Fortuna Silver Mines : Community Relations Policy (134 KB) (Community Relations Policy Mar 8 2023)

Fortuna Mining Corp. ("Fortuna")

COMMUNITY RELATIONS POLICY

Policy Statement

Fortuna Mining Corp. and its subsidiaries ("Fortuna") are committed to ensuring the highest possible standards of social management in all areas of our business activities, to maintain our Social License to Operate and create value for our stakeholders. Communities are one of Fortuna's core values and is a pillar of our Sustainability Framework. This Policy aims to foster a participative approach to community relations through respectful dialogue that builds trust, genuine collaboration and mutually beneficial relationships. In addition, it seeks to formulate strategies and procedures to manage social risks and the impacts and opportunities associated with our operations in consultation with local communities, while enhancing our contributions to local socio-economic development.

Our Approach

To this end, we expect all directors, officers, employees, and suppliers to uphold Fortuna's commitment to:

• Explore, design, develop, operate, close and reclaim our projects and mines in compliance with all applicable laws, regulations, and standards;
• Conduct social assessment and community consultation throughout the mine lifecycle including with respect to project development, business planning, mine operations, and safe closure, in order to integrate stakeholder concerns and interests, where possible;
• Undertake proactive, transparent, and meaningful engagement with community stakeholders, ensuring accurate and timely information-sharing and participative consultation that is consistent with traditional and current decision-making processes, to build community understanding of our activities, obtain input on relevant decisions, and maintain ongoing support;
• Seek to avoid involuntary displacement and resettlement wherever possible, and where it is unavoidable, proceed on the basis of meaningful consultation with those affected, fair compensation, and respect for traditional and current land rights;
• Respect the rights, interests, connections to land and water, and perspectives of communities where our mining projects are on lands they traditionally own or customarily use, and where impacts to Indigenous Rights may occur, strive to align with the principle of Free, Prior and Informed Consent before proceeding with new project development;
• Consult employees, contractors, regulatory authorities, local communities (including traditional knowledge holders), and shareholders on our social management practices;
• Contribute to sustainable community development including those of Indigenous people in our area of influence, by supporting both short-term and lasting positive socio-economic impact, including local employment and procurement, and advancing needs-based development initiatives appropriate to the mining life cycle stage;
• Allocate sufficient human, technological, and financial resources to meet our social commitments and requirements, throughout the mining life cycle, including during closure and post-closure;

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• Implement recognized social management systems and integrate social policies and standards into all aspects of our business, to ensure social issues are properly assessed, monitored, controlled and corrected when negative impacts are identified, through the use of confidential, transparent, accessible, and effective community grievance mechanisms;
• Protect the health and safety of our host communities from the potential impacts of our activities and, in the case of a catastrophic event, to prioritize saving lives, provide humanitarian aid, and minimize harm to people during the immediate response phase, and develop participative community-focused mechanisms for emergency preparedness and post-failure recovery; and
• Comply with applicable requirements and apply recognized industry best practices, when possible, to continuously improve our social performance, especially concerning cultural heritage, livelihood activities, security and human rights, ecosystem services, displacement and resettlement, and socio-economic development.

Training and Communication

We use awareness and training programs, including for all employees, officers and directors, to ensure that our internal and external stakeholders understand and actively support this Policy and its expectations. We include this Policy in our Environment, Social and Governance training sessions. We maintain a current copy of this Policy on the Fortuna website, making it available to all directors, officers, employees, suppliers and other stakeholders.

Monitoring and Reporting

We continually review legislation, regulations and standards related to community relations in the jurisdictions in which we operate to ensure Fortuna's alignment. We develop and implement supporting policies, procedures, and internal reporting structures to embed this Policy throughout the company. We report our community relations performance publicly through reporting initiatives.

We expect all directors, officers, employees, and suppliers to take steps to prevent any violation of this Policy. This includes the timely identification and reporting of both incidents and potential issues before they escalate, and to seek additional guidance when necessary.

Any person who becomes aware of a violation of this Policy must promptly report the matter to their immediate supervisor/manager; if that is not possible, to the Senior Vice President, Sustainability; or, anonymously, through the Whistleblower website at http://fortuna.ethicspoint.com. Officers and directors must report violations to the Senior Vice President, Sustainability. If an employee or supplier reports the matter to their immediate supervisor/manager, that supervisor/manager must promptly communicate the information to the Senior Vice President, Sustainability, who will determine the most appropriate method to investigate and monitor progress, until the matter has been satisfactorily resolved. The Sustainability Committee appointed by the board of directors of Fortuna (the "Board") assists in fulfilling its oversight responsibilities related to this Policy and to ensure its appropriate monitoring.

Any person who raises genuine concerns will not be subject to retaliation or disciplinary action. Fortuna strictly prohibits retaliation by anyone as a consequence of making a report of a possible violation of the law or this Policy in good faith. Retaliation or reprisal will result in disciplinary action, including termination.

Questions

Any questions regarding this Policy should be directed to the Senior Vice President, Sustainability of Fortuna.

Changes to this Policy

Fortuna reserves the right, at its absolute discretion, to change this Policy from time to time as it considers necessary.

This Community Relations Policy was adopted by the Board on March 8, 2023.

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