State of the UP: Mining Michigan Department of Environmental Quality Office of Oil, Gas, and Minerals

Presentation Objectives Mining and Exploration Activity Past Present Explanation of common terms Regulatory authority Part 625- Mineral Well Operations Regulations Part 631- Ferrous Metallic Mineral Mining Part 632 -Non-Ferrous Metallic Mineral Mining Answer Questions 11/17/2018

History The last operating non-ferrous metallic mine in Michigan (White Pine Mine) closed in the mid 1990’s In early 2002 Michigan began to experience a resurgence in mineral exploration in the UP In early 2004 DEQ formed a stakeholder group In December, 2004 Legislation was passed that will ensure the economic development potential of mining in our state, while being mindful of protecting our environment 11/17/2018

Explanation of Common Terms Deposit A mineralized zone Ore Extract at a profit Based on current prices and technology Beneficiation/Processing Improve the grade of ore Smelting and Refining Continuation of grade improvement National Instrument 43-101 Canadian guidelines Designed to improve the accuracy and integrity Intended to protect investors Why Canada?

White Pine Mine Project Highland Copper Co. White Pine Mine Project Advanced Exploration – Copper Lundin Eagle Mine Underground - Nickel/Copper Graymont Exploration-Limestone Cliffs Natural Resources Tilden and Empire Open Pit - Iron Copper Range Marquette Iron Range Gogebic Iron Range Highland Copper Co. Copperwood Project Underground – Copper Menominee Iron Range Lundin Humboldt Mill Beneficiation – Nickel/Copper Aquila Resources Back Forty Project Advanced Exploration – Gold/Zinc/Copper

Multi Agency Application Review Mining Team Approach 11/17/2018 Multi Agency Application Review Mining Team Approach 11/17/2018 Geologist Hydrogeologist Hydrologist Water quality specialist Waste disposal engineer Waste water engineer Wetland biologist Fisheries biologist Wildlife biologist Forester Archaeologist Geochemist Rock mechanics engineer Financial assurance specialist Air quality engineer Assure nothing is overlooked by utilizing a team approach

Summary Three active mines; Two potential mines Not a mining rush, more like a “Cautious Resurgence” Significant exploration activities compared to the 1980’s and 1990’s Metal prices and companies’ ability to attract investors will dictate the future for pending projects