MEASURES TO MITIGATE OF SOCIAL AND ENVIRONMENTAL RISK`S – PART 1 (Social)

Note of Inerest

June 11th, 2018

CORPORACIÓN MIRAFLORES S.A. - MEASURES TO MITIGATE THE SOCIAL AND ENVIRONMENTAL RISK - PART 1 (SOCIAL).

The Following are the most important aspects in relation to the social scenario of CORPORACION MIRAFLORES S.A regarding its main partner the " Cooperativa de Servicios Agrarios San José de la Golondrina":

a.  It is the most important factor to act in the social field. Having gone through institutional crisis, the confrontation and subsequent expulsion of the leadership sector that led the Cooperative in the production process and whose results consequence of the immoral administration, was the total failure and the substantial loss, both financial and patrimonial. Today is a new begin consolidated based on its participation in COMISA, as a unitary force for the achievement of projects.

b.    The priority with the Cooperative now, is to produce the investment to generate work to the local workforce, that without success in the micro family rice producing units, has to migrate to the intermediate cities to achieve unstable and low-income jobs, or to the agro exporting companies long way far, leaving home at dawn to working all the day and to spend part of their salary in the daily transportation and feeding.

c.  The aim of the Cooperative directors is to include the local labor force into the demand of COMISA, transforming them into social promoters; identifying this workforce, evaluating their skills and training them prior to the call for work. These activities were carried out in connection with the first initiative to plant sugarcane.

d. The Cooperative has consolidated its leadership within the population sectors and with the support of the company, has carried out different social development events, both in health, citizen security, job training, development and promotion of the child, organization and women's rights, sports and others, having under their influence a fabric of social organization that every day is strengthened for the construction of the social organization of their settlements.

e.  The Cooperative maintains in its property the lining quarters areas of expansion, which COMISA has transferred with the purpose of orderly plan the development and growth of the populations, once the impact of people concentration and nuclearization of services occur, with the contingent of the direct and indirect labor force and the growth of the services that will be convocated with the COMISA investment.

f.   The Cooperative -supported by the University of Piura- is preparing its productive and social investment plan where to undertake the income that accrues from its participation in COMISA. The criteria are oriented to configure businesses that integrate local producers, improving their productive capacity and their insertion in the factors of social and economic development.

g. In summary, the Cooperative has become the force of promotion and social development of the company.