2010 Administrative Complaint filed by the Units of Environmental Management (UGA) from six municipalities

In October 2010, Units of Environmental Management (UGA) from six municipalities, including Santo Domingo and La Libertad, filed an administrative complaint with the Ministry of the Environment and Natural Resources (MARENA) and the Office of the State Prosecutor (PGR) on the basis that the exploration activities conducted by B2Gold through its wholly owned subsidiary, Desarrollo Minero de Nicaragua S.A. (DESMINIC S.A.), showed environmental deterioration, particularly with respect to surface water sources, such as springs, ravines and rivers, resulting in significant breaches of the companies’ environmental permit and national environmental legislation. The environmental permit, and associated authorization to begin exploration activities, was granted by the General Directorate of Environmental Quality (DGCA) of the MARENA in 2008. Despite this complaint, two amendments were subsequently made to the environmental permit allowing for the expansion of exploration activities and, in 2012, exploitation of the authorized mining area.