Risk Management Policy

1. Introduction
   1. The effective management of risk is central to the creation of shareholder value and the success of the Company. The Company strives to maintain a safe environment for its workers, minimise its impact on the environment and be welcomed by the communities in which the Company operates. The Company recognises that community expectations will rise over time, and our performance must match this increase in expectations.
   2. By understanding, managing and, where appropriate, accepting risk, the Company can provide greater value and clarity of purpose to its shareholders, employees, customers and suppliers, and the communities in which it operates. It can better communicate, make well-informed decisions and create shareholder value with increased confidence.
   3. The company’s business of exploration and mining minerals in Australia and in overseas locations is subject to many risks and hazards.
   4. The Board monitors risks and controls through [to be inserted] and regular reports issued to it by management.
   5. Due to the small size of the Company it is not deemed necessary that at this stage the Company has a separate Risk Management Committee. Risks to the Company will be considered and attended to by the entire Board.
2. Managing risk – general principles
   1. In all its activities, the Company will adopt a structured and consistent approach to risk management, which will assist in the alignment and reinforcement of strategy, procedures, people, behaviour and technology for the purpose of evaluating and managing the risks the Company faces in protecting and creating shareholder value.
   2. The level of risk management will be consistent with our company’s overall objectives and risk appetite (what risks the Company wants to take) and tolerance (how much risk the Company wants to take) and will be balanced with our encouragement of enterprise and innovation in all aspects of our business. Effective oversight, direction and monitoring of risk management will be assured through the regular measurement and reporting of our risk management performance to all major stakeholders.
   3. The Company will develop a policy framework for risk management which will be retrieved regularly in accordance with best practise, and in doing so may:
      1. engage an external consultant who is an expert on risk assessment in minerals exploration and mining;
      2. develop its own internal risk management policies; or
      3. adopt in whole, or in part, external risk management policies such as AS/NZ 54360 – Risk Management (available for sale through www.standards.org.au).
   4. Since listing, the Company has developed the following policies to limit business risk:
      1. Continuous Exposure;
      2. Company Credit Card use;
      3. Employment;
      4. Environmental;
      5. Information Systems;
      6. OHS;
      7. Privacy;
      8. Risk Management;
      9. Share Trading;
      10. Shareholder Communications; and
      11. Sustainability.
3. Regulatory and reporting risk
   1. The Company has in place, and continues to work on improving its system of internal controls for the identification and management of financial reporting risk including a system of internal sign-offs to ensure the Company is in compliance with its legal obligations. The Managing Director and Chief Financial Officer also provides assurances to the Board as to the integrity of the company’s financial reports and the risk management and internal control processes underlying those reports.
4. Financial risks
   1. The Company maintains a conservative level of gearing to assist in withstanding financial risks.
   2. To manage Financial Risk Meridian has developed the following policies;
      1. Company Credit Card use;
      2. Share Trading