11

JEFF PAQUINJEFF PAQUINTsilhqot’in Power ProjectPhase II CallCEBC 2010

22

TSILHQOT’IN POWER PROJECTTSILHQOT’IN POWER PROJECT

34 MW34 MW

• Very detailed, up to date fiber supply analysis complete.• Formal presentation to MOF, District and regional Managers Sept 20, 2010

• Very detailed, up to date fiber supply analysis complete.• Formal presentation to MOF, District and regional Managers Sept 20, 2010

FIBRE SUPPLYFIBRE SUPPLY

50/50 Joint Venture between Tsilhqot’in National Government (TNG) & Western Biomass

50/50 Joint Venture between Tsilhqot’in National Government (TNG) & Western Biomass

OWNERSHIPOWNERSHIP

SmithersSmithers Prince GeorgePrince George

Williams LakeWilliams Lake

KamloopsKamloops

NelsonNelson

VancouverVancouver

Victoria

Victoria

Hanceville

Hanceville

33

Organization ChartOrganization Chart

Tsilhqot’in Power Corp.

Western Biomass Power Corp.

Tsilhqot’in EnergyHoldings Ltd.

Tsilhqot’in NationalGovernment

Run of RiverPower Inc.

44

78km West of Williams Lake next to TNG Sawmill. Site Control: (Block C) owned by Joint Venture. 78km West of Williams Lake next to TNG Sawmill. Site Control: (Block C) owned by Joint Venture.

55

66

HWY 20 TRANSMISSION Study CompletedHWY 20 TRANSMISSION Study Completed

77

PROJECT ATTRIBUTESPROJECT ATTRIBUTES

Research, Ecology & Forest

Management

Power Plant

Reforestation

Harvesting

No more open slash burning.

Fits government policy initiatives

Accelerating reforestation.

Fire Protection

130 permanent jobs (in) direct

Capital Investment $140 million

No more open slash burning.

Fits government policy initiatives

Accelerating reforestation.

Fire Protection

130 permanent jobs (in) direct

Capital Investment $140 million

88

Project Attributes continued;Project Attributes continued;

Including 37 jobs in bio energy plant.

35 jobs at sawmill.

80 jobs from planning, road construction, harvesting, hauling.

5-1 FTE multiplier the Cariboo Region = 735 jobs.

Development of Hwy 20.

mining,

Oil & Gas (Nechako Basin),

green energy clusters.

Improving economics for Traditional forestry industry

Addressing flooding, riparian damage to salmon bearing rivers, wildlife management with blow down

Much needed Annual Revenue into Northern economy

Sustainable and environmentally sound

Including 37 jobs in bio energy plant.

35 jobs at sawmill.

80 jobs from planning, road construction, harvesting, hauling.

5-1 FTE multiplier the Cariboo Region = 735 jobs.

Development of Hwy 20.

mining,

Oil & Gas (Nechako Basin),

green energy clusters.

Improving economics for Traditional forestry industry

Addressing flooding, riparian damage to salmon bearing rivers, wildlife management with blow down

Much needed Annual Revenue into Northern economy

Sustainable and environmentally sound

99

First Nation Consultation and Accommodation: Began with addressing serious local Issues 2006.

First Nation Consultation and Accommodation: Began with addressing serious local Issues 2006.

1010

BETTER USE OF RESOURCESBETTER USE OF RESOURCES

1111

1212

Ongoing Consultation and Accommodation since 2006Ongoing Consultation and Accommodation since 2006

Binding Resolution signed by all six TNG member Chiefs endorsing the partnership and the Project.Very detailed 68 page Shareholders Agreement includes IBA and fiber supply agreements.Series of Community presentations in both English and Chilcotin (Elders) resulted in low water use options.Community News Letters to keep members aware and up to date.Joint presentations to Industry on “How to Develop Partnerships Between First Nations and Industry”. TNG Referral Model based on this partnership.Joint presentations to Local, Regional, Provincial and Federal Governments.Joint participation in Federal and Provincial Environmental Review processSeries of letters written by TNG to Government indicating there support for this project

Binding Resolution signed by all six TNG member Chiefs endorsing the partnership and the Project.Very detailed 68 page Shareholders Agreement includes IBA and fiber supply agreements.Series of Community presentations in both English and Chilcotin (Elders) resulted in low water use options.Community News Letters to keep members aware and up to date.Joint presentations to Industry on “How to Develop Partnerships Between First Nations and Industry”. TNG Referral Model based on this partnership.Joint presentations to Local, Regional, Provincial and Federal Governments.Joint participation in Federal and Provincial Environmental Review processSeries of letters written by TNG to Government indicating there support for this project

1313

Building Relationships through Social interactionBuilding Relationships through Social interaction

1414

A model of First Nations working with IndustryA model of First Nations working with Industry

Shifts (1 or 2) 2Log Demand (m3) 300,000

Lumber Recovery (bf/m3) 265Planed (Y/N) N

Chips (m3) 114,000Chips Sold

Sawdust (m3) 21,000Shavings (m3) 0Hog Fuel (m3) 15,000

Total Residual Fibre (m3) 36,000Total Residual Fibre (ODT) 15,126Total Residual Fibre (BDU) 13,915

Biomass Demand (m3) 503,318Biomass Demand (ODT) 211,478Biomass Demand (BDU) 194,552

Net Required Fibre (m3) 467,318Net Required Fibre (ODT) 196,352Net Required Fibre (BDU) 180,637

Total Sawlogs (m3) 300,000Total Forest-Based Biomass (m3) 467,318

Total Forest-Based Fibre Demand (m3) 767,318

Power Plant

Combined Enterprise

River West Sawmill

Derivation and Rationale for TNG Fibre Demand

Rationale for TNG 25-year volumeGiven the considerations listed above, the following rationale is used to define the proposed TNG target AAC used herein:

Allowance Impact on Proposed AAC

Sawlogs Non-Sawlogs Total

Annual Plant Requirements

10% Allowance for Roadside Residue (outside of AAC)

15% allowance for BCTS purchases

300,000

300,000

255,000

467,000

420,000

357,000

768,000

720,000

612,000

This suggests that an area-based tenure capable of supporting an annual harvest of 612,000 cubic metres, together with the utilization of roadside residue where feasible and purchase of BCTS volumes proportionate with the apportionment within the TSA will provide sufficient fibre to support the TNG mill and Bioenergy plant requirements annually.

TENURES IN HANDTENURES IN HAND

OVERALL TSILHQOT'IN FOREST TENURES

FRO UPLIFT (40%) Community Forest

annual total (5 yr) annual 10 yr annual

Esdilagh 8,000 40,000 50,000 250,000 20000

Tsi Deldel 31,200 156,000 124,000 1,240,000 20000

Tl'etinqox 74,000 370,000 249,000 2,490,000 20000

Yunesit'in 20,000 100,000 79,000 790,000 20000

Tl'esqox 14,200 71,000 46,000 460,000 20000

Xeni Gwet'in 21,400 107,000 46,000 460,000 20000

Total 168,800 844,000 594,000 5,690,000 120,000

Total Annual (m3)

882,800

Total Annual with out CFA (m3) 762,800

Opportunities for First Nations in Bioenergy Opportunities for First Nations in Bioenergy

BC Bio Energy Strategy, Clean Energy Plan and Clean Energy Act all aimed to promote First Nation Opportunities .

See Information Guide prepared by BC Bioenergy Network for complete list of Biomass Applications, funding sources great resource.

Any opportunity starts with securing fiber.

What are the options for First Nations to secure Fiber?

BC Bio Energy Strategy, Clean Energy Plan and Clean Energy Act all aimed to promote First Nation Opportunities .

See Information Guide prepared by BC Bioenergy Network for complete list of Biomass Applications, funding sources great resource.

Any opportunity starts with securing fiber.

What are the options for First Nations to secure Fiber?

Fiber access and tenures and licensesFiber access and tenures and licenses

Traditional forms of Tenure for First NationsFROs (based on number of band members)Up lift Volumes (% of pine beetle accelerated harvesting volumes).

-New forms of tenures - Economic Development Agreements (long term)- FN Woodland (long tern Area based vs. Volume

based)- Receiving license (business to Business)- Bio Energy Tenure (s. 13.1 Forest Act)

Traditional forms of Tenure for First NationsFROs (based on number of band members)Up lift Volumes (% of pine beetle accelerated harvesting volumes).

-New forms of tenures - Economic Development Agreements (long term)- FN Woodland (long tern Area based vs. Volume

based)- Receiving license (business to Business)- Bio Energy Tenure (s. 13.1 Forest Act)

Identify the OpportunityIdentify the Opportunity

With or without a Partner (but the right fit) or find a consultant to identify options. Undertake Fiber feasibility assessment (how much is available)Meet with Ministry.Go after it!

With or without a Partner (but the right fit) or find a consultant to identify options. Undertake Fiber feasibility assessment (how much is available)Meet with Ministry.Go after it!