Mount Polley Mine: Short Term Water Treatment/TSF Design Joint MEM/MOE Presentation June 2, 2014

Meeting Agenda 2 Welcome/Introductions Mount Polley Mine Update Operations Overview Site Conditions Site Water Management Operating Conditions Current Water Storage Existing Discharge Allowances Long-Term Strategy Short-Term Strategy Water Treatment Update TSF Design BGC Presentation Permitting Update Water Discharge Permit Tailings Storage Facility M-200 Mine Permit Tailings/Waste Rock Research Project

Welcome/Introductions 3 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 4  Operations Overview  Site Conditions

Mount Polley Mine Update – Operations Overview  1995Mill Site Construction  1996Logging and Site Stripping  1997 – 2001Phase One – Active Mining (Cariboo Pit, Bell Pit)  2001Closed Due to Low Metal Prices  2005 – 2013Phase Two – Active Mining (Wight Pit, Springer Pit, Southeast Zone Pit, Pond Zone Pit) 5

Mount Polley Mine Update – Operations Overview 6

 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 7

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

Mount Polley Mine Update – Operations Overview 9 NW PAG S TOCKPILE (PAG) SERDS (NAG) S PRINGER P IT C ARIBOO P IT W IGHT P IT

Mount Polley Mine Update – Site Conditions 10 B OOTJACK L AKE P OLLEY L AKE T AILINGS S TORAGE F ACILITY (TSF)

Mount Polley Mine Update – Site Conditions 11 N EW T AILINGS H AUL R OAD E XPANDED NW PAG S TOCKPILE

Site Water Management 12  Operating Conditions  Current Water Storage  Existing Discharge Allowances  Long-Term Strategy  Short-Term Strategy  Water Treatment Update

Site Water Management - Operating Conditions

Site Water Management - Operating Conditions 14  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 DateTSF Pond Volume (m 3 )* 20072,296, ,919, ,514, , ,586, ,830,520** 20136,331,580

Site Water Management – Current Water Storage 15 Existing Water Management Systems

Site Water Management – Current Water Storage 16 T AILINGS S TORAGE F ACILITY (TSF) C ARIBOO P IT 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 7 th, 2012  Dam filtered water  Up to 1.4Mm 3 /year  Up to 35% of flow in Hazeltine Creek (W7)  Discharge window April - October  2013 Operation (September 23 rd, 2013 – October 31 st, 2013)  2m 3 /hour for 12-hour day shift (<25m 3 /day)  Increased to 4m 3 /hour for 12-hour day shift (<50m 3 /day, MMER trigger)  2014 Operation (April 7 th, 2014 – Present)  Currently operating at maximum discharge based on main embankment toe-drain flow  Limited to projected 170,500m 3 (permitted 1.4Mm 3 ) 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) 17

Site Water Management – Existing Discharge Allowances 18 Hazeltine Creek Main Embankment Tank Perimeter Embankment Tank

Site Water Management – Existing Discharge Allowances 19 T AILINGS S TORAGE F ACILITY (TSF) P OLLEY L AKE H AZELTINE C REEK W7

 Water Surplus Summary (As of March, 2014)  Water in Tailings Storage Facility = approx. 6,800,000m 3  Water in Cariboo Pit = approx. 925,000m 3  Projected Annual Surplus of Water = approx. 1,500,000m 3  Water Discharge Summary  Hazeltine Creek Discharge = approx. 1,400,000m 3  Requires additional source(s) of water  Passive Treatment  Anaerobic Biological Reactor Site Water Management – Long-Term Strategy 20 Short-Term Long-Term

Site Water Management – Long-Term Strategy 21 Existing Long Ditch New West Ditch Unknown Flow Ditch Construction

Site Water Management – Long-Term Strategy 22  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 - 1,500,000m 3 Permitted Discharge Allowance - 1,400,000m 3 Existing Hazeltine Creek Discharge Volumes ∴ Need to identify/permit additional water sources 23 ConstraintTotal Volume Discharge (m 3 ) 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, Projected Discharge (available Dam Filtered Water Quality and Quantity)170,500

Site Water Management – Short-Term Strategy 24  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 26 th, 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 3,000,000m 3  Project Start-up:

Site Water Management – Short-Term Strategy (Water Treatment Update) Required Items(ToR from MOE, March 26 th, 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) 26

Site Water Management – Short-Term Strategy (Water Treatment Update) 27 T AILINGS S TORAGE F ACILITY (TSF) P OLLEY L AKE P ROPOSED D ISCHARGE P IPE A LIGNMENT E XISTING I NTAKE S TRUCTURE P ROPOSED T REATMENT F ACILITY L OCATION 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) 28

TSF Design 29 BGC Presentation

Permitting Update 30  Water Discharge Permit  Tailings Storage Facility  M-200 Mine Permit  Tailings/Waste Rock Research Project

Permitting Forecast – Water Discharge Permit 31 Water Discharge Permit [ASAP - June]  Last permit update: N/A  MPMC to submit permit

Permitting Forecast – Water Discharge Permit 32 Key Activities to Date  October 24 th, 2013: MPMC notified MOE of intent to apply for an amendment to Permit  October 24 th, 2013: MPMC started discussions through Implementation Committee meeting with First Nations around Water Management Strategies (also met November 28 th, January 23 rd, March 12 th )  November 6 th, 2013: Consultation with Public Liaison committee  November 18 th, 2013: Official conversation held with MOE to start application process  December 4 th, 2013: Environmental Protection Notice posted and published  December 17 th, 2013: Consultation with Public in Likely, BC  March 26 th, 2014: MOE confirms Terms of Reference for Discharge

Permitting Forecast – Water Discharge Permit (Hazeltine) 33 Water Discharge Permit - Hazeltine [Unknown]  Last update: August 30 th, 2013  Discharge selenium in sediment variance  Currently limited to discharging “Dam Filtered Water”  1.4Mm 3 annual discharge limit, current projections are 170,500m 3 for 2014

Permitting Forecast – Tailings Storage Facility 34 Tailings Storage Facility [late June/early July]  Last permit update: August 9 th, 2013  Construction to 970.0m  Current ultimate dam at 970.0m elevation  Existing elevation ~967.0m  Mid-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 35 M-200 Mine Permit [July]  Last permit update: July 25 th, 2013  NW PAG Dump Expansion and Tailings Haul Road  Updated Pit Designs (Springer/Cariboo)  Updated Dump Designs (SERDS)  Updated Reclamation and Closure Plan

Permitting Forecast – Tailings/Waste Rock Research Project 36 Tailings/Waste Rock Research Project [Draft Received]  Last permit update: N/A  Conversation ongoing with MEM  Research (if successful) to be followed by full-scale proposal

Open Discussion 37

Mount Polley Mine: Short Term Water Treatment/TSF Design Joint MEM/MOE Presentation June 2, 2014