xS34t8N34gu wmoEi3j5 Mwn5 kba34tiz NWB 2AM MEA0815 Community Sessions April 29, 2015 Baker Lake, NU

Overview grz Our review generated 31 separate information requests and technical comments All have been resolved to the satisfaction of both the Kivalliq Inuit Association (KIA) and Agnico Eagle Mines (AEM) cspn34tlb neMs34g5 #! WoExEd/sJ5 xml scsyE/sMs34g5 bm3u4l WoExE/sMs3g5 r?o3u wkw5 vgpctQfi5 xml x[if wf s/C4bExi5

Overview grz Resolutions have been tracked in the Nunavut Water Board Excel spreadsheet titled “150114 2AM MEA0815 Preliminary AEM response to Technical Comments revised-ILAE” This spreadsheet is available on the public registry and is considered part of the public record WoExEd/sJ5 ttCZsymJ5 kNK5 wmoEi3j5 vtmpqb cEbs/zi, NlNwfbo4 “150114 2AM MEA0815 Preliminary AEM response to Technical Comments revised-ILAE” bfx ttc5 rguxi5 bf/sJ4N3g5 cEbs/u xml gdymJi bf/sJ4N34gi cEbs/ug5

Overview grz Here we summarize the primary issues in each of five discussion topics identified by the Nunavut Water Board (NWB) during the Prehearings in January, 2015 These topics are: Freshwater Quantity Waste Disposal and Management Emergency and Spill Contingency Planning Monitoring Closure and Reclamation Planning sfx bom5 whmosDt4n5, nebsymJ5 kNKu wmoEi3j5 vtmoqi5, vtmtlQ5 /kxE @)!%u whmosDt4n5: by5 bEsaqg5 xuhiq5 x4bf5 wQbsiq5, xsMiq5l gxF3N34goEi34 xml slExN34gi4 fFJc34X5 X3N4ymi34 s/C4bExFs2 sfx3izi4 X3N4ymi34

Guiding Principles WoEi3j5 gCDt5 Our review is guided by Nunavut Water Board’s (NWB) water quality framework “protect, manage and regulate freshwaters in Nunavut in a manner that will provide the optimum benefits for the residents of the territory in particular and Canadians in general” The Nunavut Land Claims Agreement, and The Kivalliq Inuit Association’s interest in long term environmental protection for the beneficiaries cspn3iE/K5 gCDtc34g5 sfiz5 kNKu wmoEi3j5 vtmpqb, wmoEi3j5 WoExEd/q5 “uxiElQ5, xsM5yx3lQ5 xml gCtlQ5 WoEx5 wmoEi34 kNKu, kNKus5 vNbus5l xgtc5yx3ix3mb wml4bi4” gzFf5 xqDtz, xml r?o3u wkw5 vgpctQ5, yKi3j5 x?toEi34 uxiEiz, wkw5 xg5yxd2lQ5

Guiding Principles WoEi3j5 gCDt5 Our presentation accompanied our intervener submission to the NWB: “Kivalliq Inuit Association Intervener Submission for 2AM-MEA0815 Meadowbank Water License Renewal Application Public Hearing Process” b7N gryQxD5 X3N4gi4 wMscbstlb gi/symJ34, kNK5 wmoEi3j5 vtmpqk5: “r?o3u wkw5 vgpctQ5, WoExEd/sJi4 giycbsJ34, xS34t8N34gu wmoEi3j5 Nwn5 kbad/stlA, NlNwfbo4 2AM-MEA0815, vtmJx3tlQ5

Overview of Issues WoExEd/sJi whmosDt4n5

Freshwater Quantity bEsaqg5 wmw5 xg3iq5 KIR-IR-01, 01B, 23 Concern with the increase in freshwater requested by AEM and the impact it may have on Third Portage Lake AEM and KIA have resolved the issues. AEM has: Agreed to a staged annual water usage in the water license to reflect anticipated freshwater usage Demonstrated water usage will have no negative impact on Third Portage Lake KIR-IR-01, 01B, 23 whmQ/sJ34 x[if wf s/C4bEx5 xgDx3iz5 xqi34nu4 wm3u4, bmN x4g3ic3ix3mb by3u4 xto4 Third Portage Lake x[if wf s/C4bEx5 xml r?o3u wkw5 vgpctQ5 xqctQ4ymo34g4 b2huz. s/C4bEx5 srsbm5 wm3u4 xg34bui4 gro4u4 gn34t5yb3ix34g5 wm34 xgZsJ34, x4giz wLwJbsixqg34, Third Portage Lake, by3u4

Waste Disposal and Management x4bf5 wQbsiq5 xml xsMiq5 KIA-IR-25 Concern with seepage from the tailings storage facility into the receiving environment, specifically elevated cyanide concentrations AEM has resolved this issue with the KIA AEM will update the Freshet Action Plan to the KIA’s agreed satisfaction This includes continued monitoring of the receiving environment and mitigation actions to prevent further seepage from the Tailings Storage Facility through the rock storage facility KIA-IR-25 whmQ/sJ34 wm3lu4 vt34hwF4 cuiz, NjgwN34, x?tj5, bmN gdN34gi4 slExN34gc3m5 x[if wf s/C4bEx5 xml r?o3u wkw5 vgpctQ5 bmN xeymoZ5 x[if wf s/C4bEx5 WoExqi4 gryt5yb3ix34g5 r?o3u wkw5 vgpctQfi4, NmQ/wi4l f[FsJ5l by5 cspnZszwN3lt4 xml xeQx34blQ5 xeQxc34Xb, cug5l xeQx34b3lQ5, xml nSuF5 xeQx34b3lQ5

Emergency and Spill Contingency Planning gxF3N34goEi34 xml fFJc34X5 X3N4ymiz KIA-IR-20, 22, 27 Concern AEM did not consider seepage as a spill and that adequate monitoring was occurring in the event of an emergency AEM has amended the license wording to include seepage as a spill AEM has also provided greater clarity for emergency and spill monitoring as well as the associated adaptive response framework KIA-IR-20, 22, 27 whmQ/sJ34 bmN cui34, x[if wf s/C4bEx5 whmQMsqmJ34 cspn3izk5 wm3i4, bmN cui34 gxF3N34gu4 WoExaJ4N3m5 x[if wf s/C4bEx5 wo/z, bmN cui34 Mwnj5 ttC4ymiz x[if wf s/C4bEx5 gryN5yxo34g5 bmfx gxF3NDN34g5 X3N4ymiqi4, WoExE/s/Exc34g5l

Monitoring cspn3i34 KIA-IR-2, 3, 4, 5, 6, 7, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 21, 24, 26 and 28 The majority of KIA’s concerns focused on ensuring AEM adequately assessed impacts to the environment associated with mining activities The KIA’s goal was to ensure the receiving environment was sufficiently protected Our comments were focused on the Aquatic Effects Monitoring Program and the Core Receiving Environment Monitoring Program, which were modified KIA emphasizes the need for KIA review of annual reports and prompt notification of events KIA-IR-2, 3, 4, 5, 6, 7, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 21, 24, 26 and 28 xuhi34n5 r?o3u wkw5 vgpctQ5 whmQ/q5, cspn5yxdpJ5 s/C4bExi4, x?tu x4g3isJi4, WoExElQ5l, s/C4bExtlQ5 r?o3u wkw5 vgpctQ5 WoExEd/q5 x?toEi3j5 uxiE5yx3lQ5l scsyEif5 gCiclx34g5, wm3usblb5 x4g3iq5 xml f[FsJ5 cspnZslt4 xblt4 cspZ4nk5, bmfxl xeAsymo34g5 r?o3u wkw5 vgpctQ5 WoExEdpME4g5 srsbm5 gryJt5 ttC4ymJ5 gi/sbd2lQ5 xml gn3NDt5 gi/sb3lt4

Monitoring cspn3i34 Technical comments addressed a variety of issues including: Water and sediment quality monitoring results Monitored parameters including biological indicators, the suite of assessed chemical parameters and water quality detection limits Modeling results and comparisons to measured values Data quality objectives to ensure accuracy of reported data Water license wording for clarity and precision vtmJbsif5 whmQ/sJ5, WoExEd/sJi xbJ5: by5 xml wm3u vrJbsJ5 cspnZslt4 xml ckwmzb gryN3lt4 cspnZsymJ5 xqiq5 gryN3lQ5 sfxl, smJ5 ckwiq5, slExNDN34g5l cspn3lQ5, xml wmw5 nlmwiq5 cspb3lQ5 cspn3if5 gryN3lQ5 xml ck34 xqtQmzb cspnZsJl4b5 gryN3lt4 cspnZsif5 ttC4ymiq5 gCDtc3lt4, gry/six3mb wmoEi3j5 Mwn5 ttC4ymiz gryN3li

Monitoring cspn3i34 Technical comments also addressed: Conditions to require the collection of water quality samples at depth Requirements to discuss any elevated water and sediment chemistry results in the body of reports Photographic record of preconstruction conditions A reference site for Wally Lake Capacity to statistically detect changes in the receiving environment AEM has addressed all KIA’s concerns vtmJxtlQ5 scsyE/sifi WoExEd/sJ5: cspnZsJi xeymJ5 molQ5, wms2 cspn3izi4 xml wm3u vrif5 grylQ5 bmfxl ttClQ5, tusJk5 gry/six3mb xtos3lQ5 cspnZsJ5 nN/sctNQli5 xeymlQ5 WoExE/six3iqi by34 xto4 Wally Lake, Niiz grc3lA f[FsJ5 s/C4bEx5 nixi, xMa3iq5 gryJ4N3lQ5 x[if wf s/C4bEx5 WoEd/sJl4bi4, r?o3u wkw5 vgpctQ5 WoExEd/q5 WoExEymo34bq5

Closure and Reclamation Planning s/C4bEx5 svx3izb X3N4ymiz KIA-IR-8, 29, 30, 31 Our concerns focused on Long term monitoring to ensure no long term impacts of mining on the aquatic environment Successful capping of potentially acid generating rock and the tailings storage facility using non acid generating rock and adequate freeze back AEM has assured the KIA of its long term monitoring activities and is conducting focused research to ensure isolation of potential chemical hazards associated with the tailings storage facility and potentially acid generating rock KIA-IR-8, 29, 30, 31 whmQ/K5 sfiz gCDtc34g5 yKi3j5 cspn3i34 WoExE5yx3lA, x4gZsi5 x?tj5 WoExE/sb3ix3mb slExN34g5 miCug5 WNw3b3lQ5 s/Ci4 xyDwJ4Nqgi4, wMq5 s/Cw5 xyDwJ4N3mb, bmfx eeo5yx34b3ix3mb x[if wf s/C4bEx5 gryt5yymJ5 r?o3u wkw5 vgpctQfi4, yKi3j5 cspn3iEix34bqi4, bmfx slExN34g5, s/Cw5l xyDwJbsJ4N3mb x?tu

SECURITY rNs/5 gdymJ5 Ensuring a fair distribution of liability s/C4bEx5 sfx3iz Nmd2lA

Security rNs/5 gdbsymJ5 The KIA acknowledges security can be reduced through progressive closure and reclamation Successful reclamation decreases the potential liability of AEM, and the risk to KIA and AANDC Security amendments generally require a full amendment to the Water Licence with attendant hearings. The KIA and AANDC have discussed a process to amend security through a streamlined hearings process such as a teleconference and seek guidance from the Nunavut Water Board r?o3u wkw5 vgpctQ5 gryJ5 rNs/5 xg3iq5 xglxDNqg5, s/C4bEx5 sfxXoxiz, xeh34Xoxizl, WoExEbs/3lA kN xe5yx3iz s/C4b3F4 sfx34X5, bmN wLwJbsN/qg34 rNs/tA5 r?o3u wkw5 vgpctQfi5 xml v?gmcfi wkoep5 rNs/5 gdymJ5 xg3iq5 xMa34Xb, wmoEi3j5 Nwm5 xMacbs/Exo4, vtmJxDbsb3lt4. r?o3u wkw5 vgpctQ5 xml v?mgcfi wkoEp5, bmN rNs/5 gdymJ5 xg3iq5 xMaExiz, bfNz5 scsysymJ34, xml scltf5 scsysb34ymJ34, wvJ34b34Lt4l kNKu wmoEi3j5 vtmpq5

Security rNs/5 gdymJ5 KIA initially proposed equal distribution of security (50:50) between the Minister of AANDC. After receipt of AANDC’s letter of April 8/15 to NWB, KIA intends to hold $78,834,710.00 under the KIA lease, for three reasons: No security management agreement has been reached to resolve the double-bonding issue. r?o3u wkw5 vgpctQ5 yKo3u4 WJmMs34g5 rNs/5 xg3iq5 xF4lt4 G%):%)H xFctc3lt4 v?mgcf5 wkoEpqi4 uigu4. kNKu wmoEi3j5 vtmp5 ttcsyxZi4Xb v?mgcf5 wkoEpzi5, r?o3u wkw5 vgpctQ5 tAuxoC/4g5 rNs/i4 &*,*#$,&!), sfx tAuxDtQlQ5: !. rNs/5 xsMiq5 xqDtcqm5, rNs/5 tusJi4 mDi4 tAux34Xb.

Security rNs/5 gdymJ5 The KIA’s mandate requires the use of security for purposes above and beyond the reclamation of the affected water resource. It is the KIA’s responsibility to ensure adequate restoration to the standard required by applicable regulations and the Production Lease. r?o3u wkw5 vgpctQ5 WoExqi ttC4ymJi sc34ymJ34, rNs/5 gdymJ5 xgZsiq5 xgZsJ4N3mb s/C4bEx5 sfxizk5, xyqk5l wmoEi3j5. r?o3u wkw5 vgpctQ5 WoExE/Exc3mJ4, s/C4bEx5 sfx3iz5 WoExE/s/Exc3mb moZw5 molQ5 xml xbic3mb kNs2 xg3izk5 W?oxi3j5.

Security rNs/5 gdymJ5 The Meadowbank Project is fully on Inuit Owned Land. The KIA requires sufficient funds to ensure all obligations respecting the environment are met. The KIA is concerned funds held by the Minister need not apply to the entire Production Lease, only that portion which applies directly to the water resource; and funds held by the Minister may be insufficient for remediation if used for compensation. xS34t8N34g34 s/C4bExF4 wkw5 Nuiz5 kNu WoExE/sm5. r?o3u wkw5 vgpctQ5 rNs/q5 NmQxc34g5, x?toEi34 WoExq5 NmQxc3mb. r?o3u wkw5 vgpctQ5 whmltc34g5 rNs/5 tAuxZsJ5 uigu5, xgZsqQNExc3mb W?oxi3j5 s/C4bEx34gi5, ryxio wmoEi3j5 xgDN34mb xeymXb; xml rNs/5 tAuxZsJ5 NmqQNExc3mb kNs2 xeh3izk5.

Security rNs/5 gdymJ5 Compensation and security are considered separate issues by the KIA and are addressed through different processes The KIA acknowledge security can be reduced through progressive closure and reclamation Successful reclamation decreases the potential liability of AEM, the KIA and AANDC Security amendments generally require a full amendment to the Water Licence with attendant hearings. The KIA and AANDC have discussed a process to amend security through a streamlined hearings process such as a teleconference and seek guidance from the Nunavut Water Board rNsi4 xroi34 xml gdymiq5 vmQiq5l xtQqmb, bmN r?o3u wkw5 vgpctQ5 gry/z5, xml vmQ/siq5 xtQqmb rNs/5 xg5yx3uq5 vmQ/sJ4N34g34, s/C4bExF4 sfx34Xox5yx3lA xml kN bsgMszk5 xeXox5yx3lA, s/C4bExF4 sfx34X5 s/C4bEx5 sfxXb kN xehZs5yx3iz vmQ/s5yxc/34g34, s/C4bExi5, r?o3u wkw5 vgoctQfi5, xml v?mgcfi5 rNs/5 gdymJ5 vmQ/siq5 xMa34Xb, bwm wmoei3j5 Mwn5 xMa34tbs/Exc34g34, vtmt5yb34lt4. rNs/5 gd34ymJ5 vmQ/siq5 xMaExc34Xb, r?o34 wkw5 vgpctQ5 xml wkoEp5 v?mgcfi, WoEctQ4lt4 xehwN/34g5, vtmb3lt4l xeymJu4, xml wvJ34tQlQ5 kNKu wmoEi3j5 vtmpq5

Meadowbank Security Deposit rNs/5 gdymJ5 xSt8N34g2 sfxizk5 xg34g4n5 The KIA agrees with the final reclamation cost estimate of $86,519,614. The KIA has identified that the reclamation costs estimates as related to land and water based components should be split 90% and 10%, respectively, based on the breakdown in the following slide. A summary of this financial breakdown is: Land based direct costs : $56,503,981 Land based indirect costs : $ 22,330,729 Total Land Costs: $ 78,834,710 Water Based direct costs: $ 5,203,711 Water Based indirect costs: $ 2,481,193 Total Water Costs: $ 7,684,904 r?o3u wkw5 vgpctQ5 Nm4n34g5 rNs/5 *^,%!(,^!$, xg34gnsmb, xS34t8N34g2 x?b kN xeh3izk5 sfxX5. r?o3u wkw5 vgpctQ5 wob34yymJ5 rNs/5 xg3iqi4 xS34t8N34g34 sfx3izk5, kNw5l wmw5l xeh3izk5, xF4g3lQ5 rNs/5 ()% xml !)%, bwm rNs/5 xg3iq5 sfkz xF4gic3lt4. rNs/5 xF4g3iq5 WoExk5 sfkz: !. kNk5 %^,%)#,(*! @. kNk5 x4g3icDN34g5 @@,##),&@( #. kNk5 vtlQ5 xg34g4n5 &*,*#$,&!) $. wm3k5 by3k5li5 xg34g4n5 %,@)#,&!! %. wm3k5 xg3icDN34g5 @,$*!,!(# ^. wm3k5 vtlQ5 xg34gn5 &,^*$,()$

Meadowbank Security Deposit rNs/5 gdymJ5 xSt8N34g2 sfxizk5 xg34g4n5 The KIA agrees with the final reclamation cost estimate of $86,519,614. The KIA has identified that the reclamation costs estimates as related to land and water based components should be split 90% and 10%, respectively, based on the breakdown in the following slide. A summary of this financial breakdown is: Land based direct costs : $ 56,503,981 Land based indirect costs : $ 22,330,729 Total Land Costs: $ 78,834,710 Water Based direct costs: $ 5,203,711 Water Based indirect costs: $ 2,481,193 Total Water Costs: $ 7,684,904 r?o3u wkw5 vgpctQ5 Nm4n34g5 rNs/5 *^,%!(,^!$, xg34gnsmb, xS34t8N34g2 x?b kN xeh3izk5 sfxX5. r?o3u wkw5 vgpctQ5 wob34yymJ5 rNs/5 xg3iqi4 xS34t8N34g34 sfx3izk5, kNw5l wmw5l xeh3izk5, xF4g3lQ5 rNs/5 ()% xml !)%, bwm rNs/5 xg3iq5 sfkz xF4gic3lt4. rNs/5 xF4g3iq5 WoExk5 sfkz: !. kNk5 %^,%)#,(*! @. kNk5 x4g3icDN34g5 @@,##),&@( #. kNk5 vtlQ5 xg34g4n5 &*,*#$,&!) $. wm3k5 by3k5li5 xg34g4n5 %,@)#,&!! %. wm3k5 xg3icDN34g5 @,$*!,!(# ^. wm3k5 vtlQ5 xg34gn5 &,^*$,()$

Meadowbank Security Deposit Summary of Security Cost Estimate Cost Item Sub-Total Component Direct Costs   Open Pit 5,400 Water Surface and Groundwater Managemnt 5,198,311 Sub-Total Water Related Costs (10% of Direct Costs) 5,203,711 Tailings Storage Facility 38,716,200 Land Portage Waste Rock Facility 6,004,827 Buildings, Equipment and Infrastructure 10,574,770 Chemicals and Contaiminated Soil Management 1,208,184 Sub-Total Land Related Costs (90% of Direct Costs) 56,503,981 Sub-Total Direct Costs $61,707,692 Indirect Costs Mobilization /Demobilization 4,762,500 Post Closure Monitoring and Maintenance 2,972,373 Post Abandonment Interim Care & Maintenance 1,650,126 Engineering (5%) 3,085,385 Project Management (5% of direct costs) Contingency (15% of direct costs) 9,256,154 Sub-Total InDirect Costs $24,811,922 Total Land Related Costs (90% of InDirect Costs) $22,330,729 Total Water Related Costs (10% of InDirect Costs) $2,481,193 GRAND TOTAL $86,519,614

Meadowbank Security Deposit xS34t8N34g2 sfx3izk5 rNs/5 gdymJ5 r?o3u wkw5 vgpctQ5 rNs/i4 xg3iqk5 cqsthxqg5, ryxio xuxfcDmJ5 xyq5 rNs/34gix3mb. rNs/5 xuxfif5 xgDN34g5 sfkz, kNj5 xg34gx3mb s/C4bEx5: !. x[if wf sC4bEx5 giyym/Exo5 rNs/i4 sfx3izk5 xg34g4n5 kNs2 xeh3izk5, bfx r?o3u wkw5 vgpctQk5 tAu/slt4. ryxi rNs/5 xuhiq5, NmQxc34g5 kNs2 xeh3izk5. @. kNs2 xeh3izk5 rNs/5 gdymJ5, r?o3u wkw5 vgpctQ5 xgDN34bq5 cfAux34, x[if wf s/C4bEx5 ydu5y4Xb xqDti4, kNs2 xg3izk5 xqDti4, Nwn5 moZwi4l ydu5y4Xb, xS34t8N34g3l emZsX5 xml yduizk5 xeQxqXb s/C4bEx5. Mwn5 moQxcMEg34. #. r?o3u wkw5 vgpctQ5 rNs/i4 gdymJi4 tAyQx34Xb, x[if wf s/C4bEx5 ttCExc34g5 rNs/i4 gAyJtu4 ttcu4 gilQ5 r?o3u wkw5 vgpctQfk5. rNs/5l xqoEx3lQ5, r?o3u wkw5 vgpctQ5 ttC4bqi4 xqoExizi4. $. rNs/5 xj/sQx34g5 r?o3u wkw5 vgpctQfi5 kNs2 xeh3izk5 xS34t8N34g34 sfxX5, xqoEx3iz, ttCsys/Exo4 x[if wf s/C4bExi5 G%H s2l5 WxictNQ5. The KIA does not wish to over-bond on this project, however, the KIA is required to hold adequate security to protect its interests. This protection will be based on the following provisions within the Production Lease: AEM must deposit a Reclamation Security Deposit with the KIA. The final amount is based on the AEM’s Reclamation Plan. The Reclamation Security Deposit can be accessed by the KIA if AEM breaches any material term, covenant or condition of the Lease pertaining to its obligations relating to the environment or abandonment of the Meadowbank Project, and fails to remedy such breach within the time permitted under the Lease. If the KIA draws on the Reclamation Security Deposit, AEM must, within five (5) business days ‘ receipt of written notice from the KIA, increase the Reclamation Security Deposit by the amount that was drawn on by the KIA. If at any time the Reclamation Plan identifies an increase in costs for reclamation of the Project, AEM must, within five (5) business days ‘ receipt of written notice from the KIA, increase the Reclamation Security Deposit by the amount of such increase in costs.

Meadowbank Security Deposit xS34t8N34g2 sfx3izk5 rNs/5 gdymJ5 5) The Reclamation Security Deposit must be in a form and content acceptable to the KIA. In the normal course, the KIA would require a Letter of Credit, which will ensure it may be accessed by the KIA regardless of AEM’s financial circumstances. 6) Upon receipt of confirmation from all regulatory bodies governing the Meadowbank Project that AEM has fulfilled all project closure and reclamation requirements, the KIA will release the Reclamation Security Deposit to AEM. %. xS34t8N34g34 xfx34X5 kNs2 xeh3izk5, rNs/5 gdymJ5 xo/Jaiq5 NmQxc34g5 r?o3u wkw5 vgpctQfk5. ryxi x2dbsZJ4g34 rNs/oEJi ttctA5, xml wkw5 vgpctQ5 ttcsybC/34g5 rNs/bDNDtu4, s/C4bExi5. ^. rNs/5 bfx xN4bwoJbsmb, x[if wf s/C4bEx5 ryxi giviC/34bq5 s/C4bExk5, xml s/C4bEx5 ttcsyx34ymN/34g5 xS34t8N34g2 svx3iz Nm4m5, tusJl4bi5 WoEcbsJi5. rNs/5 gi/soC/34g5 x[if wf s/C4bExk5, bfx Ns5ysmbsMs3mb sfx5yx3izk5 s/C4bEx5.

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