1. 1 South Parade, Doncaster, South Yorkshire, DN1 2DY, UK Tel: +44 (0) 1302 329911 Fax: +44 (0) 1302 329922 LAGUNA LBNO Hamburg - February 2013 ALAN AULD GROUP LTD 11

2. Underground Logistics at Pyhasalmi Mine Jim Lumbard - Project Manager Alan Auld Engineering Ltd ALAN AULD GROUP LTD 1 South Parade, Doncaster, South Yorkshire, DN1 2DY, UK Tel: +44 (0) 1302 329911 Fax: +44 (0) 1302 329922 22

3. 1 South Parade, Doncaster, South Yorkshire, DN1 2DY, UK Tel: +44 (0) 1302 329911 Fax: +44 (0) 1302 329922 Presentation Summary Part A Comparison with above ground Construction methods 1.Excavation Work 2.Climate/Working Conditions 3.Concrete Supply 4.Timescales Part B Underground Construction Issues 1.The Decline 2.Lighting 3.Specific Construction Plant ALAN AULD GROUP LTD 33

4. 1 South Parade, Doncaster, South Yorkshire, DN1 2DY, UK Tel: +44 (0) 1302 329911 Fax: +44 (0) 1302 329922 Part A Comparison with above ground construction methods ALAN AULD GROUP LTD 44

5. 1 South Parade, Doncaster, South Yorkshire, DN1 2DY, UK Tel: +44 (0) 1302 329911 Fax: +44 (0) 1302 329922 1.Excavation of Tunnels and Caverns Excavated Material (800,000m3) Tunnel & Shaft Disposal Site ALAN AULD GROUP LTD 55

6. ALAN AULD ENGINEERING 1 South Parade, Doncaster, South Yorkshire, DN1 2DY, UK Tel: +44 (0) 1302 329911 Fax: +44 (0) 1302 329922 ALAN AULD GROUP LTD Below Ground Limited Payloads Limited Manoeuvrability Poor visibility Long Distance to travel Above Ground Larger Payloads Ample space to load ‘Freedom’ to move ‘Daylight’ RESULT = IT TAKES MORE TIME TO WORK BELOW GROUND Excavation con’t 66

7. ALAN AULD ENGINEERING 1 South Parade, Doncaster, South Yorkshire, DN1 2DY, UK Tel: +44 (0) 1302 329911 Fax: +44 (0) 1302 329922 Rock Disposal Currently the mine uses excavated waste material to backfill the voids left after removal of the ore body, this is supplemented by material brought in from the surface. LAGUNA at Pyhasalmi has 2 options for rock disposal: 1.The mine continues to operate during the excavation and the excavated rock is used to backfill the stopes. (First 2yrs) Thereafter the excavated material is crushed and taken up the Timo Shaft (Further 2.75 yrs) 2.The mine closes and excavated material is taken to the underground crusher and then to the surface via the Timo Shaft and/or Decline (5.5 yrs) ALAN AULD GROUP LTD 77

8. ALAN AULD ENGINEERING 1 South Parade, Doncaster, South Yorkshire, DN1 2DY, UK Tel: +44 (0) 1302 329911 Fax: +44 (0) 1302 329922 Further Consideration (for Rock disposal) The skip system (Timo Shaft) can handle 275 tonnes per hour (approximately 135m 3 ) of Mined Ore If the LAGUNA rock material is going to be used to backfill the stopes then their is no restriction on excavation progress and all 3 Caverns can be progressed at same time (2000m3/day of Rock Waste) If the LAGUNA rock material has to be disposed of at surface via the Timo Shaft then restrictions have to be made with excavation and the period to complete all 3 Caverns will be longer. ALAN AULD GROUP LTD 88

9. ALAN AULD ENGINEERING 1 South Parade, Doncaster, South Yorkshire, DN1 2DY, UK Tel: +44 (0) 1302 329911 Fax: +44 (0) 1302 329922 ALAN AULD GROUP LTD. 2. Climate/Working Conditions Pyhasalmi Mine In October - And Under Snow 99

10. ALAN AULD ENGINEERING 1 South Parade, Doncaster, South Yorkshire, DN1 2DY, UK Tel: +44 (0) 1302 329911 Fax: +44 (0) 1302 329922 ALAN AULD GROUP LTD. 2. Climate/Working Conditions Conclusion – Below ground climate more favourable for Construction at Pyhasalmi 10

11. 1 South Parade, Doncaster, South Yorkshire, DN1 2DY, UK Tel: +44 (0) 1302 329911 Fax: +44 (0) 1302 329922 3. Concrete Supply Concrete is a material required in significant quantity for this project. Wet concrete has a limited working life hence has to be mixed close to point of use. There are three possible options for the supply of concrete: 1.Delivered to site by road from the nearest Readymix type plant 2.Site batched on the surface 3.Site batched underground ALAN AULD GROUP LTD 11

12. 1 South Parade, Doncaster, South Yorkshire, DN1 2DY, UK Tel: +44 (0) 1302 329911 Fax: +44 (0) 1302 329922 Concrete Supply - Readymix Total reliance on an outside (Readymix) plant puts delivery at the mercy of a number of variables; 1.The supplier (Reliability of his plant/vehicles) 2.The demands of his other customers 3.Road conditions 4.Weather conditions There is no plant of significant size within service limits to the Mine however the Mine has previously used a local plant for Shotcrete supply. It is not known whether this plant is still operational or what its capabilities are. It may be possible to use this as a back up plant. ALAN AULD GROUP LTD 12

13. 1 South Parade, Doncaster, South Yorkshire, DN1 2DY, UK Tel: +44 (0) 1302 329911 Fax: +44 (0) 1302 329922 Concrete Supply – Site Batching Site batching allows greater flexibility and reliability in the supply of concrete. Raw materials can be delivered in advance and stored in bulk in bins or silos both above and below ground. At Pyhasalmi there are two potential locations for the batching plant; On the surface or Underground ALAN AULD GROUP LTD 13

14. ALAN AULD ENGINEERING 1 South Parade, Doncaster, South Yorkshire, DN1 2DY, UK Tel: +44 (0) 1302 329911 Fax: +44 (0) 1302 329922 ALAN AULD GROUP LTD Comparison of Concrete mixing options The Underground option has the more advantages and will be progressed at Pyhasalmi predominantly for reasons of access to the delivery point and climate 14

15. 1 South Parade, Doncaster, South Yorkshire, DN1 2DY, UK Tel: +44 (0) 1302 329911 Fax: +44 (0) 1302 329922 Standard Batching Plant Output up to 150m3 per hour ALAN AULD GROUP LTD Mini Batching Plant – Output of 30m 3 /hr 15

16. ALAN AULD ENGINEERING 1 South Parade, Doncaster, South Yorkshire, DN1 2DY, UK Tel: +44 (0) 1302 329911 Fax: +44 (0) 1302 329922 ALAN AULD GROUP LTD 4. Timescales Tasks that will take significantly longer to complete below ground Workforce Travel Travel to Worksite from Surface and back. Vehicle Movements Single Lane traffic Limited passing points Speed restrictions Material Delivery 11km of restricted access in Decline versus weight and size limitations of Timo Shaft Concrete plant smaller below ground than above ground.. Removal of Excavated Spoil Limits on size of plant to load and transport. (Timo Shaft /Stopes) Limits on number of vehicles in use at any one time. Limited means to get to surface (Timo Shaft or Decline) Emergency Procedures Casulties Off Site to Surface. Emergency Services form Surface to below Ground 16

17. ALAN AULD ENGINEERING 1 South Parade, Doncaster, South Yorkshire, DN1 2DY, UK Tel: +44 (0) 1302 329911 Fax: +44 (0) 1302 329922 ALAN AULD GROUP LTD In Summary; Excavation will take longer and cost more owing to the restrictions imposed by the layout of the Pyhasalmi Mine. Working below ground at Pyhasalmi means less weather related disruption to construction work Concrete will be manufactured below ground at Pyhasalmi as this option provides better control of service and less risk Building Tanks of this magnitude and depth below ground will take far longer and cost far more than the equivalent above ground. (Easy to say but not so easy to calculate !!!) 17

18. ALAN AULD ENGINEERING 1 South Parade, Doncaster, South Yorkshire, DN1 2DY, UK Tel: +44 (0) 1302 329911 Fax: +44 (0) 1302 329922 ALAN AULD GROUP LTD. Part B Underground Construction Issues 18

19. ALAN AULD ENGINEERING 1 South Parade, Doncaster, South Yorkshire, DN1 2DY, UK Tel: +44 (0) 1302 329911 Fax: +44 (0) 1302 329922 ALAN AULD GROUP LTD. 1. The Decline View of Typical Section Through Pyhasalmi Decline 19

20. ALAN AULD ENGINEERING 1 South Parade, Doncaster, South Yorkshire, DN1 2DY, UK Tel: +44 (0) 1302 329911 Fax: +44 (0) 1302 329922 The Decline (Yellow Route) ALAN AULD GROUP LTD The Decline is 11km long and take approx 40mins to travel the full length (approx 20km/hr) Numerous bends and an average gradient of 1:7 slows down traffic speed. 1 way Traffic - therefore passing vehicles is a problem Height and width restriction of approx 5mtr The height restriction of 3.3 metres is only at the start of the decline whilst the majority of the tunnel is above 4 metres. It is planned to remove this restriction when the LAGUNA LBNO Project commences 20

21. ALAN AULD ENGINEERING 1 South Parade, Doncaster, South Yorkshire, DN1 2DY, UK Tel: +44 (0) 1302 329911 Fax: +44 (0) 1302 329922 ALAN AULD GROUP LTD. 2. Lighting Surface Working – Natural Daylight No Interruptions Usually no complaints or excuses [Finland excepted] Sub Surface Working – Artificial Light Can Fail Can never replace the ‘real thing’ Can be inadequate Casts Shadows Can Dazzle Comes at a cost (Time & Money) 21

22. ALAN AULD ENGINEERING 1 South Parade, Doncaster, South Yorkshire, DN1 2DY, UK Tel: +44 (0) 1302 329911 Fax: +44 (0) 1302 329922 ALAN AULD GROUP LTD. 3. Specific Construction Plant Excavation of tunnels & caverns – No Issues, Conventional Mining techniques will be adopted for this work using equipment specially produced for working under ground 22

23. ALAN AULD ENGINEERING 1 South Parade, Doncaster, South Yorkshire, DN1 2DY, UK Tel: +44 (0) 1302 329911 Fax: +44 (0) 1302 329922 ALAN AULD GROUP LTD 3. Specific Construction Plant con’t Tank Foundations and walls Cranes required. Must be demountable or small enough to travel down decline but big enough to reach top of cavern –Long Lead In times for delivery –Additional Cost for modifications –Different requirements between LENA & GLACIER Concrete Batching Plant, Pumps and re-mixers –Delivery of required concrete volume in allowable time –Inefficient/Uneconomical Use –Standby Equipment required 23

24. ALAN AULD ENGINEERING 1 South Parade, Doncaster, South Yorkshire, DN1 2DY, UK Tel: +44 (0) 1302 329911 Fax: +44 (0) 1302 329922 ALAN AULD GROUP LTD 3. Specific Construction Plant - LENA Tower Crane = Approx 30 major separate components Initially built to low level with Mobile Crane assistance, then; 24

25. ALAN AULD ENGINEERING 1 South Parade, Doncaster, South Yorkshire, DN1 2DY, UK Tel: +44 (0) 1302 329911 Fax: +44 (0) 1302 329922 ALAN AULD GROUP LTD 3. Specific Construction Plant - LENA Crane self jacks up ahead of concrete to Tank 25

26. ALAN AULD ENGINEERING 1 South Parade, Doncaster, South Yorkshire, DN1 2DY, UK Tel: +44 (0) 1302 329911 Fax: +44 (0) 1302 329922 ALAN AULD GROUP LTD 3. Specific Construction Plant - LENA Crane is jacked off centre of tank self lowers back towards ground small mobile crane completes the de- rigging Parts removed from Tank via access way left at floor level 26

27. ALAN AULD ENGINEERING 1 South Parade, Doncaster, South Yorkshire, DN1 2DY, UK Tel: +44 (0) 1302 329911 Fax: +44 (0) 1302 329922 ALAN AULD GROUP LTD Thank You 27