NEWFOUNDLAND & LABRADOR REFINING CORPORATION OPEN HOUSE ON THE PROPOSED NEW REFINERY. North Harbour, Placentia Bay.

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1 NEWFOUNDLAND & LABRADOR REFINING CORPORATION OPEN HOUSE ON THE PROPOSED NEW REFINERY North Harbour, Placentia Bay November 01, 2006

2 WHAT IS BEING PROPOSED? A NEW 300,000 BARREL PER DAY OIL REFINERY A SITE AT SOUTHERN HEAD, PLACENTIA BAY HAS BEEN PROPOSED IT WOULD COST MORE THAN $4.0 BILLION TO BUILD IT WOULD COST MORE THAN $60 MILLION A YEAR TO OPERATE 3000 PEOPLE WOULD BE EMPLOYED DURING PEAK CONSTRUCTION 750 PEOPLE WOULD BE EMPLOYED DURING OPERATIONS IT WOULD BE THE LARGEST AND MOST ADVANCED OIL REFINERY IN CANADA

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4 WHERE IS THE PROPOSED REFINERY SITE? SOUTHERN HEAD, PLACENTIA BAY

5 WHO IS NEWFOUNDLAND AND LABRADOR REFINING CORPORATION? NEWFOUNDLAND AND LABRADOR REFINING CORPORATION IS A LOCALLY-BASED COMPANY THAT INCLUDES EUROPEAN INVESTORS THE SHAREHOLDERS INCLUDE: ALTIUS - A diversified natural resources company based in Newfoundland and Labrador DERMOTT DESMOND - Chairman and founder of International Investment and Underwriting (IIU) based in Dublin, Ireland HARRY DOBSON - A Scottish born entrepreneur and financier with extensive interests in the natural resources sector STEPHEN POSFORD - A U.K.-based private venture capitalist and a corporate director, former CEO of Salomon Brothers European operations

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7 WHY IS THE TIME RIGHT FOR THIS PROJECT? MARKET DEMAND FOR REFINERY PRODUCTS IS INCREASING STEADILY WORLDWIDE THERE HAVE BEEN REFINERY EXPANSIONS BUT NO NEW REFINERIES HAVE BEEN BUILT IN NORTH AMERICA FOR MORE THAN 20 YEARS. OLDER REFINERIES REQUIRE MAJOR INVESTMENTS TO MEET: NEW TRANSPORTATION FUEL SPECIFICATIONS NEW ENVIRONMENTAL REGULATIONS GROWING PUBLIC PRESSURE TO ENSURE CLEAN AIR INCREASING TREND TOWARD MORE HEAVY, SULFUR-RICH CRUDE OIL ON THE MARKET HURRICANE KATRINA SHOWED US THAT REFINING CAPACITY IS VERY TIGHT

8 STRATEGIC LOCATION FOR CRUDE IMPORT STRATEGIC LOCATION FOR PRODUCT EXPORT WHY PLACENTIA BAY? NY Houston

9 EXISTING NORTH ATLANTIC REFINERY Come By Chance Bull Arm EXISTING OIL TRANSSHIPMENT TERMINAL BULL ARM SITE

10 CAN ACCOMMODATE LARGE SHIPS Existing Refinery nker capacity) Come-by-Chance, Newfoundland (325,000 DWT) xas City, Texas 100,000 DWT) Chicago St. Romauld, Quebec (160,000 DWT) Montreal Refiners NEW OntarioREFINERY Refiners 350,000 Dead Weight Tonne Ship Capacity LOOP, Louisiana (700,000 DWT) Philadelphia, Pennsylvania (110,000 DWT) Linden, New Jersey (80,000 DWT) St. John, New Brunswick (350,000 DWT) Portland, Maine (80,000 DWT) DEEP WATER, ICE FREE PORT LOCATED ON NORTH ATLANTIC SHIPPING ROUTES RECEIVE CRUDE OIL SHIPMENTS FROM ANYWHERE IN THE WORLD ACCESS TO U.S. AND EUROPEAN MARKETS EXISTING INDUSTRIAL INFRASTRUCTURE SMART BAY PROJECT ESTABLISHED MARINE TRAFFIC MANAGEMENT SYSTEM

11 NEW TRANSMISSION LINE NEW ACCESS ROAD PROPOSED NEW PROJECT SITE NEW PLANT

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13 ENVIRONMENTAL ASSESSMENT FEDERAL Project Description submitted to Federal Government (Canadian Environmental Assessment Agency) on September 11, Day Review Process PROVINCIAL Project Registration submitted to Provincial Dept. of Environment October 16, Day Review Process HARMONIZATION COORDINATION AND CO-OPERATION Commitment by the Project and both levels of government to harmonize and coordinate the Environmental Assessment Process as much as practical

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15 DEPARTMENT OF FISHERIES AND OCEANS FISHERIES ACT SECTION 35(1) Prohibition of harmful alteration, disruption or destruction of fish habitat (HADD) SECTION 35(2) Prohibits the harmful alteration, disruption or destruction of fish habitat (HADD), unless authorized by the Minister of Fisheries and Oceans Mitigation - No Net Loss of Habitat

16 TRANSPORT CANADA Definition of Navigable Waters? Navigable waters includes any body of water which is capable of being navigated by vessels of any description for the purpose of transportation, recreation or commerce. NAVIGABLE WATERS PROTECTION ACT ENABLES FULL REVIEW OF NAVIGATIONAL AND FISHERIES IMPACTS

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18 NEW PORT TRIGGERS ACT

19 TERMPOL REVIEW PROCESS TERMPOL Review Process refers to the Technical Review Process of Marine Terminal Systems and Transshipment Sites. RISKS TO NAVIGATION SHIP ROUTES IN CANADIAN WATERS SHIP MOVING TO THE BERTH DOCK LAYOUT AND DESIGN MOORING PROCEDURES CARGO LOADING AND OFF-LOADING OPERATIONAL SAFETY The intent of the is to improve the design, where possible, to reduce risks to the integrity of the ship s hull and its cargo containment system and, consequently, the environment.

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21 PUBLIC CONSULTATIONS FEDERAL AND PROVINCIAL GOVERNMENTS LOCAL COMMUNITIES PRELIMINARY ISSUES SCOPING LOCAL ISSUES RELATING TO EMPLOYMENT INVESTMENT IMPACTS AND BENEFITS OPEN COMMUNICATIONS INCREASED MARINE TRAFFIC OIL SPILL RISK AND RESPONSE WORK FORCE AVAILABILITY AIR QUALITY

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23 PUBLIC CONSULTATIONS ENGAGE THE PUBLIC PROVIDE PROJECT DETAILS AS EARLY AS POSSIBLE OPEN DISCUSSION OF IMPACTS CORPORATE COMITMENT TO MITIGATE IMPACTS

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25 HEALTH, SAFETY AND ENVIRONMENTAL MANAGEMENT SYSTEM Establish Health, Safety and Environmental Management System early as practical to establish guiding principles for design, construction and operations. Key Components ENVIRONMENTAL PROTECTION PLAN HEALTH AND SAFETY PLAN PERMITTING, APPROVAL AND AUTHORIZATION ENVIRONMENTAL MONITORING PLAN EMERGENCY RESPONSE PLAN RECLAMATION PLAN

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27 OUR CORPORATE COMMITMENT TO DEMONSTRATE LEADERSHIP IN: - HEALTH AND SAFETY - ENVIRONMENTAL PROTECTION - COMMUNITY RELATIONS TO TAKE PRIDE IN EVERYTHING WE DO

28 DO YOU THINK WE ARE ON THE RIGHT TRACK.OR ARE WE MISSING SOMETHING? LET US KNOW IF YOU HAVE SOME THOUGHTS OR IDEAS WE WANT TO HEAR YOUR OPINION - IT WILL HELP US DO THE BEST JOB WE CAN DO. If you have a question, you can ask: Newfoundland and Labrador Refining Corporation Roland Butler Vice President, Community and Environmental Affairs Kjell Rustad Feasibility Study Manager Or our consultants from SNC-Lavalin: Leslie Grattan Environmental Issues Susan Hollett Public Consultations Nick Gillis - Engineer Krista Trowbridge Technical Assistant Or visit Or give us a call at THANK YOU FOR YOUR TIME AND THOUGHT WE APPRECIATE IT

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