Annual Report on Measures to Prevent Forced Labour and Child Labour in Supply Chains

Introduction

This report is prepared in accordance with Bill S-211, the "Fighting Against Forced Labour and Child Labour in Supply Chains Act," to disclose the measures Canuc Resources Corporation has taken to prevent and reduce the risk of forced labour and child labour in its supply chains.

1. Entity Structure, Business Activities, and Supply Chains

Canuc Resources Corporation is an energy and mining company headquartered in Toronto, Ontario. Our business operations encompass the exploration, extraction, refining, and distribution of oil, natural gas, and exploration of precious metals such as gold and silver. Our supply chains span multiple countries, involving numerous suppliers providing equipment, services, and raw materials essential for our operations in both the energy and mining sectors.

2. Risk Assessment and Management

To identify and mitigate risks of forced labour and child labour within our supply chains, Canuc Resources Corporation has implemented the following measures:

• Supplier Risk Assessments: Conducted comprehensive risk assessments of all key suppliers in both the oil and gas and mining sectors to evaluate their labour practices and compliance with international labour standards, with particular focus on suppliers in high-risk regions.
• Supplier Visits: Performed unannounced inspections of high-risk suppliers' facilities, focusing on working conditions, employee treatment, and adherence to our ethical standards.
• Review Supplier Code of Conduct: Reviewed the supplier Code of Conduct to ensure that it explicitly prohibits forced labour and child labour.

3. Policies and Due Diligence Processes

Canuc Resources Corporation has established certain policies and processes to prevent and address forced labour and child labour:

• Human Rights Policy: Our Human Rights Policy outlines our commitment to upholding the rights of all workers within our supply chains and explicitly prohibits forced labour and child labour.
• Supplier Onboarding Process: All new suppliers are asked about their labour practices to ensure that there is no unethical treatment of their workers. We also review their code of conduct to ensure that it explicitly prohibits the use of forced labour and child labour.
• Continuous Monitoring: Implemented ongoing monitoring systems, such as site visits, to ensure that no unethical labour standards exist and to identify any emerging risks.

4. Training and Capacity Building

To ensure awareness and adherence to our policies, Canuc Resources Corporation has implemented training programs for employees and suppliers:

• Employee Training: Conducted meetings for all employees, contractors and board members on the identification and prevention of forced labour and child labour.

5. Remediation Efforts

Based on our current procedures no instances of non-compliance have been identified. Canuc Resources Corporation has established remediation protocols should an instance be identified in the future:

• Corrective Action Plans: Suppliers found to be operating with unethical standards are required to implement corrective action plans within a specified timeframe.
• Support for Affected Workers: Collaborated with local NGOs to provide support and assistance to workers affected by forced labour or child labour, including access to education and vocational training.

6. Future Commitments

Canuc Resources Corporation is committed to continuously improving our efforts to combat forced labour and child labour. Our future initiatives include:

• Expanding Site Visits: Increasing the frequency and scope of third-party site visits to cover additional tiers of our supply chain.
• Stakeholder Engagement: Engaging with industry groups, NGOs, and other stakeholders to share knowledge and collaborate on solutions to eradicate forced labour and child labour.

Conclusion

Canuc Resources Corporation remains dedicated to ensuring ethical and responsible business practices throughout our supply chains. This report reflects our ongoing efforts to prevent and eliminate forced labour and child labour, in alignment with our values and legal obligations under Bill S-211.