Reports on Payments to Governments for FY 2020

Pensana Plc

Reports on Payments to Governments for FY 2020

Pensana Plc (LSE:PRE) ("Pensana" or "the Company") publishes the Company's inaugural Payments to Governments Report for the year ended 30 June 2020 ("the Year" or "FY2020") (the "Report").

Basis of preparation

This Report, which provides an overview of the payments to governments made by Pensana and its subsidiaries, is required under the United Kingdom's ("UK") Report on Payments to Governments Regulations 2014 and its amendment in December 2015 ("the Regulations"). This Report is also intended to satisfy the requirements of the Disclosure and Transparency Rules of the Financial Conduct Authority in the UK.

This report is also available on the Company's website at: www.pensana.co.uk.

Activities

Payments made by Pensana to governments arising from activities involving the exploration, prospection, discovery, development and extraction of minerals (extractive activities) across its projects are to be disclosed in this report.

Summary of Payments (US$)¹

¹ Payments are shown in US$ equivalent amounts for the financial year ending 30 June 2020 using the average FX rate for the year

² Payments shown relate to the Longonjo Project only

Government definition

Government includes any national, regional or local authority of a country, and includes a department, agency or entity that is a subsidiary of a government.

Payments

Payments to governments are required to be reported in the following categories:

·   Taxes

These are any taxes paid by Pensana on its income and profits in accordance with legislation enacted in the applicable jurisdiction. Payments are reported net of refunds. Value added tax, personal income taxes, social taxes, property taxes are excluded.

·   Royalties

Royalties are not yet applicable as still in exploration/development.

·   Fees

These are any fees and other sums paid as consideration for acquiring a licence for gaining access to an area where extractive activities are performed. Administrative government fees that are not specifically related to the extractive sector are excluded.

·   Infrastructure improvements

Payments in kind in the form of infrastructure expenditure other than in circumstances where the infrastructure is expected to be primarily dedicated to operational activities throughout its useful life. The Regulations do not require reporting social or community payments, such as payments to build a hospital or a school.

Other types of payments

Other types of payments that are required to be disclosed in accordance with the Regulations but are not relevant to Pensana's operations are the following:

·        Production entitlements

·        Dividends

Including dividends paid to a government in lieu of production entitlements or royalties. Dividends paid to a government as an ordinary shareholder on the same terms as to other ordinary shareholders and not paid in lieu of production entitlements or royalties are excluded.

·   Signature, discovery and production bonuses

Payments are reported on a cash basis. No in-kind payments were made during year ended 30 June 2020.

Materiality Level

Payments included in the Report are amounts paid, whether in money or in kind, for relevant activities. In line with the Regulations, where a payment or a series of related payments have not exceeded £86,000 they have not been disclosed.

Payments per government

Total payments to governments under the Regulations amounted to US$92,433 in FY 2020 (FY 2019: US$45,700).

Authorised by the Board of Pensana Plc

 ENDS