Mount Polley Mine: Short Term Water Treatment/TSF DesignJoint MEM/MOE PresentationJune 2, 2014

Meeting Agenda

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Welcome/Introductions

Mount Polley Mine UpdateOperations OverviewSite Conditions

Site Water ManagementOperating ConditionsCurrent Water StorageExisting Discharge AllowancesLong-Term StrategyShort-Term StrategyWater Treatment Update

TSF DesignBGC Presentation

Permitting UpdateWater Discharge PermitTailings Storage FacilityM-200 Mine PermitTailings/Waste Rock Research Project

Welcome/Introductions

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Luke Moger – (MPMC) Project Engineer

Art Frye – (MPMC) Mine Operations Manager

Colleen Hughes – (MPMC) Environmental Co-ordinator

Todd Martin – (BGC) Senior Geotechnical Engineer

Daryl Dufault – (BGC) Senior Geotechnical Engineer

Pierre Stecko – (Minnow) Project Manager/Principal

Mount Polley Mine Update

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Operations Overview

Site Conditions

Mount Polley Mine Update – Operations Overview

1995 Mill Site Construction 1996 Logging and Site Stripping 1997 – 2001 Phase One – Active Mining

(Cariboo Pit, Bell Pit)

2001 Closed Due to Low Metal Prices 2005 – 2013 Phase Two – Active Mining

(Wight Pit, Springer Pit, Southeast Zone Pit, Pond Zone Pit)

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Mount Polley Mine Update – Operations Overview

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Mount Polley Mine Update – Operations Overview

Operate 24/7, 365

415+ Employees

Mine, Mill and Ship Concentrate to Vancouver

~100,000tpd Mining Operation

~22,000tpd Milling Rate

Copper, Gold, Silver, Magnetite

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Mount Polley Mine Update – Operations Overview

Active Mining Areas Springer/Cariboo Pit (Surface)

Wight Pit (Underground)

Active Dump Areas SERDS (NAG)

NW PAG Stockpile (PAG)

Last Permitted Mine Life 2016

Reserve/Resource Estimates 2025

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Mount Polley Mine Update – Operations Overview

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NW PAG STOCKPILE (PAG)

SERDS (NAG)

SPRINGER PIT

CARIBOO PIT

WIGHT PIT

Mount Polley Mine Update – Site Conditions

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BOOTJACK LAKE

POLLEY LAKE

TAILINGS STORAGE FACILITY(TSF)

Mount Polley Mine Update – Site Conditions

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NEW TAILINGS HAUL ROAD

EXPANDED NW PAG STOCKPILE

Site Water Management

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Operating Conditions Current Water Storage Existing Discharge Allowances Long-Term Strategy Short-Term Strategy Water Treatment Update

Site Water Management - Operating Conditions

131999 2006 2013

Site Water Management - Operating Conditions

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Operating Conditions Deficit – Neutral – Surplus

Tailings Storage Facility - Bathymetric Survey Data

*does not include water transferred to pits**average of two (2) readings taken in 2012

Survey Date TSF Pond Volume (m3)*

2007 2,296,868

2008 2,919,774

2009 1,514,286

2010 904,469

2011 3,586,040

2012 4,830,520**

2013 6,331,580

Site Water Management – Current Water Storage

15Existing Water Management Systems

Site Water Management – Current Water Storage

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TAILINGS STORAGE FACILITY(TSF)

CARIBOO PIT

Cariboo Pit is no longer planned to store water after 2014

Site Water Management – Existing Discharge Allowances

Hazeltine Creek Discharge System

Permit amendment received November 7th, 2012 Dam filtered water Up to 1.4Mm3/year Up to 35% of flow in Hazeltine Creek (W7) Discharge window April - October

2013 Operation (September 23rd, 2013 – October 31st, 2013) 2m3/hour for 12-hour day shift (<25m3/day) Increased to 4m3/hour for 12-hour day shift (<50m3/day, MMER trigger)

2014 Operation (April 7th, 2014 – Present) Currently operating at maximum discharge based on main embankment toe-drain flow Limited to projected 170,500m3 (permitted 1.4Mm3) total discharge based on volume

constraints of “Dam Filtered Water” (and, to a lesser extent, water quality in low-flow due to 35% of Hazeltine Creek flow constraint)

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Site Water Management – Existing Discharge Allowances

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Hazeltine Creek

Main Embankment Tank

Perimeter Embankment Tank

Site Water Management – Existing Discharge Allowances

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TAILINGS STORAGE FACILITY(TSF)

POLLEY LAKEHAZELTINE CREEK

W7

Water Surplus Summary (As of March, 2014) Water in Tailings Storage Facility = approx. 6,800,000m3

Water in Cariboo Pit = approx. 925,000m3

Projected Annual Surplus of Water = approx. 1,500,000m3

Water Discharge Summary Hazeltine Creek Discharge = approx. 1,400,000m3

Requires additional source(s) of water Passive Treatment

Anaerobic Biological Reactor

Site Water Management – Long-Term Strategy

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Short-Term

Long-Term

Site Water Management – Long-Term Strategy

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Existing Long Ditch

New West Ditch

Unknown Flow - 2014 Ditch Construction

Site Water Management – Long-Term Strategy

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Goal Operate at neutral water condition

Drivers Returning water to local watersheds

Project Outline Phase I: Life-of-Mine

Continue research (i.e. passive treatment) Phase II: Post-Closure

Site Water Management – Long-Term Strategy

Annual Projected Surplus - 1,500,000m3

Permitted Discharge Allowance - 1,400,000m3

Existing Hazeltine Creek Discharge Volumes

∴Need to identify/permit additional water sources

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Constraint Total Volume Discharge (m3)

Theoretical Discharge (35% of Hazeltine Creek Flow) 1,745,300

Theoretical Discharge (Dam Filtered Water Quality) 1,546,000

Theoretical Discharge (Dam Filtered Water Quantity) 195,610

2014 Projected Discharge (available Dam Filtered Water Quality and Quantity) 170,500

Site Water Management – Short-Term Strategy

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Goal Reduce existing water surplus on site

Drivers Geotechnical (TSF) *time sensitive Returning water to local watersheds

Project Outline 3-5 years Provide research for long-term water management strategy Provide research for TSF Design

Site Water Management – Short-Term Strategy (Water Treatment Update)

Design Parameters (ToR from MOE, March 26th, 2014)

Discharge Location – Polley Lake Discharge Quality

Chronic and Acute Criteria as Required by the BCWQG for Aquatic Life Lower levels for phosphorous and nitrate based on work by Minnow

Environmental 95% mixing of the effluent at 100m from discharge point Use of existing intake/discharge infrastructure at Polley Lake Discharge Period – 12 months/year, total annual discharge of

3,000,000m3

Project Start-up: 2014

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Site Water Management – Short-Term Strategy (Water Treatment Update)

Required Items(ToR from MOE, March 26th, 2014)

Study on effluent mixing in Polley Lake Included in Technical Assessment Report by Minnow (draft under review by MPMC)

Monitoring plan for Polley Lake Included in Technical Assessment Report by Minnow (draft under review by MPMC)

Diffuser design to attain 95% mixing of the effluent at 100m from discharge point Design, along with report on mixing results for dilution zone completed by Knight Piésold

(draft under review by MPMC)

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Site Water Management – Short-Term Strategy (Water Treatment Update)

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TAILINGS STORAGE FACILITY(TSF)

POLLEY LAKE

PROPOSED DISCHARGE PIPE ALIGNMENT

EXISTING INTAKE STRUCTURE

PROPOSED TREATMENT FACILITY LOCATION

Proposed Water Treatment Schematic

Site Water Management – Short-Term Strategy (Water Treatment Update)

Work Completed to Date Modelling (Volume, Timing) Research (Technologies, Hydrology, Water Mixing) Planning (Locations, Infrastructure) Pilot Treatment Plant (Reverse Osmosis) Consultation (First Nations, Public, Public Liaison Committee) RFP and Vendor Selection (Newalta, R/O – September Startup) Technical Assessment Report (Minnow) Diffuser Design Work (KP)

Next Steps Permit Submission Plant Construction/Commissioning (including pipeline/diffuser installation)

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TSF Design

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BGC Presentation

Permitting Update

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Water Discharge PermitTailings Storage FacilityM-200 Mine PermitTailings/Waste Rock Research Project

Permitting Forecast – Water Discharge Permit

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Water Discharge Permit [ASAP - June]Last permit update: N/AMPMC to submit permit

Permitting Forecast – Water Discharge Permit

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Key Activities to Date

October 24th, 2013: MPMC notified MOE of intent to apply for an amendment to Permit 11678

October 24th, 2013: MPMC started discussions through Implementation Committee meeting with First Nations around Water Management Strategies (also met November 28th, January 23rd, March 12th)

November 6th, 2013: Consultation with Public Liaison committee November 18th, 2013: Official conversation held with MOE to start

application process December 4th, 2013: Environmental Protection Notice posted and

published December 17th, 2013: Consultation with Public in Likely, BC March 26th, 2014: MOE confirms Terms of Reference for Discharge

Permitting Forecast – Water Discharge Permit (Hazeltine)

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Water Discharge Permit - Hazeltine [Unknown]Last update: August 30th, 2013

Discharge selenium in sediment varianceCurrently limited to discharging “Dam Filtered

Water”1.4Mm3 annual discharge limit, current

projections are 170,500m3 for 2014

Permitting Forecast – Tailings Storage Facility

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Tailings Storage Facility [late June/early July]Last permit update: August 9th, 2013

Construction to 970.0mCurrent ultimate dam at 970.0m elevation

Existing elevation ~967.0mMid-range design proposed to align with short-

term water management strategy Requires confirmation of proposed parameters

Updated ultimate dam design to follow

Permitting Forecast – M-200 Mine Permit

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M-200 Mine Permit [July]Last permit update: July 25th, 2013

NW PAG Dump Expansion and Tailings Haul RoadUpdated Pit Designs (Springer/Cariboo)Updated Dump Designs (SERDS)Updated Reclamation and Closure Plan

Permitting Forecast – Tailings/Waste Rock Research Project

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Tailings/Waste Rock Research Project [Draft Received]Last permit update: N/AConversation ongoing with MEMResearch (if successful) to be followed by full-scale

proposal

Open Discussion

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Mount Polley Mine: Short Term Water Treatment/TSF DesignJoint MEM/MOE PresentationJune 2, 2014