DRC Conflict Minerals:EICC®/GeSI Approach to

Responsible Sourcing Jerry Meyers, PhD., Intel

April 12, 2011

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Agenda

• EICC® and GeSI overview– 2011 Work Group goals review

• Overview of activities– Conflict-Free Smelter program update– Due Diligence Sub-team update

• Industry alignment• Summary

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EICC Members As of 3 February 2011

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Global e-Sustainability Initiative (GeSI)Members

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2011 Extractives WG Goals

1. Institutionalize the Conflict-Free Smelter Validation Program

2. Develop a common industry approach to support the requirements of the SEC on disclosure and due diligence

3. Support the implementation of a verifiable sourcing scheme for the Democratic Republic of Congo and neighboring countries for conflict free minerals

4. Communicate with stakeholders on our positions and initiatives related to metals derived from conflict minerals

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EICC and GeSI Approach to Responsible Sourcing

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In Region Sourcing

Conflict Free Smelter Program

Due Diligence

Finished Product

MINE SMELTER/REFINERY OEMS

Tantalum (Ta) Supply Chain

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Ta Supply chain is complex• Three new routes into supply chain identified; all material routes

lead to smelter.

MINES SMELTERS COMPONENTSUPPLIERS

OEMs/Contract manufacturers

SEMISUPPLIERS

Sn Smelters

Slag input(containing Ta)

Other Sources

Reuse material (some is closed loop recycling)

K Salt Tollmanufacturing

TRADERS

Smelter is at key point in supply chain to enforce responsible purchasing

Conflict-Free Smelter Program: Industry milestones for Tantalum, Tin, Tungsten, Gold

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Milestone Tantalum Schedule

Tin Schedule

TungstenSchedule

Gold Schedule

Initial Meeting of Supply Chain

Sept 2009 May 2010 None N/A

Smelter Visits and gaps identified

Feb 2010 Sept 2010 Dec 2010 Mar 2011

Validation checklist finished

June 2010 Apr 2011 June 2011 June 2011

Smelter Gaps closed Oct 2010 Mar 2011 Mar 2011 June 2011

Smelter 3rd party validation completed

June 2011 Sept 2011 Sept 2011 Dec 2011

Initial Smelter list publically available

Mar 2011 June 2011 Aug 2011 Sept 2011

Key Learnings: Gold (Au)

• Most electronic industry supply chains

• Price of gold drives detailed tracking of weights, shipments and lot numbers. AML KYC program has several methodologies that we may be able to use in the validation protocol

• There is a much higher recycle rate for gold than other metals. Some refineries appear to be well above 70% recycle rate.

• There are other factors which play into the gold trade (i.e. banks, metal exchanges, sources from the public “gold for money”, etc).

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Due Diligence Sub-team•Purpose

–The Due Diligence (DD) Sub-team is defining an example company due diligence processes that will align with SEC due diligence reporting regulations. Their aim is to enable companies to work with their supply chains through a common interface.

•Overall Process –Step 1 : Need to define informational requirements

•Revision 1 of from exists. •Small number of companies participating in pilot to evaluate forms effectiveness. Pilot runs form march 1st to April 1st. Survey form attached •After pilot is completed and rule is finalized lessons learned will be incorporated and tool will be able to used for metals where EICC smelter list has been.

–Step 2 : Need to determine how data will stored/compiled•In progress –evaluating individual company vs database approach

–Step 3 : Determine how form will be validated •In Progress –will evaluate individual customer / supplier vs industry approach

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AlignmentOver the last 6-9 months most of the activities have fallen into alignment.

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Summary

• Smelter program (CFS) underway. Executing audits for tantalum.

• Working our way through each metal with smelter/refinery visits and protocol development

• Due Diligence activities progressing• Alignment among industries is progressing well

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