1. Climate, Air Quality and Noise Graham Latonas Gartner Lee Limited RWDI Air Inc.

2. Climate Climate stations established at High Lake and Ulu in June 2004 10m (High Lake) or 3 m (Ulu) towers with the following sensors : –Wind Speed and Direction –Temperature, Humidity, Pressure –Precipitation, Solar Radiation Issues with data recovery High Lake Station is maintained and will remain for the duration of the project Evaporation will be measured in 2008

3. High Lake Met Station (2005)

4. High Lake Met Station (2007)

5. GhG Emissions and Climate Change Total annual GHG emissions estimated at 76.5 kt CO 2 eq Zinifex will report their GHG emissions in a form required by regulation or as developed through the AQEMP Climate change was interpreted from the most recent global climate model results (CICS at U. of Victoria) Projected annual average temperature was estimated to increase by 4.7 to 7.2 degrees (2080) based on models calibrated against observed trends.

6. Air Quality Approach Identified 4 VECs including: –Air concentrations of Criteria Air Contaminants (TSP, PM 2.5, NO 2, SO 2, CO); –Deposition of metals (Cu, Zn); –Potential Acid Input (PAI); and –Nitrogen deposition. Indicator thresholds based on existing recognized criteria Modelled emissions using CALPUFF

7. Air Quality - Emissions Estimated using established methods Assumed reasonable “worst case” Incorporated all significant sources –Open pit operations (blasting) –Mobile equipment –Fugitive sources (stockpiles, road dust) –Ore processing –Underground activities –Power generation –Waste incineration US EPA AP-42 (1996) used, where appropriate Emissions presented in Table 2.7-1 of the DEIS

8. Air Quality - Emissions Focus on Criteria Air Contaminants (CACs) from operational and fugitive emission sources Used conservative assumptions to develop emission rates for TSP, PM 2.5, SO 2, NO 2 and CO

9. Conservative Assumptions PM 2.5 –Reasonable “worst case” emissions based on surface open pit mining and continuous (24/7) operations –Adopted CWS of 30ug/m 3 24-hr avg. (future ambient monitoring objective for large cities) –Applied EPA AP-42 emission factors (1996) –Included stationary, mobile and fugitive sources –Assumed all combustion particulate is PM 2.5 but acknowledged by US EPA to include larger size fractions up to PM 10

10. Air Quality Impacts High Lake –Ambient levels of PM 2.5 and NO 2 predicted to exceed ambient air quality criteria beyond the mine site –Less conservative assumptions expected to reduce but not eliminate predicted elevated levels –Ambient monitoring of PM 2.5, NO 2, TSP and total dustfall has been recommended –Health risk associated with predicted levels has been assessed for workers and Inuit –AQEMP will be developed to establish baseline conditions (GHG emissions), focus the ambient monitoring to potentially affected areas and recommend specific methods to minimize emissions from construction activities and operations

11. PAI and Nitrogen Deposition PAI was re-assessed using CALPUFF New met file generated incorporating hourly precipitation (Kugluktuk) Less conservative assumptions using measured wet deposition only for background Maximum PAI contribution from mine operation is 1.06 keq/ha/y vs. 1.4 Maximum N 2 deposition from mine operation is 15.1 kg/ha/y vs. 34 Area above criteria (0.25 keq/ha/y; 5 kg/ha/y) fall within modified mine area.

12. Noise Approach and Conclusions Alberta Energy and Utilities Board noise guidelines (40 dBA at 1.5 km) applied Focus on good acoustic engineering design, practice and mitigation Operations to be monitored at start-up to confirm acceptable noise levels and identify any additional mitigation required

13. Noise Approach and Conclusions Worker noise exposure will be in accordance with Nunavut Safety Regulations Worker sleeping quarters will be designed in accordance with good acoustic engineering design practice.