moving forward together - aura...

MOVING FORWARD TOGETHER

2013 CORPORATE RESPONSIBILITY REPORT

INSIDE THIS REPORT

PAGE 2

ABOUT THIS REPORT PAGE 4

ABOUT AURA

PAGE 6 OPERATIONAL HIGHLIGHTS

PAGE 7

MISSION STATEMENT

PAGE 8

MESSAGE FROM THE PRESIDENT AND CEO

PAGE 10

SUSTAINABILITY TARGETS AND ACHIEVEMENTS

PAGE 12

MESSAGE FROM THE VP CORPORATE RESPONSIBILITY

This Report contains certain forward-looking information as defined in applicable Canadian securities laws. Forward-looking information relates to future events or future performance and reflects the Company’s current estimates, predictions, expectations or belief regarding future events and are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s ability to predict or control and could cause actual results to differ materially from those contained in the forward-looking information and should therefore not be relied upon. Please refer to the Company’s 2013 Annual Information Form for a list of estimates and assumptions used in making forward looking information together with the risk factors associated with forward-looking information. All forward-looking information is qualified by this cautionary statement and the Company undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information or future events or otherwise, except as may be required by law. If the Company does update one or more forward-looking information, no inference should be drawn that it will make additional updates with respect to those or other forward-looking information.

Unless otherwise noted, all currency references are to United States dollars (“$”). While every effort has been made to ensure the accuracy of the information contained within this report, all non-financial statistics and certain financial amounts disclosed are unaudited and have been so noted. The unaudited financial amounts presented within this report would not have been required to be disclosed by International Financial Reporting Standards and are therefore not included in any previously published financial document.

PAGE 42

TRACKING OUR PERFORMANCE

Key Performance Data ........ 42

GRI Content Index ................ 48

PAGE 13

EMBRACING OUR RESPONSIBILITIES

Governance and Guidance ..........................14

Corporate Responsibility Management ............................16

Stakeholder Engagement .... 17

PAGE 19

CREATING ECONOMIC VALUE

Our Approach ......................... 20

Economic Performance ..... 20

Impacts on Economic Performance ........................... 20

Local Procurement ................21

PAGE 22

INVESTING IN OUR PEOPLE

Our Approach ......................... 23

Our Employees ...................... 23

Employee Training and Career Development .......... 24

Labour and Management Relations ................................... 26

PAGE 31

STRENGTHENING COMMUNITIES

Our Approach ......................... 32

Community Development and Social Investment ......... 32

Community Feedback ......... 34

Social Mine Closure Planning ................... 35

PAGE 36

RESPECTING THE ENVIRONMENT

Our Approach ..........................37

Water ...........................................37

Waste Management ............ 38

Energy and Emissions .......... 39

Reclamation and Closure ....41

Environmental Protection Expenditures ......41

PAGE 27

EMBEDDING HEALTH & SAFETY

Our Approach ......................... 28

Occupational Health & Safety Performance .......... 28

Health & Safety Training ...... 29

MOVING FORWARD TOGETHERCREATING RESPONSIBLE,

SUSTAINABLE GROWTH

At Aura, responsible, sustainable growth is a journey that requires our commitment

to continuous improvement. Our Corporate Responsibility Report

communicates the sustainability goals we have set for our Company and illustrates how we are moving forward together - internally and with our stakeholders - to

continuously assess and improve our economic, social, and environmental

performance.

12 0 1 3 CO R P O R AT E R E S P O N S I B I L I T Y R E P O RT

This Report incorporates performance data from: (GRI 3.6)

Aura’s producing operations, which include the Aranzazu Mine in

Mexico, the San Andres Mine in Honduras, and the São Francisco

and São Vicente Mines in Brazil. Figures regarding employee data

from the Company’s corporate head office in Toronto, Canada,

and the corporate office in Braslia, Brazil are also included. The

Report does not include performance data from the Serrote da Laje

project. (GRI 3.7)

Because our financial statements are filed regularly, less emphasis

was placed within this Report on economic performance. For

more thorough financial data, the Company’s Audited Financial

Statements and Management Discussion and Analysis can be

accessed through our website or on the System for Electronic

Document Analysis and Retrieval (SEDAR) .

REPORTING FRAMEWORK, APPLICATION LEVEL AND ASSURANCEThe Global Reporting Initiative (GRI 3.1) sustainability reporting

guidelines were used in the preparation of this self-declared B

level Report. We reported on a total of 25 Performance Indicators

including 6 GRI Mining and Metals Sector Supplement indicators. A

GRI Content Index is included at the end of this Report, which lists

the standard disclosures and performance indicators contained in

this Report and their respective locations.

External assurance (GRI 3.13) was not sought for this Report. The

content was prepared and reviewed by management to verify

the accuracy of performance data and for alignment with Aura’s

corporate governance standards, policies and procedures and with

operational protocols. Unless otherwise indicated, the measurement

and calculations contained within this Report followed GRI guidance.

(GRI 3.9) It should be noted that all non-financial statistics and certain

financial amounts disclosed within this Report are unaudited and

have been so noted. The unaudited financial amounts presented

within this Report are not required to be disclosed by International

Financial Reporting Standards and therefore not included in any

previously published financial document.

DEFINING REPORT CONTENT - OUR MATERIAL ISSUES AND INTERESTS (GRI 3.5)

The determination of materiality is the process of identifying

and prioritizing the sustainability impacts and opportunities that

are most important to our various stakeholders: Topics or issues

that could affect the long-term success of our organization or

that could affect the perceptions of those who might assess our

commitment to economic, environmental, and social sustainability.

These material topics guide and define the content of our Report.

Interests and priorities of internal and external stakeholders were

identified though our 2013 materiality assessment via regular

interaction and engagement activities, as well as ongoing feedback

from all sites and departments. We define our stakeholders as

individuals or organizations that have a direct, indirect, or general

interest in, or that can be impacted by our operations. We update

affected groups regularly through stakeholder mapping exercises.

Stakeholders consulted for the Report included: employees,

affected communities, union representatives, applicable local and

state government and regulatory agencies, investors, and trade and

industry organizations. These groups represent the stakeholders

that we also anticipate will be our main report reading audience.

Aura Minerals Inc. (“Aura” or “the Company”) is pleased to present our second annual Corporate Responsibility Report (the “Report”),

which communicates the Company’s economic, environmental, and

social performance from January 1 – December 31, 2013.

This Report highlights Aura’s approach and commitment to corporate responsibility and sustainability priorities, including the stewardship of our company, the health & safety of our people, the protection of the environment, ongoing stakeholder engagement, and social responsibility. We include information on our 2013 achievements, as well as our challenges and potential areas of risk.

ABOUTTHIS REPORT

(GRI 3.1/3.2/3.6)

2 AU R A M I N E R A L S I N C .

http://www.auraminerals.com/Investors/Financial-Reports/2014/default.aspx

http://www.sedar.com/

Stakeholders were engaged through dialogue, interviews,

employee performance evaluations, ranking surveys, workshops,

and round-table discussions at all operations.

Material issues as they relate to opportunities, risks, challenges,

and successes for Aura were identified, prioritized, validated, and

mapped to one of four areas: (i) workplace/health & safety, (ii)

economic, (iii) environment, and (iv) community. Each of these

issues were ranked high, medium, or low according to level of

stakeholder concern and potential business impact.

The material issues which ranked high for both stakeholder

concern and business impact are depicted in the top, right circle

of the illustration below and are the topics of sufficient material

interest to be included in this Report.

Moving forward, we will continue to refine our materiality

assessment process and define our sustainability issues and impacts

as prioritized by a more inclusive group of stakeholders. We intend

to expand our reach of both internal and external stakeholders

consulted to increase accuracy and accountability.

A B O U T T H I S R E P O RT

* Prioritization of material issues was done at the corporate level; significance of issues may vary at the operational level.

CREATING ECONOMIC VALUE

1 Operational Costs2 Access to Capital3 Increased Taxes and Royalties4 Serrote Development Partner5 Commodities Pricing6 Tonnage/Grade Improvements


7 Employment Opportunities8 General Education and Training9 Employee Attraction/Retention10 Labour Relations

EMBEDDING HEALTH & SAFETY

11 Workplace Health & Safety


12 Local Infrastructure13 Employment Opportunities14 General Education and Training15 Community Access to Healthcare16 Community Relations17 Social Mine Closure Planning


18 Deforestation (San Andres)19 Water Management20 Waste Management 21 Reclamation and Closure Planning

The material issues which ranked high for both stakeholder concern and business impact are depicted in the top, right circle and are the topics of sufficient material interest to be included in this Report.

AURA’S 2013 MATERIAL ISSUES

COMPLETE LISTING OF 2013 SUSTAINABILITY TOPICS


Aura is a mid-tier gold and copper production company focused on the development and operation of gold and base metal projects in the Americas. The Company focuses on responsible, sustainable growth in all its endeavours.

AURA MINERALS CORPORATE OFFICE

Toronto, Canada

Honduras SAN ANDRES MINE

TYPE Open-pit heap leach

LIFE EXPECTANCY10 years

EMPLOYEES386

GOLD

Brazil SÃO FRANCISCO MINE

TYPE Open-pit heap leach

LIFE EXPECTANCYMining to cease in 2015

EMPLOYEES298

GOLD

Brazil SÃO VICENTE MINE

MINE TYPE Open-pit heap leach

LIFE EXPECTANCY

Mining ceased/closure activities commenced in

November 2013

EMPLOYEES149

GOLD

MexicoARANZAZU MINE

MINE TYPE Open-pit/underground

LIFE EXPECTANCY

14 years at 2,600 tpd/9 years at 4,500 tpd

EMPLOYEES568

COPPER

GOLD

BrazilSERROTE

DA LAJE PROJECTDevelopment Project

GOLD

IRON

COPPER

OUR OBJECTIVES• Operating to the highest environmental and

safety standards and in a socially responsible manner

• Maximizing returns on the Company’s projects through efficient operation, including production and cost management

• Advancing projects through development and partnerships

• Acquiring and developing quality reserves

OUR OPERATIONS (GRI 2.4/2.5/3.8)

Aura’s Corporate Head Office is located in Toronto,

Canada. Our producing assets include the San

Andres gold mine in Honduras, the Aranzazu

copper Mine in Mexico, and the São Francisco and

São Vicente gold mines in Brazil. The Company’s

core development asset is the copper-gold-iron

Serrote da Laje Project in Brazil.

* all Aura assets are 100% owned through subsidiary companies in each jurisdiction

SILVER

ABOUT AURA MINERALS


A B O U T AU R A M I N E R A L S

MOVING FORWARDWITH NEW GOALS AND FOCUS

SAN ANDRES MINE, HONDURASThe San Andres Mine is located in the highlands of western

Honduras, in the municipality of La Union, Department of Copan,

Honduras, approximately 300 km northwest of the country’s

capital city, Tegucigalpa.

ARANZAZU MINE, MEXICOThe Aranzazu Mine is located within the Municipality of

Concepción del Oro in the State of Zacatecas, Mexico. The

property is approximately 250 km from the city of Zacatecas and

approximately 112 km from the city of Saltillo.

SÃO FRANCISCO MINE, BRAZILThe São Francisco Mine is an open-pit, heap leach gold mine

located in western Mato Grosso State, Brazil, approximately 560

km west of Cuiaba, the state capital, and approximately 50 km

southeast of the Company’s São Vicente Mine in the prolific

Guapore gold belt.

SÃO VICENTE MINE, BRAZILThe São Vicente Mine is an open-pit, heap leach operation

located in western Mato Grosso State, Brazil, approximately 560

km northwest of the state capital of Cuiaba and approximately 50

km northwest of Aura’s São Francisco Mine. Mining ceased and

closure activities commenced in November 2013.

SERROTE DA LAJE PROJECT, BRAZILThe Serrote da Laje project is the Company’s core development

asset and is a copper-gold-iron development project located

in the central-southern part of the Brazilian State of Alagoas,

approximately 15 km northwest of the town of Arapiraca.

In 2013, the Company’s sole source of revenue was from the sale

of gold doré from the San Andres Mine and the Brazilian Mines,

and from the sale of copper concentrate from the Aranzazu Mine.

We sell our copper concentrate (approximately equally) to

two parties, and understand that the ultimate destination of the

final copper produced is China. All of the Company’s refined

gold is sold to purchasers based in the United States. The gold

doré produced from our Brazilian Mines is refined in Brazil, while

doré from the San Andres Mine in Honduras is refined in the

United States.

PRODUCING MINES DEVELOPMENT PROPERTY

MARKETS SERVED (GRI 2.7)

North portal, Aranzazu, Mexico Pit, San Andres, Honduras Core shed, Serrote da Laje Project, Brazil


OPERATIONAL HIGHLIGHTS

2013 GOLD AND COPPER SALES

2013 PRODUCTION

GOLD SALES208,897 Ounces - average realized

price of $1,667 per gold ounce

COPPER SALES24,995 dry metric tonnes of copper

concentrate containing 13,615,696

pounds of copper

Aura is a mid-tier gold and copper production company focused on the development and operation of gold and base metal projects in the Americas. The Company focuses on responsible, sustainable growth in all its endeavours

HEALTH & SAFETY ACHIEVEMENT

TOTAL SALES REVENUE (USD)

$330 MillionOPERATING CASH FLOW

$67 Million

The Company’s 2013 revenue

was from the sale of gold

doré from the San Andres and

Brazilian Mines and the sale of

copper concentrate from the

Aranzazu Mine.

São Francisco surpassed 5,000,000 hours

(4 years) without a lost time accident

206,747 OZ OF GOLD

13,626,982 LBS OF COPPER

20%

24%

20% increase

over 2012

24% increase

over 2012

5,000,000+ HOURS

208,897 OUNCES

RECORD YEAR FOR BOTH GOLD AND COPPER

13,615,696 POUNDS


2013 PRODUCTION

24% increase

over 2012

OPERATING

in a transparent and ethical manner

ENSURING

a safe, productive, and healthy work environment for all our employees and contractors

COMPLYING

with the laws of all countries in which we operate

MAINTAINING

strong and respectful community relationships and promote the health, education and welfare of local communities

CONTINUING

to find, acquire, and develop quality projects in safe and stable jurisdictions

RESPONSIBLE SUSTAINABLE GROWTH (GRI 4.8)

Aura’s mission is to develop and expand our mineral resource base and mining portfolio in a manner that provides maximum returns to our shareholders by:

AURA MISSION STATEMENT


Our biggest challenge in 2013 was inextricably linked to the global

economy. Aura’s future profitability, operating cash flows, and

financial position depend on the prevailing prices of gold and

copper. Commodities pricing and the availability of capital for

mining deteriorated significantly and affected the full spectrum

of mining companies, especially smaller producers like Aura.

Gold prices falling by 25% was the greatest single impact to our

operating landscape, however our management team has the

tenure and experience to respond to the industry’s cyclical nature.

Over the past two years, but much more methodically and

stringently in the past year, we focused on cost cutting and

efficiency improvements to our operating assets and in 2013 we

made changes that limited our overhead and facilitated a culture

of accountability. Our organizational structure was reduced,

roles and scopes of responsibility have changed, and as a result

we have a more dynamic, interactive, and synchronized team

and organization. This meant a small reduction in staff (or not

replacing staff losses) at both site levels and our corporate office,

examination and restructuring of our operating and capital

budgets, and optimization and efficiency planning company-

wide. Without this massive restructuring effort, we would not

be in the position we are now and our stakeholders within the

investment and lending community have taken notice of these

efforts. Simply put, we were much more sustainable economically

in 2013 than we were in 2012.

Our internal efforts notwithstanding, all three of our operating

jurisdictions have introduced new mining laws which include

either additional or higher taxes and royalties. A new law has

been passed in Honduras and Mexico and a draft is circulating in

Brazil. While there are certain accounting measures that can help

mitigate these taxes, the changes that will impact the economic

efficiency of the Company are an even more critical focus in 2014

and going forward.

We are pleased to include in this Report that our Health & Safety

record continues to improve as we emphasize and promote a

low risk behaviour in our Road to Zero Accidents campaign and

overall workplace culture. In 2013, there were no fatalities or

occupational illnesses at any of our operations and there were

no lost time accidents or injuries at either São Francisco or São

Vicente, which is both impressive and somewhat unusual for

operations that are in various stages of wind-down; a time when

safety awareness can lose ground. In fact, in March of 2014, São

Francisco surpassed 5,000,000 hours without a lost time accident.

At Aranzazu, the severity index improved over 2012, which we

believe can be attributed to the focus in 2013 on enhanced

training for our supervisors. There was also a significant decrease

in accidents at San Andres in 2013 over the previous year.

São Francisco achieved OHSAS 18001 recertification in 2013 and

formed an additional safety committee created as a result of the

OHSAS implementation. Our other sites, while not certified as yet,

are implementing an integrated management system based on

James Bannantine, President and CEO

MESSAGE FROM THE PRESIDENT & CEO (G R I 1 . 1 )

We are pleased to present our second Corporate Responsibility Report, which includes our most material economic, environmental, and social performance in 2013 as identified by our ongoing stakeholder engagement, as well as our risk and materiality assessment processes. We retained our Report theme of Moving Forward Together for 2013; as it continues to resonate with us and remains an authentic representation of our journey through difficult economic times while continuing to focus on our sustainability performance at all of our operations.

Aura fully embraces its responsibilities surrounding stakeholder engagement and potential impacts from our operations in all of the jurisdictions in which we operate.

“

“


OHSAS 18001 (assessing and auditing Health & Safety standards),

ISO 14000, and the International Cyanide Management Code,

demonstrating our commitment to the minimization of risk and

attention to diligence regarding our occupational health and

safety management systems.

Aura fully embraces its responsibilities surrounding stakeholder

engagement and potential impacts from our operations in all

of the jurisdictions in which we operate. In 2013, we focused

on community engagement and consultation efforts at each

of our mines, with the bulk of our attention concentrated on

the ongoing social aspects of mine closure at São Vicente. Our

Human Resources team engaged extensively with the employees

and union at the San Andres Mine in the latter part of the year in

response to an illegal strike.

The strike at San Andres, unfortunately, had a negative impact on

employees and nearby communities through the loss of wages

and the decrease in local procurement respectively. However,

there was a positive impact on the communication and overall

working relationship between the Company and the union

and its newly-formed board as they worked towards a finalized

agreement and returned to work in early 2014.

With the cessation of mining activity at São Vicente in November

of 2013, we placed a particular focus on both environmental

closure and remediation plans, as well as a strong social closure

commitment for our mine staff that we are diligently training

in trades or other education programs to increase overall

employability, or wherever possible, re-locating to São Francisco

or other operations. We are particularly proud of our first

international relocation of a São Vicente employee to our San

Andres Mine in Honduras (see employee perspective on page 24).

Our commitment to responsible, sustainable, growth is an

integral part of how we achieve our business goals and objectives

with an underlying impetus that our contribution to communities

includes lasting and mutual benefits, in addition to providing jobs

and paying taxes and therefore we continue to look at sustainable

industry options for mine closure at our sites.

Through our Corporate Responsibility reporting, we have sought

to ensure transparency and to benchmark and communicate

the ongoing efforts Aura is making to align our sustainability

performance with our commitments and to demonstrate our

economic, environmental, and social performance as a company

and as responsible corporate citizens engaged in the business

of mineral extraction. It is with the ethics, values, expertise, and

dedication of our team that we demonstrate the alignment

of sustainability principles with Aura’s overarching business

objectives. In the short to mid-term we will continue to focus on

the drivers for a robust business model which will in turn benefit

all of our stakeholders.

Sincerely,

James Bannantine, President and CEO

July 31, 2014

M E S SAG E F R O M T H E P R E S I D E N T A N D C EO

We have worked to meet several significant economic objectives and fundamental milestones in 2013 and into 2014. Our “financial turn-around” story in 2013 is exemplified in specific performance metrics.

Our Brazilian gold mines performed exceptionally well in 2013.

Geological modeling enabled an extra year of mine life at São

Francisco (originally slated for closure in 2014, however we can

now continue to operate until the end of 2015)

Increased production combined with cost savings at our gold

operations and Aranzazu producing to expectations with a

substantially reduced and managed arsenic content within

its concentrate, has resulted in the Company continuing to

generate cash flow from operations and yielded a trailing twelve

month operating cash flow of $62.6 million.

We expect to realize additional profitable ounces at São Francisco

through to the end of 2015 and we have been implementing

a small but effective capital expansion program at San Andres

which is expected to increase annual production and lower unit

costs.


2013 TARGETS 2014 GOALSACHIEVEMENT STATUS

Secure preliminary bridge financing, project financing and transition into construction phase at Serrote

Complete engineering and commence construction at Aranzazu

Continue to optimize production costs at San Andres

Meet or exceed budgeted gold and copper production at all sites

Partially achieved. Secured R$45M bridge financing for Serrote (land acquisitions). Project financing yet to be achieved.

Partially achieved – Detailed engineering completed on the Aranzazu expansion, construction awaiting financing

Achieved

Partially achieved – exceeded targets at both Brazilian

Continue with the annual risk assessment follow-up and incorporate into budget

Produce a 2014 Corporate Responsibility Report based on the updated GRI (G4) Framework

Secure project / equity financing for Serrote project

Secure Aranzazu construction and expansion financing

Meet or exceed budgeted gold and copper production at all sites

10

EMBRACING OUR RESPONSIBILITIESGovernance and Guidance

CREATING ECONOMIC VALUE How our economic contributions and impacts are consistent with our CR strategies

PARTIALLY ACHIEVEDACHIEVED NOT ACHIEVED

Analyze results, address risk mitigations required and incorporate risk assessment annual follow-up into procedures and budget

Produce a self-declared B level 2013 GRI Corporate Responsibility Report

Achieved

Achieved

Determine how to promote use of Leadership Training tools and skills in the workplace

São Francisco, Honduras, and Mexico completed the second phase of the Aura Leadership Program (ALP). Honduras and Mexico identified a need to provide basic supervisory training (i.e. company policies, setting expectations and follow-up).

Prepare basic supervisory training programs in Honduras and Mexico for delivery in 2015. Include ALP tools in the training to ensure pragmatic use of the tools.

São Vicente/ São Francisco: Continue to train or transition employees as the mines decommission and close

Evaluate potential methods and devise a proactive plan to improve female representation in our workforce

INVESTING IN OUR PEOPLEAttracting, retaining and

valuing our employees

SUSTAINABILIT Y TARGETS AND ACHIEVEMENTS

Updated the Code of Ethics to include:• additionalprovisionsinalignmentwith

amendments to the Corruption of Foreign Public Officials Act (Canada)

• anti-briberyguidelinesalignedwiththeOrganisationfor Economic Co-operation and Development (OECD) for Multinational Enterprises

• clarificationofprovisionswithrespecttocorporateopportunities and competition and fair dealing


ACHIEVEMENT STATUS

Continue training, program implementation and monitoring to work towards this goal. • DetailedsafetyplanandprogramforAranzazu• Continuetomaintainahighlevelofsafetyat

São Vicente with closure plans

Zero accidents

Expansion of the “Vale por la Vida” program to supervisors

Prioritize San Andres community engagement and liaison to ensure continued relationship with community regarding mine expansion and any potential impacts

Continue Serrote negotiations for remaining 15% of resettlement agreements by August 2013

São Vicente/ São Francisco continue to train or transition employees as the mine closes and de-commissions

Achieve International Cyanide Management Code (ICMC) Certification for San Andres in early 2013

No notice of violation from any sites/continue to assess and mitigate risks to maintain 100% compliance

Achieved at both Brazil operations.

Achieved

Not Achieved

Partially achieved.

Achieved. The San Andres certification audit was conducted in August of 2013 and certification was issued in May of 2014

Achieved

Partially achieved. There were no lost time accidents at São Francisco or São Vicente and San Andres accidents dropped

Develop and commence implementation of a Behavior-Based Safety Program at San Andres

Have all senior executives conduct a safety inspection during site visits

Have all Board members of the Corporate Sustainability Committee conduct safety inspections of one site

Maintain zero accident rate and/or reduce frequency rate by 25%

Finalize and implement the Community Engagement and Development Strategic Plan at San Andres

Finalization of resettlement agreements at Serrote are contingent upon the securing of project financing

São Vicente/ São Francisco: Continue to train or tran-sition employees as the mines decommission and close

Finalize physical closure of São Vicente in compliance with developed closure plan and social expectations

No notice of violation from any sites/continue to assess and mitigate risks to maintain 100% compliance

Initiate implementation of ISO 14001 at Aranzazu

Engineer, construct, and commission expansion and improvements to the San Andres Water Treatment Plant

2013 TARGETS

EMBEDDING HEALTH & SAFETY Creating a safe and healthy

workplace free of accidents,

injury and illness

STRENGTHENING COMMUNITIES Engaging with our

communities, their

development and social

investment


Commitment to the

mitigation of risk and

minimization of our

environmental impacts

PARTIALLY ACHIEVEDACHIEVED NOT ACHIEVED

S U S TA I N A B I L I T Y TA R G E T S A N D AC H I E V E M E N T S

2014 GOALS


As for many mining companies, 2013 was a difficult economic

year for Aura. It is, however, under circumstances of depressed

metals prices and restricted financing options that now, more

than ever, we need to be diligent when it comes to the matter of

social performance – specifically building collaborative stakeholder

relationships and managing expectations in relation to our social

license to operate*.

While Aura’s economic sustainability is a paramount business

concern, the concerns of the communities in which we operate,

the protection of the environment, and respect for human rights, all

exist independently of market conditions. We need to continue to

focus our efforts toward real sustainable community development

empowering our local communities to enrich their lives beyond the

life of our mines.

In Brazil, São Vicente ceased mining in November of 2013 with mine

decommissioning in 2014 and São Francisco’s closure is expected

in 2015. Vigilant attention to Health and Safety and maintaining the

safety culture during mine closure was a top priority at these sites. In

2013, there were no fatalities or occupational illnesses at any of our

operations. São Francisco achieved OHSAS 18001 recertification,

and there were no lost time accidents at either São Francisco or

São Vicente. We are pleased to report that in March of 2014, São

Francisco surpassed 5,000,000 hours without a lost time accident.

Aura maintained its very good standing operation wide with respect

to its meeting or exceeding our environmental goals and objectives

for 2013 including:

• All sites follow the ISO 14001 continuous improvement cycle

for environmental compliance

• SãoFranciscoreceivedrecertificationofISO14001

• Aranzazureceivedanupdatedtailingsstoragefacilitypermit

providing for increased tailings storage capacity to be built

to world-class design standards of an additional 12 years at a

production rate of 2,600 tpd

• SanAndressuccessfullycompleteditsInternationalCyanide

Management Code final audit with certification in May of 2014

• SanAndresobtainedapermitforasterileengineeredlandform

(waste management)

• AcorporatestandardsauditwasconductedatSãoFrancisco,

San Andres, and Aranzazu, with improvements shown

over 2012

Our San Andres gold mine in Honduras has an approximate 10

year mine life, and our Aranzazu copper operation at least 17 years,

and while daily health and safety remains top-of-mind, it is also

incumbent upon us to put a great deal of thought and planning

towards the promotion of true sustainable community development

in all of the regions that we operate in; to identify and assess both

the consequences of how nearby municipalities will be impacted

by either the availability of jobs and steady incomes, or alternatively

the lack of employment and tax revenues. Specific to San Andres,

we must navigate away from the legacy of philanthropy and move

towards building and strengthening relationships that engender

legitimacy, trust, and acquiring true social license to operate.

One of our sustainability-related concerns includes the potential

effect of the new mining and tax laws in Mexico and Honduras, which

will not only impact our economic performance, but may also impact

both mining projects and communities from a social perspective.

Municipalities and national governments are increasing taxes under

the philosophy that they will be allocating those increases into

social investments, however, as a result of the higher taxes, mining

companies will have less financial ability to contribute in meaningful

ways to stakeholder-driven capacity building and other socially-

sustainable investments.

We believe the process of preparing our Corporate Responsibility

Report provides our stakeholders with a valuable summary of our

sustainability performance – from risk assessment to management

systems and integration of environmental and social performance

objectives into policies and procedures. Our goal of continuous

improvement is aided by this reporting process, and guides us in the

benchmarking of our accomplishments as well as identifying our

opportunities for improvement as we continue to Move Forward

Together. We hope you enjoy reading our Report.

Gonzalo Rios, VP Corporate Responsibility July 31, 2014

MESSAGE FROM THEVP CORPORATE RESPONSIBILITY

Gonzalo Rios, VP Corporate Responsibility

Social license to operate is a term used to describe a community’s perception of a mining company or project. Social license represents an ongoing endeavour: a continual process of building relationships, and earning and maintaining cooperation and trust, as granted by local communities.

*


Aura is committed to ethical business practices and has thorough corporate

governance structures in place to guide and confirm oversight and

accountability throughout all levels of the organization.

IN THIS SECTION

Governance and Guidance

Corporate Responsibility Management

Stakeholder Engagement

EMBRACING OUR RESPONSIBILITIES


E M B R AC I N G O U R R E S P O N S I B I L I T I E S

BUSINESS CONDUCT AND ETHICS (GRI 4.6)

Aura is committed to fair employment practices, treating

individuals with dignity and respect, providing a safe and healthy

work environment, protecting the environment, and being

responsible member of the communities where we operate.

We do not tolerate any type of discrimination and expect all

relationships among persons in the workplace be professional

and free of bias or harassment.

Compliance with our Code of Business Conduct and Ethics

(“the Code”) is essential, and embodies the expectation of Aura

directors, officers, employees, contractors, and consultants to

conduct business in accordance with all applicable laws, rules,

and regulations with high ethical and moral standards. The Code,

along with other corporate policies and charters, reinforces the

Company’s ethical commitment to its employees, host commu-

nities and local authorities, business partners and shareholders.

New personnel receive an Employee Handbook and are provided

with a copy of the Code, which they sign in acknowledgment

that they have read and understand Aura’s expectations.

We updated our Code in 2013 to include additional provisions

in alignment with the amendments to the Corruption of

Foreign Public Officials Act (Canada) and anti-bribery guidelines

aligned with the Organisation for Economic Co-operation and

Development (OECD) for Multinational Enterprises. We also

expanded the confidential contact points of our Whistleblower

Policy, enhanced the articulation of our fair dealing/local

procurement practices, and added specific examples of what

could constitute conflict of interest situations.

The complete Code is located in the Governance section of our

website here .

ANTI-CORRUPTION AND ANTI-BRIBERYAura has a zero tolerance policy regarding corruption or bribery

at any level or in any business unit within the Company. We

have rigorous internal financial controls in place to oversee the

financial aspects of operations that could be affected by and/or

to uncover any incidents of corruption. In 2013, we expanded our

Code of Business Conduct and Ethics to clearly articulate that all

employees, officers and directors of the Company shall conduct

their relationship with government officials and employees in

compliance with the Corruption of Foreign Public Officials Act

(Canada), and all employees, officers and directors must also

follow the guidelines on combating bribery of the Organization

for Economic Co-operation and Development (OECD) for

Multinational Enterprises.

GOVERNANCE AND GUIDANCE

Aura is committed to ethical business practices and has thorough corporate governance structures in place to guide and confirm oversight and accountability throughout all levels of the organization. Our core values are embedded in our Code of Business Conduct and Ethics, are integrated into our management systems, and include: honesty, integrity, the protection of the environment and the health and safety of our people, the promotion of open communication and transparency, and striving to continuously improve our corporate responsibility practices.

AURA’S APPROACH TO CORPORATE RESPONSIBILITY AND SUSTAINABILITY

Corporate responsibility is an integral part of our organization. It guides us in our everyday activities and confirms that wherever we work, we work with integrity. Aura is committed to sustainable development, the protection of human life, the preservation of the environment, and having a positive impact on the communities where the Company operates. The Company demonstrates this commitment through corporate responsibility strategies and sustainable growth aligned with all corporate responsibility practices, and as embodied by our policies and standards pertaining to Health & Safety, Environment and Community.

These guiding principles will be applied through adherence to internationally accepted guidelines and standards and assurance of a continued effort to integrate corporate frameworks and policies into practice.


http://www.auraminerals.com/Corporate-Governance/Codes-of-Conduct/default.aspx

HUMAN RIGHTS (HR4)

Aura is committed to fair employment practices and all

individuals are treated with dignity and respect. The Company

does not tolerate any type of discrimination at any level and

expects that all relationships among persons in the workplace

will be professional and free of bias or harassment. There were

two incidents of harassment filed in 2013. These incidents were

investigated and corrective actions were applied in the case of

the individuals who acted inappropriately, and the situations are

considered resolved by all parties.

Our commitment to human rights is exemplified by our

Corporate Responsibility Principles, and is embedded in our

Code and Human Resources Principles. We ensure induction

and follow-up training is provided, which includes priority

human rights topics such as the definition and prevention

of discrimination and harassment, awareness of forced or

underage labour, dispute resolution, including access to our

Whistleblower Policy and employee grievance mechanisms. All

employees have the right to free association, and each of our

sites has a union representing their collective interests.

The potential risk of child labour (HR6) exists in Mexico, Brazil, and

particularly in Honduras. The Company enforces compliance

with strict policies and procedures for applicants (proof of age)

of both employees and contractors to address this issue and

associated risk within its operations and key contributors of its

supply chain. In addition to corporate safeguards, under-aged

workers in industrial positions such as mining operations are not

culturally supported, which also lessens this potential risk.

WHISTLEBLOWER POLICYAura has established an open process to resolve concerns and

disputes at each operation on a confidential basis, as well as a

mechanism for the submission of anonymous reporting of any

suspected violations, including concerns regarding government

laws, rules and regulations, corporate reporting and disclosure,

or financial or auditing practices without fear of reprisal or

intimidation. Our Whistleblower Policy is included in employee

and contractor induction training and is also located in

the Corporate Governance section of our website here . (GRI 4.4)

BOARD OF DIRECTORS (GRI 4.1/4.2)

Our Board of Directors is responsible for the stewardship of

Aura and the oversight of the Company’s affairs with the goal

of enhancing shareholder value, while maintaining a culture

of integrity. At the date of this Report, the Board is comprised

of six directors (five men and one woman); five of whom are

independent. (GRI 4.3) The Board is responsible for the supervision

of management, monitoring of financial performance, and

reporting; ensuring compliance with all policies, codes,

charters and procedures. The Board has six committees that

provide guidance and assistance to the management of the

Company: the Audit Committee, the Compensation Committee,

the Corporate Sustainability Committee, the Nominating

and Corporate Governance Committee, the Technical and

Development Committee, and the Disclosure Committee. All of

our Board Committee Charters and mandates can be accessed

on our corporate website here .

Our Nominating and Corporate Governance Committee is

comprised of three independent Board members. Its mandate

is to review the composition of the Board in relation to the

strategic direction of the Company and the competencies and

skills the Committee considers necessary for the Board. The

Committee annually assesses the performance, effectiveness

and contribution of the Board, its committees and its directors,

and makes recommendations for changes when appropriate,

as well as identifying and recommending new candidates

for nomination. (GRI 4.7) The Committee ensures that a

comprehensive orientation is received by new directors and that

all directors are kept up-to-date through continuing education

opportunities.

COMPENSATION (GRI 4.5)

The Compensation Committee is comprised of three

independent Board members; all of whom have held senior

executive and Board positions with other base and/or precious

metal companies where they have had direct involvement in the

development and implementation of compensation policies and

practices for employees at all levels, including executive officers.

The Company has a number of measures in place to ensure

that compensation is fair, reasonable, and directly aligned

with competitive compensation philosophies and stakeholder

interests. For certain positions within the organization,

compensation bonuses are linked to social and environmental

performance.


Project area, Serrote Da Laje, Brazil


http://www.auraminerals.com/files/Whistleblower%20Policy_v001_w7kw9j.pdf

http://www.auraminerals.com/Corporate-Governance/Committees/default.aspx


RISK ASSESSMENT AND MANAGEMENT The management of risk is essential to effective governance and

the achievement of our business objectives. In addition to Board

oversight, Aura management systems (including our enterprise

risk management process), identify aspects that may present

material risks to the Company or a specific operation. These

aspects include sustainability risks, which are prioritized to

prevent accidents, mitigate impacts on the environment, and

remediate any incidents that may affect communities or other

stakeholders. An annual risk assessment is conducted for each

site and these risks are reviewed by the Audit Committee and

are included in the budgetary process to ensure the required

resources are allocated to mitigation or remediation plans.

FEEDBACK TO THE BOARD (GRI 4.4)

Shareholders have the opportunity to voice their opinion

through annual proxies received in advance of each annual

general meeting, and are invited to ask questions and provide

feedback to management and the Board at each meeting. In

addition, under the Canada Business Corporations Act, the

Company’s governing corporate statute, there are provisions for

the submission of shareholder proposals and resolutions.

Stakeholders have mechanisms of inquiry and feedback with our

Company and to our Board through email on the Company’s

website, telephone contact with the Company, participation on

quarterly conference calls, and regular mail. Concerns relating

to financial or ethical matters may be directed to the Chair of

the Audit Committee anonymously and confidentially by regular

mail or by email at [email protected].

Aura has an “open door” policy which encourages all employees

to approach senior management with questions or concerns.

CORPORATE RESPONSIBILITY MANAGEMENT (GRI 4.9)

The Board committee with primary responsibility for overseeing

corporate responsibility matters is the Corporate Sustainability

Committee, which is comprised entirely of independent directors.

The Committee ensures that the Company conducts its activities

in such a manner as to ensure the health & safety of its employees,

promotes sustainable development, preserves the environment,

and engages with and contributes to the development of the

communities in which we operate.

The day-to-day strategy to obtain and maintain social license

to operate, as well as the management of the Health & Safety,

Community Development/Social Investment, and Environmental

programs at Aura are led by the Company’s Vice President of

Corporate Responsibility. With the additional support of on-site

environmental managers, health & safety technicians, social

performance, and environmental consultants, the Corporate

Responsibility team continually assesses opportunities and

risk, establishes corporate objectives, policies, standards and

programs in the areas of health, safety, environment and

BOARD OF DIRECTORSPRESIDENT AND CEO

Corporate Sustainability

Committee

Nominating& CorporateGovernanceCommittee

Technical and Development

Committee

CompensationCommittee

DisclosureCommittee

AuditCommittee

Environmentaland Sustainability

Consultants

Site Managers –Community

Development

Site Managers –Health, Safety &

Environment

VP CORPORATE RESPONSIBILITY

INTEGRATION OF RESPONSIBILITY AND ETHICS INTO CORPORATE GOVERNANCE (GRI 4.9)

Stakeholder Feedback• Email• Regularmail• Telephoneinquiries• Quarterlyconferencecalls

• Annualproxyprocess• Whistleblowerpolicy• Internalandexternalonsiteengagement


mailto:whistleblower%40auraminerals.com?subject=

community relations. The VP Corporate Responsibility guides

senior and site management on the implementation of systems

and programs to meet these objectives, develops and implements

social and environmental performance initiatives, and conducts

education programs for the Company’s employees, contractors,

and host communities at each operation.

STAKEHOLDER ENGAGEMENT (GRI 4.14 - 4.17)

OUR APPROACHAura is committed to engagement with our stakeholders to

identify and understand their perspectives, key concerns,

and to develop relationships of mutual benefit. We define our

stakeholders as individuals or organizations that are directly or

indirectly impacted by our operations or actions, as well as those

that have the ability to influence our operations. We prioritize

our stakeholder groups primarily through the consideration of

potential impact, combined with our risk assessment processes,

and we regularly undertake stakeholder mapping exercises as

a reference point for connecting and collaborating with key

internal and external stakeholders at all project site locations.

STAKEHOLDER ENGAGEMENTWe practice ongoing, proactive consultation between the

Company and our stakeholders, which enables continuous

identification of issues, understanding of potential impacts, and

management of expectations as they relate to our operations at

every stage of the mine-life cycle, and we adjust our approach to

suit the unique needs of each stakeholder group.

STAKEHOLDER FEEDBACK (GRI 4.17)

It is through our ongoing efforts to share information, maintain

positive relationships, and develop trust that Aura has learned

the most about the needs and concerns of our stakeholders. We

communicate with, and seek feedback from, our stakeholders

through a variety of methods, including regular interaction, open

door conversations, formal presentations, town hall meetings,

community liaison officers and hotlines. (GRI 4.15) (see Community

Feedback on page 33).

As with all mining companies, maintaining social license is an

ongoing and challenging process that requires continuous

improvement efforts. Aura is currently working to improve its

method of addressing and resolving grievances by creating

procedures that provide a platform for effective dialogue and

collaborative resolution.

In 2013, Aura was active with respect to ongoing engagement

with the following stakeholder groups

Union

Representatives*

Local

Communities*

Customers

Institutional and

Individual Investors

and Lenders

Employees and

Contractors*

Community

Investment

Beneficiaries*

Local Government

and Regulatory

Agencies*

*Stakeholder groups that were consulted or participated in the 2013 materiality assessment


Aura is committed to engagement with our stakeholders to identify and understand their perspectives, interests, and key concerns.


COMMITMENTS TO EXTERNAL INITIATIVES (GRI 4.12)

Aura currently endorses or has adopted the following voluntary external principles, certification processes, or initiatives:

Extractive Industries Transparency Initiative (EITI) Aura voluntarily supports EITI goals of fiscal transparency

and governance, disclosing payments made to governments

in countries in which we operate, whether or not the host

government is a member of EITI. Mexico and Brazil are not

members of the EITI, however Honduras became a Candidate

Country in 2013.

Global Reporting Initiative (GRI) 3.1 Sustainability Reporting Guidelines

Adopted as the 2012/2013 framework for Aura’s Corporate

Responsibility reporting. The Company plans to transition to

the fourth generation framework (G4) for the 2014 reporting

period.

Greenhouse Gas (GHG) Protocol for Calculating Emissions

Aura has adopted the GHG Protocol for emissions calculations

as per the World Business Council for Sustainable Development

(WBCSD) and the World Resource Institute (WRI).

International Cyanide Management Code (ICMC) Aura became a signatory of the ICMC in 2011. São Francisco

achieved ICMC certification in 2012 and San Andres received

certification in May 2014.

ISO Standards At the operational policy level, Aura has implemented an

integrated environmental management system based on ISO

14001. São Francisco received recertification of ISO 14001 in

2013.

Occupational Health & Safety Advisory Services (OHSAS) At the operational policy level, Aura has implemented an

integrated management system based on OHSAS 18001 (as-

sessing and auditing Health & Safety standards) at all sites. São

Francisco achieved OHSAS 18001 recertification in 2013.

INDUSTRY INVOLVEMENT (GRI 4.13)

Interaction and involvement with Industry Associations

enables Aura and our personnel to build and maintain key

industry relationships, while keeping informed of sector

trends and current international best practices. In 2013 Aura

(or their subsidiaries) were members of the following industry

associations or organizations:

Honduras• Asociación de Minería Metálica de Honduras –

Mining Association of Honduras

• Asociación Nacional de Industriales de Honduras –

National Industry Association of Honduras

• Cámara de Comercio e Industria de Copán –

Chamber of Industry and Commerce of Copan

• Consejo Hondureño de la Empresa Privada –

Honduras Council for Private Industry

Mexico• Cámara Minera de México – Mexico Chamber of Mines

• Cámara de Comercio de Canadá en México -

Canadian Chamber of Commerce in Mexico

• Cluster Minero del Estado de Zacatecas –

Zacatecas Cluster for Mining

Brazil• Agência para o Desenvolvimento Tecnológico dá Indústria

Mineral Brasileira – Technological Development Industry

for the Mining industry in Brazil

• Câmara de Comércio Brasil – Canadá - Chamber of

Commerce Brazil – Canada

• Federação das Industrias no Estado de Alagoas –

Alagoas State Federation of Industries

• Federação das Industrias no Estado de Mato Grosso –

Mato Grosso State Federation of Industries

• Instituto Brasileiro de Mineração – Brazilian Mining

Association



CREATINGECONOMIC VALUE

Aura’s primary strategic focus in 2013 was on the Company’s

economic sustainability.

IN THIS SECTION

Our Approach

Economic Performance

Impacts on Economic Performance

Local Procurement


C R E AT I N G ECO N O M I C VA LU E

20

ECONOMIC VALUE GENERATED

Values Expressed in USD (000s) 2013

Revenue 330,877

Total Economic Value Generated 330,877

ECONOMIC VALUE DISTRIBUTED

Operating Costs (excluding salaries) 154,378

Employee wages and benefits 54,789

Capital Expenditures 54,438

Payments to Providers of Capital4 21,712

Payments to Governments2,4 (Mexico) 14,934

Payments to Governments2,4 (Honduras) 11,215

Payments to Governments2,4 (Brazil) 11,138

Payments to Governments2,4 (Canada) 1,342

Land Use Payments4 166

Community Investment3, 4 (Agreements) 4,271

Community Investment 282

Total Economic Value Distributed 4 328,665

Total Economic Value Retained4 2,212

1 For a detailed account of our operating and financial performance see our Annual Financial Statements.

2 Aura voluntarily supports the Extractive Industries Transparency Initiative (EITI) goals of fiscal transparency and governance. Mexico and Brazil are not members of the EITI, however Honduras became a Candidate Country in 2013; its first report is due to be released in 2015.

3 For full details of our community investment activities and expenditures, see Community Investment on page 32 & 33.

4 These figures are unaudited

ECONOMIC PERFORMANCE1,3

In 2013, we generated approximately $331 million and

distributed approximately $329 million in economic value

(as defined by the Global Reporting Initiative) from our

operations as presented on the left.

IMPACTS ON ECONOMIC PERFORMANCE

NEW MINING LAWS, TAXES, AND ROYALTIES Two of our three operating jurisdictions ratified or implemented

changes to their mining laws in 2013, which include increases to

taxes or the application of new taxes or royalties that will impact

our economic performance through higher tax payments,

which will result in lower profits.

In Honduras, a new mining law came into effect on

April 2, 2013. In addition to regular corporate taxes, royalties on

net income increased from 2% to 5% (2% security tax, 2% to the

municipality of Union, and 1% to INHGEOMIN, the office that

regulates mining operations in Honduras). The security tax is

proposed to help the government fund initiatives to lower the

criminality index and organized crime in Honduras. This new tax

will be levied after 5 years of operation.

OUR APPROACH

Our economic performance has a significant impact on all of our stakeholders. Aura’s primary strategic focus in 2013 was on the Company’s economic sustainability. Life-of-mine optimizations (including geological modeling, continued exploration, and extension of mine life), internal and external financing utilization and re-negotiation, and ongoing, concentrated community relations were all conducted with a clear goal in mind – moving Aura forward towards improving financial results and the steady growth of value for all stakeholders including shareholders.

ECONOMIC CONTRIBUTIONS AND IMPACTSWhether directly or indirectly - through employee wages and

benefits, procurement of local goods, investment in capital

expenditures, taxes, or ongoing community investment - our

expenditures contribute to the local and regional economies of

each of our operating locations. We aim to ensure our economic

contributions and impacts are consistent with our sustainable

development goals in each jurisdiction where we operate.


Mexico introduced a new Fiscal Reform Act which includes new,

or higher mining taxes effective January 1, 2014, including the

elimination of the proposed decrease in the Mexican corporate tax

rate (from 30% to 28%), a Special Mining Duty of 7.5% on earnings

before interest, taxes, depreciation and amortization (EBITDA),

a 0.5% Environmental Tax on precious metals revenues, a 10%

dividend tax, and the elimination of the annual deduction of

exploration expenses from income before tax. As a Company, we

can reduce the EBITDA tax requirement by offsetting against future

tax liabilities and other strategies may also be developed to manage

this new financial impact.

Brazil is in the process of updating its Mining Law, which is

expected to include an increase in mining royalties. The updated

Mining Law is expected to be released in 2014.

LOCAL PROCUREMENT (EC6)

Aura purchases supplies and services and hires personnel from

our host communities whenever possible - and we encourage our

contractors and suppliers to do the same. In 2013, Aura spent over

$106M in the procurement of goods and services, 85% of which was

from nearby or in-country suppliers. The percentage of supplies that

can be sourced locally differs substantially from country to country

and from site to site. Notwithstanding our efforts to procure goods

regionally, most heavy equipment or chemicals such as cyanide can

only be obtained through international suppliers.

All operations have a procurement process in place for the selection

of suppliers. Our procurement decisions are based on normal

commercial considerations such as: quality, price, availability,

service, reputation, and other factors bearing directly on

the product, service, or supplier. Customers and potential

customers of the Company are provided with equal rights to

make purchasing decisions based on the same competitive

terms. Our Code of Business Conduct and Ethics was

amended in 2013 to include enhanced detail regarding local

procurement practices, including the prevention of conflicts of

interest during the tendering process.

C R E AT I N G ECO N O M I C VA LU E

Aura has partnered with Yamana Gold and SEBRAE (Serviço

Brasileiro de Apoio às Micro e Pequenas Empresas - a

government institution that supports micro and small businesses)

to promote entrepreneurship and develop local suppliers

surrounding our mines near the town of Pontes e Lacerda.

The project focuses on micro, small and

medium sized enterprises in the region

with the goal of developing, training,

and certifying these businesses

to develop products and services

in the mining industry supply

chain, meet legal requirements

and technical procedures to

increase their competitiveness and sustainability. The target

is to develop thirty small businesses by 2016 within the

surrounding municipalities. The program will include training

modules such as financial planning, quality assurance, and

team management to increase productivity and sustainability

through competitiveness, economic value, and job creation.

Using a criteria matrix of preferences for local suppliers, this

economic development program develops and qualifies

suppliers to align with the specific procurement needs of

nearby mining operations. The program commenced in

October 2013 when potential participant companies were

mapped and the different supply chain needs and target

industries were identified.

CASE

STU

DY

BRAZIL: SUPPORT FOR ECONOMIC DEVELOPMENT WITHIN THE SUPPLY CHAIN

LOCAL PROCUREMENT

In 2013, approximately 85% of our goods

and services were procured from local

(nearby community or in-country) suppliers.

Nearby Communities

International

National

Nearby States or Provinces

51%

15%5%

29%

Karen ChongFinancial Controller San Andres

In my position, I can see firsthand the positive

impact of Aura’s activities in the local Honduran economy;

improving the quality of life of our employees, developing

small local suppliers, and generating opportunities

for local contractors. There is also a strong financial

commitment to social causes and responding to the

needs of the adjacent communities. I can also observe

both the ethical and economic commitment to address

any environmental impacts through programs and funds

committed to rehabilitation and reforestation. Aura

recognizes the high economic dependence on the mine

and is taking steps to guide the diversification of the local

economy to lessen this impact when San Andres closes.

EMPLOYEE PERSPECTIVE

85%

“

“

PARTNERSHIP


Aura Minerals places great emphasis on our most

important resource — our people.


IN THIS SECTION

Our Approach

Our Employees

Employee Training and Career Development

Labour and Management Relations


I N V E S T I N G I N O U R P EO P L E

Aura seeks to hire locally where possible so that the economic

benefit of employment remains to the greatest extent possible

in our host communities. We emphasize the hiring of employees

from local and regional communities at all locations and

operations and we prioritize local training to build additional

capacity in this regard. Expatriate employees are only sought for

positions where the experience and/or technical qualifications

are not available within local or regional populations. Although

Aura is very strong in its ability to source talent at the local

level, each of our operations is working towards continually

strengthening and expanding their training programs to further

enhance local employment opportunities. Where special

competencies need to be imported, there is a preference of

moving skilled personnel from our existing operations to other

operations rather than seeking expatriates.

OUR EMPLOYEES

At December 31, 2013 Aura employed 1,463 people across

four countries and five operations. We promote a respectful

and fair workplace where all individuals are treated with dignity

and respect, and we foster a level of commitment to a high-

performance safety culture to minimize at-risk behaviour.

In 2013, approximately 14% of our workforce across all of our

operations was comprised of women. While this figure is at

Canadian, and just slightly above global industry averages for

women in mining, we do recognize that overall these numbers

are low. Increasing the number of female employees within

our organization – particularly in supervisory and management

roles – is an area where we can improve. Low turnover rates and

position availability notwithstanding, in 2014 we will evaluate

potential methods and devise a proactive plan to improve female

representation in the workplace at each of our sites.

Brazilian law requires support of the disabled community and

a minimum of 3% representation in the workforce. While this

is difficult to achieve in a mining and processing environment,

NUMBER OF EMPLOYEES BY GENDER (LA1)

Aranzazu

486

325

267

135

255 13

8261

3114 4 4 11

SanAndres

SãoFrancisco

SãoVicente

Serrote BrasiliaOffice

CorporateOffice

500

400

300

200

100

0

1,256 Males

207 Females

OUR APPROACH

Our employees and contractors are key to the success of our business. We rely on skilled, hard working, and committed people and we prioritize and maintain our relationships with our employees and contractors by ensuring that we have effective protocols, policies, and training in place to ensure their health & safety and to provide a rewarding workplace culture for personal and professional growth.

1,463TOTAL EMPLOYEES

ADR Plant, São Francisco Mine, Brazil


where a high component of physical effort is required, we have

managed to achieve this in 2013.

We provide our employees with competitive or above national

average wages as well as benefits, training, and career

development opportunities to our workforce. We train all new

employees on health, safety, the environment, and emergency

protocols while also providing role-specific health and safety

training and an orientation detailing our human resources

principles and practices.

We have an open process to resolve concerns and disputes

and we provide training and follow-up to work towards the

elimination of discrimination and harassment. We have protocols

in place for employees at all our operations to be in a ready and

safe work condition through extensive Health & Safety training

and through drug and alcohol testing, and we enforce these

same standards with our contractors.

EMPLOYEE TRAINING AND CAREER DEVELOPMENT

We have established what we call ‘goal alignment’ for our

employees by clearly communicating the Company’s strategy

and annual goals, and ensuring these are a part of the

performance management process. This includes establishing

annual goals, objectives, regular follow-up and feedback

(recognition of performance) processes. Position profiles,

performance evaluations and, in some instances, competency

matrix programs have been developed to provide employees

with a clear link between performance and compensation, and

we continue to advance these measurement tools.

Additionally, we identify and support future leaders for

management roles in the Aura Leadership Program, providing

ongoing development (experience based) opportunities, and

ensuring processes for exchanges of technical and management

knowledge within the business.

Aura employee and contractors received an average of

42 hours of training in 2013 (LA 10). Average hours of training in

any given calendar year are significantly higher in Brazil than

both Honduras and Mexico due, predominantly, to government

philosophy and support. Brazil requires a minimum number

of employee training hours and also provides corporate tax

incentives for training.

Examples of company-wide professional development in 2013

included:

• Specific training related to technical aspects of roles (new

techniques, new equipment) and first aid training

• Employee scholarship programs for the completion of high

school equivalency and university courses in Honduras and

Mexico

• Career plan training related to OHSAS Certification in Brazil

• Career-related training for individuals sponsored by Aura

(i.e. tuition for MBA Programs)

• The Aura Leadership Program: Tools to be an Effective

Leader


Luiz LimaProcess ManagerSan Andres

I worked in São Vicente for approximately two years before closure processes commenced and the plant shut down. As part of Aura’s retention and transition plan, I was offered the opportunity to work in Honduras in a similar position. This has been a great challenge for me and has represented a huge opportunity to grow professionally and personally. The culture in Honduras is very different than Brazil but the values and workplace standards of Aura go beyond borders and it is exciting to see a similar working culture and a commitment to sustainability across the operations. Aura and fellow employees have been very supportive, and I am happy to be one of the people that has remained with the Company despite the closure of São Vicente.


“

“

AVERAGE TRAINING HOURS (LA10)

80

60

40

20

0

Aranzazu San Andres

São Francisco

São Vicente

TOTAL HOURS OF TRAINING IN 2013:

45,900HOURS

2013 2012

NOTE: Average training hours by employees and contractors. Training figures not currently available by gender


EMPLOYEE ATTRACTION AND RETENTIONWe placed continued and specific focus on employee attraction

and retention at all our operations in 2013: The retention of

employees in key positions (particularly during mine closure

activities) ranked as one of the Company’s top material

sustainability issues. In particular, our mine managers are highly

experienced, specialized, and valued. There is also priority

given to other key management positions, and specific focus

on retention at the São Vicente and São Francisco sites as these

operations approach closure and the need to keep experienced

personnel at site until closure is completed.

Each site has an annual salary review process as well as an

incentive program linked to health, safety, environmental

indicators, production results, and profitability. At the corporate

level, incentive based compensation programs are aligned with

goals and performance. Further, we annually undertake a review

of equity grants to employees to align employees’ behaviour

with long term value creation to recognize performance and as a

retention tool.

We have just begun to see the results of our succession planning

and development program that commenced in late 2012. We

have two managers (see Employee Perspective on page 24) who

moved internationally between operations and there were four

transfers of employees from São Vicente during the closure of

operations to São Francisco.

We have listened to feedback from our internal stakeholders –

our employees. We scheduled informal interviews held in early

2013 to increase communication and to better support our sites

during a time of cost reduction and operational adjustments. We

have increased our formal communications at the management

level, including:

• weeklymeetingsbetweenourcorporateofficewithGeneral

Managers and Vice Presidents

• monthlyoperationsupdates

• bi-annualleadershipteammeetingswhichincludestrategic

sustainability topics including health & safety programs,

labour plans, budgeting and cost management, and

operational updates.

At São Vicente, retention incentives for employees who remain

with the mine were balanced with a comprehensive program of

training, job search assistance and training for professionals and

for unskilled, semi-skilled, and skilled labour to support closure

transition (see Case Study on page 26).


Eliézio Pires da SilvaMaintenance DepartmentSão Vicente

2013 was a year of great expectations. We could feel the activities were changing because of the imminent mine closure. At the end of 2013 I was advised I would have work until the end of 2014, however with reduced activity, my job becomes more volatile. Aura is supporting its workers during this time of transition with training and education, paying 90% of our technical school fees and fuel to travel to the city to study. The Human Resources department is contacting other companies in the region to share information about opportunities and worker qualifications. Even during closure, Aura Minerals has provided us with many opportunities for growth and learning.


Aura identifies and supports future leaders for management roles through the Aura Leadership Program, providing ongoing development opportunities, and ensuring processes for exchanges of technical and management knowledge within the business.

“

“

Underground mine, Aranzazu, Mexico



Since early 2013 in preparation for its pending closure, the

São Vicente Mine has focused on three key areas with respect

to its employees – retention, training, and transition.

The strategy for retaining key personnel includes a retention

bonus and extended healthcare (including 3 months of

benefits after closure), which are linked to the Company’s

continued quality and safety standards performance.

In terms of training, in 2013 the mine formed a partnership

with SENAI (National Service of Industrial Learning) to

enhance or upgrade the skills

of their employees

and increase their

employability.

The employees

selected the

technical

courses in which

they held interest

including: general electrician, production planning and

control, materials management, and logistics.

Employees also participated in on-site training and educational

incentives (after 6 months with the Company) offered in

partnership with a College in Pontes e Lacerda where 90% of

the school fees were subsidized for technical school programs

and 60% for undergraduate and graduate programs.

In 2013 the following programs were attended:

Course Number of Employees

Technical Studies 12

Undergraduate Studies 29

Graduate Studies (including 4 MBAs) 5

Total Number of Internal Courses 73

Total Number of External Courses 13

For those employees who are laid-off during the closing

process, the subsidy will continue to the end of their studies.

CASE

STU

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SÃO VICENTE TRAINING AND MINE CLOSURE PLANNING

LABOUR AND MANAGEMENT RELATIONS (GRI LA4)

Positive employee relations are one of our top workplace

priorities. Our approach to labour relations focuses on positive

and productive relationships with union leadership managed

by human resources professionals at the site level. We support

the right to freedom of association and collective bargaining at

all our operations and we engage with union leaders regularly.

Labour unions have a strong presence in all of our host

countries and all our operations have union representation. At

December 31, 1,247 employees (85%) at the site level were union

members covered by collective bargaining agreements.

The right to collective bargaining and freedom of association

generally does not pose significant operational risk at our sites,

however, the union at our San Andres operation initiated an

illegal strike in late December 2013, which extended into 2014

(for a total of 40 days) in relation to contract renegotiations. This

work stoppage had a negative impact on employees and nearby

communities through the loss of wages and the decrease in

local procurement respectively. At local management’s initiative,

the parties implemented an ongoing tripartite ‘Commission’,

including representatives from the Honduran Ministry of Labour.

This has improved the communication and working relationship

between the Company and the union and its newly formed

leadership as the parties worked through a comprehensive and

difficult restructuring of the workforce.

In Mexico, the union meets regularly with, and enjoys, a

good relationship with management, and takes advantage of

an open-door communication policy. Union board members

at Aranzazu are active participants on safety committees. In

Brazil, the employees of both São Vicente and São Francisco are

represented by the same union and the parties collectively

resolved significant pay for travel time and hours of work issues

successfully, concluding with an updated agreement in

November 2013.

Eliézio Piers da Silva, pit flooded for closure, São Vicente, Brazil


IN THIS SECTION

Our Approach

Occupational Health & Safety Performance

Health & Safety Training

IN THIS SECTION

Our Approach

Occupational Health & Safety

Health & Safety Training

EMBRACING HEALTH & SAFETY

Aura promotes a safe and healthy workplace as a core organizational

value. Our goal is to build a purpose-driven, high-performance safety

culture that achieves and maintains a safe and healthy workplace free of

accidents, injury, and illness.


We believe that work-related injury, accidents, and illness are preventable. We commit considerable time and resources to properly train all our employees and encourage all employees to plan and execute work in a safe and responsible manner, and to take all actions necessary to promote and achieve our goal of being a zero-accident company. We foster corporate culture of trust and commitment to motivate our people to embrace and execute our health and safety strategy.

Each and every employee is encouraged to take personal

responsibility for these standards and behaviours – at work

and at home. We have extensive health and safety standards

and objectives and have communicated these targets to our

employees with the goal of zero accidents. Aura currently has

a low number of accidents – but we believe any accidents are

unacceptable and preventable. Our measurement, monitoring

and communication of our performance are integral steps in

increasing awareness and transparency of our progress on the

road to zero accidents.

OCCUPATIONAL HEALTH & SAFETY

Aura believes that sound safety and occupational health manage-

ment practices are in the best interest of all its stakeholders; em-

ployees, business, shareholders and host communities. All of our

operations and development projects have management-worker

health and safety committees in place that monitor and advise

on occupational health and safety programs and issues. The San

Andres and Aranzazu sites extend this commitment further and

have health and safety topics embedded in their formal union

agreements. (LA9) Our Occupational Health & Safety Policy can be

viewed on our corporate website here .

We track occupational safety performance for both employees

and contractors. (LA7) In 2013, there were no fatalities or

occupational illnesses in our operations. There were no lost time

accidents at either São Francisco or São Vicente in 2013, and

we are pleased to report that in March of 2014, São Francisco

surpassed 5,000,000 hours without a lost time accident

At Aranzazu, 8 lost time accidents resulted in 377 lost days. The

number of lost time accidents remained unchanged over 2012

statistics, however the severity index has improved which we

believe can be attributed to the focus in 2013 on enhanced

training for our Health & Safety supervisors. At San Andres 3 lost

time accidents resulted in 67 lost days – representing a significant

decrease over 2012. Management feels that the safety training

and programs have contributed specifically to awareness and care

regarding safety aspects of the job.

E M B R AC I N G H E A LT H & SA F E T Y

THE COMPANY’S INTERNAL SAFETY CAMPAIGN ON THE ROAD TO OUR DESIRED DESTINATION:

Zero Accidents

OUR APPROACH HEALTH AND SAFETY IS EVERYONE’S RESPONSIBILITY

Fire safety training, Aranzazu Mine, Mexico

Blast hole drill, San Andres, Honduras


http://www.auraminerals.com/files/doc_downloads/2013%20Aura%20Minerals%20Occupational%20Health%20and%20Safety%20Policy_v001_q8io1b.pdf

All of Aura Minerals’ operations have training, counselling, and

prevention programs in place to further educate our employees,

their families, and community members about occupational

health related concerns and serious diseases. All our operations

conduct monthly and annual programs and campaigns. Some of

the programs at our sites in 2013 included:

Company-Wide•Healtheducationcampaignsonawiderangeofhealth

prevention and maintenance topics including: smoking,

diabetes, hypertension, vaccinations, obesity, drugs and

alcohol, STDs/AIDS, birth control methods, and dengue fever

•Allemployeesareencouragedtoprioritizehealththrough

fitness; whether maintaining weight or reducing stress by

taking breaks or spending recreation time participating in

various fitness options. Three of our operations have an on-site

gymnasium, while corporate office employees receive partial

support for fitness club access.

Honduras - San Andres•ProgramstopromotegeneralHealth&Safety,workaccident

prevention (for example Retrocede y Reflexiona – Step Back

and Think), and incentives for Health & Safety reporting

(Vale por la Vida – Value of Life)

Mexico – Aranzazu•SafetyprogramforsupervisorsofenvironmentandHealth&

Safety teams: Resulted in more cooperative and collaborative

efforts and embracing of safety standards, furthering the overall

safety culture and lessening the accident severity rate

•ImplementationofOHSAS18000certificationaudit–an

employee from São Francisco (certified as an auditor)

developed a work plan and changes that would have to be

implemented to pass a first audit

Brazil - (São Francisco/São Vicente)•Specializedmedicalcheck-upsforconditionspotentially

affecting health (custom focused to the employees position)

•PreventionofAccidentsWeek


OCCUPATIONAL SAFETY PERFORMANCE - 2010 - 2013 FREQUENCY INDEX (INJURY RATE)

Salvador MartinezAssistant-SuperintendentFlotation Plant, Aranzazu


“

“

I have worked at the Aranzazu Mine for twenty-five years and enjoy working with Aura because in addition to excellent benefits and above average salaries, management considers every employee’s point of view and responds to our needs and feedback. Workplace health and safety are strongly emphasized; Aura provides the equipment and in-depth training to improve safety awareness and performance.

Luciana Santos Teixeira, Management System Analyst, São Francisco, Brazil

HEALTH & SAFETY TRAINING

5.00

4.00

3.00

2.00

1.00

0.00

AURA YTD 2010

AURA YTD 2011

AURA YTD 2012

AURA YTD 2013

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC


São Francisco General Manager Jota Junior Jose de Azevedo (left) and Health, Safety and Environment Coordinator Fabiano Martins (right) receive an award from Minerios and Minerales Magazine for 5 million hours without a lost time accident (GRI 2.10)

SAFETY AWARD

EMERGENCY BRIGADESEach of our operations must have an emergency brigade by law.

Each of our operations has its own ambulance and all brigades

are composed of a mandatory, minimum number of trained

volunteers per shift who can attend to fires or other emergencies

for the mine site. Our emergency brigades are available to

voluntarily assist in emergency situations in nearby towns or

communities.

SAFETY COMMITTEES (LA6)

All of our operations have a commission that contributes to

conducting safety inspections and suggesting improvements.

Their mandate is to conduct monthly inspections, identify

areas of improvement, and recommend changes or updates

to training modules. A total of 114 employees (representing

approximately 7.8% of the total work force) participate in

these formal joint management-employee health and safety

commissions that help monitor and advise on occupational

health and safety issues.

São Francisco has an additional safety committee that was

created as a result of the implementation of OHSAS 18000. This

commission is formed by leadership members and their role is to

supervise and evaluate the implementation and compliance of

the OHSAS management system, as well as ISO 14001.

At all our operations, our health and safety efforts are guided

by internationally recognized standards, including the

International Cyanide Management Code, Occupational

Health and Safety Management Systems 18000 series and the

International Organization for Standardization Environmental

ISO 14000 series.

São Francisco achieved OHSAS 18001 certification in 2012. San

Andres and Aranzazu have conducted internal audits and are

working towards implementation in 2014.

Aura believes that sound safety and occupational health management practices are in the best interest of all its stakeholders; employees, business, shareholders and host communities.

SÃO FRANCISCO - HOURS WITHOUT A LOST TIME ACCIDENT:

5,000,000+ HOURS

Fire extinguishing training, São Francisco Mine, Brazil




A key priority for Aura is creating lasting relationships with local communities that are built on

mutual respect and trust, and to achieve agreed-upon objectives while

sharing benefits from projects.

IN THIS SECTION

Our Approach

Community Development and Social Investment

Community Feedback

Social Mine Closure Planning


S T R E N GT H E N I N G CO M M U N I T I E S

Aura has implemented a community engagement policy and

plan at each project site, which includes (at minimum) the

following components:

• communityidentificationandanalysis,stakeholder

mapping and engagement with key stakeholders to identify

and understand their interests and key concerns

• informationdisclosureinaccessiblevenuesandmeaningful

formats that can be easily understood by local communities

• proactivecommunityconsultationensuringanopen

dialogue between the Company and its stakeholders

• beyondconsultation,awillingnesstonegotiateandbuild

partnerships to reach mutually accepted outcomes

• ensuringtherearegrievanceresponseprocessesinplace

to receive and respond to complaints and that concerns are

responded to in a timely manner

• encouragingcommunityparticipationinthemonitoring

of social and environmental commitments made by

the Company, and retaining external organizations for

monitoring where it can enhance assurance and credibility

• follow-upwiththecommunitybeyondconsultation

stage, including what risk or mitigation actions will

be implemented and how project impacts will be

monitored

OUR APPROACH

We prioritize community development and engagement at all of our operations within our core corporate responsibility principles, which include: adopting a strategic approach; encouraging community participation and engagement; and sustainable support. (SO1)

COMMUNITY DEVELOPMENT AND SOCIAL INVESTMENT

Aura supports sustainable community development programs

- those that contribute to the long-term strengthening of

community capacity and which demonstrate how the mining

project can help realize that vision. Community investment

funding priority is given to sustainable programs which could

conceivably continue beyond mine closure without the ongoing

support, leadership, and financial reinforcement from the

Company. In 2013 we updated our Community Investment Policy

to better define parameters for sustainable initiatives, creating

consistent processes for receiving requests from the community,

and a documentation system for the tracking of community

investment expenditures including staff time where applicable.

These systems will be implemented and tracked in 2014.

A community development initiative has been implemented

at each project site, which provides opportunities for

communities with interests in our operations to share in the

benefits resulting from our activities, including capacity-building

and social investment projects.

While all our community investment expenditures are

voluntary, the total figure is divided into two categories: funding

negotiated with communities for purposes of obtaining and

maintaining social license to operate that constitute a formalized

part of a community agreement, and community investment

for ongoing community development and maintaining strong

community relationships.

The types of social investment projects implemented by the

Company to date include:

• education

• healthservices

• socialinfrastructure

• resettlementsupport

• sustainableproduction

initiatives

• povertyalleviation

• environmental

conservation

Presentation to community members, Serrote da Laje Project, Brazil


CASE

STU

DY


Antonio Valdez Carbajal primary school is located in

the nearby town of Concepcion del Oro and teaches

children between the ages of six and twelve years old

in grades one through six. The students are mostly from

rural areas, some of them walking up to two hours to get

to class. In the regular educational system, each grade

has its own classroom, (meaning there should be six

classrooms) however this school only had two, putting

together three grades in each room. Patricia Ramirez,

one of the instructors, approached Aranzazu with a

school expansion request to build one more classroom

with the purpose of providing better attention and more

focused levels of education to the children.

This community-initiated request fit within the

parameters of the Company’s social investment criteria,

and Aranzazu approved and supported the construction

of the new classroom in collaboration with teachers and

the municipality.

In a practical sense, the expansion provided the

opportunity to offer more physical spaces in the school

for children of low income families. This modest initiative

had a positive social impact on both the children and

teachers at the school, who felt the

level of support demonstrated

they were valued and worth

investing in, thereby

increasing their sense

of potential and desire

to continue improving

community conditions.

ARANZAZU : PRIMARY SCHOOL EXPANSION

At San Andres, we have worked with the community through a

series of agreements to define priorities on how the mine can

best contribute to development of its impacted communities.

In 2013 San Andres invested $4.27 million into community

investment. Of this amount, $3.6 million was for the new urban

development project in Azacualpa and $0.58 million was spent

on education, health, infrastructure and other community

development and community initiated requests.

At Aranzazu, $90,000 was spent in community investment – the

bulk of which was for an expansion project at a local primary

school (See Case Study on right).

Brazil invested approximately $192,000 in community

development initiatives, including roads and infrastructure

(bridges, a police station) a fire truck restoration and the São

Vicente housing has been donated to become a daycare facility.

The health and education program Programa Mobilizar was held

in Conquista d’Oeste in 2013 where 7,073 participants benefited

from citizenship and healthcare services and participated in

environmental education programs.

OUR 2014 COMMUNITY INVESTMENT TRACKING WILL INCLUDE:

What we support description of the type of initiative supported/focus of company contribution

What was contributed dollars, value of employee time, in-kind contributions

Why we contributedescription of the Company’s connection to the community development program and/or sustainable community initiatives (for example, what the benefits of making this contribution are)

The impact of the contribution description of the outcome or impact of the program or initiative. An assessment of the long-term achievements of this activity, how many people benefited etc.

Where we contribute the specific communities or regions that received benefit from this initiative or contribution

Community investment funding priority is given to sustainable programs which could conceivably continue beyond mine closure without the ongoing support, leadership, and financial reinforcement from the Company.


ARANZAZU

KEY IMPACT OR ISSUE DESCRIPTION ACTIONS TAKEN BY AURA MINERALS

Water The region has suffered severe drought conditions in

recent years and water scarcity has become a major

issue for the mine and community sharing certain water

sources

Aura continues to work with the municipality to build a wastewater treatment plant to reuse more

water and reduce the demand for fresh water from shared sources

Community relations keeps local residents apprised of the situation and updates them when possible

Employment/Unemployment There is concern regarding dependency on the mine for

employment opportunities

Aura understands the sensitivity to this issue which is strongly correlated to a mine closure in the

past (under different ownership) and ensures communication with the community emphasizes

anticipated mine life-of-mine as prolonged and that dependency on the mine for employment is not

a short or mid-term issue of concern

SAN ANDRES


Economic and employment

dependency on the mine

There is concern regarding the level of dependency on

the San Andres mine for employment

Aura is working on economically sustainable development initiatives to expand income options for

local families

Concern has been expressed about employment oppor-

tunities in general, as well as ability for members of local

community to obtain supervisory/higher paid positions

In 2013 the Company offered a total of 40 scholarships (up to a university level) as well as provided

in-house training programs to assist local employees with reaching qualifications required to apply

for supervisory positions

Health, Education and

Infrastructure Services

Dependency on the mine for health, education and

infrastructure services. Lack of capacity of the local

government to provide for these services and the mine

has voluntarily filled this gap

Aura is researching partnerships with external organizations as to how to build local capacity

and ultimately transition health, education, and infrastructure responsibility back to the local

government level

Deforestation Concern regarding deforestation in general and length of

time for trees to grow even with reforestation. Particular

concern regarding the open-pit/eventual rehabilitation

The Company has a robust reforestation program in place. In 2013 Aura rehabilitated

fewer hectares than 2012 as there was less area available to work with


COMMUNITY FEEDBACK (GRI 4.17)

COMMUNITY IMPACTS FEEDBACK BY OPERATION 2013 The following charts outlines community feedback in 2013 and the actions taken by Aura to address these concerns.

Through our ongoing efforts to share information, maintain positive relationships, and develop trust, Aura has learned the most about

the needs and concerns of our local communities. Although at varying levels of sophistication, we have implemented what each site

considers to be most appropriate and approachable mechanism to receive and respond to any community feedback or complaints,

and to ensure that any concerns are responded to in a timely manner.


SÃO VICENTE/SÃO FRANCISCO


Local job opportunities The mines are important sources of employment and income

for the nearby communities and there is concern about the

economic effect upon pending closure

At São Francisco severance packages will be available upon mine closure and there

is transition training to further skills in mining or other jobs, and assistance for those

who wish to transfer to the neighboring projects of São Francisco or Serrote whenever

possible

The São Francisco mine has training programs to build capacity for local communities,

not only in the areas related to skills useful for the mine, but in skills that can be useful

for other jobs

Certain employees have been transferred to other Aura operations, assisted to obtain

certifications so they can apply to other local mining companies

Increase productivity and sustainability for micro-cap companies within the supply

chain in the region (see Case Study on page 21)

RESETTLEMENT (MM9)

The development of the Serrote da Laje copper-gold-iron ore

project in Brazil involves the resettlement of 279 families residing

on 237 properties that are situated within the boundary of the

Serrote conceptual mine plan. The community of Lagoa da Laje

has been partially relocated and will be fully relocated based on

the completion of a separate financing process for the project.

*In 2012 we reported that 260 families residing on 187 properties were part of the resettlement plan, however the full number of affected properties and families increased during the engagement process (GRI 3.10).

SOCIAL MINE CLOSURE PLANNING (MM10)

Mine closure and the ultimate departure of mining operations

from a region will, unless carefully considered, have a

dramatic economic impact on a community. Our community

development program works in partnership with local

communities to develop capacity building, social investment

projects, and training programs in preparation for the social and

economic transition of a mine closure. Our aim is to engage

often and early, manage community expectations, and develop

sustainable opportunities which could conceivably continue

beyond mine closure without ongoing support, leadership, or

financial reinforcement.

Mining operations at São Vicente ceased in November 2013

however milling and production of final tonnage will

continue into 2014. We are planning and preparing for closure as

well as evaluating options regarding the disposition or sale

of physical assets. Transition training and planning for

employees was also initiated in 2013 (see Case Study on

page 26) . This has been a particularly challenging time, as the

mine is faced with balancing the competing priorities of

retaining the skills and technical expertise to properly de-

commission the mine with the long-term interests of its

employees. The mine closure plan is constantly reviewed and

updated.

Reclamation plans at São Vicente include the strategic planning

for the agricultural and farming potential of the area. Certain

portions of the mining concession may be transferred or rented

to interested farmers.

INDIGENOUS COMMUNITIES (MM5)

São Francisco is Aura’s only operation with indigenous peoples’

territories nearby; the Reserva Indígena Sararé and Reserva

Indígena Paukalirajausu. The Company established a $500,000

fund in 2005 and signed an agreement with FUNAI (Fundação

Nacional do Indio – National Indian Foundation) to administer

the distribution of the funds over a 10 year amortization. Our

Brasilia office has an excellent relationship with FUNAI, which

identifies and develops independent expenditure priorities and

also responds to specific funding requests from the communities.


Revegetated area. São Francisco, Brazil


Aura is committed to the mitigation of risk and minimization of environ-

mental impacts, and to the protection of the well-being and sustainability of the environment - now and for future

generations.

RESPECTING THEENVIRONMENT

IN THIS SECTION

Our Approach

Water

Waste Management

Energy and Emissions

Reclamation and Closure

Environmental Protection Expenditures


TOTAL WATER WITHDRAWAL BY SOURCE (m3/yr in 000s) (EN8)

GroundWater

Rainwater Municipalwater supplies or

other water utilities

Our Environmental and Sustainability Policy, which integrates

the application of the precautionary approach, (GRI 4.11) provides

the framework to meet our goals and responsibilities whereby

we implement our environmental policies, procedures, internal

audits, employee training, and emergency response and

prevention techniques. We work in partnership with federal,

state and municipal authorities regarding standards and

compliance on an array of environmental matters, including air

and water quality, waste, hazardous materials, and mine closure

planning. We promote open communication with employees,

communities, and government on all environmental and

sustainability issues at our operations and on our plans, programs

and performance. We provide management and supervisors at

our operations with the resources and authority necessary to

ensure best environmental practices are followed.

All of our sites follow the ISO 14001 continuous improvement

cycle for environmental compliance – a well known international

best practice model benchmarking performance from

commitment and policy through planning, implementation,

evaluation, and review.

WATER

Water is one of our top material sustainability issues – as a

mining company and as a responsible corporate citizen

recognizing water as an essential human right. Our social

obligation to respect the environment and the communities

where we operate is combined with increasingly important

strategic planning and commitment to methods and

technologies supporting the optimal use of freshwater and the

recycling of wastewater. Water management and reduction of

freshwater needs are a priority to Aura and in this regard we

work closely with local water authorities at each site to design

and implement custom water management and monitoring

programs that accommodate the availability conditions and

concerns of each site.

The San Andres Mine and our Brazilian mines are situated in re-

gions with heavy seasonal rain, and as a result, water scarcity is not

a concern in these areas. Our operation under the most pressure

regarding water availability is the Aranzazu Mine, as continued

drought conditions in some parts of Mexico have created stress on

R E S P EC T I N G T H E E N V I R O N M E N T

OUR APPROACH

Our environmental program is focused on planning, protection and compliance with environmental laws and regulations in all of the jurisdictions where we operate and in all stages of the mine-life cycle; from exploration through pre-development, development, production and closure planning. We fully integrate international environmental standards and best practices into all our operations

TOTAL WATER WITHDRAWAL (m3/yr in 000s) (EN8)

Aranzazu SanAndres

SãoFrancisco

SãoVicente

1,800

1,600

1,400

1,200

1,000

800

600

400

200

0

1,800

1,600

1,400

1,200

1,000

800

600

400

200

0

2013 2012

Coffee plantation on top of sterile material slope, San Andres, Honduras

2013 2012

SurfaceWater


certain water resources, including the drinking water supply for the

adjacent community. To help minimize our impact on freshwater,

Aura, in partnership with local Municipal Authorities, are working

towards the construction of a wastewater treatment plant, which

will reduce the amount of freshwater required by the mine.

In 2013, our total water withdrawal (EN8) was approximately

3.6 million cubic metres (m3). This figure is up from 2.9 million

m3 in 2012 due to an increase in production at the San Andres

Mine, however it should also be noted that more than half of the

water withdrawal (1.4 million m3) came from rainwater collected

and stored at San Andres. Although São Vicente is closing down,

mineral processing continues, which requires ongoing water

consumption.

The extraction of surface water is regulated by respective

national authorities at all operations. Permits are issued taking

into consideration that the total amount of water expected to be

withdrawn will not have significant impacts on the water flow or

on surrounding flora and fauna.

To minimize impact and consumption from freshwater sources,

our operations reuse as much water as possible. Our gold mines

all work under a ‘closed loop’ system, where water is constantly

recycled throughout the process. The only discharge takes

place during the rainy season as the ponds can overflow and

the excess water is discharged after going through a treatment

neutralization process. Every discharge point is monitored to

ensure water quality standards are maintained. Aura’s total water

discharge in 2013 was 1,088,000 m3, which represents 30% of

our total water consumption. (EN21)

WASTE MANAGEMENT ( M M 3 )

Mining operations generate both hazardous and non-hazardous

waste materials which require integrated plans for responsible

and diligent storage, re-use, recycling or disposal. Aura disposes

of its hazardous and non-hazardous waste in accordance with its

waste management plans in combination with local regulatory

requirements and waste processing capacity.

With respect to process waste such as tailings and waste rock,

we take great care in the design and maintenance of our

reservoir and acid rock drainage management, and the

management of hazardous substances to prevent leakage or

threats to the environment.


NON-HAZARDOUS WASTE

Topsoil Removed and deposited in an organic soil dump for use at a later date for remediation processes or reforestation activities

Waste Rock Non mineral containing rock is stock-piled for future attention in conjunction with rehabilitation/mine closure plans

Non-organic recyclable waste (glass, paper, plastic or wood)

Recycled where possible

Non-organic waste Disposed of in landfills

Organic waste Composted where possible or transported to landfill

HAZARDOUS WASTE

Tailings Aranzazu is the only operation with tailings. The dam was designed and built to international best practice standards and is monitored and inspected regularly to prevent any threats to water quality. No tailings are disposed in or near water supplies

Sludge San Andres is the only operation with sludge and has a lined sludge container, which is restricted to a confined area

Burned oil, transmission fluids and lubricants

In most cases are sold for use as fuel by a third party

Containers in contact with hazardous substances

Sold for use as fuel or incinerated

Batteries Sent back to the supplier

Scrap Sold to a third party for melt down or recycling

Ongoing waste dump slope remediation, São Vicente, Brazil

Our waste is classified as non-hazardous and hazardous waste

and is managed as described below:


ENERGY AND EMISSIONS (EN3/EN4)

As part of Aura’s company-wide risk assessment and optimization

strategy, energy consumption is monitored and evaluated on

an ongoing basis for its direct effect on operational costs and

impact on greenhouse gas emissions. Our energy consumption is

predominantly from diesel, followed by purchased electricity.

At present, we do not have many renewable energy sources at

our operations, however the electricity purchased in Brazil comes

predominantly from hydro-electric power, and São Vicente and

São Francisco converted to ethanol as fuel for its light vehicles.

Brazil has a biodiesel mandate requiring the use of B5 Biodiesel

(blend of conventional diesel and 5% biodiesel) in a country-wide

improvement in fuel mix.

Our biggest source of emissions is diesel consumed in varying

parts of the mining process, therefore our efforts to reduce

emissions have been predominantly focused on diesel. At all

operations we are making efforts to optimize the logistical aspects

of transportation in and out of the mine, as well as ensuring

maximum capacity loads for trucks on every trip. In Brazil, this

includes planning closer dump sites and inpit dumping where

resources are not compromised. All operations have ongoing

training programs for operators to ensure they are driving vehicles

in the most energy efficient way.

GREENHOUSE GAS EMISSIONS (EN16)

To calculate our greenhouse gas emissions we use the World

Business Council for Sustainable Development (WBCSD)/ World

Resources Institute (WRI) Greenhouse Gas Protocol, which is the

most widely used international accounting tool to understand,

quantify, and manage greenhouse gas emissions. Our direct

(Scope 1) emissions include energy from renewable and non-

renewable sources and process emissions from explosives. Indirect

(Scope 2) emissions include energy consumption from purchased

electricity. The greenhouse gas calculations for explosives are

based on the Australian National Greenhouse Accounts Factors.

Our total emissions for 2013 were 88,567 tCO2e, which is 10%

lower than our total emissions in 2012 due predominantly to the

closure of the São Vicente Mine.


TOTAL DIRECT AND INDIRECT GREENHOUSE GAS EMISSIONS BY SOURCE (tCO2e)

GHG EMISSIONS BY SOURCE GHG EMISSIONS

Aranzazu SanAndres

SãoFrancisco

SãoVicente

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

Maria Dolores de LaraLaboratory CoordinatorAranzazu

Our lab is the department of quality control at

Aranzazu and works closely with the Environmental

department to ensure we comply with environmental

and emissions regulations and to identify areas of

improvement. The work conducted in the lab has

improved greatly over the past four years: Aura provides

excellent support and empowers employees to develop

and implement new ideas. This workplace culture has

resulted in motivated and committed employees and an

increased staff retention rate.

Diesel (Fuel Oil)

2% Diesel S10

1% LPG

>1% Gasoline

Emulsions 1%

Explosives (ANFO) 1%

>1% Ethanol


“

“

50%45%Purchased

Electricity

Aura promotes open communication with employees, communities and government on all environmental and sustainability issues at our operations and on our plans, programs and performance. We provide management and supervisors at our operations with the resources and authority necessary to ensure best environmental practices are followed.

2013 2012



CARBON INTENSITY To understand efficiencies in our processes and the significance

of any of our future GHG reduction efforts, we chose to measure

carbon intensity per tonne of material mined (moved) and carbon

intensity per unit (ounces or pounds) produced.

Carbon intensity is highest at our Aranzazu operation due to the

mining method and smaller equipment, therefore taking more

trips to transport the same amount of ore over the same distance.

Additionally, the underground equipment is diesel, generating

more CO2 than gasoline equipment.

Year-over-year performance:

• SanAndresreduceditscarbonintensityover2012by13%,

through equipment optimization and efficiency planning,

including increased processing throughput (from 800 tonnes/

hour to approximately 1,050-2,000 tonnes/hour) and strategic

maintenance stops reducing unplanned stoppage time

• CarbonintensityatAranzazuincreasedby2%in2013,dueto

slightly longer material transport hauls

• ThesharpdecreaseatSãoVicentewastheresultofmining

operations considerably reduced throughout the year and

completely ceasing in November of 2013

• Thehigher2013valueforSãoFranciscoreflectsthedeeper

mining (end of mine-life) and associated longer average haul

distance from the pit, as well as the additional electricity used

to process a higher tonnage of ore

Aranzazu San AndresSão

Francisco São Vicente Total

Total land disturbed and not yet rehabilitated 16 123 476 358 973

Total land disturbed and rehabilitated so far 5 91 74 42 212

Total land disturbed in 2013 0 28 1 0 29

Total amount of land rehabilitated in 2013 0 5 12 7 24

Aranzazu(oz gold)

SanAndres

(oz gold)

SãoFrancisco(oz gold)

SãoVicente

(oz copper)

25.00

20.00

15.00

10.00

5.00

0San

Andres São

Francisco São

Vicente

1000.00

800.00

600.00

400.00

200.00

0.00

CARBON INTENSITY (tCO2e)

PER LB COPPER PER OZ GOLD PER TONNE MOVED

Aranzazu

1.60

1.40

1.20

1.00

0.80

0.60

0.40

0.20

0.00

2013

2012

AMOUNT OF LAND DISTURBED AND REHABILITATED (IN HECTARES) (MM1)

New Reforestation Technique, San Andres, Honduras

Note: Figures do not align precisely with those reported in 2012 due to changes in what was considered ‘disturbed land’.


RECLAMATION AND CLOSURE (MM1/MM10)

Aura is committed to the rehabilitation and reclamation of land

we disturb in the mining process. Environmental stewardship

at our sites integrates the mitigation of risks and impacts while

pursuing opportunities for conservation and rehabilitation of

land and habitats outside our mining concessions or property

boundaries affected by our operations. It also includes

conservation and remediation efforts on land that is not disturbed

by our mining operations. All sites have nurseries to collect and

nurture native species of plants to be used for reforestation,

remediation and compensatory efforts.

All our operations have approved and updated mine closure plans

in place (including the Serrote Project, which submitted a concep-

tual mine closure plan as part of its environmental permit applica-

tion). Total undiscounted mine closure obligations (environmental

restoration and closing costs) for the company at the end of 2013

were estimated at $29.5 million (compared to $34.8 million at the

end of 2012) and are expected to be incurred through 2026.

We regularly examine and update our mine closure obligation

estimates. In 2013 we recorded an increase in the provision

for mine closure and restoration related to the San Andres and

Aranzazu mines, offset by a decrease in the provisions related to

the Brazilian Mines.

Reclamation expenditures between 2014 and 2019 are

expected to be approximately $6.2 million - $4.4M in 2014 and

$1.8 between 2015 and 2019.

Mining activities at the São Vicente Mine were originally an-

ticipated to cease in 2013. While mining has indeed stopped,

processing activities continue and these facilities will remain

operational until mid-2014 when all operations will cease, with

decommissioning activities scheduled to commence within the

year (refer to Strengthening Communities for details regarding the

social aspects of the mine closure plan).

In 2013 the San Andres Mine implemented an innovative and

experimental method of reforestation technique that has had very

positive results. The new method represents a move from manual

tree planting to a mechanical process for reforestation that is

more efficient and effective by accessing areas that are difficult

to reach manually or are located in dangerous locations

(slope). This technique results in better roots for the seed, and

due to the uniformity of the soil coverage also reduces erosion

(photo page 40).

BIODIVERSITYAura makes every effort to protect and preserve ecosystems,

biodiversity, and affected species. All of our sites have conducted

assessments to identify any critical or endangered flora or fauna.

None of our operating sites contain any at-risk or endangered

species of flora or fauna, nor do any operating property conces-

sions contain any habitats or species requiring specific protecting

or restoring.


CASE

STU

DY

In 2013 the San Andres Mine signed an agreement to collaborate on the biodiversity

protection and management plan of the Wildlife Refuge and Biological Reserve of

ERAPUCA, located within the municipality of La Union in Honduras. The partners in

the project include the San Andres Mine, the National Institute of Conservation, Forest

Development, Protected Areas and Wildlife, the municipalities that share ERAPUCA, and

an independent consulting firm. While this collaboration is still in early formation, the

San Andres Mine must rehabilitate areas outside the boundaries of its mining concession

as a commitment embedded in its mining agreement, and the Mine is hopeful that the

ERAPUCA Reserve will be a very worthwhile environmental and biodiversity endeavour

to help meet this requirement .

SAN ANDRES: BIODIVERSITY AGREEMENT

The ERAPUCA Wildlife Refuge and Biological Reserve

ENVIRONMENTAL PROTECTION EXPENDITURES (EN30)

Aura makes and measures environmental protection expenditures

as part of our commitment to the protection and long-term

sustainability of the environment, our environmental risk

mitigation and prevention programs, and to track performance of

our environmental management system.

Expenditures are divided into two categories: (i) waste disposal,

emissions treatment and remediation costs; and (ii) prevention

and environmental management costs. Examples of some of

our environmental protection expenditures include monitoring

equipment for dust, air, noise and soil analysis, the classification

of types of discharges, incineration expenses (oil and other

pollutants), storage of hazardous wastes, insurance for

environmental liability and, if applicable, clean-up costs.

Aura incurred approximately $5.3 million* in environmental

protection expenditures in 2013.

* This figure represents a $1.6M increase over 2012, which was incorrectly stated in 2012 as $6.12M due to inconsistencies between operations as to the classification of what constituted environmental protection expenditures.


ECONOMIC PERFORMANCE INDICATORS Economic Performance ECI Approximate Economic Benefits to Local Communities

(Values are expressed in thousands of US dollars) Aranzazu San Andres Brazilian Mines Total

Community Investment $90 $4,270 $192 $4,552 Market Presence EC6. Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.

Aranzazu San Andres São Francisco São Vicente Average

Percentage of suppliers from nearby communities 4.0% 4.0% 3.0% 10.0% 5.3%

Percentage of suppliers from nearby States or Provinces 49.0% 1.0% 25.0% 40.0% 28.8%

Percentage of suppliers from the rest of the country 45.0% 65.0% 55.0% 40.0% 51.3%

Percentage of suppliers from abroad 2.0% 30.0% 17.0% 10.0% 14.8%

Total 100% 100% 100% 100% 100%

Total Production

Gold (oz) Copper (lb)

Aranzazu — 13,626,982

San Andres 65,424 —

São Vicente 36,669 —

São Francisco 106,894 —

Total 208,987 13,626,982

KEY PERFORMANCE DATA


K E Y P E R F O R M A N C E DATA

LABOUR PRACTICES Aspect: EmploymentLA1. Total workforce by employment type, employment contract, and region.

Aranzazu San Andres São Francisco São Vicente Serrote Brasilia office Corporate Office Total

Men Women Men Women Men Women Men Women Men Women Men Women Men Women

Total number of employees 486 82 325 61 267 31 135 14 25 4 5 4 13 11 1,463

Permanent contract 482 80 289 51 496 60 135 14 25 4 5 4 13 11 1,669

Temporary contract 4 2 36 10 10 0 0 0 0 0 0 0 0 0 62

Workers 440 76 266 53 230 30 124 13 23 3 1 3 0 0 1,262

Supervisors 36 5 40 6 23 1 8 1 2 1 2 1 0 0 126

Executives 10 1 19 2 14 0 3 0 0 0 2 0 0 0 51

Contractors 125 5 354 66 0 0 51 25 0 0 0 0 0 0 626

Total 611 87 679 127 267 31 186 39 25 4 5 4 0 0 2,065

Honduras 0 0 315 61 0 0 0 0 0 0 0 0 0 0 376

Brazil 0 0 2 0 267 31 135 14 25 4 5 4 0 0 487

Mexico 484 82 0 0 0 0 0 0 0 0 0 0 0 0 566

Canada 0 0 0 0 0 0 0 0 0 0 0 0 13 11 24

Foreigners 2 0 8 0 0 0 0 0 0 0 0 0 0 0 10 Aspect: Labour/Management Relationships LA4. Percentage of employees covered by collective bargaining agreements.

Aranzazu San Andres São Francisco São Vicente Total

Total number of employees covered by collective bargaining agreements 460 340 298 149 1247

Percentage of total employees covered by collective bargaining agreements 81% 88% 100% 100% 85%

Aspect: Occupational Health And Safety LA6. Percentage of total workforce represented in formal joint management worker health and safety committees that help monitor and advise on occupational health and safety programs


Number of employees that participate in health and safety committees 38 47 22 7 114

Percentage of employees represented in health and safety committees 6.7% 12.2% 7.4% 4.7% 7.8%

Number of formal committees in place 3 2 2 1 8



Aspect: Occupational Health And Safety LA7. Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities by region1


Men and Women Men Women Men Women Men Women Men and Women

Number of lost days2 377 67 0 0 0 0 0 444

Number of absentee days 4,790 1,682 403 1,717 51 538 15 9,196

Number of accidents3 8 3 0 0 0 0 0 11

Number of occupational diseases 0 0 0 0 0 0 0 0

Number of deaths 0 0 0 0 0 0 0 0 (1) Data is aggregate for all employees – gender data was not available at all sites for 2013(2) Lost days are days where an employee cannot return to work for the next shift due to injury (3) Number of accidents are those accidents which generate lost days

Frequency index rate under North American Standards

(based on 200,000 hours worked) Aranzazu San Andres São Francisco São Vicente

Frequency index (lost time accident rate) 1 0.68 0.20 0.00 0.00

Severity index2 31.13 4.41 0.00 0.00

Frequency index rate under Latin American Standards

(based on 1,000,000 hours worked) Aranzazu San Andres São Francisco São Vicente

Frequency index (lost time accident rate)1 3.39 0.99 0.00 0.00

Severity index2 155.66 22.04 0.00 0.00 Aspect: Training

LA10. Average hours of training per year per employee by employee category


Men and Women Men Women Men Women Men Women Men and Women

Workers 3,466 1,139 43 7,905 1,031 4,996 837 19,417

Supervisors 280 307 26 791 34 699 9 2,146

Executives 0 186 7 481 0 179 0 853

Contractors 3,384 4,151 1 11,710 1,417 1,878 943 23,484

Total 7,130 5,783 77 20,887 2,482 7,752 1,789 45,900

Average per gender N/A 17.79 1.26 78.23 80.06 57.42 127.79

42.55Average total 12.55 15.18 78.42 64.03

(Note) Data is aggregate for all employees – gender data was not available at all sites for 2013

(1) Frequency index refers to the frequency of lost time accidents relative to the total time worked by the total workforce multiplied by a factor of 1,000,000 in Latin America and a factor of 200,000 in North America. Lost days are days where an employee cannot return to work for the next shift due to injury

(2) Severity index refers to the total number of lost days relative to the total time worked by the total workforce multiplied by a factor of 1,000,000 in Latin America and a factor of 200,000 in North America



SOCIETY PERFORMANCE

Closure Planning

MM10. Number and percentage of operations with closure plans


Number of company operations that have closure plans updated and approved.

1 1 1 1 4

ENVIRONMENT PERFORMANCE INDICATORS 2013

Energy

EN3. Direct energy consumption by primary energy source.


Direct renewable energy sources:

Ethanol (l) - process usage 0 0 509,679 400,415 910,094

Ethanol (l) - vehicle usage 0 0 56,631 44,849 101,480

Total Ethanol 0 0 0 0 0

Direct non-renewable energy sources: 0 0 0 00 0

Diesel (Fuel oil-l) 2,774,722 11,385,364 9,175,148 23,335,234

Diesel S5 (Fuel oil-l) 0 0 458,757 2,449,219 2,907,976

Gasoline (l) 129,836 88,939 3,553 1,724 224,052

LPG (tonnes) 0 0 380 9 390

LPG (l) 7,109 225,429 0 0 232,538

Ammonium nitrate (ANFO - tonnes) 669 1,534 2,880 0 5,083

Emulsions (tonnes) 103 48 3,572 908 4,630

EN4. Indirect energy consumption by primary source.


Purchased Electricity (MWh) 22,317 446 34,754 13,842 71,359


WaterEN8. Total water withdrawal by source


Total volume of water (m3) withdrawn from:

Surface water 0 106,224 925,368 392,766 1,424,358

Ground water 690,555 0 0 0 690,555

Rainwater collected directly and stored 0 1,374,546 0 1,487 1,376,034

Municipal water supplies or other water utilities. 0 126,891 0 0 126,891

Total 690,555 1,607,662 925,368 394,253 3,617,838

Emissions, Effluents, and WasteEN16. Total direct and indirect greenhouse gas emissions by weight

Direct Emissions - Scope 1 (tCO2e)


Stationary and mobile combustion

Direct renewable energy sources:

Ethanol 0 0 83 66 149

Direct non-renewable energy sources:

Diesel (Fuel oil) 8,324 34,156 27,525 0 70,006

Diesel S10 (Fuel oil) 0 0 551 2,939 3,490

Gasoline 260 178 7 3 448

LPG 11 338 1,115 27 1,491

Process emissions (Explosives)

Explosives (ANFO) 114 261 490 0 864

Emulsions 18 8 607 154 787

Total 8,726 34,941 30,378 3,189 77,235

Total direct emissions in tCO2e 77,235



Indirect Emissions - Scope 2 (tCO2e)

Purchased electricity 10,154 409 2,229 888 13,679

Total indirect emissions in tCO2e 13,679

Totals per mine 18,880 35,350 32,607 4,077 90,914

Total emissions (tCO2e) 90,914

Emissions, Effluents, and WasteEN21. Total water discharge by quality and destination.

(m3/yr) Aranzazu San Andres São Francisco São Vicente Total

Volume of planned and unplanned water discharges in cubic meters per year by

Surface water 0 0 899,763 2,928 902,691

Ocean 0 0 0 0 0

Ground water 0 0 0 0 0

Water treatment plant 0 126,891 58,491 675 186,057

Total 0 126,891 958, 254 3,603 1,088,748

Percentage water treated 17%

Emissions, Effluents, and WasteMM3. Total amounts of overburden, rock, tailings, and sludges and their associated risks

(ktonnes) Aranzazu San Andres São Francisco São Vicente Total

Overburden, rocks 2,203 3,851 6,727 0 12,781

Tailings 771 0 0 0 771

Sludges 0 7 0 0 0

OverallEN30. Total environmental protection expenditures and investments by type

(Thousands of USD) Aranzazu San Andres São Francisco São Vicente Total

Total expenses related to the environmental area $54 $1,993 $2,700 $588 $5,334

Expenses related to waste disposal, emissions treatment, and remediation $17 $1,606 $488 $388 $2,499

Expenses related to prevention and environmental management $16 $387 $2,212 $199 $2,814



STANDARD DISCLOSURE DESCRIPTION LOCATION (source, section or page)

STRATEGY AND ANALYSIS

1.1 Statement of the most senior decision-maker of the organization Message from the President and CEO, Page 8

1.2 Description of key impacts, risks and opportunities About Aura Minerals, Page 4-7

Annual Information Form (AIF), Pages 8-62 and Pages 66-72

ORGANIZATIONAL PROFILE

2.1 Name of the organization About Aura Minerals, Page 2

2.2 Primary brands, products and/or services About Aura Minerals, Page 4-5

2.3 Operational structure of the organization About Aura Minerals, Page 4

AIF, Page 5

2.4 Location of organization’s headquarters About Aura Minerals, Page 4

2.5 Number of countries where the organization operates and names of countries with major operations About Aura Minerals, Page 4

Company Website

2.6 Nature of ownership and legal form AIF, Page 5

2.7 Market served (including geographic breakdown, sectors served and types of customers/beneficiaries) About Aura Minerals, Page 5

Company Website

AIF, Page 6

2.8 Scale of the reporting organization About Aura Minerals, Page 4-5

Investing in Our People, Page 23

AIF, Page 5

2.9 Significant changes during the reporting period regarding size, structure and ownership There were no significant changes in size or ownership during the reporting period, however the Company re-located its Corporate office to Toronto in February 2013.

2.10 Awards received in the reporting period Health & Safety, Page 30

REPORT PARAMETERS

3.1 Reporting period for information provided January 1-31, 2013

About this Report, Page 2

3.2 Date of most recent previous report, if any 2012 Corporate Responsibility Report


3.3 Reporting cycle Annual


GRI CONTEXT INDEX


http://sedar.com/GetFile.do?lang=EN&docClass=1&issuerNo=00008808&fileName=/csfsprod/data149/filings/02182003/00000001/s%3A\Vancouver\Meghan_Pearson\935535-Aura-AIF.pdf


http://www.auraminerals.com/Operations/Operations-Overview/default.aspx


http://www.auraminerals.com/Operations/Operations-Overview/default.aspx



http://www.auraminerals.com/files/doc_financials_mda/CR%20Reports/AuraMinerals-CorporateResponsibilityReport2012_v001_c3l001.pdf

G R I CO N T E N T I N D E X


3.4 Contact point for questions regarding the report or its contents Inside back cover

3.5 Process for defining report content About This Report, Page 2-3

3.6 Boundary of the report About This Report, Page 2

3.7 Limitations on the scope or boundary of the report About This Report, Page 2

3.8 Basis for reporting on joint ventures Not applicable. Aura Mineral had no joint ventures in 2013

3.9 Data measurement techniques and bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of indicators and other information in the report

Unless otherwise indicated, the measurement and calculation of data in this report followed GRI guidance

3.10 Explanation of the effect of any re-statements No significant effects. Minor restatements are noted on pages 35, 40, 41

3.11 Significant changes in scope, boundary or measurement from previous reporting periods None

3.12 Table identifying the location of Standard Disclosures in the report GRI Content Index, Pages 48-52

3.13 Policy and current practice with regard to seeking external assurance About This Report, Page 2

GOVERNANCE COMMITMENTS AND ENGAGEMENT

4.1 Governance structure of the organization including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight Governance and Guidance, Page 15

2014 Notice and Management Information Circular, Pages 8-10

4.2 Indication whether chair of the highest governance body is also an executive officer The Chair is not an Executive Officer

Governance and Guidance, Page 15

4.3 Number and gender of members of the highest governing body that are independent and/or non-executive members Governance and Guidance, Page 15

Information Circular

AIF, Pages 65-66

4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body Governance and Guidance, Page 15-16

4.5 Linkage between compensation for members of the highest governance body, senior managers, and executive and the organizations performance (including social and environmental performance)


Information Circular, Pages 10-21

4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided Governance and Guidance, Page 14

Code of Business Conduct and Ethics

AIF, Page 66

4.7 Process for determining the composition, qualifications and expertise of the members of the highest governing body and its committees, including any consideration of gender and other indicators of diversity


Information Circular

4.8 Internally developed statements of mission, values, codes of conduct and principles relevant to economic, environmental and social performance and status of their implementation Vision and Mission, Page 7

Code of Business Conduct and Ethics

Environmental Policy

Community Engagement and Development Policy


http://www.auraminerals.com/files/doc_financials_mda/AGM%20Materials/2014/Information%20Circular%20-%20version%202.pdf




http://www.auraminerals.com/files/doc_downloads/Code%20of%20Business%20Conduct%20and%20Ethics%20-%202013%20-%20ENGLISH.pdf



http://www.auraminerals.com/files/doc_downloads/Code%20of%20Business%20Conduct%20and%20Ethics%20-%202013%20-%20ENGLISH.pdf



4.9 Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct and principles

Governance and Guidance: Page 16

AIF, Pages 4-5

Information Circular, Schedule A

4.10 Process for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental and social performance Governance and Guidance, Page 15

4.11 Explanation of whether and how the precautionary approach is addressed by the organization Respecting Our Environment, Page 37

Environmental Policy

4.12 Externally developed economic, environmental and social charters, principles or other initiatives to which the organization subscribes or endorses Governance and Guidance, Page 18

4.13 Memberships in associations and/or national/international advocacy organizations Governance and Guidance, Page 18

4.14 List of stakeholder groups engaged by the organization Governance and Guidance, Page 17

4.15 Basis for identification and selection of stakeholders with whom to engage Governance and Guidance, Page 17

4.16 Approaches to stakeholder engagement, including frequency of engagement by type by stakeholder group Governance and Guidance, Page 17

Strengthening Communities, Page 32

4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting

Strengthening Communities, Page 33-35


PERFORMANCE INDICATOR DESCRIPTION LOCATION

ECONOMIC

Disclosure of Management Approach Creating Economic Value, Page 20

Aspect Economic Performance

EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments

Creating Economic Value, Page 20

Key Performance Data, Page 42

Aspect Market Presence

EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation Creating Economic Value, Page 21


ENVIRONMENTAL

Disclosure of Management Approach Respecting our Environment, Page 37






Aspect Energy

EN3 Direct energy consumption by primary energy source Respecting our Environment, Page 39


EN4 Indirect energy consumption by primary source Respecting our Environment, Page 38


Aspect Water

EN8 Total water withdrawal by source Respecting our Environment, Page 38-39


Aspect Biodiversity

MM1 Amount of land (owned or leased, and managed for production activities or extractive use) disturbed or rehabilitated Respecting our Environment, Page 41

Aspect Emissions, Effluents and Waste

EN16 Total direct and indirect greenhouse gas emissions by weight Respecting our Environment, Page 39


EN21 Total water discharge by quality and destination Respecting our Environment, Page 38


MM3 Total amounts of overburden, rock, tailings, sludges and their associated risk Respecting our Environment, Page 38


EN23 Total number and volume of significant spills. None

Aspect Overall

EN30 Total environmental protection expenditures and investments by type Respecting our Environment, Page 41


LABOUR PRACTICES AND DECENT WORK INDICATORS

Disclosure of Management Approach Investing in our People, Page 23

Aspect Employment

LA1 Total workforce by employment type, employment contract and region by gender Investing in our People, Page 23


Aspect Labour/Management Relations

LA4 Percentage of employees covered by collective bargaining agreements Investing in our People, Page 26


MM4 Number of strikes and lock-outs exceeding one week’s duration Investing in our People, Page 21






Aspect Occupational Health & Safety

LA6 Percentage of total workforce represented in formal joint management–worker health and safety committees that help monitor and advise on occupational health and safety programs Health & Safety, Page 30


LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work related fatalities by region and by gender. Health & Safety, Page 29


LA9 Health & Safety topics covered in formal agreements with trade unions Health & Safety, Page 28

Aspect Training and Education

LA10 Average hours of training per year per employee by employee category Investing in our People, Page 24



HUMAN RIGHTS INDICATORS

Disclosure of Management Approach Governance and Guidance, Page 15

Aspect Non-Discrimination

Total number of incidents of discrimination and actions taken None


Aspect Child Labour

HR6 Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective elimination of child labor Governance and Guidance, Page 15

Aspect Indigenous Rights

MM5 Total number of operations taking place in or adjacent to Indigenous Peoples’ territories, and number and percentage of operations or sites where there are formal agreements with Indigenous Peoples’ communities

Strengthening Communities, Page 35

SOCIETY

Disclosure of Management Approach Strengthening Communities, Page 32

Aspect Local Community

SO1 Nature, scope and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating and exiting Strengthening Communities, Page 32-35

MM9 Sites where resettlements took place, the number of households resettled in each, and how their livelihoods were affected in the process Strengthening Communities, Page 35

MM10 Number and percentage of operations with closure plans. Strengthening Communities, Page 35

Respecting Our Environment, Page 41


PRODUCT RESPONSIBILITY

Aspect Customer Health and Safety

PR1 Life cycle stages in which health and safety impacts and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures Aura Minerals’ products do not present health or safety risks to our consumers. Typical product labeling, marketing, customer privacy and product use requirements do not apply to our products



WE WELCOMEYOUR FEEDBACK

QUESTIONS, COMMENTS, OR FEEDBACK ABOUT THIS REPORT? (GRI 3.4)

PLEASE CONTACT Gonzalo Rios, VP Corporate Responsibility

[email protected]

AURA MINERALS INC.155 University Avenue, Suite 1240

Toronto, ON, Canada M5H 3B7

(416) 649-1033

www.auraminerals.com

mailto:grios%40auraminerals.com?subject=

http://www.auraminerals.com/

WWW.AURAMINERALS.COM

http://www.auraminerals.com/

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