Mary River Project Phase 2 Proposal Technical Meetings April 8-10, 2019 Mary River Project Phase 2 Proposal Introduction, Overview, and Response to Technical Comments

Introduction of the Team

Baffinland Iron Mines Team Megan Lord-Hoyle Abe Aronian Jason Prno Lou Kamermans Ramli Halim Phil Rouget Joe Tigullaraq Denys Del Cardo Patrick Abgrall Fay Pittman Luc Bourdon Tannis Thomas Connor Devereaux Christian Richard Melanie Austin Krista Johnson Christine Kowbel Mike LePage Marsha Chetty Mike Cooper Sara Wallace Sean Hinchberger Richard Cook Christine Moore Glen Johnstone Mike Setterington Andrew Moore Aurora Van Buren

History of the Mary River Project

History of Baffinland 1962 Mary River’s high grade iron ore first noted in an airborne reconnaissance 1986 Original land claim by Baffinland 2012 Government approval of Baffinland's development plans The Nunavut Impact Review Board (NIRB) issues the Project Certificate 2013 Baffinland proposed changes to the schedule and specific activities in the initial stages of the Project September 2013 Baffinland and QIA sign the IIBA 2015 First iron ore is shipped to Europe 2018 EIS submitted for Phase 2

Mary River Project Mary River is an operating open pit iron ore mine owned and operated by Baffinland Iron Mines Corporation 160 km south of Pond Inlet and 1,000 km north of Iqaluit Nine high-grade iron ore deposits, only Deposit No. 1 is being mined now Three currently active main project locations under the Early Revenue Phase Mine Site, 100 km long Tote Road, and Milne Port. South Railway and Steensby Port south of the Mine Site are approved and

Phase 2 Proposal Overview

Changes for Phase 2 Mine Site Transportation Milne Port Shipping 1 2 3 4 Shipping

Overview of Phase 2 Proposal 1. Mine Site 3. Milne Port 4. Shipping Crushing relocated and reduced to primary only Construction of rail line and loading terminal Increased fuel storage Construction of additional ore dock Increased ore stockpiling Increased power generation Expanded development area Construction of rail line and unloading terminal Crushing of Iron Ore Move secondary ore crushing from Mine Site to Milne Port Indoor crushing of iron ore Less dust in the environment Stable temperatures for equipment and employees Supporting Infrastructure Additional accommodations Rail maintenance facility Landfill Shipping during the open water season is possible by adding a second, larger ore dock Shipping route will remain the same: route through Eclipse Sound Increase in number of vessels 2. Transportation Construction of rail line from Mary River to Milne Port Raised railway bed and track Tote road will continue to transport people and equipment Safety and wildlife protection measures will not change Community access to transport along the road will not change Overview of Phase 2 Proposal

Purpose and Need Increase operational efficiencies to mine and ship more iron ore each year Increased production is the key to long-term viability of the Mine Increase economic viability and environmental sustainability with North Railway

Baffinland’s Approach to IQ

Baffinland’s Approach to IQ Engagement with local communities began in 2004 supported by Community Liaison Officers frequent and varied discussions “Inuit Qaujimajatuqangit” or the acronym “IQ” is broadly intended to mean Inuit Societal Values (ISV) that include: traditional, current, and evolving bodies of Inuit values, beliefs, experience, perceptions, and knowledge regarding the environment, including, land, water, wildlife, and people, to the extent that people are part of the environment. DO NOT TRANSLATE NOTES The engagement and consultation process which was initiated in 2004, has deepened our understanding of what IQ is and how this evolving body of knowledge can enhance Project discussions and processes. -Over the years we have relied on QIA’s feedback and will continue to request QIA’s involvement in identifying methods for collecting, evaluating and integrating IQ - We acknowledge different definitions of IQ exist, including those defined by NIRB. ]

Sources of IQ Utilized by Baffinland IQ has been collected under research licenses issued by the Nunavut Research Institute Outside of the formal IQ collection process, discussions with Elders and IQ holders that have taken place as part of the community engagement program DO NOT TRANSLATE NOTES - The formal IQ collection process included the Land Use Report, individual and group interviews, community workshops - Through community engagement, residents shared their knowledge and observations and that information helped to develop a more comprehensive assessment of the Project

Influence of IQ on the Project Phase 2 Proposal shipping period was selected to avoid time periods of critical Inuit land use and harvesting activities. Community-based knowledge gained through IQ resulted the selection of blueberries and lichen as key indicator species Spatial boundaries for the assessment fish and fish habitat and the wildlife and wildlife habitat were informed by distribution of a species valued by Inuit Wildlife species, harvesting locations, and land/marine components of importance to Inuit, informed Baffinland’s approach to mitigating Project effects in these areas. DO NOT TRANSLATE NOTES -We value our relationships with the North Baffin communities and strive to consider and incorporate community-based knowledge gained through IQ in all aspects of our project including; Project design, selection of VEC’s, baseline studies, in the effect’s assessment, mitigation and monitoring A few examples of this are [speak to the slide bullet points] NOTE: Blueberries recently dropped as an indicator species – see QIA 09 response.

Looking Ahead Additional IQ Collection A series of community risk and mitigation workshops with participants from all five North Baffin communities are being planned Final workshop is planned to take place at the Mary River Mine Site the week of May 6th 2019 Adaptive Management and Monitoring Programs Existing adaptive management processes and monitoring programs have been developed with direct consideration of IQ Applicable monitoring plans will be revised to include a “Use of Community Input and IQ in the Monitoring Program” section DO NOT TRANSLATE NOTES The objectives of these workshops are to examine Baffinland’s existing and proposed terrestrial and marine mammal monitoring programs and identify improvements to account for the additional terrestrial (rail) and marine (increased frequency) transportation components of Phase 2. We have requested participation and feedback on the design, topics for discussion during the workshops to ensure that they would be culturally appropriate and an effective tool for retrieving and supporting the incorporation of relevant IQ   Baffinland provides funding for a full-time QIA employee to be on site as an Environmental Monitor for the Project. We have also committed to continue training and hiring Inuit to work on the monitoring programs Building off of the existing adaptive management processes, we are going to reconsider the framework for adaptive management and address specifically how IQ will be used in this process.

Phase 2 Proposal Document Map

Document Map Binder 1 Binder 2 Binder 2.1 Binder 2.2 Binder 3 Binder 4 Mary River Project Phase 2 Proposal TSD 01 Alternative Analysis TSD 02 Appendix D Water License Application Part 1 TSD 02 Appendix D Water License Application Part 2 TSD 03 Phase 2 Workshop Report TSD 09 Vegetation Baseline and Impact Assessment TSD 13 Surface Water Assessment TSD 18 Ballast Water Dispersion Model TSD 25 Socio-Economic Assessment TSD 28 Management Plans (Part 1) TSD 28 Management Plans (Part 2) TSD 28 Management Plans (Part 3) TSD 28 Management Plans (Part 4) TSD 02 Project Description TSD 04 Phase 2 Public Consultation Report TSD 10 Terrestrial Wildlife Baseline and Impact Assessment TSD 14 Freshwater Biota and Habitat Assessment TSD 19 Fuel Spill Modelling Report TSD 26 Labour Market Analysis TSD 05 Mary River Inuit Knowledge Study Mapbook TSD 11 Evaluation of Exposure Potential from Ore Dusting Events in Selected VECs TSD 15 Freshwater Habitat and Offsetting Plan TSD 20 Hydrodynamic Modelling Report - Milne Port TSD 27 Cumulative and Transboundary Effects TSD 06 Climate Change Assessment TSD 12 Migratory Birds Baseline and Impact Assessment TSD 16 Ice Conditions Report TSD 21 Invasive Species Risk Assessment TSD 07 Atmospheric Assessment TSD 17 Marine Environmental Effects Assessment TSD 22 Ship Wake and Propeller Wash Assessment TSD 08 Landforms, Soils, and Permafrost Assessment TSD 23 Marine Fish Habitat Offsetting Plan TSD 24 Marine Mammal Effects Assessment

Management and Monitoring Plans – Commitment Register

Management and Monitoring Plans TSD 28 Identifies management and monitoring plans applicable to the Phase 2 Proposal Presents known changes that will be required as a result of Phase 2 activities New plans for the North Railway and a formalized socio-economic monitoring plan were created Additional new plans – Inuit Human Resources Strategy Procedure and the Inuit Procurement and Contracting Strategy – are presented for the first time Commitment Register to track updates and changes to plans

List of Presentations

Presentation Introduction & Overview of the Project Alternatives Assessment Methodologies & Accidents and Malfunctions Atmospheric Environment Marine Environment Freshwater Environment Terrestrial Environment Human Environment Cumulative and Transboundary Effects Assessment Presentation

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