AVOIDING CONFLICT MINERALS

Sourcing Policy to Avoid Conflict Minerals
STATEMENT
AVOIDING CONFLICT MINERALS
Sourcing Policy to Avoid Conflict Minerals

       Columbite-tantalite (coltan), cassiterite, wolframite and gold, or their derivatives, including tantalum, tin, and tungsten, originating from the Democratic Republic of the Congo (DRC) and adjoining countries (often referred to as "Conflict Minerals") are sometimes mined and sold by armed groups to finance unfair labor practices or human rights violations. Some of these Conflict Minerals can make their way into the supply chains of the products used around the world.

       It is the policy of SME to avoid Conflict Minerals that directly or indirectly finance or benefit armed groups in conflict-affected regions.

   As part of SME's commitment to corporate responsibility and respecting human rights in its operations and in its global supply chain, SME will endeavor to only procure raw materials containing Conflict Minerals that do not support conflict.

In support of this sourcing policy, SME will:


Exercise due diligence with relevant suppliers consistent with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas and encourage our suppliers to do likewise with their suppliers.

Provide, and expect its suppliers to cooperate in providing, due diligence information to confirm that any Conflict Minerals in its supply-chain do not support conflict.

Commit to transparency in the implementation of this policy by making available reports on its progress to its customers, relevant stakeholders, and the public (as required).


MS. YE XIAOXI

Approved by the Board of Directors on 13 March, 2016.
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