Environmental, Social & Governance Environment Kelt is committed to ensuring that our operational activities comply with all environmental regulatory standards and requirements. By ensuring due diligence, Kelt takes all reasonable care to minimize and/or eliminate any negative consequence to the environment. Kelt ensures there is a high standard of awareness and commitment to promote environmental stewardship at all levels of the organization, including vendors and suppliers. Kelt’s Environmental Management System (EMS) is a set of processes and practices that enable the organization to minimize its environmental footprint. Our environmental goals are to maintain and enhance the environmental quality of life for future generations. Air Quality Kelt’s air emission roadmap is focused on continuous improvement to meet the provincial and federal standards. Kelt’s emissions management framework includes air monitoring, utilizing renewable and alternative energy, creating energy efficiencies and conservation of resources. Climate Change Climate change is one of the most important environmental issues of our time. Kelt focuses on technology, operational excellence and taking initiatives to lower our carbon footprint throughout the project lifecycle. We continue to make improvements and are committed to reducing the amount of Nitrous Oxide (N2O), Methane (CH4), and Carbon Dioxide (CO2) emissions produced from development activities and operations in the most efficient, effective and responsible way. Our commitment aims to bring balanced energy benefits to Canada to provide access to global markets by creating less emissions at the following sources: Combustion sources, including both stationary devices and mobile equipment; process emissions and vented sources; indirect sources; and fugitive sources. Kelt supports innovative strategies, clean technology (including alternative energy and renewable energy), green products and utilizing lower emitting solutions to meet industry targets. Water Management As a producer, we ensure water conservation is mitigated and managed at all levels of our operations. Kelt assesses water related risks with our ongoing groundwater monitoring and surface water release programs. Kelt aims to meet all reporting requirements throughout the water life cycle of oil and gas and associated activity. The end result will minimize the impact to the environment through sourcing water, water withdrawals from pre-defined points of diversion, water allocation and utilization during drilling and completions. Land Conservation Kelt ensures best practices when contributing to the oil and gas industry’s footprint. This includes creating an optimal path to reduce the size and duration of the footprint. Kelt works with industry by utilizing roads with multiple permit holders, landowner consultation, remediation of watercourse crossings, and construction of multi-well pads (verses single well sites) to maintain biodiversity, and to greatly reduce surface impacts and the effect on the ecosystem. Kelt’s objective is to return sites back to a sustainable landscape that meets all abandonment and reclamation regulatory assessment requirements, which includes stabilization, contouring, maintenance, condition, reconstruction and revegetation. Liability Management Programs Decommissioning and restoration of oil and gas sites is regulated in Alberta by the Alberta Energy Regulator (“AER”) and in British Columbia by the BC Oil and Gas Commission (“BCOGC”). Permit holders are required to properly deactivate and abandon wells, facilities and pipelines, and restore disturbances to meet regulatory closure. The purpose of the Liability Management Rating (“LMR”) program is to ensure permit holders carry the financial risk of their operation through to regulatory closure by identifying those whose deemed liabilities exceed deemed assets (a LMR below 1.0) and to require security for the risk inherent in the calculation. As at March 2, 2019, the AER calculated the industry average LMR in Alberta to be 4.84 and Kelt’s LMR was calculated to be 6.25, above the industry average. As at March 13, 2019, the BCOGC provided a monthly summary report and calculated Kelt (LNG)’s LMR to be 6.15. Kelt Exploration Ltd. Suite 300, East Tower 311 Sixth Avenue S.W. Calgary, Alberta, Canada T2P 3H2 T 403.294.0154 F 403.291.0155 24 HR EMERGENCY 1.855.845.9787 Legal & Privacy Notice