Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50PROMOTING TRANSPARENCY In our host countries, natural resources, such as oil and gas, belong to a country’s citizens. Extraction of these resources can lead to economic growth and social advancement. However, corruption in many resource-rich countries has prevented citizens from fully realizing the benefits of oil and gas development. At Kosmos, we believe resource revenues are more likely to be managed in the best interests of a country’s citizens if payments and receipts are documented in a transparent manner. In 2012, we declared our support for the Extractive Industries Transparency Initiative (EITI), a leading global standard that strengthens governance by promoting transparency and accountability in the oil, gas, and mining sectors. The EITI requires participating governments to establish a multi-stakeholder steering group comprised of representatives of governments, business, and civil society to oversee a process in which companies declare material payments to government, and the government declares all material receipts from extractive companies. These figures are reconciled, and discrepancies identified and investigated by an independent expert. Since joining EITI, we have taken a number of steps to demonstrate our commitment to being a leader in transparency. PETROLEUM AGREEMENTS AND PRODUCTION SHARING CONTRACTS In our view, transparency begins with openly sharing the terms of our business dealings with host governments so that a more informed national dialogue can take place in the countries where we work. To this end, we have voluntarily published all of our contracts with host governments on our website and file these documents with the U.S. Securities and Exchange Commission (U.S. SEC) as part of our routine disclosures. Citizens and civil society organizations can read these contracts for themselves to better understand each party’s obligations and to promote accountability. PAYMENTS TO GOVERNMENTS Since 2012, we have been voluntarily publishing our payments to governments on our website and in this report. We originally reported our payments in aggregate, as well as by payment type, such as taxes, training, and surface rentals. In 2014, we made a policy decision to disclose payments to governments at the project level, as described in the European Union Accounting Directive, an initiative that aims to improve corporate accounting practices and transparency. We believe this method of disclosure is beneficial to investors, civil society, and local communities, and reflects evolving international standards. At the time of this report’s publication, Kosmos remained the only U.S.- based oil and gas company to disclose project-level payments to governments. PUBLIC ADVOCACY In addition to reporting annually on our payments to governments, we play an active role in promoting transparency in the countries where we work. > In Ghana, we are an active member of the EITI multi- stakeholder group, which oversees the public reconciling of payments and receipts between government and extractive companies. In 2015, Kosmos hosted a delegation from Suriname at the annual EITI Global Conference in Lima, Peru. At the event, Suriname committed to submitting an application to join the initiative. Suriname Country Manager Tom Fauria and Senior Vice President of External Affairs Reg Manhas are pictured here with the delegation and a senior representative from EITI. 40 40