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Drummond Ltd.’s response on the statements from the Comptroller General of the Republic

February 11, 2014

In relation to the recent statements made by the Comptroller General Sandra Morelli, on the judgment T- 154 of the Constitutional Court regarding Drummond Ltd.’s mining operation,  in which the Comptroller states that both the National Government and Drummond have not complied with the provisions of that judgment, the company would like clarify the following:

1. Once Drummond Ltd. was notified of the judgment on September 18, 2013, it proceeded to develop a technical document which compiled every one of the actions of management and environmental control that have been implemented in its La Loma mining project, and which demonstrates that it has state of the art equipment and technology to control emissions of particulate matter, and with noise levels well below the limits set by Colombian law.

2. This document was submitted to the Ministry of Environment and Sustainable Development under file number NUR 4120 -E1- 42354, and to the National Environmental Licensing Authority (Anla) under file number NUR 4120 -E1- 54340 on December 12, 2013. In this sense, these documents were submitted to the competent authorities for review and evaluation, and the company fulfilled the requirement set by the judgment within the 3-month deadline.

3. Likewise, a copy of this technical document was submitted to the Comptroller General’s Office on December 13, 2013 under file number 2013ER0150763 and to the Ombudsman on 12 December 2013.

4. In an effort to demonstrate to the national authorities and the country that Drummond Ltd.’s fully complies with the control of particulate emissions, the company contracted with the international certification firm SGS an audit of its systems and procedures to control particulate emissions. This audit showed the “Statement of Compliance” that supports that the company is using state of the art equipment and control systems for the prevention, control and mitigation of emissions in their activity. (See document in Spanish)

5. This “Statement of Compliance” was sent to the National Environmental Licensing Authority on January 22, 2014 under file number NUR 4120-E1-2388. Similarly, this document was submitted to the Comptroller General’s Office filed the same day under file number 2013ER0007678.

6. The National Environmental Licensing Authority under Resolution 1288 of December 18, 2013, concludes that “the company Drummond Ltd. has been implementing state of the art measures and technologies to control particulate emissions and noise efficiently and properly up to this date.” (Page 22 of Resolution 1288 of 2013). (See document in Spanish).

7. Given the above, Drummond Ltd. would like to clarify that it has fully complied with the requirements of the Judgment T- 154 of the Constitutional Court.

8. Regarding the statements of the Comptroller to the media on February 6, 2014, we would like to clarify that the judgment of the Constitutional Court does not consider the relocation of families. In that sense, it is not true that Drummond has breached this provision.