Boroo Gold has implemented environmental protection and reclamation measures that meet or exceed both Mongolian and international standards.

The Environmental Department works in close cooperation with local, regional and national regulatory authorities to insure that the Department is in full compliance with regulations and to insure that the department provides the greatest value possible for the Company, the Government and the people of Mongolia.

The Company communicates the details of department activities to regulatory agencies on a frequent basis.  Activities are disclosed fully so that the agencies are aware of the status of ongoing programs as well as the activities that are contemplated as future activities.  As an example, the department prepares annual environmental monitoring program and environmental protection plans.  These plans detail what works have been done, what activities are ongoing and what activities are forecast as future work.  These plans are reviewed and discussed with regulatory agencies.  These agencies provide reviews of these reports and modify activities as appropriate to insure that both company and agency issues are fully addressed annual environmental protection and reclamation costs are estimated annually and 50% of such estimated cost is deposited in a special bank account that is controlled in part by one or more regulatory groups.  This money provides a financial guarantee that reclamation will occur as planned.

The Company has put in place an environmental management system (EMS) that conforms to the requirements of international standard ISO 14001 and is working towards continuous monitoring and improvement of compliance with relevant environmental regulations. This program provides a valuable product, as it is a program that is recognized as an effective tool for enhancing company performance on many levels.

Reclamation of disturbed lands occurs concurrently with mining.  Concurrent reclamation jump-starts the overall recovery process of the disturbed land, which provides significant benefits to local stakeholders.  In terms of mine operations, concurrent reclamation; reduces the overall footprint of the mine operation which in turn reduces impacts to the local stakeholders, lowers the ongoing cost to rehabilitate the property and promotes the environmental health of the area as mine activities progress.

Reclamation activities start long before mining starts. Topsoil and subsoil materials are salvaged from the mine areas.  These soils may be picked up and moved directly to a recontoured area or, if a suitable recontoured area is not available, then the salvaged soils would be stockpiled and placed on the recontoured areas at a later date.  Collection and careful management of soils insures that propagules of native species that are held in the soils are preserved and provide a healthy source of volunteer species for the reclaimed areas. Seed was collected from native vegetation in the mine area and surrounding areas for use in the reclamation program.  This seed is hand broadcast into the topsoil layer.  Local citizens provide the workforce for much of the reclamation activities.

Long before mining commenced at Boroo, the Company recognized the obligation to rehabilitate the mine areas and a suitable amount of financing has been set aside on a systematic basis that was adequate to fully reclaim the mine according to the responsibilities that the company had committed to. Because of these many programs and measures, the Company can provide solid assurance that, following closure the mine will be at least as productive as previous to mining, and all environment will provide the same value to all stakeholders as were delivered in the past.