Piauí Nickel Projetc's projected Scope 1 and 2 emissions place it below the carbon intensity of many global nickel operations. This is driven primarily by our use of heap leach technology — a low-energy hydrometallurgical process that avoids the high-carbon, energy-intensive requirements of traditional nickel smelting. The project's projected emissions. A Climate Change Risk Assessment has been completed, covering physical risks including extreme rainfall, drought, thermal stress and water availability, as well as transition risks, to support climate-resilient project design throughout the asset lifecycle. Brazilian Nickel is aligned with the GHG Protocol and continuously evaluates opportunities to reduce its carbon footprint through process optimisation, energy efficiency improvements and the adoption of lower-emission technologies.

Unlike many conventional mining operations, the Piauí Nickel Project does not generate wet tailings and does not require a conventional wet tailings storage dam. Instead, process residues are managed through a filtered residue storage system designed to enhance safety, improve water recovery, and reduce the footprint associated with conventional tailings facilities.

Following mineral processing, residues are filtered to remove a substantial proportion of moisture before being transported and placed in engineered, compacted, and monitored storage areas within the Residue Storage Facility (RSF). This approach eliminates the need for large water-retaining tailings structures and supports a more efficient overall water management strategy.

The RSF will be designed, operated, and monitored in accordance with applicable Brazilian regulatory requirements and international good practice, including alignment with the Global Industry Standard on Tailings Management (GISTM).

In addition to reducing reliance on water storage infrastructure, the filtration process enables water to be recovered and returned to the production circuit, supporting efficient resource use and responsible environmental management.

Water management is an important component of the Piauí Nickel Project. Our production process is designed to recycle between 70% and 80% of all water used, substantially reducing the need for freshwater intake. Water for operations will be sourced under a water-use authorization granted by Brazil's National Water and Sanitation Agency (ANA).

During the wet season, runoff water collected from lined areas is expected to supplement operational water needs, reducing reliance on reservoir withdrawals. Once operational, water abstraction will be continuously monitored and reported to ANA in accordance with regulatory requirements.

An integrated sulfuric acid plant will cogenerate electricity as part of Piauí Nickel Project's production process, improving overall energy efficiency and reducing the Project's dependence on external power supply. This cogeneration capacity contributes directly to lower operational emissions and supports the broader goal of cost-efficient, lower-carbon nickel production. Design improvements informed by the PNP1000 pilot plant — including energy efficiency studies, water recycling optimisation and dry tailings solutions — have been incorporated into Piauí Nickel Project's full-scale engineering.

The Piauí Nickel Project holds all key environmental licenses required to proceed to construction. Environmental licences have been issued by Piauí's State Secretariat for Environment and Water Resources (SEMARH), and a water-use authorisation has been granted by Brazil's National Water and Sanitation Agency (ANA). The project's environmental and social studies, together with the associated management programmes, have been approved by the relevant authorities, and additional permits are being managed in line with the project's development schedule.

Maintaining open, transparent, and regular dialogue with local communities is a fundamental part of how we develop the Piauí Nickel Project. We engage with residents, community leaders, local organizations, and public authorities across the four host municipalities to share information, understand local priorities, and build relationships based on trust and mutual respect.

Our community engagement activities began well before construction and are designed to continue throughout the project lifecycle. This ongoing dialogue helps us better understand the region's social, economic, and environmental context, identify concerns and opportunities early, and incorporate stakeholder perspectives into project planning and decision-making.

To support structured engagement, Brazilian Nickel has established ten Project Monitoring Committees, bringing together community representatives and municipal authorities for regular discussions on project developments and matters of local interest.

Alongside these formal forums, we maintain continuous engagement through a range of outreach initiatives, including Café com a Comunidade (Coffee with the Community), Cinema na Comunidade (Cinema in the Community), community visits, newsletters, meetings, and other local engagement activities. These channels help keep stakeholders informed, encourage participation, and create opportunities for ongoing feedback and dialogue.

Community members can contact us at any time through our Fale Conosco channel by phone or +55 31 99609-5931. Concerns may also be submitted confidentially through our independent reporting channel.

The Mina do Saber ("Mine of Knowledge") programme provides free vocational training for residents of the four municipalities within the project's area of influence. The programme offers courses aligned with the skills expected to be needed during the construction and operation of the Piauí Nickel Project, while also providing transferable qualifications that can support broader employment opportunities across industries and throughout the region. By strengthening local capabilities and expanding access to technical training, Mina do Saber helps build a skilled workforce that can contribute to both the project's development and the region's long-term economic growth.

Brazilian Nickel also seeks to maximize local participation in the project workforce through its recruitment and contracting practices. Supplier and contractor agreements include provisions related to local hiring, the advertisement of job opportunities through local channels, and the consideration of qualified local candidates during recruitment processes.

As the project advances and workforce requirements increase, particularly during construction, Brazilian Nickel aims to expand access to training, skills development, and employment pathways for people living in the host municipalities, helping ensure local communities are well positioned to participate in and benefit from the project's development and the region's long-term growth.

Land access and acquisition activities are conducted in accordance with applicable Brazilian legislation and guided by the principles of the IFC Performance Standard 5 on Land Acquisition and Involuntary Resettlement. Our approach seeks to ensure transparent engagement with landowners and affected stakeholders, fair compensation processes, and respect for individual rights throughout project development.

Project infrastructure has also been designed to minimise impacts on neighbouring communities where practicable.

Brazilian Nickel seeks to contribute to local development through workforce training, local procurement, community investment initiatives, and partnerships with local organizations and public institutions. These efforts are guided by ongoing stakeholder engagement and informed by local priorities and aspirations.

To support a strategic and transparent approach to community investment, the Company is developing a Private Social Investment (PSI) Plan in collaboration with local stakeholders. The plan is intended to help direct investments toward initiatives that strengthen local capacity, promote inclusion, and contribute to sustainable development. Clear guidelines for sponsorship and donation requests are also available on our website, helping ensure that community investments are managed through a consistent and transparent process.

Where technically and commercially feasible, Brazilian Nickel seeks to engage local and regional suppliers, supporting broader participation in the economic opportunities associated with the Piauí Nickel Project. As the project progresses through construction and operations, it is expected to contribute to regional development through employment, procurement, tax generation, skills development, and community investment initiatives.