Cadoux : ESG Report FY 2024

About this update from Cadoux Limited

ENVIRONMENTAL, SOCIAL & GOVERNANCE REPORT FY 2024 ESG Mission Cadoux's ESG mission is to be a key contributor to a sustainable world by innovating responsibly, giving back to the community, reducing environmental impact, working towards carbon reduction for our future generations. Our Commitment Building Environmental, Social, and Governance credentials. ESG disclosures are aligned with the World Economic Forum ( WEF ) Stakeholder Capitalism Framework, the United Nation's Sustainable Development Goals ( UN SDG ) and with The Task Force on Climate Related Financial Disclosures ( TCFD ) Measure progress in improvements and inform stakeholders via ESG reporting and disclosure on a quarterly basis Leading ESG disclosure technology and ESG expertise To track the disclosure progress and demonstrate the sustainability performance against the above frameworks, Cadoux utilises the ESG Go disclosure platform from SocialSuite. The Company has been able to clearly demonstrate its ongoing commitment to ESG by providing continuous updates on Cadoux's ESG reporting and disclosures. United Nations Sustainable Development Goals and WEF TCFD The Task Force on Climate Related Financial Disclosures ( TCFD ) is a platform to assist the growing, global effort to address climate change. It seeks to encourage firms to report on climate change in a structured and consistent manner. Cadoux has been a supporter of the TCFD recommendations since 2023 and is currently implementing the recommendations and identifying opportunities to strengthen Cadoux's approach to climate- relate risks and opportunities. FYI RESOURCES LIMITED ANNUAL REPORT 2023 1 CADOUX ESG REPORT 2024 CADOUX LIMITED 1 Compliance Cadoux's Annual Environmental Reports and Mine Closure Plans were filed with the Department of Mines, Industry Regulation and Safety during the financial year by the required dates. ESG Rating Cadoux has achieved an ESG rating of 21.4. The annual rating review was performed by Sustainalytics (a Morningstar company), one of the largest independent providers of ESG research and ratings. The Company's ESG rating of 21.4 ranks 5 out of 172 amongst Diversified Metals Industry peers and 4 out of 34 in the Aluminium sub-industry, which is in the 3 rd and 10 th percentile respectively. During the financial year, the company demonstrated the following new or ongoing ESG strategic initiatives: Stakeholder engagements, shareholders engagement, employee workshops including directors' engagement in international and local forums on inclusion, responsible mining and promotion of the SDGs UN Global compact (National), membership was renewed, attended the local community forums by the CEO, UNAAWA membership (Local) by director Dr Sandy Chong Gender diversity ratio, 62%/38%. A clear improvement from last financial year There were zero HSE incidents Our employees are involved in our communities. Activities range from feeding the homeless and donating blood, to being an Ambassador for the RUAH Women Refuge Centre Sponsorship to the 2024 Davos Agenda for Women in Tech during the World Economic Forum (WEF) as part of our international engagement on inclusion and women empowerment Cultivating and fostering a multicultural workforce ESG Disclosure Report Governance Governing Purpose Setting Purpose Code Type Status Last Updated GO-01-C1 Full disclosure Verified 30 Jun 2024 The company's vision is to commercialise its innovative and fully integrated high quality HPA process to become a major participant in the HPA market and to develop a world class rare earths separation facility to align the Company with Australia's Critical Minerals Strategy Our Value Drivers Operational excellence to maximise revenues, margins and returns, The quality of Cadoux' rare earth projects are key differentiators from its peers, Create shareholder value in an environmentally sustainable manner. Our Goals and stated objectives are: Establish and build material and sustainable businesses, Create superior long-term value for all stakeholders, Attract, retain, and engage a first-class competent work force, Promote a zero-harm culture for the company's work force and environment, Develop and promote a strong and enduring relationship with all key stakeholders. FYI RESOURCES LIMITED ANNUAL REPORT 2023 2 CADOUX ESG REPORT 2024 CADOUX LIMITED 2 Our Core Values Lay solid foundations for management and Company oversight, Act ethically and responsibly, Structure the board to add value, Safeguard integrity in corporate reporting, Make timely and balanced disclosure, Respect the rights of all stakeholders, Recognise and manage risk, Remunerate fairly and responsibly. Please see link below: Company Core Purpose https://cadoux.com.au/about/ Quality of Governing Body Governance body composition Code Type Status Last Updated GO-02-C1 Full disclosure Verified 30 Jun 2024 Cadoux has up to date board biographies on the Company's website and has an in-depth matrix of the board's skills and competencies, inclusive of ESG specific competencies, available. In line with the ASX Corporate Governance Principles and Recommendation, the Cadoux Board is comprised of 75% independent directors. Cadoux and all its related corporate bodies are committed to workplace diversity. Cadoux recognises the benefits arising from employee and Board diversity, including a broader pool of high-quality employees, improving employee retention, accessing different perspectives and ideas and benefiting from all available talent. Diversity includes, but is not limited to gender, age, ethnicity, and cultural background. The Board did not set measurable gender diversity objectives for the past financial year because the Board considered the application of a measurable gender diversity objective requiring a specified proportion of women on the Board and in senior executive roles would, given the small size of the Company and the Board, unduly limit the Company from applying the Diversity Policy as a whole and the Company's policy of appointing based on skills and merit. Currently the board comprises of a 25% female representation and 75% male representation. Interests of the Directors in the shares and options of the company are disclosed in Directors' Report in the Company's Annual Report. The average director tenure is 10 years. Please see link below: Corporate Governance https://cadoux.com.au/wp-content/uploads/2024/07/Corporate- Compliance Statement Government-Compliance-Statement.pdf Diversity policy https://cadoux.com.au/wp-content/uploads/2024/04/Diversity- Policy.pdf Annual Report https://cadoux.com.au/post-category/asx-announcements/ FYI RESOURCES LIMITED ANNUAL REPORT 2023 3 CADOUX ESG REPORT 2024 CADOUX LIMITED 3 Skills Matrix https://cadoux.com.au/wp-content/uploads/2024/04/Board-Skills- Matrix-2024.pdf Leadership Team https://cadoux.com.au/leadership-team/ Stakeholder Engagement Material issues impacting stakeholders Code Type Status Last Updated GO-03-C1 Full disclosure Verified 30 Jun 2024 In April 2023, Cadoux adopted a tailored stakeholder engagement policy. As a member of the communities in which the Company operates, Cadoux strives to make a positive difference and to earn the trust of all with whom the Company interacts. The way Cadoux behaves is integral to building trusting relationships with its stakeholders, which is why Cadoux places equal emphasis on both its behaviour and its results. Cadoux's stakeholder engagement policy also includes commitment to work with communities to help achieve their future aspirations, including: Identifying opportunities for partnerships that create shared value for both Cadoux and its community stakeholders. Investing in community development projects that will continue to benefit the community long beyond the life of the mine, including projects that deliver long term outcomes that are aimed at supporting our communities to be resilient, to thrive and to be sustainable in the long term. Sharing the economic benefit with local communities by, where possible, maximising local procurement and local employment and training opportunities, particularly for local Indigenous communities. During the year, Cadoux conducted an in-depth ESG workshop for all board members and staff on the latest update in ESG compliance, industry trends and core purpose. This also included identifying key stakeholders such as shareholders, investors, customers, government, media, suppliers, employees, industry bodies, regulatory bodies, community, and partners. Ongoing stakeholder consultation is conducted through annual stakeholder materiality questionnaires and the AGM. A survey is sent out on annual basis to the above identified key stakeholders to gauge the level of satisfaction with our ESG efforts. Materiality assessments are conducted on annual basis before the AGM. The results from the materiality questionnaire are reviewed and assessed by the board, these are then embedded into the company's ESG strategy and stakeholder's engagement. Ethical Behaviour Anti-Corruption practices Code Type Status Last Updated GO-04-C1 Full disclosure Verified 30 Jun 2024 Cadoux expects that its directors, officers, employees, agents, contractors and any other party representing the Company, wherever they are in the world, will act fairly, honestly, with integrity and in compliance with the law. Cadoux therefore has zero tolerance for bribery or corruption in its business. All countries in which Cadoux conducts business have laws that prohibit people and companies from engaging in corrupt conduct. Some of these prohibitions extend to cover bribes FYI RESOURCES LIMITED ANNUAL REPORT 2023 4 CADOUX ESG REPORT 2024 CADOUX LIMITED 4 to private parties as well as to government officials. Breach of anti-bribery and corruption laws could have serious consequences for Cadoux and its directors, officers, employees, agents, contractors, or any other party representing the Company. As part of the onboarding procedure all employees are required to acknowledge all company policies including the Company's approach to conducting all business activities fairly, honestly and with integrity. Cadoux has had zero incidents of corruption during the current reporting period. Please see link below: Anti-Corruption Policy https://cadoux.com.au/wp-content/uploads/2024/09/Anti-Bribery- and-Corruption-Policy.pdf Mechanisms to protect ethical behaviour Code Type Status Last Updated GO-04-C2 Full disclosure Verified 30 Jun 2024 Cadoux has implemented a Whistleblower Policy to ensure concerns regarding unacceptable conduct, including breaches of the Company's policies and standards and relevant legislation, can be raised on a confidential basis and without fear of reprisal, dismissal, or discriminatory treatment. This Policy outlines Cadoux's commitment to encouraging speaking-up and protecting those who report. It also outlines the protections available to whistleblowers and sets out the requirements for the management and investigation of reports made by whistleblowers. The Company's Code of Conduct also clearly states how any breaches of the Code of Conduct can be reported. Options for reporting a disclosable matter can be made both internally and externally via Authorised Officers of the Company or via ASIC, the Company's auditor and other Commonwealth bodies. Please see link below: Whistleblower Policy https://cadoux.com.au/wp-content/uploads/2024/04/Whistleblower- Policy.pdf Code of Conduct https://cadoux.com.au/wp-content/uploads/2024/09/Appendix-A- Code-of-Conduct.pdf Risk and Opportunity Oversight Integrating risk and opportunity into business processes Code Type Status Last Updated GO-05-C1 Full disclosure Verified 30 Jun 2024 Risk is inherent in industry and our business. The identification and management of risk is central to delivering on the objectives of Cadoux. Risk will manifest itself in many forms and has the potential to impact the health and safety, environment, community, reputation, regulatory, operational, FYI RESOURCES LIMITED ANNUAL REPORT 2023 5 CADOUX ESG REPORT 2024 CADOUX LIMITED 5 market and financial performance of Cadoux and, thereby, the achievement of the objective. By understanding and managing risk the Company provides greater certainty and confidence for the shareholders, employees, customers and suppliers, and for the communities in which Cadoux operates. In line with Company's obligations to the ASX Listing Rule 12.7, the Company has established an Audit and Risk Committee. The committee is entrusted by the Board to provide appropriate quality assurance regarding procedures and processes within the business. The Board meets on a regular basis of every 1-2 months and identifies the top 10 ESG risks and opportunities provided by the Audit and Risk Committee and ESG committee. These updates are reviewed and discussed to ensure progress is on track. Cadoux has also established an ESG Committee to assist the Board in defining Cadoux 'S strategy relating to ESG matters, policy reviews, ESG programmes, practices and initiatives ensuring they remain effective and up to date and provides report and recommendations to the Board. Cadoux's ESG Committee is responsible for advising on the following: Environmental: Cadoux's impact on the natural environment and its adaptation to climate change including greenhouse gas emissions, energy consumption, generation and use of renewable energy, biodiversity and habitat, impact on water resources and the status of water bodies, pollution, resources efficiency, the reduction and management of waste. Social: Cadoux's interactions with employees, host governments, commercial and state counterparties, stakeholders and the communities in which it operates and the role of Cadoux in society, workplace policies (for example, employee relations and engagement, diversity, non- discrimination and equality of treatment, health and safety and wellbeing), ethical procurement, any social or community projects undertaken by the Company and social aspects of the supply chain, community and stakeholder engagement or partnerships. Governance: the ethical conduct of Cadoux's business including its corporate governance framework (including compliance with the Australia Corporate Governance Code), business ethics policies and codes of conduct, counterparty due diligence and onboarding policies and procedures, the management of bribery, corruption and money laundering risk and the transparency of reporting and financial and tax transparency. Cadoux ensures effective data stewardship and climate change practices and is in the process of updating the Risk Management Policy to reflect the company's current processes. Please see the Sustainability policy for more information on how the Company commits itself to minimising its impact on our environment. Please see link below: Risk & Audit Charter https://cadoux.com.au/wp-content/uploads/2024/09/Appendix-C- Audit-and-Risk-Management-Committee-Charter.pdf Sustainability Policy https://cadoux.com.au/wp-content/uploads/2024/04/Sustainability- Policy.pdf FYI RESOURCES LIMITED ANNUAL REPORT 2023 6 CADOUX ESG REPORT 2024 CADOUX LIMITED 6 Planet Climate Change GHG Emissions Code Type Status Last Updated PL-01-C1 Explanation Verified 30 Jun 2024 Cadoux is aware of and understands the GHG Protocol and Accounting and Reporting Standards and is currently in the process of reviewing service providers to assist with ongoing disclosure and offset opportunities. From reducing Cadoux's environmental impact, to partnering to improve the Company's new innovative, sustainable process for our end-markets that answer the stakeholders' needs, sustainability is embedded in our growth strategy, our values and in how the Company define our future success. Cadoux has met with service providers for assistance in understanding our carbon footprint and conduct a life cycle assessment. Once the GHG carbon footprint has been determined, the company will investigate where improvements can be made. TCFD Implementation Code Type Status Last Updated PL-01-C2 Partial Disclosure Verified 30 Jun 2024 Since February 2023, Cadoux have been supporters of the TCFD recommendations and are currently implementing the recommendations and identifying opportunities to strengthen Cadoux's approach to climate-relate risks and opportunities. Nature Loss Land use and key biodiversity areas Code Type Status Last Updated PL-02-C1 Partial Verified 30 Jun 2024 Disclosure Environmental studies have been conducted and a mine closure plan has been approved by the regulator. The project is not located in an area that is considered a key biodiversity area or High Conservation Value area. Fresh water availability Water Consumption Code Type Status Last Updated PL-03-C1 Partial Verified 30 Jun 2024 Disclosure Cadoux is currently collating information on its office water usage and has been including the numbers in its sustainability report. Water studies have been completed in Wongan Hills and Cadoux project site with studies to commence in Kwinana where the commercial production site is recommended. Cadoux is following the guidance of the Water Authority. Formal reporting will commence once the project is operational. FYI RESOURCES LIMITED ANNUAL REPORT 2023 7 CADOUX ESG REPORT 2024 CADOUX LIMITED 7 People Dignity and Equality Diversity and Inclusion Code Type Status Last Updated PL-03-C1 Partial Disclosure Verified 30 Jun 2024 Cadoux and all its related corporate bodies are committed to workplace diversity. Cadoux recognises the benefits arising from employee and Board diversity, including a broader pool of high- quality employees, improving employee retention, accessing different perspectives and ideas and benefiting from all available talent. Diversity includes, but is not limited to, gender, age, ethnicity, and cultural background. 25% of the Board are female. 25% of members are aged 30-50. 75% are aged over 50. 25% of the Board members are from Southeast Asia, the remaining 75% are from Australia, New Zealand and Canada. 38% of employees are female and 62% male. 54% are aged over 40, 15% between 30-40 with remaining 31% under 30. 31% are from Australia, 31% from Asia. 23% from Europe, 8% from Africa and 8% from Americas Cadoux has several Diversity strategies as outlined in the Company's Diversity and Inclusion policy including: recruiting from a diverse pool of candidates for all positions, including senior management and the Board. reviewing succession plans to ensure an appropriate focus on diversity. identifying specific factors to take account of in recruitment and selection processes to encourage diversity. developing programs to establish a broader pool of skilled and experienced senior management and Board candidates, including, workplace development programs, mentoring programs and targeted training and development. developing a culture which takes account responsibilities of employees; and any other strategies the Board develops from time to time. Please see link below: Diversity Policy https://cadoux.com.au/wp-content/uploads/2024/04/Diversity- Policy.pdf FYI RESOURCES LIMITED ANNUAL REPORT 2023 8 CADOUX ESG REPORT 2024 CADOUX LIMITED 8 Pay Equality Code Type Status Last Updated PE-01-C2 Explanation Verified 30 Jun 2024 Cadoux understands that by promoting inclusion and diversity through company culture and pay equality the Company is contributing towards bridging diversity gaps, addressing social disparity and maximise professional opportunity irrespective of gender, colour, caste, creed, religion and other diversity aspects. At this stage the Company has a small team managing operations and do not have the personnel or data required to provide this information. Please see link below: Diversity Policy https://cadoux.com.au/wp-content/uploads/2024/04/Diversity- Policy.pdf Wage Level Code Type Status Last Updated PE-01-C3 Partial Verified 30 Jun 2024 Disclosure Cadoux understands that fair compensation and benefits contributes to the economic well-being of employees. The ratio of the annual total compensation of the CEO to the median of the annual total compensation of all its employees (excluding the CEO) is 2.4. Child, forced or compulsory labour Code Type Status Last Updated PE-01-C4 Full Disclosure Verified 30 Jun 2024 In 2023 Cadoux became a member of the UN Compact and submitted its first Communication on Progress in May 2023, further communicating the Company's commitment to human rights. Cadoux is committed to respecting human rights and believes that all people should be treated with dignity and respect. Cadoux seeks to prevent or mitigate any negative human rights impacts in connection with the Company's operations or activities and maximise any potential positive impacts where the Company is present. All of Cadoux's stakeholders, including its directors, employees, contractors and suppliers, are required to comply with the Cadoux Human Rights Policy. Cadoux have not identified human rights risks within its operations, surrounding communities and supply chain. Respect for human rights is embedded in other Cadoux policies and management systems, including the Occupational Health and Safety, Environment and Community Relations Policy and all Human Resources Policies. The Company has adopted the Working Hours Policy which strengthens our approach to ensuring that our employees and contractors comply with the relevant legislative frameworks and regulatory requirement when it comes to working hours. Please see link below: Human Rights Policy https://cadoux.com.au/wp-content/uploads/2024/04/Human-Rights- Policy.pdf FYI RESOURCES LIMITED ANNUAL REPORT 2023 9 CADOUX ESG REPORT 2024 CADOUX LIMITED 9

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