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Kosmos has engaged intensively with relevant institutions of the Government of Morocco to encourage progress on the development of a clear framework for the eventual development of hydrocarbon resources offshore Western Sahara in accordance with the 2002 UN Legal Opinion. To this end Kosmos has co-hosted a number of roundtables on resource governance and management of the benefits from hydrocarbon development and benefit distribution frameworks. As we continue to prepare offshore prospects for further exploration drilling we will continue to engage with local people as well as consult with the Government of Morocco on the wider issues facing oil and gas development. In addition to the feedback we have received on the ground in Dakhla we have also received letters and emails regarding our presence in Western Sahara. We have made efforts to respond to all such feedback whether through face-to-face discussions or other correspondence. POSITIVE IMPACTS Kosmos continues to work with the Kingdom of Morocco to ensure that if commercial resources are discovered offshore Western Sahara they are developed in a manner that complies with international law and reflects best practices in resource management. If our exploration efforts are successful resource development has the potential to create tangible social and economic benefits for the people of the territory. Together with our partners we are making a significant financial investment to generate information about the resources that may exist. Understanding whether oil and gas resources exist offshore can be a first step toward realizing greatly increased economic opportunity for local people. A commercial discovery would potentially lead to significant foreign investment and job creation. Responsible exploration now in tandem with continued work to ensure that the people of Western Sahara will benefit from any oil revenues is an ethical and appropriate course of action. Early-stage exploration and seismic acquisition Stakeholder Engagement Risk Assessment Publish contract Government workshops Supply Chain and Local Content Assessment Early Social Investments Preparing to drill Expand Social Investments Conduct EIA Conduct SIA Hire community relations coordinator based in the territory Executive visits Local content Security and human rights Drill ready Hold local Environmental Workshop Implement Environmental and Social Impact Management Plan Ensure cultural awareness and respect among travelling employees and contractors While most of the interactions that we have had with local stakeholders were broadly positive toward oil and gas exploration the following are excerpts from a concerned stakeholder letter we received in 2014 and how we responded. We have published the full text of the letter and our response on our website. Precisely by siding with the Moroccan government driven by your own economic interests you are destroying our future. We have a right to self-determination as stated by the International Court of Justice repeated over and over by the United Nations and recognised by the entire international community. We have the right to choose the political future of our country. It is our decision not yours not the Moroccan governments. Only after we have made our decision known will it be clear to you with whom you should do business. Not before. We do not want Kosmos Energy or Cairn Energy or any other company to drill for oil in our country before we have had the chance to exercise our right to self-determination. We ask for your support for that right. You have a unique chance to create peace by refraining from drilling until the voice of the Saharawi people has been heard. E X C E R P T F R O M O U R R E S P O N S E If our exploration well is successful it will take several years and much more work to determine whether sufficient hydrocarbon resources exist to justify development. Part of that work will be further engagement with local populations as well as consultation by the Government of Morocco on the wider issues facing successful hydrocarbon development. We understand and appreciate your desire for self-determination. Kosmos supports the UN-led effort to resolve Western Saharas political status. As a private enterprise however we do not have a role to play in the political process. We remain hopeful that a solution can be reached to end the nearly 40 year stalemate and we will certainly support the outcome of the negotiation. No one benefits from maintaining a status quo that has resulted in virtually no private sector economic development for the people of the territory. We believe responsible resource development can and should proceed in parallel with the UN-led discussions on the regions future. We also firmly believe that the 2002 UN Legal Opinion lays out a clear path for resource development to co-exist with the political process as long as any such resource development is conducted for the benefit of the people of the territory. Our phased approach to above-ground activities in Western Sahara has been based on our project lifecycle 28 SPOTLIGHT WESTERN SAHARA