Chirano Gold Mines Ltd launches Chirano Sefwiman Foundation

Chirano Gold Mines Ltd. (“Chirano,” “CGML”) is pleased to announce the launch of the Chirano Sefwiman Foundation (“Foundation”), an endeavour that reinforces the Company’s ongoing commitment to local sustainable development. Kinross Gold’s values of Outstanding Corporate Citizenship and Putting People First underpins the creation of this organization and the expected benefits it can bring to Sefwi.

The Foundation’s mandate will be to create a lasting legacy, through providing opportunities and structured support for the people of Sefwi, within a strong framework of governance and transparency.

Foundation Mandate and Focus on Sustainable Development

Since its first gold pour, Chirano Gold Mines has provided US$1 for every ounce it produces towards social development, placing these contributions into a community trust fund. This trust fund has grown to approximately 11.3 million cedis, a sum that will be managed and deployed by the Foundation towards initiatives in the areas of education, healthcare, economic empowerment, and water and sanitation management.

In the area of education, in particular, the Chirano Sefwiman Foundation will institute a scholarship program for local communities aimed at local youth at various levels of their educational journeys. Students who otherwise would not have the resources to pursue an education will now have access to higher levels of learning, and its resulting benefits and opportunities.

The Foundation will also tackle unemployment by rolling out programs to train and equip youth with skills that will improve their chances of gaining jobs with companies all over the country. Through the program’s additional focus on entrepreneurship, students will also have support to set up viable businesses which could, in turn, go on to employ others.

Education is key to improving the future well-being of Sefwi. The Foundation will support the youth in the area and provide opportunities for the long term.

Foundation History and Structure

The formation of the Foundation has been four years in the making. This process began in 2017, when a proposal was submitted by Chirano to the Community Consultative Committee (“CCC”). It was sustained through the efforts of a number of people who put in many hours of hard work to make it a reality.

Chirano benefitted from the feedback of the Community Consultative Committee as well that of its consultant, Mr. Johnson Ben Oduro.

The Company also received input through consultation with all communities in the catchment area, which was an integral part of the process, ensuring that the Foundation has the support from all the key stakeholders.

Through this planning process, it was determined that transparency and good governance were essential considerations. The Chirano Sefwiman Foundation is structured in a manner that provides appropriate governance controls to ensure that funds are used for priority projects that provide genuine benefits to the community.

The Foundation will have obligatory reporting requirements, such as holding at least one annual general assembly and filing audited financial statements. It will have a Board of Trustees, a Technical Committee and an Executive Secretary who will be responsible for organizing the meetings of the Board and the Technical Committee and will submit project proposals and recommendations.

The Foundation’s structure was inspired by other successful foundations, including those in Ghana and Chirano’s sister mine, Kupol, in Russia, which is of course, also part of Kinross Gold.

Chirano will continue the contribution of USD$1 per ounce over the course of its life of mine, providing funding for future projects. While CGML is the only contributor presently, the Foundation also has the capacity to raise funds from third-party donors, which may provide additional opportunities in the future.

The projects and programs carried out by the Foundation will be in addition to Chirano’s existing Corporate Responsibilities. The Chirano Sefwiman Foundation does not replace the existing functions of the Community and Public Relations section. The Company will continue to make budgetary allocations to current Community Relations projects to continue putting up infrastructure and rolling out intervention programs to communities in the catchment area.

Chirano’s approach is based on the principle that responsible mining generates long-term, sustainable value in host communities. The Company strives to create positive economic and social benefits and improve the overall quality of people’s lives in a manner that is sustainable beyond the life of mine.

A comprehensive and consistent approach to community well-being has delivered, over the past 15 years, reliable electricity, better access and quality of education, roads, health care, sanitation and waste management. To date, $13 million has been invested in these projects.

The creation of the Chirano Sefwiman Foundation is an integral step to ensuring that benefits from operations continue and that the Company provides a lasting legacy that will go on even after the mine is no longer operating.

Chirano Gold Mines will work to ensure that the Foundation achieves its objective of supporting the development of local communities. The Board of Trustees, Technical Committee and Executive Secretary will have considerable responsibility as they work to institute interventions that will transform lives and positively impact communities.

Chirano extends its thanks to the Community Consultative Committee, its Consultant, Mr Oduro and everyone involved in making the formation of the Foundation a success.

The Company looks forward to this next phase of development in the catchment area, and to seeing the positive contributions that the Foundation will make to the people of Sefwi.