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The Pebble ProspectEconomic Impact and Regulatory Overreach

Conference of Western Attorneys General Colorado Springs, Colorado

July 24, 2013

Prospect Location

Bristol Bay Region39, 184 sq. miles

State of Virginia42,774 sq. miles

Nushagak River12,735 mi2 = Maryland

Kvichak River8,017 mi2 = New Jersey

Nushagak River• 12,735 mi2 =

MarylandKvichak River

• 8,017 mi2 = New Jersey

Scope Matters

Virginia

Maryland

New Jersey

Pebble

The Importance of Copper

• Twice as much copper is used in a hybrid car compared to a conventional car - 78lbs vs. 42lbs

• 3MW wind turbine contains nearly 5 tons of copper

• Solar panels can be made of up to 60% copper

• Average green home contains 439+ lbs. of copper

The Pebble Project Copper: THE Mineral for Green Technologies

Advanced Exploration

Environment

Engineering Geology

Technical Socioeconomic

PermittingAgencies involved in permitting large hard rock mine in Alaska:

• AK Department of Natural Resources• AK Department of Environmental Conservation• AK Department of Fish and Game• AK Department of Transportation & Public Facilities• AK Department of Commerce, Community and Economic Development• AK Department of Law• AK Department of Public Safety• Borough Land Use• US Environmental Protection Agency• US Army Corps of Engineers• US Fish and Wildlife Service• US National Marine Fisheries Service• US Coast Guard• Federal Aviation Administration• Mine Safety Health Administration• Bureau of Alcohol, Tobacco, Firearms• Federal Communication Commission

Red Dog Mine

Delong Mountain Regional Transportation System

National Economic Benefits

Construction(Year 1-5)

Initial Production Phase (Year 5-29)

Potential Subsequent Development Phases

(Year 30+)

Jobs(indirect & induced) 16,175 14,715 16,650

GDP (annual) $1.6 billion $2.4 - $2.7 billion $3.7 - $3.9 billionGovernment Revenue from Lower 48 Sources(annual: federal, state, local)

$323 million $670 - $772 million $1.2 - $1.25 billion

Federal Revenue from Alaska (annual) $54M $164 - $218 million $410 - $460 million

[1] Indirect jobs are those supported in sectors providing supplies and services to the Pebble Project. Induced jobs are those supported in sectors benefitting from the spending of Pebble direct and indirect employee wages.[2] The IHS Global Insight study forecasts a range of GDP and government revenue impacts associated with future development of the Pebble Project based on two different long-term metal commodity price forecasts.

Economic Study – U.S.

State Economic Benefits

Construction(Year 1-5)

Initial Production Phase (Year 5-29)

Potential Subsequent

Development Phases (Year 30+)

Jobs(direct, indirect & induced)

4,725 2,890 2,750

GSP (annual)$400 million $1.1 - $1.4 billion $2.1 - $2.4 billion

Government Revenue (annual: state & local)

$27 million $165 - $213 million $351- 396 million

[1] Indirect jobs are those supported in sectors providing supplies and services to the Pebble Project. Induced jobs are those supported in sectors benefitting from the spending of Pebble direct and indirect employee wages.[2] The IHS Global Insight study forecasts a range of GDP and government revenue impacts associated with future development of the Pebble Project based on two different long-term metal commodity price forecasts.

Economic Study - AK

EPA’s Bristol Bay Assessment

FACT vs. FICTION

Pebble Deposit

Peter D. RobertsonSenior Vice President for Corporate Affairs

The Pebble Partnership202-629-3392907-339-2696

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