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WaterFurnace Conflict Mineral Policy

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and the United States Securities and Exchange Commission (SEC) now require U.S. public companies to report on the origin of minerals commonly used in the electronics industry, specifically tin (Sn), tantalum (Ta), tungsten (W) and gold (Au). These minerals are called conflict minerals because they are found in regions where forced labor and other human rights abuses are used to mine these minerals and finance armed conflict, specifically in the Democratic Republic of the Congo (DRC) and its adjoining countries. The goal of the rule is to motivate manufacturers to ensure that these minerals come from conflict free sources and to prevent armed groups from benefiting from the use of force and human rights abuses.

WaterFurnace International ("WFI" Hereafter) join many others with concern regarding the human tragedies occurring in the Democratic Republic of the Congo and adjoining countries associated, in part, with the mining of columbite-tantalite (tantalum), cassiterite (tin), wolframite (tungsten) and gold ("Conflict Minerals"). These minerals originate from various continents, but armed groups engaged in, or interfering with mining operations within the Democratic Republic of the Congo and adjoining countries ("Covered Countries") are subjecting people to human rights violations and using proceeds from the sale of these Conflict Minerals to finance and sustain regional conflicts.

WFI supports responsible materials sourcing. We recognize and support the need to develop programs which allow for improved transparency in "Conflict Minerals" supply chains. WFI, take corporate governance and business ethics seriously. Currently, supply chains for "Conflict Minerals" are not transparent or controlled, and it will take some time to analyze the many supply chains and implement meaningful verification and control programs across all product categories. WFI is working toward a goal of assuring our products are manufactured and are sourced from socially responsible supply chains by collecting the pool of validated Conflict Free minerals.

Robert R. Brown
Vice President of Engineering
April 2, 2015


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