Revisions to Amendment Application No. 1 of Project Certificate 003 NIRB Public Hearing – April 2016 SOCIO-ECONOMICS TMAC Resources April 12, 2016 Cambridge Bay

2 Extended mine life increases overall benefits for employment and the economy. Potential adverse effects on labour demand if results in shortage of skilled local workers. This effect can be mitigated. Adverse effects on local services (health, social, housing, safety) are expected to be minimal. Proposed mitigation measures to address potential socio-economic effects remain appropriate. Framework Agreement and associated Inuit Impact and Benefit Agreement (IIBA) in place with the KIA. Background

3 Technical comments focused on providing additional data needed by GN and others for planning purposes. TMAC undertook: – supplemental socio-economic modeling – updated labour supply and demand predictions – updated government revenue projections from the Project, and – clarified mitigating measures to be implemented. Background

Body text What’s this layout for? This slide forms the base of the majority of slides – a text box with bullets are included ready for you to type into. Focus Topic Meeting Focus - - Accidents and Malfunctions - Economic Model and Related Projections - Labour Supply and Demand - Economic Model and Related Projections - Labour Supply and Demand Public Participation and Engagement Socio-Economics

Body text What’s this layout for? This slide forms the base of the majority of slides – a text box with bullets are included ready for you to type into. Site Labour Demand 5

Body text What’s this layout for? This slide forms the base of the majority of slides – a text box with bullets are included ready for you to type into. Labour Supply and Demand 6

Body text What’s this layout for? This slide forms the base of the majority of slides – a text box with bullets are included ready for you to type into. Economic Benefit 7

Body text What’s this layout for? This slide forms the base of the majority of slides – a text box with bullets are included ready for you to type into. Socio-economics - Summary Conclusion: – The Project is expected to create substantial economic benefits for the Nunavut economy, as well as the economy of Canada. TMAC Response: Updated socio-economic impact analysis Completed labour market analysis Doris North Socio-economic Monitoring Program (SEMP) and Socio-economic Monitoring Committee (SEMC) Agreed to share information, such as workforce requirements, and work with the GN: – EDT, Finance, Education, CGS) and NHC.

Body text What’s this layout for? This slide forms the base of the majority of slides – a text box with bullets are included ready for you to type into. Supplemental Slides

Body text What’s this layout for? This slide forms the base of the majority of slides – a text box with bullets are included ready for you to type into. GN – Technical Comments GN-1 Socio-Economic Monitoring – GN recommended three additional Terms and Conditions (Condition 28) The Proponent is encouraged to participate in the Kitimeot Socio-Economic Monitoring Committee (K-SEMC)… The Proponent is encouraged to collaborate with other socio-economic stakeholders…the working group should develop a Terms of Reference, outlining roles and responsibilities…the Terms of Reference are to be provided to the NIRB The Proponent shall develop the Doris North Socio-Economic Monitoring Program (SEMP) to monitor and report the predicted impacts…an annually produced Doris North SEMP will be submitted to the NIRB. TMAC Response – To replace the three Terms and Conditions proposed by the GN, TMAC proposes the following additional Term and Condition: The proponent shall develop the Doris North Socio-Economic Monitoring Program (SEMP) to monitor the predicted impacts in the Final Environmental Impact Statement (FEIS) and subsequent amendments, as well as regional concerns identified by the Kitikmeot Socio-economic Monitoring Committee (K-SEMC) where relevant to the Project. The Doris North Socio-Economic Monitoring Committee (SEMC) shall develop and oversee the SEMP. The SEMC should develop a Terms of Reference which outlines each member’s roles and responsibilities with regards to, where applicable, Project- specific socio-economic monitoring throughout the life of the Project. The Terms of Reference are to be provided to the Nunavut Impact Review Board upon completion, and within one year of issuance of the Project Certificate. The Proponent shall submit annual Doris North SEMP reports to the Nunavut Impact Review Board. SEMP reports shall consider the input of the Doris North SEMC.

Body text What’s this layout for? This slide forms the base of the majority of slides – a text box with bullets are included ready for you to type into. GN – Technical Comments GN-2 Economic Feasibility and Tax Revenues – GN proposed a commitment The Proponent shall communicate with the GN major decisions that may impact territorial tax revenues. This includes developing a protocol with GN Department of Finance to convene pre-planned, periodic meetings to disclose financial information. The timing should coincide with the Proponent’s budget cycle (Q4 of each year) and the five-year life of mine planning cycle (Q3 of each year), plus other contact/meetings as necessary. TMAC Response – TMAC does not agree with the recommendations or proposed commitment as currently stated. The sharing of any Project information with the GN, such as business operations and financial information, must be mindful of and consistent with all regulatory requirements and legal obligations. Because of this, TMAC is restricted on the content and timing of the release of information to the GN. This includes, for example, details on tax payments from financial forecasts. TMAC is not prepared to make a specific commitment at this time regarding the type, content and timing of the business information that it will be able to share with the GN. – TMAC is prepared to work cooperatively with the GN, outside of the NIRB process, regarding the sharing of Project information, to the extent possible, to assist governments in the preparation of their fiscal outlooks and tax forecasts.

Body text What’s this layout for? This slide forms the base of the majority of slides – a text box with bullets are included ready for you to type into. GN – Technical Comments GN-3 Youth Employment – GN proposed a commitment The Proponent commits to collaborating with Department of Education headquarters staff on any initiative relating to youth employment in their HR Plan, and other programs. A formal Memorandum of Understanding is not currently being considered for development, but both parties should remain open to possibility. TMAC Response – TMAC agrees to communicate with the Department of Education headquarters staff on any planned initiatives relating to youth employment in their Human Resources Plan, and other programs that may relate to education, in order to identify common points of interest and action that would help integrate the Proponent’s activities into the existing education program, and communication and delivery plans. Further, any communication or collaboration between TMAC and the Department of Education is to be consistent with the commitments contained in the 2015 Hope Bay Inuit Impact and Benefit Agreement (IIBA), including those commitments related to training and education, and recognize that, as defined by the IIBA, training and educational support is a shared responsibility between TMAC and the KIA.

Body text What’s this layout for? This slide forms the base of the majority of slides – a text box with bullets are included ready for you to type into. GN – Technical Comments GN-4 Apprenticeships – GN proposed an additional Term and Condition: The Proponent shall identify and register with the Department of Family Services all trades occupations, journeypersons, and apprentices working within the Project operations. The Proponent shall also identify how many registered apprentices and journeypersons are from jurisdictions outside of Nunavut and which jurisdictions they are from.. TMAC Response – TMAC will act in accordance with the Apprenticeship, Trade, and Occupations Certification Act and associated regulations. – TMAC feels that it is not necessary to include a Term and Condition in the NIRB Project Certificate to ensure this legal obligation is fulfilled.

Body text What’s this layout for? This slide forms the base of the majority of slides – a text box with bullets are included ready for you to type into. GN – Technical Comments GN-5 Occupational and Supply Modelling – The GN recommends the Proponent provide a detailed staff schedule prior to entering each major phase of the Project. – GN proposed an additional Term and Condition: The Proponent shall submit a detailed staff schedule to the NIRB and GN six months prior to each phase of the Project (construction, operations, closure). The schedule should, at a minimum, provide a description of: a. Title of positions required by department and division; b. Quantity of positions available by Project phase and year; c. Transferable skills, both certified and uncertified which may be required for, or gained during, employment within each position; and d. The National Occupational Classification (NOC) code for each individual position. TMAC Response – TMAC agrees to provide a detailed staff schedule to the NIRB and to the Government of Nunavut (GN) annually by the end of the 1st quarter of the given year, and subsequent to transmittal of the information to the KIA. Updates to this information will be provided where there is a significant revision. The information shall contain the title and number of positions required by department or work area, and the date required.

Body text What’s this layout for? This slide forms the base of the majority of slides – a text box with bullets are included ready for you to type into. GN – Technical Comments GN-6 Housing – GN proposed two additional Term and Condition: The Proponent shall cooperate with the GN and Nunavut Housing Corporation (NHC) on potential housing solutions that improve employee access to homeownership or alternative affordable housing options. Housing mitigation for employees could include an optional housing/ homeownership plan administered by the company in conjunction with NHC, or the provision of staff housing in communities. The Proponent shall cooperate with the GN and NHC to provide its financial management workshops with a view to enhancing employee access to a range of housing options, including homeownership. TMAC Response – As provided in document P4-1 (Amendment Application June 2016), it was concluded that there will be minimal adverse effects on housing. This is because the Project is expected to have a minor effect on in-migration, given the Project design (e.g., fly- in/fly-out operation with multiple points of hire) and the mitigation elsewhere detailed. This conclusion, which included consideration of indirect and induced employment impacts predicted for the Kitikmeot Region, is supported by the analysis previously presented and recent economic impact analysis results (ERM, 2016c). TMAC notes that the Project is not predicted to have a significant impact on housing demand. – In-migration that does occur is anticipated to be for skilled workers that may be hired by local businesses as a result of spin-off economic growth within the communities, and who may not be locally available. In this situation, there would be little to no impact on – the existing housing stock, as put forward in document Doris Mine Revisions to Amendment Application No. 1 of Project Certificate No. 003 and Water Licence No. 2AM-DOH1323: Proponent’s Response to NIRB Technical Comments (NIRB File 05MN047) (January 2016). TMAC does not intend to provide staff housing in the communities, or develop an optional housing or homeownership plan. There is no Project impact that requires mitigation. TMAC will support the GN and Nunavut Housing Corporations’ (NHC) objective to develop and deliver financial management workshops by reaching out to third party providers (banks or financial institutions) to coordinate and facilitate the workshops. TMAC will keep GN and NHC informed or the schedule for such workshops. Therefore, TMAC does not agree the additional proposed term and conditions are necessary. References ERM. 2016c. Memorandum: Doris North Project Economic Impact Analysis. Prepared by ERM Consultants Canada Ltd. for TMAC Resources Inc., March 2016.

Body text What’s this layout for? This slide forms the base of the majority of slides – a text box with bullets are included ready for you to type into. GN – Technical Comments GN-7 Induced Migration Impacts on Social Housing Demand – GN proposed one additional Term and Condition: The Proponent shall work with the K-SMEC to design and implement a voluntary housing survey to its Nunavummiut employees. The survey should be designed with the GN, NHC, other stakeholders…content to be determined…may include changes of address, housing status, migration intentions. TMAC Response – TMAC does not agree with the proposed Term and Condition. The Doris North Project SEMP currently reports on the 1) the number of workers (person-days) by community; and 2) the number of employees who relocate to other communities within the Kitikmeot Region due to work at the mine, among many other indicators. TMAC will continue to work through the Doris North Project SEMC to ensure that the relevant information on workers’ community of residence, and any change in residence, is reported. An additional commitment related to this is not required. Further, it is not clear that the suggested survey of employees would bring added value. The design and administration of a survey to employees imposes additional costs on TMAC, and it is our view that this would not be warranted given the marginal benefits of the survey above the data already collected by the SEMP.

Body text What’s this layout for? This slide forms the base of the majority of slides – a text box with bullets are included ready for you to type into. GN – Technical Comments GN-8 Cultural and Heritage Resources Protection Plan – GN proposed the following commitment: By February 28th of each year that footprint changes are occurring or that an archaeological permit is requested, the Proponent will provide the GN-CH a series of maps and tables indicating the current status of all archaeological sites within the project development area. TMAC Response – TMAC accepts this proposed commitment as a Project Certificate condition. TMAC notes that all sites within the project development area have been inventoried, mapped, evaluated and mitigated.

Body text What’s this layout for? This slide forms the base of the majority of slides – a text box with bullets are included ready for you to type into. INAC – Technical Comments INAC – 6 Human Resources Plan and Wellness Strategy – INAC recommended that the Proponent include details on the following items arising from the existing Project Certificate Appendix A in their Human Resources Plan and Wellness Strategy to be submitted in September of 2016: Counselling and life skills training workshops (Safety and Protection Services Commitment #3) Orientation programming (Social Services Commitment #3) Alcohol and drug education programming (Social Services Commitment #7) Workshops for employees and their families regarding money management and budgeting (Economy Commitment #1) On the job support systems and resources (Education and Training Commitment #2) TMAC Response – The IIBA with the KIA details TMAC’s commitments with respect to an Employment Support System. These items will be identified and described within the Human Resources Plan, to the extent possible. Further details on relevant policies and programs – will be made available to INAC and the GN as they are developed and implemented. Specifically, Schedule E, Section 15 of the IIBA states the following: TMAC recognizes that employee support measures will be an important contribution to maximizing Inuit employment as such measures will assist Inuit employees to perform well in the jobs. Without limiting the generality of the foregoing, TMAC commits to: (a) provide a thorough orientation program including training on TMAC policies, procedures, including safety training and support programs to assist Inuit to adjust to camp life; (b) make reasonable efforts to enhance positive interaction by promoting inter- – cultural dialogue and understanding at the Hope Bay Belt Project. To this end, TMAC will provide Inuit cultural and cross-cultural orientation and training for all employees and for the employees of medium and long-term Contractors in the Operations; (c) institute an Employee and Family Assistance Program (EFAP) that will provide Inuit employees and their families assistance dealing with personal problems, family matters, mental health concerns and alcohol, drug and gambling dependencies; (d) at its discretion, utilize community-based resources to meet its needs; (e) serve Country Food at the Hope Bay Belt Project commensurate with the demand and nutritional needs of its Inuit employees and availability of a reasonable quantity and at a reasonable price. Any such Country Food must meet government standards; (f) maintain a code of ethical business conduct which prevents discrimination and harassment; (g) maintain a drug and alcohol policy which includes a “zero tolerance” policy at the Hope Bay Belt Project; (h) provide on-site access to communications facilities to allow reasonable communication between Inuit employees and their spouses and families which will include telephone and computer supported technology as the Hope Bay Belt Project evolves; (i) provide for Country Food kitchens and cultural activities at the Hope Bay Belt Project as determined by the Implementation Committee as space permits at site; and (j) review these measures annually to identify how they could be improved. – TMAC

Body text What’s this layout for? This slide forms the base of the majority of slides – a text box with bullets are included ready for you to type into. INAC – Technical Comments INAC – 7 Socio-Economic Monitoring Plan and Committee – INAC recommended that existing Project Certificate Term and Condition #28 continue to apply to the amended project. – It is further recommended that the Doris North Socio-Economic Monitoring Committee review the Doris North Socio-Economic Monitoring Plan to determine if changes are required within 1 year of the amended Project Certificate being issued. These changes will be submitted to the Nunavut Impact Review Board in addition to the amended Terms of Reference for the Doris North Socio-Economic Monitoring Committee. TMAC Response – TMAC agrees with this recommendation/request.