The Fonds Restor-Action-Nunavik (FRAN) was created to clean up and rehabilitate abandoned mineral exploration sites in Northern Quebec.

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1 June 2013

2 The Fonds Restor-Action-Nunavik (FRAN) was created to clean up and rehabilitate abandoned mineral exploration sites in Northern Quebec.

3 The FRAN consists of 30 mineral exploration companies operating throughout Quebec and whose common goal is the cleaning and rehabilitation of abandoned sites in partnership with governments, Inuit and Firsts Nations. The new generation of mining and exploration companies want to demonstrate that not only do they have more stringent environmental management practices and social responsibility but that they are also capable of taking concrete steps to carry out the rehabilitation of priority sites and ensure compliance with environmental standards established for ongoing and future activities.

4 Kativik Regional Government (KRG) Makivik Corporation Ministère des Ressources naturelle et Faune (MRN) Fonds Restor-Action-Nunavik (FRAN) : > 30 participating Compagnies

5 Abitibi Géophysique AEMQ AMQ Agnico Eagle Alexandria Minerals Corporation Alexis Minerals Corporation Areva Québec Canadian Royalties Dios Exploration Ditem Exploration Donner Metals Eastmain Resources Exploration Azimut Everton Resources Exploration Osisko Genivar Hélicoptères Canadiens Knight Resources KRG Makivik Corporation Mines Aurizon Mines Opinaca (Goldcorp) Virginia Mines inc. PricewaterhouseCoopers PDAC Ressources Appalaches Resources Breakwater Ressources Cartier Ressources Majescor inc. Ressources Metco Resources Sirios Inc. Resources Strateco Roche, Consulting Group Raglan Xstrata Stornoway Diamond Corporation Uranium Star Vior

6 Many exploration campaigns Compagnies decision to clean-up Before 1976 no rules Several abandoned sites oil, chemical products, dynamite After 1976 More strict rules 1975 James Bay and Northern Québec Agreement 1978 Northeastern Québec Agreement Declare activities Remediate sites 1995 Mining Act

7 1990s - Several Inuit municipalities undertook the clean-up of some old exploration sites 1999 Pilote project : identify and locate abandoned exploration sites in Nunavik 2000 Consultations within Inuit & Naskapi communities and of existing documentation revealed possible 595 sites Inventory of a sample of 193 potential sites was conducted to validate the information previously gathered. 90 sites were confirmed as abandoned exploration sites 18 sites were classified as requiring major clean-up work 27 sites as requiring intermediate clean-up work 45 sites as requiring minor clean-up work

8 Inventory ans assessment of 193 possible sites Outfitters Exploration Activities

9 90 sites identified as abandoned mineral exploration camps 18 major, 27 intermediate & 45 minor

10 2004 The KRG signed a four-year contribution agreement ( ) with Environment Canada Pilote projects in 2005 and 2006 on two of the sites requiring major clean-up work (KAW-35 and PJ-1) Parallel to the above-mentionned pilot projects and in cooperation with Makivik and the KRG, Cruise North Expedition participated to clean-up sites near Aupaluk (PJ-17, PJ-17A and PJ-18) in 2005, 2006, 2007 and A formal contribution agreement was signed by the KRG, Makivik, the MRNF and a consortium of mining exploration compagnies known as Fonds Restor-Action Nunavik (FRAN) Work on sites classified as requiring major clean-up

11 FRAN agreement signed in 2007 (Phase I) Partners: KRG Yearly report and budget Management and coordination of cleanup activities Transportation (Air, Road, Sea) Food & Lodging Equipment Human Resources (Project Coordinator, Field Supervisor and Workers) Makivik Corporation: Marine/Air transportation MRNF: Financial contribution ($4.1 million) FRAN: Financial and technical contribution (> $ 750, Phase I) Amendment to Agreement (Phase II) Provide continued funding until 2017 and include clean-up of intermediate sites FRAN: Financial and technical contribution (> $ 800, Phase II) Total : $ 6 million = $ 4 million from Québec Government + $ 2 million from FRAN

12 Fuel barrels Oil and kerosene Chemical products Batteries Transformers Camps, furnaces Metal pieces Styrofoam, mattresses, Water-heaters Tires Vehicles, machinery Drilling equipment Machinery parts Generators Propane tanks Plastic pieces

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16 Evacuation of dangerous waste Burn on-site non toxic combustible waste Bury non-dangerous waste if non recyclable Transport metals and large equipment to a recovery facility With authorization of MDDEFP and villages

17 Budget 2007: $ 350, 000 Validation of 18 major sites with MDDEP Clean up on 4 sites 2008 Budget: $470,000 Clean up on 6 sites Winter transportation at site PJ Budget: $950,000 Clean up 7 sites Major winter work at site PJ Budget: $850,000 Clean up at 7 sites Work in Aupaluk 2011 Budget: $530,000 Work at SW-34 and PJ-1 Transportation of material from Aupaluk Inspection of 18 major sites Inspection of 27 intermediate sites

18 Located between Aupaluk & Tasiujaq Over 10 tonnes of scrap metal More than 25 pieces of heavy equipment & machinery removed Container of hazardous waste shipped south 1000 barrels removed 2 Winter work terms Site completed in 2011 Equipment transported from Aupaluk by ship in 2011, 2012 and 2013

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20 Before After

21 Located near Aupaluk In collaboration with Cruise North Exploration Over 4 tonnes of metal removed 600 barrels removed Heavy equipment removed Transformers and electric line removed Volunteers from various Northern organizations and schools Completed in 2009

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23 Before After

24 Located 90 kms SSE of Salluit Work undertaken in partnership with Goldbrook Ventures Propane tanks, appliances, garbage, hoses removed 350 barrels removed Container of hazardous waste Completed in 2009

25 Before After

26 Located 22 km SW of Kangiqsujuaq In collaboration with NV Kangiqsujuaq 100 barrels & scrap metal removed from site Radio-Canada journalist on site Completed in 2009

27 Before After

28 Located at Twin Lake near Kangirsuk In collaboration with NV Kangirsuk Winter term 100 barrels removed Propane tanks, scrap metal, garbage removed Completed in 2009

29 Before After

30 Located 40 km SW of Umiujaq In collaboration with NV Umiujaq Smallest major site Only major site located on the Hudson Coast Completed in 2010

31 Located 30kms WSW of Aupaluk In Collaboration with NV Aupaluk and Oceanic Iron Ore Corp. Winter term 60 barrels and 25 propane tanks removed 2 tones of metal removed Contaminated soil removed from site Completed in 2011

32 Before After

33 Located 75 km west of Kuujjuaq at Gerido Lake Two Sectors: -Safari Nordik -Along the shore In Collaboration with NVs of Kuujjuaq & Tasiujaq KRG work completed in 2010 Canadian Royalties cleaning nearby sites

34 Located south of Tasiujaq at Lake Garigue In collaboration with NVs of Tasiujaq and Aupaluk 150 barrels removed Shelter cleaned & left on site 2nd shelter burned Completed in 2010

35 Before After

36 Located 30 km NNW of Kawawachikamach In Collaboration with Naskapi & Montagnais Nations Barrels, metal and propane tanks removed Combustible material burned on site Completed in 2008

37 Before After

38 Located 60 km ENE of Kawawachikamach Pilot-Project in 2006 In partnership with Naskapi & Montagnais Nations Clean-up work by Rockland Minerals near the site 2 tonnes of material removed 8 trailers and numerous buildings demolished 1000 barrels removed Completed in 2012

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40 Before After

41 Before After

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44 In collaboration with NVs of Salluit & Kangiqsujuaq and Xstrata Nickel & Goldbrook Ventures lbs of metal in a container (will be evacuated by Xstrata) 1500 barrels removed from site 60 propane tanks and bottles To be completed in 2013

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46 100 km southwest of Salluit 30 barrels and metal debris on site Canadian Royalties participation

47 90 km south-southwest of Salluit 100 barrels and metal debris on site Combustible material on site Canadian Royalties participation

48 100 kms south-southwest of Salluit Previously a mining and outfitter camp Several buildings on site 50 barrels & debris on site Clean up work will be undertaken in 2013 bu Canadian Royalties

49 Inspection of 27 intermediate sites in September new sites Approximately 8 sites already cleaned by Canadian Royalties Work began on intermediate sites in 2012

50 Near Kuujjuaq First intermediate site cleaned (27 sites) 20 barrels and 300 lbs of metal removed Completed in 2012

51 Activity report 2007 Activity report 2008 Activity report 2009 Activity report 2010 Abandoned Mineral Exploration Sites in Nunavik Rehabiliation Project, Summary Report and Update of the General Response Plan Activity report 2012

52 Many positive impacts Long-term project 14 major sites completed Local workers given valuable contaminated site rehabilitation experience Inuit communities are proud to be part of this project & see results Give territory users sense of responsibility Participation of the entire industry, government and First Nations

53 «The Barrel Crusher Team»

54 4 containers of Hazardous Waste Transformers Contaminated soil > barrels (including Canadian Royalties) 200 propane tanks 50 pieces of heavy equipment 20 tonnes of scrap metal 100 seasonal jobs created 4 Project Coordinators 2 field technicians ( Charlie Akpahatak, Charlie Munick)

55 2007 Environmental Excellence in Exploration Award in Québec 2008 Environmental Excellence in Exploration Award in Canada KRG received Provincial Environment Award-Phénix de l environnement

56 Nunavik Exploration Fund has become the reference as an initiative for the rehabilitation of abandoned sites in Canada Fonds Restor-Action Cri (FRAC) On Bay James Territory Funding pending Same model (FRAN) 203 possible sites Goal: Gouvernment + Industries: $ 6 million

57 Special gratitude to all our partners: The Northern Villages KRG and Makivik Corporation Québec Gouvernment Mining Companies and other FRAN partners Nunavik Rotors Cruise North Expeditions NEAS