1 JEFF PAQUIN Tsilhqot ’ in Power Project Phase II Call CEBC 2010

2 TSILHQOT’IN POWER PROJECT 34 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 SUPPLY 50/50 Joint Venture between Tsilhqot’in National Government (TNG) & Western Biomass OWNERSHIP Smithers Prince George Williams Lake Kamloops Nelson Vancouver Victoria Hanceville

3 Organization Chart Tsilhqot’in Power Corp. Western Biomass Power Corp. Run of River Power Inc. Tsilhqot’in Energy Holdings Ltd. Tsilhqot’in National Government

4 78km West of Williams Lake next to TNG Sawmill. Site Control: (Block C) owned by Joint Venture.

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6 HWY 20 TRANSMISSION Study Completed

7 PROJECT 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

8 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

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

10 BETTER USE OF RESOURCES

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12 Ongoing 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 process Series 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 process Series of letters written by TNG to Government indicating there support for this project

13 Building Relationships through Social interaction

14 A model of First Nations working with Industry

Derivation and Rationale for TNG Fibre Demand

Rationale for TNG 25-year volume Given the considerations listed above, the following rationale is used to define the proposed TNG target AAC used herein: AllowanceImpact on Proposed AAC SawlogsNon-SawlogsTotal Annual Plant Requirements 10% Allowance for Roadside Residue (outside of AAC) 15% allowance for BCTS purchases 300, , , , , , , ,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 HAND

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 licenses Traditional forms of Tenure for First Nations FROs (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 Forest Act) Traditional forms of Tenure for First Nations FROs (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 Forest Act)

Identify 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!