ITOGON-SUYOC RESOURCES, INC.

APX acquired Itogon-Suyoc Resources, Inc. (ISRI) in June 2015, becoming the assignee-company of all mining assets of the former Itogon-Suyoc Mines, Inc. (ISMI) —The Sangilo Mine in Itogon and the Suyoc Mine in Mankayan, both located in Benguet Province, and the Benit Claim in Labo, Camarines Norte.

SANGILO MINE

ISO 14001:2015 (Environmental Management System)-certified by TUV Rheinland. The scope of the certification is exploration, mining and processing of gold and silver ore for Sangilo & Suyoc minesite.

SUYOC MINE

ISO 14001:2015 (environmental management system)-certified by the TUV Rheinland (scope: mining exploration and project development).

2024 ANNUAL REPORT  

SANGILO MINE

MINING OPERATIONS

The Sangilo mine achieved a total production of 169,776 tonnes with an average grade of 3.76 grams per tonne (gpt) in 2024, compared to 161,077 tonnes with an average grade of 3.78 gpt in 2023. Mine development in 2024 included 2,621 meters of off-vein advancement, 345 meters of on-vein development, and the rehabilitation of 256 meters of old drives. In comparison, 2023 attained 3,460 meters of off-vein development, 474 meters on-vein, and 83 meters of old drive rehabilitation.

BIG BROTHER-SMALL BROTHER PROGRAM

The Big Brother-Small Brother (BBSB) program has expanded from one to three associations: the Balinguay-Sangilo Small Scale Miners Association (BSSSMA), the Demang Livelihood Association (DLA), and the Simpa-Tipong Small Scale Miners Association (SITISSMA). BSSSMA and DLA renewed their contracts in 2024, while SITISSMA joined in December 2024.

In 2024, the BBSB groups, focusing on narrow veins with a cut-off grade of 3.50 grams per tonne, contributed 18% to total mine production (31,082 metric tonnes at an average grade of 6.85 grams per tonne), showing a 68% increase from the previous year. The BBSB Program’s financial contributions in 2024 amounted to Php76.37M, including Php1.53M paid to the national government as expanded withholding tax.

MILL OPERATIONS

Since 2023, significant advancements have optimized leaching processes and facility operations. Transitioning from Carbon-in-Pulp (CIP) to Carbon-in-Leach (CIL) has enabled simultaneous leaching and gold adsorption, reducing processing time, minimizing gold losses, and significantly enhancing efficiency. Carbon transfer methods were upgraded from airlifts to transfer pumps, expediting and

streamlining operations. The Mill has also transitioned from carbon ashing to carbon stripping and gold electrowinning, a more sustainable and scalable process that permits the reuse of activated carbon while reducing emissions. This upgrade shifted production from gold buttons to dore bars, an alloy of gold and silver.

Additional enhancements include the installation of a D-6 hydrocyclone cluster to improve grinding discharge classification, the enlargement of the ball mill sump (from 4×3 meters to 6×4 meters) to enable higher milling rates, and the reconditioning of a second 2-foot cone crusher to ensure continuous crushing during HP-100 maintenance. Cyanide, Caustic Soda, and Lime mixing tanks were introduced for precise reagent preparation and supply, while new and replacement shell-and-tube heat exchangers significantly boosted carbon stripping efficiency.

These advancements have greatly improved the efficiency and sustainability of leaching processes and facility operations.

MILLING PLANT PERFORMANCE METRICS

In 2024, total tonnes milled increased to 148,021 at an average mill head grade of 3.10 g/t Au, compared to 131,443 tonnes at 3.32 g/t in 2023. Gold recovery rose by 13%, reaching 13,132 ounces in 2024 compared to 11,607.57 ounces in 2023. Stripping efficiency improved significantly from 81.16% in 2023 to 91.18% in 2024. October 2024 marked a record high monthly production of 1,401 ounces. These advancements reflect enhanced processing capacity and operational efficiency, driving notable productivity gains.

EXPLORATION AND GEOLOGY

In 2024, 156,336 wet metric tonnes (WMT) of ore were fed to the crusher with an average grade of 3.91 grams per tonne (gpt), exceeding the budgeted grade of 3.65 grams per tonne (gpt). Narrow veins, contributing 18% of the total tonnage, averaged a grade of 6.85 grams per tonne (gpt). Most of the ore originated from the Taka bar and Taka footwall split. Fifteen new narrow veins were identified, modeled, and blocked as part of the exploration and validation program. They have an average width of 0.92 meters and a global resource grade of 7.67 grams per tonne (gpt). Mineralization remains open laterally and vertically.

An updated mineral resource estimate for PC-ISRI-004-CAR reported 7.81 million tonnes at an average grade of 4.19 grams per tonne (gpt), with 21% measured and indicated resources.

Measured and indicated resources increased to 1.61 million tonnes at 5.47 grams per tonne (gpt) Au, a 112% rise in tonnage compared to the 2022 estimate.

Estimated Mineral Resources

Notes:

* Priority Veins within patented claims L500 and above / estimated using Geovia Surpac

/ cut-off grade 1.0gpt

** ISRI historical ore reserve inside patented claims and APSA-103-CAR reverted into inferred resource/ cut-off grade 2.5gpt

** Includes new date from recent drilling within patented claims / calculated thru polygonal method using Datamine Studio RM / cut-off grade 1.0gpt

The figures were derived from a technical report notarized on June 10, 2021, detailing exploration results and mineral resources within PC-ISRI-004-CAR (King fr., Tabaan, Taka, and Sesame claims) and APSA-103-CAR. The report was prepared and submitted by Mr. Darwin Edmund L. Riguer, a licensed Geologist (License No. 1684) and an accredited Competent Person on Exploration Results and Mineral Resource Estimation (PMRC/Geological Society of the Philippines CP Registration No. 20-12-02).

COMPLIANCES AND PERMITTING

ISRI received a certification for BS EN ISO 14001:2015 (Environmental Management System), BS EN ISO 9001:2015 (Quality Management System), ISO 45001: 2018 (Occupational Health and Safety Management System) from the National Quality Assurance Limited (NQA) on May 30, 2023, valid until May 2026.

The 1st NQA Surveillance Audit on 19-20 April 2024, identified 22 strengths, 18 improvement opportunities, two concerns, and four minor non-conformities. From 9-14 September 2024, training sessions were held on ISO 19011:2018 Internal Audit, Documentation Management, and Hazard Identification and Risk Assessment. These sessions focused on enhancing IMS compliance, competency, and adherence to policies, covering critical areas such as internal audits, risk assessments, document control, and safety management.

These initiatives have strengthened IMS implementation, fostering sustained compliance, improved efficiency, and a proactive approach to quality, safety, and environmental management. Additional training programs are planned to further enhance IMS integration and effectiveness. ISRI is also dedicated to professional development and regulatory compliance. On 14 May 2024, it was accredited by the Professional Regulation Commission as a Continuing Professional Development (CPD) Provider under Republic Act No. 10912 (CPD Act of 2016). On 20 November 2024, it received a Certificate of Compliance following an inspection by the Professional Regulatory Board for Metallurgical Engineering.

ISRI received the GABAY award on 08 November 2024, recognizing it as one of Benguet’s Top 20 Taxpayers. Additionally, on 20 December 2024, ISRI secured the Certification Precondition and Free and Informed Consent under NCIP Administrative Order No. 03, Series of 2012, for APSA 103, covering 434 hectares within the ancestral domains of the Ibaloi, Kankana-ey, and Kalanguya ICCs/IPs in Itogon.

SOCIAL DEVELOPMENT AND MANAGEMENT PROGRAMS (Php12.869M)

Host barangays: Ampucao & Poblacion

Neighboring barangays: Virac, Tinongdan, Dalupirip, Ucab, Tuding, Gumatdang, Loacan

The ASDMP budget for developing Host and Neighboring Communities (DHNC) 2024 was Php 12,869,730.60, allocated equally allocated between Barangays Ampucao and Poblacion in the Municipality of Itogon (Php 6,434,865.30 each).

Notable programs implemented include:

Senior High School Facility: Php 1,300,000.00 was allocated to construct a makeshift facility for senior high school students at Ampucao National High School.

Youth Development Session: Supported by the PNP-PRO-COR, a 3-day Youth Development Session funded under the Information, Education, and Communication (IEC) initiative of ASDMP for 2024.

Barangay Vehicle: Php 1,390,300.00 allocated for a Toyota van to enhance the mobility of Barangay Ampucao officials.

Support for Learners with Disabilities: Partnered with the Philippine Mental Health Association (PMHA) for assessments at Dalicno Elementary School in Barangay Ampucao and Itogon Central School in Barangay Poblacion.

These initiatives sought to enhance education, mobility, and support for learners with disabilities, ensuring sustainable development and improved community welfare.

ENVIRONMENTAL PROTECTION AND ENHANCEMENT PROGRAM (PHP42.022M)

ISRI is committed to sustainable mining through forest enrichment and maintenance activities, underground rehabilitation, water resource and management, air quality and work environment monitoring, biodiversity conversation and wildfire protection, heritage and values, and environmental research.

ISRI maintained 35 hectares of forested areas under the mine forest program, national greening program, and bamboo plantation program. It also protected planted seedlings by constructing fencing using recyclable materials to reduce waste. ISRI implemented forest fire mitigation measures, including maintaining firebreak lanes, ensuring water supply at enrichment areas, conducting aerial surveys during high temperatures, and utilizing workers as fire spotters. As of December 2024, ISRI maintained 3,418 nursery seedlings, with 65% Benguet Pine and 17% Balakat Seedlings.

ISRI consistently collected solid waste from industrial areas and camp housing, delivering it to the Material Recovery Facility (MRF), Composting or Temporary Residual Area (TRCA), and hauling residual waste to Metro Clark Waste Management Corporation or MAA Integrated Waste Solution Corporation. This effort achieved a 3% residual waste retention with an annual collection of 59.6 metric tons. Additionally, ISRI retained 3% recyclable paper, glass bottles, and plastics, generating 24 metric tons annually.

Furthermore, ISRI implemented the “Adopt-A-River” program and planted Sagat trees along Tolbing Creek, reflecting ISRI’s commitment to environmental stewardship.

SUYOC MINE

The Suyoc Mine is in the process of completing the requirements for its DMPF application, which has been endorsed by the MGB Cordillera Administrative Region and is under evaluation by the MGB Central Office. ISRI has also initiated the renewal of its MPSA 152-2000, expiring on March 30, 2025, with all initial requirements and payments submitted and endorsed.

The company is awaiting the schedule for its FPIC with NCIP-CAR, tentatively set after Lepanto’s FPIC. In line with the DENR-MGB’s initiative to expedite Mineral Agreement applications, Suyoc Mines is focused on fulfilling the remaining permitting requirements in the coming year.

COMMUNITY DEVELOPMENT PROGRAMS (PHP 500,148.00)

Host barangays: Suyoc, Guinaoang, and Taneg

After completing the Suyoc Exploration program in 2022 and submitting the Terminal Report on 15 January 2023, the company continued its Corporate Social Activities. A 5-Year Social Development and Management Program (SDMP) was submitted and approved on 18 September 2023 (CoA No. 032-2023-02CAR) and will be implemented upon the commercial operation of the Suyoc Mining Project.

In the interim, Corporate Social Responsibility (CSR) initiatives were undertaken in the host and neighboring communities throughout 2024. A total of Php 500,148.00 was allocated to various projects and activities. These included donations of materials and equipment for schools, construction materials for school improvements, and support for cultural activities in both directly and indirectly impacted barangays.

These efforts underscore the company’s commitment to social responsibility and community development.

ENVIRONMENT WORK PROGRAM (PHP433,762.16)

The company allocated Php433,762.16 for the Environmental Work Program, which includes the Solid Waste Management Program, NGP Reforestation, and water quality monitoring. Efforts focused on community empowerment through educational campaigns promoting solid waste management principles such as reduction, reuse, and recycling.

Key Initiatives:

Solid Waste Management: Promoted reduction, reuse, and recycling through educational campaigns.

Reforestation Projects: Supported the National Greening Program (NGP) by adopting a new reforestation project at Sitio Basig (2.17 ha) and maintaining the project at Sitio Elizabeth (7 ha), planted with pine and guava trees.

Planted 500 pine tree seedlings with the participation of community organizations.

Maintained a nursery, propagating 5,000 pine tree seedlings and fruit-bearing trees such as coffee, papaya, and ice cream beans, for distribution to upland farmers.

Water Quality Monitoring: Conducted regular water sampling at designated stations and established baseline data for local activities in direct impact barangays.

These initiatives demonstrated the company’s commitment to environmental stewardship and community empowerment.