LANKA GRAPHITE LTD (ACN 074 976 828)

 (“Company”)

  1. 1. PURPOSE

    1. 1.1 This Policy sets out the Company’s beliefs with respect to diversity within the Company and outlines the processes through which the Company will actively promote diversity across its operations.
    2. 1.2 The Company believes that the promotion of diversity within the organisation generally:
      1. 1.2.1 enlarges the pool for recruitment of high quality employees;
      2. 1.2.2 is likely to encourage employee retention; and
      3. 1.2.3 is likely to encourage greater innovation through the inclusion of different perspectives.
    3. 1.3 In the compilation of this Policy, the Company has where possible followed the recommendations of the ASX Corporate Governance Principles and Recommendations with 2014 Amendments, 3rd edition. If the Company has not followed a particular recommendation it has sought to explain why it has not.
    4. 1.4 The Company intends to adopt the relevant recommendations. However, given the size of the Company and its current operations as at the date of adoption of this Policy, the Company is not currently in a position to fully implement the recommendations and statements as set out in this Policy. As the Company grows, it will implement the recommendations and statements as set out in this Policy.
  2. 2. DEFINITIONS

    1. In this Policy:

      Board means the Board of the Company;

      Diversity is recognising and valuing the unique contribution people can make because of their individual background and different skills, experiences and perspectives. This includes gender, ethnicity, age, marital status, sexual orientation, religious background and culture and involves a commitment to equality and to the treating of one another with respect;

      Senior Management means employees of the Company who manage the Company pursuant to the directions and delegations of the Board.

  3. 3. POLICY STATEMENT

    1. 3.1 The Company is committed to providing a diversity inclusive workplace in which all employees regardless of gender, age, ethnicity, religious or cultural background , marital status and sexual orientation have the opportunity to fully participate and are valued for their individual skills, experience and perspectives. The Company will not tolerate discrimination, harassment, vilification and victimisation in the workplace.
    2. 3.2 Diversity will be promoted by creating a culture of empowering people to act in accordance with this Policy, through appropriate recruitment practices, appropriate training of employees and the implementation of internal mentoring and leadership programs.
    3. 3.3 It is noted that in terms of appointments, the Company’s policy will be to appoint the best available candidate for any role or position in the Company or on its Board as this is in the best interests of the Company and its shareholders.
  4. 4. PROGRAMS AND INITIATIVES TO INCREASE DIVERSITY

    To assist with improving diversity within the organisation, the Company will develop and introduce programs and initiatives which include:

    1. (a) mentoring programs;
    2. (b) networking opportunities;
    3. (c) supporting promotion of talented women into management positions; and
    4. (d) provide opportunities for male and female employees to balance their work, life and family responsibilities including flexible work options and return to work programs.
  5. 5. MEASURABLE OBJECTIVES

    1. 5.1 The Board will establish measurable objectives for achieving diversity in the Company, as follows:
      1. 5.5.1 aim to increase the proportion of women on the Board as vacancies and circumstances allow; and
      2. 5.5.2 aim to increase the proportion of women in Senior Management roles as vacancies and circumstances permit.
    2. 5.2 Senior Management will be responsible for assessing and reporting to the Board in relation to the Company’s progress towards achieving the measurable objectives on an annual basis.
  6. 6. REPORTING COMPLIANCE WITH MEASURABLE OBJECTIVES

    1. 6.1 In its annual report, the Company will disclose:
      1. 6.1.1 the measurable objectives for achieving gender diversity set by the Board in accordance with the diversity policy; and
      2. 6.1.2 the progress towards achieving them.
    2. 6.2 As part of this disclosure the Company will disclose in its annual report, the proportion of:
      1. 6.2.1 women employees in the whole organisation;
      2. 6.2.2 women in senior executive positions; and
      3. 6.2.3 women on the Board.
    3. 6.3 This Policy will be reviewed on an annual basis.
    4. 6.4 The Board will develop a Board skills matrix which sets out the mix of skills and diversity that the Board currently has or is looking to achieve in its membership.