POSCO INTERNATIONAL signed the Production Sharing Contract (PSC) for Block A-1 off the western coast of Myanmar back in 2000, and has since discovered gas fields consecutively in Shwe in 2004, Shwe Phyu in 2005, and Mya (Block A-3) in 2006. It took the Company full 13 years to initiate gas production in June 2013 for the Shwe Project which constitutes the largest overseas resource development project ever undertaken by a Korean private business. The gas produced through this project is supplied to Myanmar and China along the 793km-long onshore pipelines installed between the two countries, and its average daily supply amounts to 500 million cubic feet. Not only does POSCO INTERNATIONAL ensure the reliable availability of overseas resources through the Shwe Project to serve the national interest of Korea, but has also remained committed to the development of the Myanmar community to build trust-based relationships. As the international community is tightening sanctions on the military regime in Myanmar in the wake of the emergency situation which broke out in February 2021, POSCO INTERNATIONAL aims to make the following disclosures on its Shwe Project to continue with transparent communication with stakeholders.

POSCO INTERNATIONAL's Shwe Project in Myanmar was initiated in 2000 pursuant to the Production Sharing Contract (PSC) concluded between foreign investors and Myanmar 0il & Gas Enterprise (MOGE), a state-owned company under the Myanmar Ministry of Electricity & Energy (MOEE), and has since been undertaken continuously regardless of any change in government in the country for the past 23 years.

The Shwe Project serves as a main source of gas supply in the central northern region of Myanmar, and any disruption to its project execution leads to the suspension of fuel supply to local gas-fired power plants. This will further reduce the nation's power generation which already falls far short of the demand, and may result in economic contraction, taking a heavy toll on the daily lives of the Myanmar people. Against this backdrop, we firmly believe at POSCO INTERNATIONAL that the best possible way for us to protect people and communities in Myanmar from any further harm is to ensure the reliable operation of the Shwe Project.

The Shwe Project is structured as an Unincorporated Joint Venture (UJV) under which ownership and liability is separated among investment partners. As such, each party to this UJV has rights and responsibilities over the jointly controlled assets in proportion to the percentage of their respective shareholding, and the proceeds that they receive from the sale of gas are proportional to their share of ownership as an independent gas seller. As is the case with any other JVs, decisions concerning the suspension of transactions or divestment should be made based on the consent gained from other parties to the contract.

SEAGP (South-East Asia Gas Pipeline), a joint venture responsible for the operation of the onshore pipeline connecting the offshore gas terminal with the Chinese border region, is owned by CNPC-SEAP (China National Petroleum Corporation South- East Asia Pipeline Company Limited) as a controlling shareholder with a 50.9% stake. As such, POSCO INTERNATIONAL, a non- -controlling shareholder with a 25.04% stake, can't unilaterally determine the suspension of dividend payments. While we submitted a letter to CNPC-S SEAP to propose dividend payments be postponed, our proposal has not been accepted to date.

As a globally integrated corporation, we abide by international human rights norms and Myanmar's local labor laws, and fully commit to building a corporate culture that puts safety first and respects human rights for all employees working for the Shwe Project. We also establish and implement our human rights management process in line with the OECD Due Diligence Guidance to review our internal human rights management practices and to take appropriate action in the event employees' human rights are violated to protect their human rights. In 2019 before the COVID-19 pandemic, personnel form the Headquarters and external professional consultants visited the project site to examine its environmental, safety, and human rights management, and the results based our efforts to reinforce our paper-based due diligence checklist by updating the questions and methodology to better cater to on-site conditions. While COVID-19 and the resulting restrictions on cross-border travel posed difficulties in conducting regular human rights due diligence, we resumed paper-based due diligence in December 2022 and disclose the results through our sustainability report 2022 as below.

POSCO INTERNATIONAL strives to deliver on the CSR commitments we made with the Myanmar community. Our CSR programs have been up and running since 2006 in the six areas of education, social infrastructure development, healthcare, environmental preservation and protection, social welfare, and disaster relief. It is worth noting that we have partnered with the Myanmar Red Cross Society since 2021 for emergency relief to provide healthcare and livelihood support to local people suffering from the on-going situation as well as the pandemic. We donated emergency aid supplies mainly to regions experiencing a surge in emergency situations, and distributed ambulances for emergency medical service in line with the growing community needs for emergency care and mobile healthcare.