical Minerals Group is playing its part in this capacity building through development of the Lindfield vanadium prospect in the northwest minerals province (NWMP) of Queensland and construction of our vanadium electrolyte manufacturing demonstration scale facility in the greater Brisbane area. VRFB’s are proven technology, with significant ESG advantages over alternative technologies including ᴑ Vanadium electrolyte is 100% recyclable and reusable with minimum embodied carbon impact through the recycling process Annual Installed VRFB Utility-Scale and Commercial and Industrial Battery Deployment Energy Capacity by Region, All Application Segments, World Markets: 2022-2031 35,000 30,000 Grid Service Asia Pacific Latin America Middle East Africa 20,000 15,000 10,000 ᴑ Non-flammable – inherently safer and reduced additional environmental risk from fires Different Use Cases of VRFB Considered for Demand Projection Western Europe Eastern Europe 25,000 ᴑ 30 year plus lifespan – significantly longer than any current competitors ᴑ Vanadium batteries are modular making them easily scalable to suit the desired storage demands. North America 5,000 0 2022 2023 2024 2025 2026 2027 2028 2029 2030 Figure 3: Annual growth of VRFB use by region. VRFB’s assist and enhance the efficiency of renewable energy installations through assisting in the management of frequency modulation and the intermittent/unstable energy delivery, as well as capturing excess energy for release at a later stage. Global Stationary Application - Energy Storage Market 1,200 1114 1,000 Gwh Renewable Integration 845 800 600 400 Backup Power and UPS Figure 2: The three roles VRFB’s can assist in energy use. Source: PwC Analysis 2031 200 0 141 177 2022 2023 224 2024 292 2025 386 2026 497 2027 646 2028 2029 2030 Figure 4: Projected energy storage market growth. Source: PwC analysis on Bloomberg NEF (BNEF), International Energy Agency (IEA), Interact Analysis 2022, and World Economic Forum (WEF) ESG Report FY24 17 Our Operations ESG Strategy Critical Minerals Group acknowledges that the nature of our operations involves environmental and social impacts. As such, we understand we have a role to minimise adverse environmental and social impacts throughout all stages of our operational activity and have frameworks, policies, and processes in place to meet our social and environmental goals. It is our intention to conduct our activities to the highest standard of environmental obligation, including compliance with all environmental laws. In FY24, CMG undertook a comprehensive review of our entire ESG platform, updating our strategy, policy and reporting to reflect CMG’s aim to make ESG a cornerstone of the way we conduct our business and to be a responsible, sustainable, premium mineral and electrolyte producer that delivers robust returns and positive impacts for our stakeholders. The fundamentals of our ESG strategy are shown in Figure 5 grouped into four key areas. CMG has undertaken to commence ESG reporting in FY24 to communicate our strategy, establish our internal reporting guidelines and mechanisms and establish the criteria we will report against in future reports. Part of this reporting includes an ESG Databook (which can be read in conjunction with this report). CMG’s current operations are situated at the development phase and therefore the inclusion and amount of data present is limited. However, we see the production and use of this Databook as being fundamental to our ESG journey and level of transparency. As a foundational document this 1 Ethics and Accountability Ethical values Trust 2 Mineral Traceability Practically, some of the ways we aim to implement our strategy include ownership diversity, employment diversity, inclusive supplier procurement and development/education, community development, working with Traditional owners, housing and social development, identification and management of biodiversity, responsible water management including maximising internal recycling, solar farm for internal power supplementation, large scale vanadium battery storage VRFB’s to support site and supply chain involvement and security. CMG is expected to start constructing our vanadium electrolyte manufacturing demonstration facility in the greater Brisbane area within the next reporting period. This facility will be a key focus under our ESG strategy, aligning with several of our longer-term development projects. 3 Community and People Supply chain Local communities Chain of custody Traditional owners Stakeholder Respect and engagement Figure 5: CMG’s ESG Strategy 18 Databook will inform which metrics CMG collects data upon, therefore informing the targets we set, and demonstrably indicating our progress against selected targets through iterative monitoring. criticalmineralsgroup.com 4 Environmental Management Resource optimisation and site rehabilitation Water management Energy efficiency ESG Roadmap and Policy This reporting year, we have developed an ESG roadmap (see Figure 6) that integrates these frameworks, and an ESG policy, featuring seven key commitments, which together provide a structured and comprehensive approach to our sustainability and governance practices. Our ESG policy is designed to establish a robust foundation for sustainable practices as we progress in our vanadium development efforts. The policy outlines seven key commitments that will guide our approach to environmental stewardship, social responsibility, and governance. These commitments (below) reflect our proactive stance in integrating ESG principles from the outset, ensuring that we set high standards for sustainability and ethical conduct. By implementing these commitments, we aim to create a resilient framework that will support our future operations and demonstrate our dedication to responsible and transparent practices in the mining sector. ESG Roadmap 2024 Engage strategic stakeholders Materiality Assessment SDG & GRI Mapping ESG Policy & Governance Review Inaugural ESG Report 2025 Measure baseline data - GRI Establish ESG Committee Strategy Review & Goal-setting Inaugural TCFD Disclosures ESG Report integrated into Annual report a. Aligning our operational processes with the goal of sustainable and ethical development of mineral deposits through innovation and integration of our value chain including collaboration with strategic partnerships. b. Respecting the local communities where we operate by foste