Overview – Phase 1 Doris North Project Changes and Phase 2 Hope Bay Project Proposal

Mineral Development Advisory Group Meeting October 26-27, 2010

Chris Hanks – Director ESR Hope Bay Mining Ltd.

Overview

Phase 1b: Bulk Sample - Type B Amend. No. 6

– submit November 2010

Phase 1: Doris North 2011 Construction-Type A Amend. No. 2

– submit October 2010

Phase 1: Doris North 2012-2013 Construction-Type A Amend. No. 3

– submit November 2010

Phase 2: Hope Bay Belt Project Proposal

– submit Q1 2011 4/28/2020 2

Phase 1b: Patch 14 Bulk Sample

Patch 14 Bulk Sample Type B Amendment • Bulk sample to commence in Q3 2011 • Windy Road Helicopter Pad and refueling facility • Requires amendment to existing Type B Water License 2BE-HOP0712 • No other regulatory approvals have been identified to date (will need KIA approval)

Patch 14 Bulk Sample Type B Amendment cont.

Consists of:

• All-weather roads to portal area – design will meet DFO Operational Statements for Single Span Crossings • Pads, laydowns, surface facilities and infrastructure (e.g., emergency shelter, office, diesel generators, fuel transfer station, shop, air heating facility) • Ore and waste rock storage areas

Patch 14 Bulk Sample Type B Amendment cont.

Consists of:

• Development of quarries to support road and pad construction • Manage mine water from underground • Increase in water use permitted under 2BEHOP-0712

Phase 1 Doris North Project: Anticipated Changes

Amendment No. 2 2011 Anticipated Changes

Overview

• Tank Farm highest priority change –Construction must commence in March 2011 in order to meet project timelines to allow tanks to be filled during 2011 sealift • Expansion of airstrip/construction of bypass road will be built from rock quarried preparing tank foundations • Expected construction of other facilities in package complete by end of Q4 2011

Amendment No. 2: Fuel Tanks

Expansion of Fuel Storage and Containment Facility

• Original fuel estimates of 13 ML for Doris North too low (similar to Meadowbank, which now requires 60ML) • Total capacity being increased to 36 ML diesel and 1.5 ML Jet A • Propose additional tank location within 100 m of existing Roberts Bay fuel tank

Amendment No. 2: Fuel Tanks cont.

Expansion of Fuel Storage and Containment Facility

• HBML has supplemented via staged delivery of fuel from over winter ship –On site tankage environmentally superior solution • Additional fuel needed to support Doris North Project • No other approvals identified • Requires amendment to approved OPPP/OPEP -

Canada Shipping Act, 2001

Amendment No. 2: Fuel Tanks cont.

[insert fuel tanks pic]

Amendment No. 2: Change Doris Camp Water Source

Change to Doris North Camp water source from Doris Lake to Windy Lake

• Treatment of Doris Lake for potable water use has been extremely challenging • Requires significant ongoing efforts to control persistent blue green algae • Worker health concerns • Windy Lake is closest alternate potable water source • Rescan analysis has confirmed Windy Lake suitability

Amendment No. 2: Change Doris Camp Water Source cont.

[pic showing proposed routing]

Amendment No. 2: Airstrip/Bypass Road

Airstrip/ bypass road

• Rock from tank farm location to expand airstrip and construct airstrip bypass road • Will improve site safety as traffic will be eliminated from airstrip • Will improve site access in emergency situations since larger aircraft will be able to land at site

Amendment No. 2: Airstrip/ Bypass Road cont.

[insert airstrip drawing]

Amendment No. 2: Cyanide/ Reagent Facilities

Revised cyanide/reagent storage facility

• No other approvals identified

Proposed Reagent Storage [insert facility pic]

Proposed Cyanide Storage [insert facility pic]

Amendment No. 2: Waste Rock Use

Amendment to condition D24 to permit clean underground rock to be used in surface infrastructure

• Underground rock would not be used prior to geochemical testing • SRK has provided geochemical analysis for this change • Change would be reflected in Doris Ore and Waste Rock Management Plan

Amendment No. 2: Expansion of Ore/Waste Rock Pads

Expansion of ore/waste rock pads

• No other approvals identified

Amendment No. 2: Expansion of Ore/ Waste Rock Pad

Ore/ Waste Rock Pad Expansion

Ore/ Waste Rock Pad Expansion

Amendment No. 3 HBML wishes to have approval to implement the following changes to facilities and activities by the end of Q3 2011

Amendment No. 3: Mine Plan Changes

Doris North Mine Plan:

• Mine Doris North, Lower, Connector and Central using existing Doris North decline • Milling rate of 800 tpd annual average • 2-4 year extended mine life • Some changes to surface infrastructure to accommodate change

Amendment No. 3: Mine Plan Changes

Mine plan change will create more waste rock

• Tailings storage facility can accomodate additional tailings • Ore and waste rock storage pads will require expansion to accommodate additional volumes

Amendment No. 3: Mine Plan Changes

Mine plan change will require management of additional groundwater

• May encounter groundwater under Doris Lake • Characterizations of groundwater indicate chemical composition akin to seawater • Analysis currently underway

Amendment No. 3: Water Treatment

Addition of water treatment plant to ensure discharge from Tail Lake meets criteria

• Environmentally superior solution • On site laboratory will no longer be necessary • Will require amendment to NIRB Project Certificate No. 3

Amendment No. 3: Doris Camp Expansion

Expansion of Doris North Camp capacity

• Original workforce size was underestimated • Currently using hotel barges to accommodate shortfall • By Q1 2012 this issue will be critical

Amendment No. 3 Doris Camp Expansion cont.

.

Expansion of Doris North Camp capacity

• Solution is to add 180 person STP to Doris North Camp and expand beds accordingly • By this time tailings facility will be constructed and will be ready to accept treated water • In overall context of site, minimal change to footprint

Amendment No. 3 Water Licence Renewal

Early renewal of Doris North Project Type A Water Licence

• Currently set to expire in 2013 just as mine reaches production • Original Miramar plan was for production to be completed well before the renewal date • HBML will request a expiry date to permit production from Doris North Project to be complete before expiry

Phase 2: Hope Bay Belt Project Proposal

Phase 2 Hope Bay Belt Project

Timeline: Production to commence in 2015 The following slides present preliminary designs only • Additional Surface infrastructure will be required • Selection of alternatives will be supported by environmental assessment process • Preferred alternatives will be selected prior to new Type A Water Licence application

Phase 2 Hope Bay Belt Project

Phased development of the Hope Bay Belt through:

• a series of underground and open pit mines • processing facilities • tailings facilities • infrastructure including but not limited to: – an expanded port –new airstrip –wind farm –camps –roads

Phase 2 Hope Bay Belt Project

Phase 2 will include deposits from Madrid and Boston districts

• Deposits overlain by 100% Inuit Owned Lands

Phase 2 Hope Bay Belt Project

Mine Method

• Madrid and Boston: combination of underground development and small open pits • Boston open pit will require shallow dikes around the edges of the deposit near the fore-shore of the lake • All other open pits are currently proposed to be on dry land

Phase 2 Hope Bay Belt Project

Production Rate (Ore)

• Milling rate 1.5-2 million tonnes per annum. • Total tailings production approx. 26 million tonnes for all districts •By comparison, Con Mine produced about 30 million tonnes during its life • Ultimate tonnages will not be determined until additional underground exploration takes place once mining commences

Phase 2 Hope Bay Belt Project

Production Rate (Waste) Approx.

• 19 million tonnes in the Madrid District • 11 million tonnes in the Boston district

Phase 2 Hope Bay Belt Project

Water Management

• Compliance with current Canadian and Nunavut standards • Water treatment will be required for potable camp water and the septic disposal system • Mill, tailing underground, and open pit water will require monitoring, management and possibly treatment before release to the environment

Phase 2 Hope Bay Belt Project

Access/ delivery of fuel, equipment, and supplies

• Primarily via summer sealift through the Arctic Ocean to Melville Sound and Roberts • Supplemented by air support

Phase 2 Hope Bay Belt Project

Infrastructure - The development of Phase 2 of the Hope Bay Project is constrained by infrastructure development, including the need for: • expanded deep sea and shallow water port facilities • additional airstrip • additional winter and all weather roads, including extension of the existing all weather road • camp facilities in each district • additional fuel storage

Phase 2 Hope Bay Belt Project

Infrastructure, cont.

• maintenance facilities at each major mining district e.g. heliports, airstrips, reagent storage, quarries, and power generation • portable self-contained (water, waste, maintenance, and supplies) temporary construction camps

Phase 2 Hope Bay Belt Project

Phase 2 may require construction of additional milling locations in the Boston District

•Total milling tonnages expected to be approx. 2 million tonnes per annum during this phase of the project •Option of an expanded central mill location •Boston mill would be conceptually similar to Doris mill, would require tailings facility

Phase 2 Hope Bay Belt Project

Mill Process

o Anticipated that flotation processes will be used: o bulk tailings stream that will have relatively benign environmental characteristics, and o smaller tailings stream associated with other milling processes including cyanide, which will also likely be more highly mineralized o will include cyanide destruction circuit prior to any disposal option

Phase 2 Hope Bay Belt Project

Tailings Disposal

o Preferred option for location of Boston tailings, if Boston mill is constructed, has not yet been selected; tailing options study is in process o No current plan to add any additional lakes to Schedule 2 of the Metal Mining Effluent Regulations

Phase 2 Hope Bay Belt Project

Tailings disposal

• Additional flotation tailings land disposal options include dry stack facilities and new land based sub-aerial facilities • Some placement of underground is possible cyanide and flotation tailings •Cyanide destruction prior to deposition of cyanide tailings

Phase 2 Hope Bay Belt Project

Personnel

•During peak construction phase, up to approximately 500 personnel •Permanent camps will house approximately 400 people, which is only slightly larger then the Doris Mine at its peak but the staff will be spread over several operating mines •Approximately 400 personnel will be employed at the mine on a fly-in/fly-out rotation

Phase 2 Hope Bay Belt Project

Phase 2 Life of Mine

•Approximately 15 years of operation, based on current geologic knowledge •Ongoing exploration •Need for high standards of environmental stewardship and creating a sustainable operation that provides long term benefits for the Kitikmeot Region and Nunavut

Phase 2 Baseline Studies

Baseline studies to support the Phase 2 Hope Bay Belt project include: • The Physical Environment • The Biological Environment • The Human Environment Doris North compliance monitoring programs Inuit traditional knowledge incorporated in all studies and project planning 4/28/2020 49

Phase 2 Baseline Studies

• • • • • • • • • • • • Studies conducted to date: Traditional Knowledge Geochemistry (ongoing) Kitikmeot health study Hydrology studies (water quality and flow) Weather studies (evaporation and dust) Fish and fish habitat (incl. sea, lake and stream fish) Aquatic biology Raptor survey Caribou surveys Breeding bird and waterfowl survey Sea birds Archaeology • Groundwater well installation and WQ Monitoring • Meteorology • Air quality and dust • Noise • Hydrology • Water, sediment, and aquatic biology • Fish and fish habitat • Ecosystem Mapping • Vegetation • Terrain, soils, and surficial geology • Wildlife and wildlife habitat • Socio-Economics and Land Use • Human health and country foods 50

Phase 2 Baseline Studies

Meteorology Air Quality Noise

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Phase 2 Baseline Studies

Hydrology Freshwater quality Marine water quality

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Phase 2 Baseline Studies

Freshwater Fish and Fish Habitat Marine Fish and Fish Habitat

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Phase 2 Baseline Studies

Avian Wildlife

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Phase 2 Baseline Studies

Ecosystem Mapping Terrain, Soils, and Surficial Geology Vegetation

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Phase 2 Baseline Studies

Wildlife and Wildlife Habitat Land and Resource Use

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Phase 2 Baseline Studies

Socio-Economics Human Health and Country Foods

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Thank You – Questions?

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