LondonBullion

MarketAssociation

(LBMA)

ResponsibleGoldGuidance–AuditSummaryReport(ISO19011:2011)KENNECOTTUTAHCOPPERLLC28March2017

ASSESSMENTINFORMATIONRefinerName: KennecottUtahCopperLLC

RefinerLocation: RioTintoRegionalCenter4700DaybreakParkway,

SouthJordan,USAandKennecottUtahLLCPrevious

MetalsPlant,(2100S15000W),USA.

RefinerContactPerson:Name,Title:

Email:

Phone:

MsIlseSchoeters

ManagerGlobalProductSafety&Stewardship

Ilse.Schoeters@riotinto.com

+32495900789

Leadauditorandauditteammembers Dr.NicholasGarrett,RCSGlobal

Datesandplaceswheretheonsiteassessmentactivitieswereconducted

March8and9,2017

RioTintoRegionalCenter4700DaybreakParkway,

SouthJordan,USAandKennecottUtahLLCPrevious

MetalsPlant,(2100S15000W),USA.

LBMARefinerAssessmentReportAssessmentobjectives:Thepurposeoftheauditwastoassesswhetherprocedures,processesandmanagementpracticesofthegold

refinercomplywithLBMAResponsibleGoldGuidance.

Assessmentscope:Refinerlocation(s)includedintheassessmentscope

RioTintoRegionalCenter4700DaybreakParkway,SouthJordan,USAand

KennecottUtahLLCPreviousMetalsPlant,(2100S15000W),USA.Allmentioned

facilitieswerevisited.AssessmentPeriod January1,2016–December31,2016

Assessmentmethodology:Theauditorusedatriangulationoffindingstoevaluatetheexistenceandimplementationofappropriate

systemsattheRefiner,addressingallareascoveredbytheLBMAResponsibleGoldGuidance.

Theassessmentwasundertakenatthesametime,asanauditoftherefinerforcompliancewiththe

ResponsibleJewelleryCouncil’sChainofCustodystandard.Thisisevidentfromtheauditplanprovided

furtherbelow.

InordertorevieweveryaspectoftheResponsibleGoldGuidancetheAuditorundertookadocument

review,interviewedmanagementandemployees(seelistfurtherbelow),andundertookobservations

duringawalk-throughofthepreciousmetalsplant.Inaddition,theauditorreviewedasampleof

supplierfilesandtransactionalfiles.

WhileduediligenceaspertheRGGneedstobeexercisedongoldsuppliers,noCountryofOriginAnnex

needstobecompletedaspartofthisauditastherefinerydoesnotsourceminedgold.Allgoldproduced

byKUCisderivedfromminingbyproduct(anodeslimes)withgoldperse,firstemergingasgoldinRio

Tinto’spreciousmetalsplantonRioTinto’sproperty.

RCSGlobal 3

KUCpresentedthefollowingdocumentswiththeauditorforreviewandtheywerereviewedduringthe

courseoftheaudit:

• http://www.riotinto.com/aboutus/policies-standards-and-guidance-5243.aspx; Standards and

Guidanceonlineoverview.

• SamplesupplierfilesforsupplierfilecheckasperRGGrequirement.

• TheWayWeWork(June2015edition)

• RioTintoManagementSystemHSEC-B-01(effective1April2015)

• HSEQ15-003DataandRecordManagementStandardOperatingProcedure

• Threesamplesofcopperconcentratestoilingagreement(contracts)

• RioTintoResponsibleJewelleryCouncilChainofCustodyScopeDocument(lastrevised6January

2017)

• MKTGSOP-002 Operating Procedure External RawMaterial Purchasing (last revised 6 January

2017)

• KennecottUtahCopperLLCConflictFreeMineralsPolicy

• MKTGSOP-001StandardOperatingProcedurePreciousMetalsOrderManagement

• SampleInvoicesusedasChainofCustodyTransferDocuments

• Sample country of origin certificates (two), including follow up correspondencewith suppliers

(one)

• ManagingExternalInquiriesbriefingnote2017

• Samplesalesdocuments(two)confirminglogousageanddepictinggoldsales

• InternalMemoSupplierRiskAssessment2015

• InternalMemoGoldInventoryProcess

• BrinksSupplierRiskAssessment(2017)

• EmployeeTrainingschedule2017

• OctoberandNovember2016preciousmetalsreport

• Goldbarlist

• SAPdataentryformsandExceltrackingsheetforfinishedproducttracking

• RioTintoBusinessSolutiondataentryformforincidentreporting

• “ListenUp”platform(online)

• SamplesofCoCManagementMeetingrecords

• Sample email correspondence communicating the Conflict Free Policy to suppliers for three

suppliers

• Trackingsheetforactivecustomers

• SampleConcentrateTollValuation2015_03_18

• Sample extracts of Refinery Production and Inventory Report July andOctober andNovember

2016

• RioTinto5x5RiskAssessmentMatrix

Statementoftheconfidentialnatureofthecontents:Allthedatacontainedintheassessmentreport,aswellasallinformationobtainedduringthe

performanceofthecertification,isprivateandconfidentialbetweentheauditingbodyandtheRefiner.

Anysignificantorinherentlimitationsorareasnotcoveredthatwerewithintheassessmentscope:

RCSGlobal 4

Therewerenosignificantorinherentlimitationsorareasnotcoveredthatwerewithintheassessment

scope.

Assessmentcriteria:• Theauditororassessmentteamtookintoaccountallrelevantobjectiveevidenceprovidedby

theRefiner.Relevantevidencewaseitherqualitativeorquantitativeinasfarasitisappropriate

andsufficienttosupporttheauditororassessmentteam’sconclusions.Appropriateevidenceis

evidencethatisrelevantandreliable.Sufficientevidencereferstotheamountofevidence

providedtoallowtheauditororassessmentteamtoreachaconclusion.�

• AnyactualorpotentialgapsintheRefiner’ssystemsinregardstotheLBMArequirementsare

ratedinaccordancetothelevelofriskeachpresentstothecredibilityandintegrityoftheLBMA

ResponsibleGoldProgrammefortheresponsiblesourcingofgold-bearingmaterials.�

Assessmentplan:Thursday,9March2017(Day1:LBMAandRJCmanagementsystems:DocumentationreviewandInterviews)

Time Activity Attendance08.00–08.30am ArrivaloftheauditoratKennecottUtahCopper,Rio

TintoRegionalCenter.Securityscreeningand

induction.

08.30–09.00am OpeningMeetingwithKennecott’sManagement

Teamtoreviewthepurpose,scopeand

methodologyoftheassessmentandclarifyrequired

documentation.Themeetingshouldaddress:• Anyoperationalchanges,challenges,and

impactofchangesthatmayaffecttheentity’s

performanceinregardstotheRJCCoCorthe

LBMAResponsibleGoldGuidanceStandards;• Finaliseinterviewscheduleaswellasidentify

responsiblepartiestoassisttheauditor

throughouttheprocess.

KennecottManagement

Team,incl.:

• Geoff Green -

General

Manager Sales

and Marketing

Copper Cathode

andBy-Products

• Steve Egan –

Marketing

Manager -

Precious Metals

&SulfuricAcid

• James Goh -

Commercial

Executive

• DavidNewman -

Account

Executive

Copper

• Troy Colwill –

Acting

Superintendent-

RCSGlobal 5

PreciousMetals

• Aaron Smith -

Advisor - HSEQ

Assurance

• Ilse Schoeters -

Manager Global

ProductSafety&

Stewardship

Managementinterviewsanddocumentreview:

09.00–11.00am LBMA:OverviewoftheEntity’spoliciesandinternal

managementsystem• GeneralunderstandingoftheEntity’sdue

diligencemanagementsystemsinplaceto

complywiththeLBMAResponsibleGold

Guidance5stepframeworko reviewofduediligencepolicyo internalmanagementstructureto

supportsupplychainduediligenceo internalsystemofduediligence,

controlsandtransparencyovergold

supplychain,includingtraceabilityo engagementwithcounterpartieso employeetrainingandcommunication

RJCreview:systemsinplacetocomplywithRJC

ChainofCustody(CoC)StandardRJC:1.1,1.2,1.6,

10.1,10.3

Kennecottmanagement

teamexceptGeoff

GreenandDavid

Newman.

11.00-11.45am RJC:Reviewofrecord-keeping,complaintsand

employeetrainingmechanisms.RJC1.3,1.4,1.5,

10.3

Asabove.

11.45–12.15pm RJC:ManagementSystemsfortheRJCCoCStandard,

ConsumerClaimsandIntellectualPropertyRights

RJC:9.3(1.3,1.4)

Asabove.

12.15-12.45pm RJC:Reviewofinternalmaterialcontrol

mechanisms.RJC:2.1,2.2,2.3,2.4Asabove.

12.45-01.30pm LunchBreak 01.30-02.30pm RJC:Reviewofsystemsforeligiblematerial

declarationsandRJCChainofCustodytransfer

documentation.RJC:7.1,7.2,7.3,8.1,8.2,8.3,3.1,

3.2

Asabove.

3.00–3.45pm LBMA:• Identifyingrisksinthesupplychain• Assessingrisks• Reportingriskassessmenttosenior

management

KennecottManagement

TeamexceptGeoff

Green

03.45–04.15pm RJC:Sourcingofgoldinputs,riskmanagementfor KennecottManagement

RCSGlobal 6

Friday,10March2017(LBMAResponsibleGoldandRJCCOCPhysicalobservations)

Time Activity Attendance08.00–08.45am TransfertothePreciousMetalsPlant 08.45–09.00am ConversationwithManagerofPreciousMetalsPlant • James Goh -

Commercial

Executive

• Troy Colwill

– Acting

Superintend

ent -

Precious

Metals

• Aaron Smith

- Advisor -

HSEQ

Assurance

09.00–10.30am LBMAandRJC:

FullwalkthroughofthePreciousMetalsPlant:• Reviewofinternalmaterialcontrolmechanism;• Verificationoftypeofgoldmaterialreceived;• Selectionofemployeesforinterviews.

• EmployeeInterviews.

Asabove.PMP

employees:

- Operatorsthatenter thedata:Bryan Orullian and

ClintDorrance

- PMsupervisors thatmanage the data:TroyColwillandDan

Ervin

- Shippingclerk:BarryCook

servicecompaniesandconflict-freesourcing.RJC:

4.1,4.2,10.1,10.2,10.4TeamexceptGeoff

Green04.15–04.45pm LBMA:Riskmanagementplanandriskmitigation

measures

LBMA:Reviewofsupplierfilesandtransactionalfiles

KennecottManagement

TeamexceptGeoff

Green04.45pm–05.15pm

LBMA:Reportingonduediligence KennecottManagement

TeamexceptGeoff

Green05.15–05.30pm ShortdebriefwithKennecottmanagementteam. KennecottManagement

TeamexceptGeoff

Green05.30pm Auditorleavesthefacility.

RCSGlobal 7

1030.–11.00am TransfertotheRioTintoRegionalCenter

11.00am–12.00pm

ClosingmeetingwithKennecott’smanagementteam:

• Recapitulationofauditfindingsandconclusions.

• Nextsteps.

Kennecott

ManagementTeam

exceptTroyColwill

12.00pm Auditorleavesthefacility.

Listofattendeesofopeningandclosingmeeting Interviewswereconductedwiththefollowingpersonsandtheyalsoattendedtheopeningandclosing

meetings:

• GeoffGreen-GeneralManagerSalesandMarketingCopperCathodeandBy-Products

• SteveEgan–MarketingManager-PreciousMetals&SulfuricAcid

• JamesGoh-CommercialExecutive

• DavidNewman-AccountExecutiveCopper

• TroyColwill-PreciousMetalsOperationsSupervisor–ActingSuperintendent

• AaronSmith-Advisor-HSEQAssurance

• IlseSchoeters-ManagerGlobalProductSafety&Stewardship

RefinerfeedbackThe review of documentation, interviews and walkthrough with KUC personnel showed that KUC

implements,maintains and improves robustmanagement systems coveringall aspectsof the LBMA’s

ResponsibleGoldGuidance.Nonon-conformanceswereobserved. RCSGlobal thanks KUC’s team for

theircooperationthroughouttheauditprocessandtheircommitmenttocontinuousimprovement.All

suggestedbusiness improvementswerediscussedandagreeduponwith themanagement team.The

refineracceptedtheassessmentresult.

Assessmentfindings:

Category/subcategory Non-compliance/Observation:Includeevidencefoundtosubstantiatethenon-complianceaswellasfrequencyofitsoccurrence.

Recommendedcorrectiveaction

Timeframeforimplementingcorrectiveactions

Refinercomments

- - - - -

Assessmentconclusions

Compliant Low Medium HighZeroTolerance

Basedontheaboveassessmentconclusions,theoverallratingofthe

Refiner’sperformanceisdeterminedtorepresent:

X

ASSESSMENTCONCLUSIONS

RefertotheLBMAThird-PartyAuditGuidance,Appendix1todeterminethelevelofconformanceforeachsub-category1.

NonCompliance–risklevel CATEGORY SUBCATEGORY

Compliant Low Medium HighZero

ToleranceA. GeneralInformation

B. Step1:

EstablishstrongRefinermanagementsystems1.1: x

1.2 x

1.3 x

1.4 x

1.5 x

1 LBMA Responsible Gold Programme -Third Party Audit Guidance. Appendix 1: Definitions of Non-compliances. Pg. 42.

ASSESSMENTCONCLUSIONS

RefertotheLBMAThird-PartyAuditGuidance,Appendix1todeterminethelevelofconformanceforeachsub-category1.

NonCompliance–risklevel CATEGORY SUBCATEGORY

Compliant Low Medium HighZero

ToleranceC. Step2:

Identifyandassessriskinthesupplychain2.1 x 2.2 x 2.3 x

D. Step3:

Designandimplementamanagementstrategytorespondtoidentifiedrisks

3.1 x

3.2 x

E. Step4:

Arrangeforanindependentthird-partyauditofthesupplychainduediligence

4.1

x

F. Step5:

Reportonsupplychainduediligence5.1 x

5.2 x

5.3 x

TheAuditorsconfirmthat:ü TheinformationprovidedbytheRefineristrueandaccuratetothebestknowledge

oftheAuditor(s)preparingthisreport.ü ThefindingsarebasedonverifiedObjectiveEvidencerelevanttothetimeperiodfor

theassessment,traceableandunambiguous.

ü The Auditor(s) have acted in a manner deemed ethical, truthful, accurateprofessional,independentandobjective.

ü The Auditor(s) are properly qualified to carry out the assessment at this Refiner’s

facility.

LeadAuditor:Dr.NicholasGarrett

Signature:

Date:28March2017