Clean Air Metals Inc.

2021 ESG Report

Published on January 26, 2022

Clean Air Metals' flagship asset is the 100% owned, high grade Thunder Bay North Project, a platinum, palladium, copper, nickel project located near the City of Thunder Bay, Ontario and the Lac des Iles Mine owned by Impala Platinum. The Thunder Bay North Project contains twin magma conduit bodies hosting the Current and Escape deposits, forming the basis for a positive preliminary economic assessment (PEA) around a ramp access underground mine, effective December 1, 2021.

Executive Chairman Jim Gallagher and CEO Abraham Drost lead an experienced team of geologists and engineers who are using the Norilsk magma conduit stratigraphic and mineral deposit model to guide ongoing exploration and development studies at Thunder Bay North. As the former CEO of North American Palladium Ltd. which owned the Lac des Iles Mine prior to the sale to Impala Platinum in December 2019, Jim Gallagher and team are credited with the mine turnaround and creation of significant value for shareholders.

Disclaimer and Forward Looking Statements

Company Profile

Organizational Profile

Name

Clean Air Metals Inc.

Describe nature of activities, brands, products and services

Executive Chairman Jim Gallagher and CEO
Abraham Drost lead an experienced team of
geologists and engineers who are using the
Norilsk magma conduit stratigraphic and
mineral deposit model to guide ongoing
exploration and development studies at
Thunder Bay North. As the former CEO of
North American Palladium Ltd. which owned
the Lac des Iles Mine prior to the sale to Impala
Platinum in December 2019, Jim Gallagher and
team are credited with the mine turnaround
and creation of significant value for
shareholders.

Link to Corporate Website

https://www.cleanairmetals.ca/

Industry Classification

NAICS:
213119 Other support activities for mining

ISIC:
B0990 Support activities for other mining and
quarrying
F4312 Site preparation

Market Capitalization

$0-$100Million USD

Type of Operations

Exclusively non-producing operations

Company Headquarters

Thunder Bay, Canada

Link to company's statements of: Purpose, Vision, Mission and Values; Sustainability/ESG strategy; previously published Sustainability/ESG performance or reports. (URL)

https://www.cleanairmetals.ca/esg/

Sustainability Policy

Sustainability Committee Mandate

Clean Air Metals - ESG

ESG Strategy

ESG Accountability

Role and Name of highest authority within company for Environment, Social and Governance strategy, programs and performance.

Abraham Drost, CEO and Director member
of Sustainability Committee

ESG Reporting Period

Unless otherwise noted, all data contained in this report covers the following period:

From

2020-02-01

The ESG report is tied to the financial reporting
period and annual information form.

2021-01-31

Geographic Scope of Report

Unless otherwise noted, the data in this report covers ESG matters related to the following locations of operations

Canada

The Thunder Bay North project, is the
company's sole asset and is located 40
kilometers from the city of Thunder Bay,
Ontario in the Thunder Bay Mining District.

Thunder Bay North Project Fact Sheet

Identify notable exclusions, and reference any existing or planned reports that do or will address these (e.g, assets recently divested or acquired, non-managed joint ventures, specific exploration activities, recently closed sites, etc.)

There are no exclusions in this report.

Fragile and Conflict-Affected Situations

Identify all of the entity's countries of operations that align with the World Bank's list of "Fragile and Conflict-Affected Situations"

None

Business Operations Scope of Report

There are no exclusions in this report.

Mineral Resource Types in Scope

Which of the following mineral resource types are covered by this report

• Inferred
• Indicated

Mineral Reserve Types in Scope

Which of the following mineral reserve types are covered by this report

None

Currency

Unless otherwise noted, all financial figures referenced in this report are in the following currency

CAD

Audit Status

Identify the degree to which any inputs of the report are third-party checked:

Self-Declared

Organizational Profile

Provide a list of externally-developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes, or which it endorses, e.g., GRI, UN Global Compact

This is the foundational report for Clean Air
Metals Inc. We are aligning with the following
ESG standards:

CDP - Carbon Disclosure Project
GRI - Global Reporting Initiative
GRI Comprehensive - Global Reporting
Initiative - Comprehensive
GRI Core - Global Reporting Initiative - Lite
GRI MM Supplement - Global Reporting
Initiative - Mining and Metals Supplement
ICMM - The International Council on Mining
and Metals
ISS - ISS ESG Governance Quality Score
ONYEN - Institutional and Investor Questions
PRI - Principles of Responsible Investing - UN
Funded
SASB - Sustainability Accounting Standards
Board
SASB Modified - Sustainability Accounting
Standards Board - Modified
UGC - UN Global Compact
PDAC - e3 Plus - A Framework for Responsible
Exploration

Strategy

Provide a statement from the most senior decision-maker of the organization (i.e., CEO, chair, or equivalent senior position) about the relevance of sustainability to the organization and its strategy for addressing sustainability (CEO's message for this report)

Clean Air Metals Inc. strives for carbon
neutrality in the design of the TBN project.

This includes using 100% renewable grid-
supplied power, co-funding replanting efforts in
legacy areas with the local forest manager,
investigating carbon capture with its mine tails,
and seeking to electrify mine fleet in feasibility
mine design so far as is possible with available
technology.

ESG Strategy Statement

Abraham Drost, MSc PGeo - CEO & Director

Provide a description of key impacts, risks, and opportunities,

See attached Impacts, Risks, and Opportunities
Statement

Impacts, Risks, and Opportunities Statement

Ethics and Integrity

Provide a description of the organization’s values, principles, standards, and norms of behaviour

Clean Air Metals Inc. ("Clean Air Metals") has
adopted certain policies, approved by the
Board of Directors.

The policies include a Code of Business
Conduct and Ethics, which requires the
observance of high standards of business and
personal ethics in the conduct of all directors,
officers and other employees of Clean Air
Metals.

In addition, the Audit Committee of the Board
of Directors (the "Board") of Clean Air
Metals handles complaints, reports, and
concerns by any individual regarding (a)
questionable accounting practices, inadequate
internal accounting controls or coercion
relating to auditing matters; (b) actual or
potential violations of any applicable law;
and (c) other suspected wrongdoing, including
conduct prohibited under the Code of Business
Conduct and Ethics of Clean Air Metals (each a
"violation").

Ethical Workplace Policy

Environment

Compliance

a. Report fines and non-monetary sanctions for non-compliance with environmental laws and/or regulations in terms of:

i. Total monetary value of significant fines

ii. Total number of non-monetary sanctions

iii. Cases brought through dispute resolution mechanisms

b. If the organization is in compliance with environmental laws and/or regulations, a brief statement if this fact is sufficient

Clean Air Metals Inc. is in full compliance with
Federal and Provincial environmental laws and
regulations as per the included details.

1. Ontario Mining Act
2. Ontario Environmental Assessment Act
3. Ontario Heritage Act
4. Ontario Water Resources Act
5. Ontario Public Lands Act
6. Ontario Fish and Wildlife Conservation Act
7. Ontario Lakes and Rivers Improvement Act
8. Ontario Endangered Species Act
9. Transportation of Dangerous Goods Act
Canada
10. Fisheries Act Canada
11. Canadian Navigable Waters Act
12. Explosives Act Canada
13. Impact Assessment Act Canada

Greenhouse Gas Emissions

Scope 1

Disclose the gross global Scope1 greenhouse gas (GHG) emissions to the atmosphere of the seven GHGs covered under the Kyoto Protocol (tonne CO₂-e):

Carbon dioxide (CO₂) (tonne CO₂-e)

474.054

Methane (CH₄) (tonne CO₂-e)

Nitrous oxide (N₂O) (tonne CO₂-e)

Hydrofluorocarbon-23 (CHF₃) (tonne CO₂-e)

Hydrofluorocarbon-32 (CH₂F₂) (tonne CO₂-e)

Sulphur hexafluoride (SF₆) (tonne CO₂-e)

Nitrogen trifluoride (NF₃) (tonne CO₂-e)

Perfluoromethane (CF₄) (tonne CO₂-e)

Perfluoroethane (C₂F₆) (tonne CO₂-e)

Perfluorobutane (C₄F₁₀) (tonne CO₂-e)

Perfluorohexane (C₆F₁₄) (tonne CO₂-e)

The total amount of gross global Scope 1 GHG emissions (CO₂-e) (tonne)

474.054

The percentage of its gross global Scope 1 GHG emissions that are covered under an emissions-limiting regulation or program that is intended to directly limit or reduce emissions, such as cap-and-trade schemes, carbon tax/fee systems, and other emissions control (e.g., command-and-control approach) and permit-based mechanisms.

100.0000%

The entity shall discuss its long-term and short-term strategy or plan to manage its Scope 1 greenhouse gas (GHG) emissions.

The mining pre-feasibility process will include
attempted reductions of GHG through the
application of electrical-non diesel mining
equipment.

Clean Air Metals Inc. is involved in the
exploration and development of Green energy
and battery metals specifically Platinum,
Palladium, Copper, and Nickel with byproduct
Cobalt.

Intensity Ratio

The total amount of gross global Scope 1 GHG emissions (CO₂-e) (tonne)

474.054

Air Emissions

Report emissions of air pollutants that are released into the atmosphere:

Emissions of carbon monoxide, reported as CO (tonne)

Emissions of oxides of nitrogen (NOx), reported as NOx (tonne)

Emissions of oxides of sulphur (SOx), reported as SOx (tonne)

Emissions of Particulate Matter 10 micrometres or less in diameter (PM₁₀), reported as PM₁₀ (tonne)

Emissions of lead and lead compounds, reported as Pb (tonne)

Emissions of mercury and mercury compounds, reported as Hg (tonne)

Emissions of non-methane Volatile Organic Compounds (VOCs) (tonne)

Energy Management

Total energy consumed in aggregate, in gigajoules (GJ) (hydrocarbons and electricity)

7271

Clean Air Metals strives for carbon neutrality in
the design of the TBN project. This includes
using 100% renewable grid-supplied power, co-
funding replanting efforts in legacy areas with
the local forest manager, investigating carbon
capture with its mine tails, and seeking to
electrify mine fleet in feasibility mine design so
far as is possible with available technology.

Percentage energy consumed that was supplied by grid electricity:

5.2675%

Percentage of energy consumed that is renewable energy:

5.2675%

Clean Air Metals Inc. is actively exploring with
diesel powered diamond drills on a 24/7 basis
and thus the renewable metric is highlighting
this energy intensive activity.

Water

Efficiency

Proportion of water reused and recycled by the site to reduce the overall consumptive water demand:

100.0000%

Water Management

Disclose the freshwater withdrawn in locations with High or Extremely High Baseline Water Stress as a percentage of the total water withdrawn

Does Not Apply

Disclose freshwater consumed in locations with High or Extremely High Baseline Water Stress as a percentage of the total water consumed:

Does Not Apply

Was your organization subject to any fines, enforcement orders, and/or other penalties for water-related regulatory violations

Total number of instances of non-compliance, including violations of a technology-based standard and exceedances of quality-based standards.

Waste Management

Innovation

Spending on Research, Development, and Technologies for waste management compliance and improvement

Clean Air Metals Inc., is an exploration
company and therefore R&D on waste
management is not applicable to our core
business.

Biodiversity

List the environmental and biodivirsity management plan(s) implemented at active sites

Clean Air Metals Inc. is conducting
environmental baseline assessments.

The assessments include information on
biodiversity for the Thunder Bay North project.

Press Release May 11, 2021

Press Release December 1, 2021

CAM Biodiversity Management Plan

1.1 Mine lifecycle stages to which the plan(s) apply

Exploration and appraisal

1.2 The topics addressed by the plan(s)

• Ecological and biodiversity impacts
• Waste generation
• Noise impacts
• Emissions to air
• Discharges to water

1.3 The underlying references for its plan(s), including whether they are codes, guidelines, standards, or regulations; whether they were developed by the entity, an industry organization, a third-party organization (e.g., a non-governmental organization, a governmental agency, or some combination of these groups)

The Biodiversity Management Plan adheres to
Environmental Protection legislation and
guidelines and is conducted by independent
third-party environmental consultants.
Preliminary field results indicate no 'Species at
Risk.'

Does access to the site involve traversing a protected area

Do any of the entities concessions share a watershed with a protected area

Provide context and description of site access involving traversing protected areas, and/or watersheds shared with a protected area. Include reference to measures in place to assure access, any proactive programs to support the biodiversity of the protected area, and any formal complaints or compliance issues and related steps to resolve

The Thunder Bay North project does not
traverse or share concessions with a watershed
in a protected area.

Thunder Bay North Site Access

Percentage of proved reserves in sites with protected conservation status or in areas of endangered species habitat:

Does Not Apply

The Thunder Bay North project does not
overlap with protected conservation sites or
endangered species habitats.

Percentage of probable reserves in sites with protected conservation status or in areas of endangered species habitat:

Does Not Apply

Percentage of inferred, indicated and measured reserves in sites with protected conservation status or in areas of endangered species habitat:

Does Not Apply

Social

Employment

Scale of the Organization

i. Report the total number of direct employees worldwide (exclude contractors)

ii. Report the total number of contract employees worldwide

ii. Report the total number of operations

Employee Information

a. Report the total number of direct employees by employment type (permanent and temporary), by gender:

Total number of permanent employees - female

Total number of temporary employees - female

Total number of permanent employees - male

Total number of temporary employees - male

Total number of permanent employees - Non-binary

Total number of temporary employees - Non-binary

a. Report the total number of contractors by employment type (permanent and temporary), by gender:

Total number of permanent contractors - female

Total number of temporary contractors - female

Total number of permanent contractors - male

Total number of temporary contractors - male

Total number of permanent contractors - Non-binary

Total number of temporary contractors - Non-binary

c. Report the total number of employees by employment type (full-time and part-time), by gender:

Total number of full-time employees - female

Total number of part-time employees - female

Total number of full-time employees - male

Total number of part-time employees - male

Total number of full-time employees - Non-binary

Total number of part-time employees - Non-binary

c. Report the total number of contractors by employment type (full-time and part-time), by gender:

In this report we include contract personnel
that we directly supervise on a day to day basis.

Total number of full-time contractors - female

Total number of part-time contractors - female

Total number of full-time contractors - male

Total number of part-time contractors - male

Total number of full-time contractors - Non-binary

Total number of part-time contractors - Non-binary

Turnover

b. Report the total number and rate of employee turnover during the reporting period, by age group, and gender

All Employees:

Total number of turnover (the number that left during the period)

Rate of turnover

10.0000%

Female employees:

Total number of turnover (the number that left during the period)

Rate of turnover

0.0000%

Male employees:

Total number of turnover (the number that left during the period)

Rate of turnover

12.5000%

Non-binary employees:

Total number of turnover (the number that left during the period)

Rate of turnover

Does Not Apply

Employees aged 30 years old and under:

Total number of turnover (the number that left during the period)

Rate of turnover

0.0000%

Employees aged between 30 and 50 years old:

Total number of turnover (the number that left during the period)

Rate of turnover

100.0000%

Employees over 50 years old:

Total number of turnover (the number that left during the period)

Rate of turnover

0.0000%

Identify types of employees captured in the turnover rate calculations

All employees on the payroll

Labour Relations

Collective Bargaining Agreements

a. Percentage of total direct employees covered by collective bargaining agreements:

0.0000%

Notice Periods

a. Minimum number of weeks’ notice typically provided to employees and their representatives prior to the implementation of significant operational changes that could substantially affect them

2 weeks as per Ontario Labor Code

b. If your organization is subject to collective bargaining agreements, is the notice period and provisions for consultation and negotiation specified in those agreements

Occupational Health and Safety

Work-related Injuries

a. For all employees:

i. Total Hours Worked

9230

ii. Number of fatalities as a result of work-related injury

Rate of fatalities resulting from work-related injury. Note: calculating per 200,000 hours

iii. Number of high-consequence work-related injuries (excluding fatalities)

Rate of high-consequence work-related injuries (excluding fatalities)

iv. Number of recordable work-related injuries

Rate of recordable work-related injuries

v. Main types of work-related injury, e.g., confined space, trips, falls, etc.

In this reporting period Clean Air Metals, Inc.,
did not have any work-related injuries.

b. Contractors:

i. Total Hours Worked

2793

ii. Number of fatalities as a result of work-related injury

Rate of fatalities resulting from work-related injury. Note: calculating per 200,000 hours

iii. Number of high-consequence work-related injuries (excluding fatalities)

Rate of high-consequence work-related injuries (excluding fatalities)

iv. Number of recordable work-related injuries

Rate of recordable work-related injuries

v. Main types of work-related injury, e.g., confined space, trips, falls, etc.

In this reporting period, Clean Air Metals Inc.
did not have any work-related injuries.

c. Combined (Employees and Contractors):

Total Hours Worked

12023

Total number of all work-related injuries

Rate of work-related injuries

c. Report the work-related hazards that pose a risk of high-consequence injury, including:

i. How have these hazards been determined

Clean Air Metals Inc. has a bi-weekly Health
and Safety meeting with all employees,
including representation from Senior
Management, to assess work-related hazards
associated with designated work sites. Monthly
site inspections are carried out by a Health and
Safety Employee Designate to identify any
potential hazards and report with
recommendations.

ii. Which of these hazards have caused or contributed to high-consequence injuries during the reporting period

Clean Air Metals Inc. has not sustained any
high-consequence injuries during the reporting
period.

iii. Actions taken or underway to eliminate these hazards and minimize risks using the hierarchy of controls

Clean Air Metals Inc. has not sustained any
high-consequence injuries during the reporting
period.

Monthly site inspections are carried out by the
Employee Designate to identify any potential
hazards according to the hierarchy of controls.

Hierarchy of Controls Statement

d. Report on actions taken or underway to eliminate other work-related hazards and minimize risks using the hierarchy of controls

The employee designate identifies potential
hazards that Clean Air Metals Inc. has mitigated
through an evaluation process.

f. Whether and, if so, why any workers have been excluded from this disclosure, including the types of worker excluded, e.g., short-term contractors

The report excludes independent
contractors (i.e. diamond drilling contractors)
that have their own Health and Safety policies,
plans, and procedures that are in compliance
with the Canadian provincial labour codes and
are regularly inspected by the Ministry of
Labour, with no resulting notices or sanctions
issued.

g. Disclose any contextual information necessary to understand how the data have been compiled, i.e., any standards, methodologies, and assumptions used

Clean Air Metals Inc. has developed its Health
and Safety Protocols and Management System
based on the 2021 Ontario OH&S Act &
Regulations and the e3 Plus Exploration and
Environmental Protocols developed by
Prospectors and Developers Association of
Canada.

e3 Plus PDAC

Safety Training

Disclose the average number of training hours provided to its workforce for health, safety, and emergency management training.

Average hours of health, safety, and emergency response training for (a) full-time/direct employees:

In this reporting period Clean Air Metals, Inc.,
limited it's training hours to in-house
Workplace Hazardous Materials Information
System training exercises due to COVID
restrictions.

Average hours of health, safety, and emergency response training for (b) contract employees:

Diversity and Equal Opportunity

b. Report the percentage of employees per employee category in each of the following diversity categories

Senior Management:

Total Senior Managers

Percent Male

75.0000%

Percent Female

25.0000%

Percent Non-Binary

0.0000%

Percent under 30 years of age

0.0000%

Percent between 30 and 50 years of age

12.5000%

Percent over 50 years of age

87.5000%

Salaried (excluding Senior Management):

Total Middle Managers

Percent Male

60.0000%

Percent Female

40.0000%

Percent Non-Binary

0.0000%

Percent under 30 years of age

40.0000%

Percent between 30 and 50 years of age

0.0000%

Percent over 50 years of age

60.0000%

Technical Employees (skilled hourly):

Total Technical Employees

Percent Male

Does Not Apply

Percent Female

Does Not Apply

Percent Non-Binary

Does Not Apply

Percent under 30 years of age

Does Not Apply

Percent between 30 and 50 years of age

Does Not Apply

Percent over 50 years of age

Does Not Apply

Production Employees (unskilled hourly):

Total Production Employees

Percent Male

Does Not Apply

Percent Female

Does Not Apply

Percent Non-Binary

Does Not Apply

Percent under 30 years of age

Does Not Apply

Percent between 30 and 50 years of age

Does Not Apply

Percent over 50 years of age

Does Not Apply

Contractors:

Total Contractors

Percent Male

100.0000%

Percent Female

0.0000%

Percent Non-Binary

0.0000%

Percent under 30 years of age

66.6667%

Percent between 30 and 50 years of age

33.3333%

Percent over 50 years of age

0.0000%

Security, Human Rights and Rights of Indigenous People

Identify the countries of operations within the World Bank's list of “Fragile and Conflict-Affected Situations”

None

Describe the nature of any social risks, for all operating countries, that could have a material risk to operations

Clean Air Metals Inc. operates in areas adjacent
and overlapping with non-reserve traditional
First Nation territories within the Robinson
Superior Treaty of 1850. Clean Air Metals Inc.
seeks to preserve the traditional activities such
as hunting, fishing, trapping, and gathering
practiced by the aboriginal communities
adjacent to our operations or provide culturally
appropriate compensation as identified by the
affected Indigenous communities where these
activities may be negatively impacted.

Percentage of proved reserves that are located in or near areas that are considered to be indigenous peoples’ land:

Does Not Apply

While the Company's exploration lands overlap
with Non-Reserve Aboriginal traditional
territory acknowledged in the MOA dated
January 8, 2021, the Company is at an
Indicated and Inferred level of mineral resource
and has no proved reserves at this time. Non-
Reserve Aboriginal traditional territory retains
treaty-protected rights to amongst other
things, hunt, fish, trap, and gather, under
Section 35 of the Constitution Act, Canada. It is
the extent to which these treaty-protected
activities may be impacted by exploration
activities that meaningful consultation,
accommodation/compensation may be
required.

The total amount of proved reserves

Percentage of probable reserves that are located in or near areas that are considered to be indigenous peoples’ land:

Does Not Apply

The total amount of probable reserves

Percentage of inferred, indicated and measured reserves that are located in or near areas that are considered to be indigenous peoples’ land:

100.0000%

Total amount of inferred, indicated and measured reserves

16137534

Describe due diligence practices and procedures with respect to indigenous rights of communities in which it operates or intends to operate

Please see attached for a detailed description
of Clean Air Metal's Inc. approach to indigenous
rights.

Press Release January 11, 2021

Press Release January 28, 2021

Clean Air Metal's Inc. approach to Indigenous Rights

Discuss practices and list procedures while operating in areas of conflict

Clean Air Metal Inc. conducts activities in
Ontario, Canada and does not conduct
activities in areas of conflict.

Community Relations

Artisanal and Small-Scale Mining

Number of company operating sites where artisanal and small-scale mining (ASM) takes place on, or adjacent to, the site (not controlled by company/unauthorized):

Percentage of company operating sites where artisanal and small-scale mining (ASM) takes place on, or adjacent to, the site

Does Not Apply

Report the associated risks and the actions taken to manage and mitigate these risks

Clean Air Metals Inc. recognizes that there are
adjacent mineral exploration activities to its
holdings at the Thunder Bay North Project by
other parties including prospectors and mining
companies. All parties are governed by the
statutes and regulations of the Ontario Mining
Act.

Programs

Report on community relations programs, objectives and achievements in the past 3 years

Please see attached for a description of Clean
Air Metal's Inc. community relations program.

Photo by D. Campbell – Clean Air Metals Inc.

Clean Air Metal's Inc. community relations programs

Discuss the processes, procedures, and practices to manage risks and opportunities associated with the rights and interests of communities in areas where it conducts business

Risk identification is participatory. The
company and its Participating Communities
decide on risk mitigation together pursuant to
the terms of an Exploration Agreement.
Communication with community groups take
place through virtually and through Open
House Forums to provide information on
Company, the project, technical progress and
environmental assessment.

Exploration Agreement
Implementation Committee has delegates
from the Company and community
representatives as a mechanism for
communicating to community as a whole.

January 11, 2021 Press Release re: CSR

January 28, 2021 Press Release re: CSR

Disclose the total number of site shutdowns or project delays due to non-technical factors.

Disclose the total aggregate duration (in days) of site shutdowns or project delays due to non-technical factors.

Governance

Structure

a. Report the governance structure of the organization, including committees of the highest governance body, e.g., the Board of Directors, the Executives, the Board Environment Committee, Board Safety Committee, the Advisory Committee, etc.

See attached Organizational Chart for Clean
Air Metals Inc.

Role of the Board of Directors

Organizational Chart

Committees

b. Report the committees responsible for decision-making on economic, environmental, and social topics, e.g., the Board of Directors, the Executives, the Board Environment Committee, Board Safety Committee, the Advisory Committee, etc.

The Sustainability and Audit Committees of the
Board of directors are responsible for decision-
making on economic, environmental, and social
issues that pertain to the Company's
operations.

Further, the Compensation Committee of the
Board of Directors enhances employee
retention through the determination of
competitive remuneration, including salary,
benefits, and equity participation.

Overall responsibility for Economic,
Environmental and Social matters is assigned to
the CEO, Abraham Drost.

Sustainability Committee

Audit Committee

Responsibility

a. Has the organization appointed an executive-level position or positions with responsibility for economic, environmental, and social topics , e.g., is it part of the Governance structure of the company, the CFO or internal audit reporting to the Board

Yes

Reporting Structure

b. Report whether position holders report directly to the highest governance body or CEO

At Clean Air Metals Inc., the CEO is responsible
for economic, environmental, and social issues
and reports to the Board of Directors.

Consultation Process

Report the processes for consultations between stakeholders and the highest governance body on economic, environmental and social topics, e.g., for most mining companies it would be the executives and operations and not the Board, and if delegated, explain how

As a public company issuer (AIR: TSXV), the
Company is obligated to provide continuous
disclosure of all its business activities by press
release. All feedback from shareholders,
potential investors and interested stakeholders
is directed to the CEO by phone or email.
Consultation can include direct meetings with
affected stakeholders. and or communities.

Composition

Report the composition of the highest governance body and its committees by:

Number of executive members

Number of non-executive members

Number of independent members

Less than 3 years

3-6 years

6-9 years

More than 10 years

Lists of each individual’s other significant positions and commitments, and the nature of the commitments, e.g., other boards and executive positions

See link to Board and Senior Management
biographical information.

Board and Senior Management Biographical
Information

Number of Male governance body members

Number of Female governance body members

Number of members from under-represented social groups

Pursuant to the Press Release of November 8,
2021, Clean Air Metals, Inc is pleased to
announce the appointment of Shannin
Metatawabin to the Board of Directors.

Clean Air Metals Announces the Appointment
of Mr. Shannin Metatawabin to the Board of
Directors

Description of competencies relating to economic, environmental, and social topics

See link to Board and Senior Management
biographical information.

Board and Senior Management Biographical
Information

Description of stakeholder representation

Clean Air Metals Inc. is a Canadian exploration
and development company. Its stakeholder
representation consists of employees and
workers who are not employees, trade union
service suppliers, local community supply and
services, and our shareholders and providers of
capital.

Board Diversity

If available, provide a link to the entity's Board Diversity Policy Statement or attach the related document

See link for the Clean Air Metals Inc. Equity,
Diversity, and Inclusion policy

Equity, Diversity and Inclusion Policy

Non-Executive Director

a. Is the chair of the highest governance body also an executive officer in the organization

Yes

b. If the chair is also an executive officer, describe his or her function within the organization’s management and the reasons for this arrangement

Jim Gallagher, Executive Chair, is an
experienced mining engineer and corporate
executive who assists the CEO and
management team on a regular basis. The
position is not an independent director.

Conflicts of Interest

a. Report the processes for the highest governance body to ensure conflicts of interest are avoided and managed, e.g., list procedures

Board of Director members are required to
disclose conflicts of interest including outside
affiliations and are subject to re-election at the
annual general meeting. As a listed public
issuer, the Company is subject to annual third
party Financial and Procedural Audit. In
addition, the Company has in place a Code of
Code of Business Conduct & Ethics and Board
Mandate.

Code of Business Conduct and Ethics

Mandate of the Board of Directors

b. Report whether conflicts of interest are disclosed to stakeholders, including, as a minimum:

Yes

i. Cross-board membership

Yes

ii. Cross-shareholding with suppliers and other stakeholders

Yes

iii. Existence of controlling shareholder

Yes

iv.Related third party disclosures

Yes

Transparency

a. Report the highest governance body’s and senior executives’ roles in the development, approval, and updating of the organization’s purpose, value or mission statements, strategies, policies, and goals related to economic, environmental, and social topics

The Company seeks to operate sustainably
through an ESG Mandate and Sustainability
Policy implemented by the Sustainability
committee.

ESG Mandate

Susatainability Committee Mandate

Sustainability Policy

a. Report on the measures taken to develop and enhance the highest governance body’s collective knowledge of economic, environmental, and social topics, e.g., board training

Mary Ann Crichton is Chair of the
Sustainability Committee at Clean Air Metals.
She is also Chair of the Equity, Diversity, and
Inclusion Committee and a member of the
Sustainability Committee for the Prospectors
and Developers Association of Canada.

Board Training includes "Walking In My
Moccasins," an Indigenous sensitivity course by
Ed Collins and Mining Industries Human
Resources (MiHR) Council Intercultural
Awareness Training.

Mining Industries Human Resources Council
Intercultural Awareness Training

Prospectors and Developers Association of
Canada

d. Report the actions taken in response to evaluation of the highest governance body’s performance with respect to governance of economic, environmental, and social topics, including, as a minimum, changes in membership and organizational practice, (response to external evaluations)

Clean Air Metals Inc. reports on ESG progress
on a quarterly basis in its Management
Discussion & Analysis. The Company is also
subject to annual third-party Financial and
Procedural Audits.

a. Report the highest governance body’s role in identifying and managing economic, environmental, and social topics and their impacts, risks, and opportunities – including its role in the implementation of due diligence processes, (committee roles)

All economic, environmental, and social topics
and their impacts, risks, and opportunities are
discussed in Sustainability Committee
meetings. Action items are identified, actioned,
and reported to the Board on a regular basis.

Sustainability Committee Mandate

b. Is stakeholder consultation used to support the highest governance body’s identification and management of economic, environmental, and social topics and their impacts, risks, and opportunities, and if delegated, explain how

Yes

Stakeholder consultation is delegated to CEO
who's contact coordinates are publicly
disclosed.

Remuneration

b. Report how performance criteria in the remuneration policies relate to the highest governance body’s and senior executives’ objectives for economic, environmental, and social topics

Senior executives have specific corporate
performance objectives including ESG criteria
and are evaluated according to specific items
on ESG and other matters.

a. How are stakeholders’ views sought and taken into account regarding remuneration

Compensation Committee derives current data
to benchmark compensation relative to peers .

Board and senior management are subject to
annual re-election.

Company publishes quarterly and annual
financial statements with details of senior
executive remuneration. Shareholders and all
stakeholders are invited to contact board and
management directly.

b. If applicable, report the results of votes on remuneration policies and proposals

Link to press release of reporting period.

Press Release

Ethics

Describe the management system and due diligence procedures for assessing and managing corruption and bribery risks internally and associated with business partners in its value chain.

See link to Company Ethical Workplace and
Reporting Policy and Procedure.

The Company adheres to Canadian anti-
corruption legislation. Any payments to third
parties are subject to the Extractive Sector
Transparency Measures Act (ESTMA).

Ethical Workplace Policy

Report net production from activities located in the countries with the 20 lowest rankings in Transparency International’s Corruption Perception Index (CPI) (Saleable tonne):

Anti-corruption

Communication and Training

di. Total number of governance body members that have received training on anti-corruption, broken down by region

The Company has received instruction from
legal Counsel with respect to anti-corruption
obligations and reporting. These are in large
part embedded in the company's Code of
Business Conduct and Ethics policy. All
directors sign an Annual Certification form
indicating compliance with business ethics and
anti-corruption measures which are embedded
in the policy.

Annual Certification Form

dii. Total percentage of governance body members that have received training on anti-corruption, broken down by region:

100.0000%

e. Total number and percentage of employees that have received training on anti-corruption, broken down by employee category and region:

e1a. Total number of employees that received training on anti-corruption

Clean Air Metals Inc., has provided internal
training on anti-corruption policies and
procedures.

Total number of employees

e1b. Total percentage of employees that received training on anti-corruption

100.0000%

e2a. Total number of senior employees that received training on anti-corruption

Total number of senior employees

e2b. Percentage of senior employees that received training on anti-corruption

100.0000%

e3a. Total number of middle management employees have received training on anti-corruption

Total number of middle management employees

e3b. Percentage of middle management employees have received training on anti-corruption

100.0000%

e4a. Total number of technical employees that received training on anti-corruption

Total number of technical employees

e4b. Percentage of technical employees that received training on anti-corruption

100.0000%

e5a. Total number of production employees that received training on anti-corruption

Total number of production employees

e5b. Percentage of production employees that received training on anti-corruption

Does Not Apply

e6a. Total number of administrative employees that received training on anti-corruption

Total number of administrative employees

e6b. Percentage of administrative employees that received training on anti-corruption

Does Not Apply

Tax

a. Describe the approach to stakeholder engagement and management of stakeholder concerns related to tax, including:

i. The approach to engagement with tax authorities

Company is subject to annual third-party audit
and tax returns.

ii. The approach to public policy advocacy on tax

The Company does not directly engage in
public policy advocacy on tax issues. It supports
industry initiative through its membership in
the Prospectors and Developers Association of
Canada (PDAC).

iii. the processes for collecting and considering the views and concerns of stakeholders, including external stakeholders

The company publishes financial statements
and contact information for external
stakeholder comments.

Climate Change

Oversight

Is there board-level oversight of climate-related issues within your organization

Yes

The Sustainability Committee of the Board of
Directors provides direction on climate-related
issues for the company. The company has
retained the following third-party stakeholder
groups to provide advice on sustainable mining
practices: Nordmin Engineering Ltd, DST
Consulting Engineers, Englobe, Northwinds
Environments Services Ltd, and Woodland
Heritage Northwest.

Responsibility

Provide the highest management-level position(s) or committee(s) with responsibility for climate-related issues:

Chief Executive Officer (CEO)

Nature of primary responsibility

Both assessing and managing climate-related
risks and opportunities

Reporting

Frequency of reporting to the board on climate-related issues

Quarterly

Incentives

Do you provide incentives for the management of climate-related issues, including the attainment of targets

No, not currently but we plan to introduce
them in the next two years

Risk and Opportunity Management

Does your organization have a process for identifying, assessing, and responding to climate-related risks and opportunities

No-we are planning to introduce a climate-
related risk management process in the next
two years

Risk Assessments

Have you identified any inherent climate-related risks with the potential to have a substantive financial or strategic impact on your business

Yes

Provide details of identified risks in your direct operations with the potential to have a substantive financial or strategic impact on your business, and your response to those risks

Risk 1:

Where in the value chain does the risk driver occur

Direct operations

Risk type and primary driver

Emerging regulation - Carbon pricing
mechanisms

Regulations regarding sustainable mining and
extraction processes may result in increased
capital expenditures.

Time horizon of risk

Long-term

Likelihood of impact

Likely

Magnitude of impact

Medium

Potential impact financial figure and explanation

Subject to Bankable Feasibility Study.

Primary potential financial impact

Increased capital expenditures

Cost of response to risk and description

Subject to Bankable Feasibility Study.

Risk 2:

Where in the value chain does the risk driver occur

Downstream

Risk type and primary driver

Technology - Substitution of existing products
and services with lower emissions options

Increased focus on R&D battery and emission
technologies may potentially affect demand for
the commodity suite being considered by Clean
Air Metals.

Time horizon of risk

Long-term

Likelihood of impact

About as likely as not

Magnitude of impact

Medium-low

Potential impact financial figure and explanation

Subject to Bankable Feasibility Study.

Primary potential financial impact

Decreased revenues due to reduced demand
for products and services

Cost of response to risk and description

Subject to Bankable Feasibility Study.

Opportunity Assessments

Have you identified any climate-related opportunities with the potential to have a substantive financial or strategic impact on your business

Yes

Provide details of opportunities identified with the potential to have a substantive financial or strategic impact on your business

Opportunity 1:

Where in the value chain does the opportunity driver occur

Downstream

Opportunity type

Resource efficiency : Use of more efficient
modes of transport

The commodity mix on offer from the
company's project are key elements in the
transition to zero emissions and green energy
transportation solutions. Battery electric,
copper, nickel; emissions reduction for internal
combustion engines, palladium and platinum;
hydrogen fuel cell hybrid vehicle technology
driven by platinum anode and cathode
electrolysis and reverse electrolysis.

Opportunity time horizon

Medium-term

Opportunity likelihood

Likely

Magnitude of impact

High

Potential impact financial figure and explanation

Subject to Bankable Feasibility Study.

Primary potential financial impact driver

Increased revenues resulting from increased
demand for products and services

Cost and strategy to realize opportunity and explanation of cost calculation

Subject to Bankable Feasibility Study.

Opportunity 2:

Where in the value chain does the opportunity driver occur

Direct operations

Opportunity type

Energy source: Use of new technologies

The company is testing the feasibility of using
all electric mining equipment.

Opportunity time horizon

Medium-term

Opportunity likelihood

More likely than not

Magnitude of impact

Medium

Potential impact financial figure and explanation

Subject to Bankable Feasibility Study.

Primary potential financial impact driver

Increased revenues resulting from increased
demand for products and services

Cost and strategy to realize opportunity and explanation of cost calculation

Subject to Bankable Feasibility Study.

Opportunity 3:

Where in the value chain does the opportunity driver occur

Downstream

Opportunity type

Resilience: Participation in renewable energy
programs and adoption of energy-efficiency
measures

Opportunity time horizon

Long-term

Opportunity likelihood

About as likely as not

Magnitude of impact

Medium-low

Potential impact financial figure and explanation

Subject to Bankable Feasibility Study.

Primary potential financial impact driver

Increased access to capital

Cost and strategy to realize opportunity and explanation of cost calculation

Subject to Bankable Feasibility Study.

Strategy

Have climate-related risks and opportunities influenced your organization’s strategy and/or financial planning

Yes

Water Management

Quality and Quantity Dependency

Rate the importance (current and future) of freshwater quality and quantity to the success of your business:

Direct use importance rating

Important

Indirect use importance rating

Neutral

Rate the importance (current and future) of sufficient quantity of recycled, brackish and/or produced water for the success of your business:

Direct use importance rating

Important

Indirect use importance rating

Important

Risk Assessments

Does your organization undertake a water-related risk assessment

Yes, water-related risks are assessed

Select the options that best describe your procedures for identifying and assessing water-related risks:

i. Coverage

Full

ii. Risk Assessment Procedure

Water risks are assessed in an environmental
risk assessment

iii. frequency of Risk Assessment

Annually

iv. How far into the future are risks considered

More than 6 years

Have you identified any inherent water-related risks with the potential to have a substantive financial or strategic impact on operations

Opportunity Assessments

Have you identified any water-related opportunities with the potential to have a substantive financial or strategic impact on your business

Water balance is a key element of mine site
design and will be considered in more detail at a
bankable feasibility study stage.

Responsibility

Provide the highest management-level position(s) or committee(s) with responsibility for water-related issues

Chief Executive Officer (CEO)

Policy

Does your organization have a documented water policy

No, but we plan to develop one within the next
2 years

Select the options that best describe the scope and content of your organizations' water policy

None

Reporting

Frequency of reporting to the board on water-related issues

As important matters arise

Incentives

Do you provide incentives to C-suite employees or board members for the management of water-related issues

No, not currently but we plan to introduce
them in the next two years

C-Suite incentives will be provided to the
extent that ESG related compensation is tied to
performance objectives that include water
related issues.

Strategy

Are water-related issues integrated into any aspects of your long-term strategic business plan:

No, water-related issues not yet reviewed, but
there are plans to do so in the next two years



This document was prepared using

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