Raw Material Procurement Statement

H.C. Starck is one of the leading global producers of technology metals and advanced ceramics as powder or fabricated product. We are committed to ensuring the safety, health and protection of people who come in contact with our products and the environment. As responsible corporate citizens, we meet and are continually striving to exceed governmental, industry and environmental standards worldwide.

H.C. Starck fully supports the position of the Electronic Industry Citizenship Coalition (EICC) and the Organization for Economic Co-operation and Development (OECD) to avoid the use of metallic ores which finance or benefit armed groups in the Democratic Republic of the Congo (DRC) or adjoining countries. H.C. Starck also is aware of section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act pertaining to “Conflict Minerals”. We are committed to actively supporting our customers with their diligence and disclosure requirements as required by the United States Securities and Exchange Commission’s final regulations, which are expected to be issued in the first half of 2012. In support of government and private initiatives to develop Conflict-Free supply chain systems, H.C. Starck is a founding member of the Public-Private Alliance for Responsible Minerals Trade (PPA).

H.C. Starck condemns all activities in connection with the illegal or unlawful exploitation of mineral resources, no matter where such activities take place. We only purchase raw materials that are Conflict-Free and that meet the requirements of the OECD Due Diligence Guidance for Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. The EICC has declared H.C. Starck’s tantalum supply chain free of conflict materials and lists H.C. Starck as a Conflict-Free Smelter.

We have implemented a certified Responsible Supply Chain Management System (RSCM) as a core control system to guarantee that we purchase only conflict-free raw materials. The RSCM system ensures efficient and competitive purchasing as well as supports sourcing from suppliers that act in accordance with environmental and social sustainability - be it miners, traders, or slag and scrap metal providers such as smelters or manufacturers. With a variety of control mechanisms, we perform thorough due diligence on all raw material offers based on current OECD and EICC guidelines before we sign any contract or accept any material. The RSCM fulfils all requirements of a management system standard required by ISO. The successful implementation of the system within H.C. Starck has been confirmed by the external auditor Bureau Veritas.

In addition to processing ore concentrates we also recycle increasing volumes of scrap. Through this and other innovative sustainability initiatives we conserve precious primary resources and our environment. Recycling with innovative technologies and certified procurement ensure a safe and competitive raw material supply for our customers, following strong ethical, social and environmental principles.

Munich, January 2012