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OPEN SOURCE INFORMATION Ring of Fire Date 23 Apr 12

Details/source "The prospects look huge for the Ring of Fire, an area of nearly 5,000 square kilometres within the James Bay Lowlands. This area is smaller than Prince Edward Island, yet some 35 companies hold approximately 25,000 claim units, exploring for minerals as diverse as chromite, nickel, copper, zinc, platinum, gold and diamonds. In January, Cliffs Natural Resources announced its Black Thor chromite deposit, currently undergoing prefeasibility assessment, could begin production by 2015. The Clevelandbased company publicly estimated mine development costs at approximately $150 million, an ore concentrating plant at $800 million, and a ferrochrome processing facility at $1.8 billion. Cliffs also pegged an integrated transportation system, including allweather roads, at $600 million, but said it wants to share costs with other stakeholders. “Because this transportation system is provincial infrastructure required for the general use of remote northern communities and other Ring of Fire mining projects, Cliffs anticipates its commitment to invest in the all-weather road would be partial, with the balance to be contributed by other industry participants and government entities,” Cliffs said in its statement. Cliffs isn’t alone. Mining companies at the annual convention of the recent Prospectors and Developers Association in Toronto were promoting or talking about potentially high yields in the Ring of Fire. Other players include KWG Resources of Toronto, which is focused on chromite, and Noront Resources of Toronto, eying copper, nickel, palladium and platinum deposits. The Ring of Fire is a key reason why Ontario’s Ministry of Northern Development and Mines estimated exploration spending province-wide last year had exceeded $1 billion. “The Ring of Fire is a major economic development opportunity for the province and for our communities,” ministry spokesperson Adrian Kupesic told the Daily Commercial News. “We’re committed to working together with all communities, all industry players and First Nations to seize the benefits for today and tomorrow.” Kupesic confirmed his ministry is involved in “ongoing discussions” with Cliffs. Infrastructure could include all-weather roads, a rail corridor, electric power and resource processing facilities, he added, declining to discuss possible cost-sharing scenarios ldquo;It’s too early to get into the specifics regarding any particulars of the proposed project, but the government is going to certainly do everything it can to put its best foot forward, to maximize the return for Ontarians.” While the ministry says it wants to work with all parties, Aboriginal groups say they aren’t being adequately consulted. Eli Moonias, Chief of Marten Falls First Nation, and Sonny Gagnon, Chief of Aroland First Nation, attended the Prospectors and Developers Association of Canada (PDAC) convention in Toronto, in March, to monitor Ring of Fire activity. Gagnon and Moonias participated in a news conference during the convention and said the First Nations don’t oppose development but must be fully involved in decision-making and environmental impacts must be minimized. “At this point in time there hasn’t been any kind of process negotiated with our First Nations,” said Raymond Ferris, who attended PDAC in his capacity as Ring of Fire coordinator for the Matawa First Nations. Matawa First Nations is a tribal council of nine northern Ontario First Nations located within Nishnawbe Aski Nation territory, and Ferris says members want a negotiated joint review panel and the financial resources they would need to conduct their own environmental studies and cultural and socio-economic impact assessments. “We need to understand the technical details,” Ferris says. “Part of what consultation means is that the government needs to provide resources to the First Nations so we can hire some expertise, put this into lay terms, and then translate it into our languages.”

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20 Apr 12

There’s keen interest in working on infrastructure-related projects. Matawa First Nation has established a regional development corporation and maintained a booth on the PDAC trade-show floor. However, Ferris says, government and industry proponents must first meet Matawa’s consultation demands. “Everything seems to be falling on deaf ears,” Ferris says. “If they (member First Nations) feel that they’re going to be left out there’s a big possibility they could stop this project, whether through the courts or through whatever means possible.” Although recently revised, the Ontario Mining Act does not yet clarify protocols for consulting with First Nations. Kupesic says his ministry has drafted proposed regulations and posted them on the provincial Environmental Bill of Rights web site for public comment. These are meant to spell out how the government expects the consultation process to unfold, he says. “It’s almost like a check-list of what needs to be accomplished to ensure that adequate consultation is taking place.” The deadline for comments is May 1. Cliffs spokesperson Pat Persico confirmed discussions are ongoing with the government and First Nations, but she declined further comment. " http://www.dcnonl.com/article/id49791/gtcontracting "Northern Ontario First Nations leaders and mayors recently held a summit to demonstrate solidarity in their belief that opportunities and benefits of resource development related to the Ring of Fire remain in the area. Leaders from Lake Nipigon and Ring of Fire North/South Alliance First Nations met on April 14 with mayors of Greenstone, Nipigon, Hearst and Thunder Bay to discuss the area 500 kilometres north of Thunder Bay that is rich in “globally-significant” minerals such as chromite and nickel. The group’s Ring of Fire resolution supports Exton (between Aroland First Nation and Nakina) as the preferred refinery site and a north-south access route to Marten Falls. This resolution was signed by six First Nations —Marten Falls First Nation, Aroland First Nation, Bingwi Neyaashi Anishinabeek First Nation, Constance Lake First Nation, Animiigoo Zaagi’igan Anishinabeek First Nation, and Red Rock Indian Band — and the four regional mayors. Chief Elijah Moonias of Marten Falls First Nation, on whose traditional lands the Ring of Fire chromite deposits are located, said they want a company interested in studying the project in partnership with the communities. “The companies want to come in and exploit the resources and leave nothing behind for local long-standing benefits such as electric grid connection and roads access — both a boost to the local economy,” he told the gathering held in Greenstone. There was much discussion of the proposal to power the mine site with diesel. “We have no patience with powering the mine site with polluting diesel generators. I believe the mining companies still do not understand that the minerals are located under our land. I have said before, if they wish to mine the ore, we want it processed in our territory. That means Exton, not Sudbury,” said Moonias. Greenstone mayor Renald Beaulieu said there’s strength in numbers. “In the future, today will be remembered as the day when a huge step forward was made in the on-going partnership between First Nations and other communities. The resolution we signed today states the ferrochrome processing facility should be in Greenstone so that all people of this region can benefit from the jobs and the revenues generated. ” " http://www.dailycommercialnews.com/article/id49792 "A campaign by local mayors to halt the sale of Ontario Northland Transportation Commission hit a brick wall Thursday. Mayors from Timmins, Cochrane, Iroquois Falls, Kapuskasing and North Bay met with Northern Development Minister Rick Bartolucci in Toronto to discuss the government’s recent announcement to divest the ONTC. “The minister was willing to listen but the end result was that in his mind, the divestiture is in the budget and if the budget passes, it’s a done deal,” Timmins Mayor Tom Laughren told The Daily Press. “We really felt as the municipalities being affected that we should be part of the solution and at least be working with the government on a solution ... As far as he’s concerned, divestiture is not an issue we should be talking about, it’s non-negotiable.” Laughren said what was even “more troubling” was the fact the provincial government made the announcement without any firm plan in place. “That’s where my discouragement was: We didn’t get any details from him as to

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how this is going to unfold, when it was going to unfold. The only thing I can tell you is that Infrastructure Ontario will be in charge of it. It was the lack of details that really scares me more than anything else.” Laughren said the mayors were told by Bartolucci that the government’s hope is that they will come out of this with a better, more modern and cost-efficient service. The Timmins mayor said it was difficult to accept Bartolucci’s comments at face value. “We had no dialogue before the announcement was made and obviously with him having no plans, it’s pretty hard for anybody to comment on whether they think it’s going to be better or not when he couldn’t give us any details.” ...." http://www.elliotlakestandard.ca/ArticleDisplay.aspx?e=3539834 "Ed. note: The following was realease this morning by five Northern Ontario Mayors: Al McDonald (North Bay), Tom Laughren (Timmins), Al Spacek (Kapuskasing) Peter Politis (Cochrane) and Gilles Forget (Iroquois Falls): Today, the Mayors of the Northern Communities Working Group met with Mr. Rick Bartolucci, Minister of Northern Development and Mines to discuss the Government’s recent announcement relating to the divestiture of the Ontario Northland Transportation Commission. The Minister made it very clear that the decision to divest the ONTC has been made. When asked about his view, the Minister said: “I support the government in this decision to divest”. There is, without question, a complete disconnect from the needs of the people of Northeastern Ontario and the policy direction the McGuinty government is taking in regard to the Ontario Northland Transportation Commission. A decade ago, Mr. McGuinty signed a pledge to never divest of the ONTC. He was right to do so then and he is wrong to breach that contract now. “The Ontario Northland is an essential cornerstone of Northern Ontario’s economic and transportation infrastructure; The privatization of the ONTC will result in local jobs being lost. Privatization will not guarantee local jobs. Once sold, the government will have no control over which jobs are moved out of the North or lost altogether; Therefore I will guarantee the people of Nipissing that my government will not approve or allow the privatization of the ONTC; and I further guarantee that my government will not permit any restructuring plan to go forward that relocates jobs out of Northern Ontario or eliminates transportation services provided by the ONTC.” That was what his pledge said and it was called: “Saving jobs, protecting our future in the north: A contract with the people of Nipissing” We intend to hold the Premier to his word and we expect him to fulfill his contract with the people of Nipissing and across the northeast of Ontario. We understand times and circumstances change. As municipal politicians and engaged citizens, we understand the fluid nature of economics and the impacts that economic change can bring. We also understand this Liberal government is struggling with ongoing fiscal issues that are not entirely of their own making, but punishing the north and selling off the ONTC provides no longterm solutions in regard to the deficit. We appreciate the meeting we had with Mr. Bartolucci, Minister of Northern Development and Mines, but we still request a meeting with the Premier so he can look us in the eyes and tell us why he is taking this direction. We heard nothing of substance today. We asked today, that the divestiture process announced by Mr. Bartolucci on March 23 be paused; that the municipalities and other stakeholders be fully and completely consulted; that the stakeholders be given the opportunity to consider options and alternatives; and that Mr. McGuinty come to the north and explain to northerners why he is breaking his pledge of 2002 and turning his back on the laudable northern initiatives his government proposed in their own Northern Growth Plan. The time is now for decisions affecting the north to be made with the full consultation and cooperation of northerners. The Minister today wanted to provide a history lesson, but as stated earlier, times change and we want to discuss the future. In today’s meeting, it became very evident that the government has no plan in place which addresses the situation beyond the simple decision to divest. They have not contemplated the grave impact on individuals, on businesses, on communities, or on the entire region of North Eastern Ontario. With more than one hundred years of proud and productive service to the Province, at a

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minimum, the ONTC and the professional and skilled workers they employ deserve better than the treatment they are currently receiving from the McGuinty government. We want a new deal for Ontario Northland and we want to be involved in all decisions." http://www.cochranetimespost.com/ArticleDisplay.aspx?e=3539825

19 Apr 12

"Five Northern mayors met with Sudbury MPP Rick Bartolucci, Minister of Northern Development and Mines, to discuss the provincial government’s recent announcement relating to the divestiture of the Ontario Northland Transportation Commission (ONTC). According to a press release, the minister made it very clear that the decision to divest the ONTC has been made. When asked about his view, Bartolucci said, “I support the government in this decision to divest.” The April 19 meeting was attended by North Bay Mayor Al McDonald, Timmins Mayor Tom Laughren, Kapuskasing Mayor Al Spacek, Cochrane Mayor Peter Politis and Iroquois Falls Mayor Gilles Forget. They are part of the Mayors of the Northern Communities Working Group. The politicians referred to a pledge Premier Dalton McGuinty had signed in North Bay 10 years ago to never divest of the ONTC. “We intend to hold the premier to his word and we expect him to fulfill his contract with the people of Nipissing and across northeastern Ontario,” the mayors' press release said. The group also wants a meeting with McGuinty. “We appreciate the meeting we had with Mr. Bartolucci, but we still request a meeting with the premier so he can look us in the eyes and tell us why he is taking this direction,” the press release said. The mayors want the divestiture paused, the municipalities and other stakeholders be fully and completely consulted, the stakeholders be given the opportunity to consider options and alternatives, and and that McGuinty come to the North and explain to Northerners why he is breaking his pledge of 2002 and turning his back on the initiatives his government proposed in its Northern Growth Plan. The mayors said the government has no plan in place which addresses the situation beyond the simple decision to divest and the provincial government has not contemplated the impact on northeastern Ontario(.)" http://www.northernlife.ca/news/localNews/2012/04/20-mayors-ontc-meeting-sudbury.aspx "Canadian National Railway may still be interested in purchasing the ONTC’s rail division. CN spokesman Mark Hallman said company will be “carefully assessing the opportunity” created by the provincial government’s decision to divest itself of the Ontario Northland Transportation Commission. CN was in negotiations with the province about a decade ago to purchase the ONR, but the deal fell through in 2003 because the company was unwilling to grant job guarantees demanded by the Conservative government of the day. The spectre of privatization now looms over the Crown agency and conjecture about a potential purchase by CN has resurfaced from time to time. Brian Kelly, spokesman for the ONTC unions, said CN is essentially seen as the only player in the game when it comes to the sale of the ONR. He said Canadian Pacific Railway operations are mainly focused in areas west of Thunder Bay. Kelly said he believes CN would be interested in the ONR to “hedge its bets” when it comes to playing a role in the Ring of Fire chromite find in the James Bay area. The site is in a remote area without rail lines, all-season roads, electricity or communications networks. Three companies have been exploring the site to better define what minerals are there. But no decision have yet been made about how and by what route the site will be accessed ...." http://www.nugget.ca/ArticleDisplay.aspx?e=3537597 Hansard (QP, Ontario): "Mr. John Vanthof: My question is to the Minister of Northern Development and Mines. The decision to sell off Ontario Northland puts real economic development at risk, not to mention 1,000 jobs. The cancellation of our public transportation system leaves families threatened. We’ve put forward a proposal to help stop the sale of Ontario Northland. Will you please explain to the mayors and to the rest of northern Ontario why you choose to take millionaires over the seniors who need the train, the only train, to get to medical treatments in southern Ontario?

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Hon. Rick Bartolucci: Speaker, this was a very difficult decision that this government had to make, but it’s a necessary decision. If we’re going to invest in health care and education, we have to make choices. Those choices are difficult. One of those choices was to divest the ONTC. We’re going to move ahead with that divestment. I should let the member know that divestment is not foreclosure. There is business as usual as we move forward with this divestment. At the end of the day, we want a much stronger transportation system in place, a more sustainable transportation system in place, and we’re going to move in that direction. We’re going to work with our stakeholders to achieve that direction." http://www.ontla.on.ca/web/houseproceedings/house_detail.do?Date=2012-04-19&Parl=40&Sess=1&locale=en#P401_95697 Hansard (Member Statements, Ontario): "Mr. Victor Fedeli: Speaker, communities in Nipissing are speaking out against the proposed fire sale by this government of the Ontario Northland Transportation Commission. I have assured all groups that I will read their motions in this Legislature. The townships of Bonfield and Chisholm have both passed motions endorsing the city of North Bay resolution, which calls on Premier Dalton McGuinty to honour his pledge and suspend the government of Ontario’s plans to divest the assets of the ONTC in order to permit affected stakeholders, in the form of a community task force, time to devise a more thoughtful business case that will keep the ONTC whole, while respecting the stated goals of the northern growth plan, and, Bonfield and Chisholm go on to say, that the province of Ontario start to immediately transition responsibility for the ONTC from the MNDM to the Ministry of Transportation. North Bay city council passed a further resolution this week noting that the multimodal transportation study started under this government’s growth plan isn’t sufficiently developed to fully understand the implications of divesting the ONTC, and that the decision to divest was unilaterally made by the province with absolutely no consultation with local government, aboriginal peoples, businesses or the provincially appointed northern advisory council. Speaker, they request a meeting with the northern stakeholders, as requested in correspondence from the northern mayors." http://www.ontla.on.ca/web/house-proceedings/house_detail.do?Date=2012-04-19&Parl=40&Sess=1&locale=en#P560_129661 "Nipissing MPP Vic Fedeli stood again in the Ontario Legislature Thursday afternoon to address Dalton McGuinty’s plan to divest the Ontario Northland Transportation Commission. Here is the text of the Member’s Statement he read: Speaker, communities in Nipissing are speaking out against the proposed fire sale by this government of the Ontario Northland Transportation Commission. I have assured all groups that I will read their Motions in this Legislature. The Townships of Bonfield and Chisholm have both passed motions endorsing the City of North Bay Resolution, which calls on Premier Dalton McGuinty to honour his pledge and suspend the Government of Ontario’s plans to divest the assets of the ONTC in order to permit affected stakeholders, in the form of a Community Task Force, time to devise a more thoughtful business case that will keep the ONTC whole, while respecting the stated goals of the Northern Growth Plan; and that the Province of Ontario starts to immediately transition responsibility for the ONTC from the Ministry of Northern Development and Mines to the Ministry of Transportation. North Bay City Council passed a further resolution this week. It notes the Northern Multi-modal Transportation study started under this government’s Northern Growth Plan initiative isn’t sufficiently developed to fully understand the implications of divesting the ONTC, and that the decision to divest was made unilaterally by the Province with absolutely no consultation with local governments, Aboriginal Peoples, businesses, or the provincially-appointed Northern Advisory Council. They resolve that the Mayor and Council of the City of North Bay strongly request that the premier immediately terminate the planned divestment of the

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18 Apr 12

ONTC and meet with Northern stakeholders as requested in correspondence from Northern Mayors dated April 2, 2012." http://www.sootoday.com/content/news/details.asp?c=41551 "Nishnawbe Aski Nation (NAN) is warning that changes to the environmental regulatory process will lead to direct confrontation on the ground. Yesterday, the federal government released details of a plan to overhaul the environmental review process for major projects as announced during the recent federal budget. Currently, Environmental Assessment processes are underway in the Ring of Fire region within NAN, and more major projects are expected to take place. In November 2011, First Nations in the Matawa region, within the Ring of Fire, filed a judicial review against the Environment Minister’s decision to proceed with a comprehensive environmental assessment process for the proposed Cliffs Chromite Project, as opposed to a joint panel review they had called for. This judicial review is expected to be heard in the fall of 2012. “Consultation and accommodation, let alone consent, have not been met with First Nations. I am concerned with how regulatory reform will affect First Nations, including their ability to meaningfully participate in an environmental assessment process that is proposed to be fast-tracked and unchanged in funding capacity,” said Grand Chief Stan Beardy. “No matter how the regulatory system might be changed, First Nations will exercise their inherent authority to provide free, prior and informed consent to any major project taking place in their territories after an environmental assessment takes place.” The regulatory reform process is being driven by the Government of Canada’s Responsible Resource Development initiative under Canada’s Economic Plan 2012. It includes a reduction in the number of federal departments and agencies for environmental reviews from 40 to three and fixed timelines for assessments of major projects. It will exempt “smaller” developments from the review process completely while placing the responsibility for many large projects under provincial governments. “Instead of fast-tracking projects and circumventing environmental concerns, the federal government should work with the province to develop an approach to resource development that recognizes and respects the rights and interests of First Nations,” said Deputy Grand Chief Terry Waboose. “The first step would be to initiate substantive discussions with us on the recognition of First Nation jurisdiction over our lands, including resource revenue sharing and opportunities for our communities through education and training, employment and business development.” April 17, 2012 marked the anniversary of Canadian Charter of Rights and Freedoms and s. 35 of the Constitution Act, 1982 which recognizes and affirms existing Aboriginal and Treaty rights. “It is ironic that after 30 years, we are still here talking about a government trying to run roughshod over First Nations Treaty rights in the name of resource development - that is not acceptable,” said Beardy ...." http://www.nan.on.ca/upload/documents/com-2012-04-18-nan-warns-proposed-ea-changes-could-lead-to-unrest.pdf "First Nations and municipal leaders from northwestern Ontario are banding together with a list of demands to ensure long-term benefits of the Ring of Fire stay in the region. The demands include powering the mines with hydropower, connecting remote communities to a hydro grid and road network and building Cliffs Resources’ chromite smelter in Greenstone. “The companies want to come in and exploit the resources and leave nothing behind for local long standing benefits such as electric grid connection and road access, both a boost to the local economy,” said Marten Falls First Nation Chief Elijah Moonias. Marten Falls was joined by Aroland, Constance Lake and three Lake Nipigon First Nations at the summit, held in Greenstone on April 17. Mayors of four municipalities, including Greenstone and Thunder Bay, were also signatories to the Ring of Fire resolution signed at the summit. Of major concern to all the signatories is the plan by Cliffs and Noront Resources to power Ring of Fire mines with diesel generators. Moonias said the diesel generator plan not only shows disrespect to the natural environment, but to the local communities looking for the long-term benefits that connection to the southern electricity grid would bring. “We want infrastructure out of the development, and a new powerline will do this,” Moonias said. “The province should support this for environmental

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17 Apr 12

reasons over diesel, and the federal government should support this long-range outlook as a grid connection will eliminate costly community diesel generation systems.” The First Nations and municipalities also reiterated their support for the north-south transportation route to run from the Ring of Fire to highway 11, between Aroland and Constance Lake. Cliffs has long maintained that its preferred transportation route is the north-south route, although Cliffs’ proposal does not connect Marten Falls to the road network. The north-south route conflicts with the East-West transportation corridor promoted by Noront Resources and supported by four Matawa First Nations communities, although the companies say there is room for both corridors to go forward. The summit also addressed the location of Cliffs’ proposed chromite smelter. In its environmental assessment application, Cliffs has the smelter being built in Sudbury, although the company has been examining other options including Greenstone and Thunder Bay. As part of the resolution, signatories at the summit once again called on Cliffs to locate the smelter at Greenstone. “I believe the mining companies still do not understand that the minerals are located under our land,” Moonias said. “I have said before, if they wish to mine the ore we want it processed in our territory. That means Exton, not Sudbury.” Chief Sonny Gagnon of Aroland First Nation said the summit was a historic event, in that it brought together both First Nations and municipal leaders in a spirit of cooperation. “We will not be treated like a third world country, where a company can walk in, take what it wants and get rich off our resources without giving back,” Gagnon said. “We don’t want to end up with our lands destroyed and that is what is going to happen if we keep going down this road. “This summit today shows that the people in the North are getting together and will force these companies to work with all of us,” he added." http://www.wawataynews.ca/archive/all/2012/4/18/power-ring-firehydro-chiefs-say_22665 "A working group of local mayors will be meeting with Northern Development Minister Rick Bartolucci on Thursday in an effort to prevent the sale of Ontario Northland Transportation Commission. “Given the significant role Ontario Northland plays in providing a comprehensive transportation and telecommunication network in the North, the government needs to follow their own stated principles in the recently released Northern Growth Plan and involve Northerners in such a major decision,” said Timmins Mayor Tom Laughren. The Northern Communities Working Group recently submitted a written request for a meeting with Premier Dalton McGuinty. Laughren said McGuinty has not responded to the request. However, a meeting with Bartolucci has been scheduled for Thursday in Toronto. Iroquois Falls Mayor Gilles Forget, who is among the community leaders expected to meet with Bartolucci, said, “We were not consulted in advance. We have not been consulted since, and we have not been offered a seat at the table. We intend to be clear, we want a new deal for Ontario Northland. We want to be heard, we want to be involved.” It is anticipated the other mayors meeting with Bartolucci will Al Spacek from Kapuskasing, Peter Politis from Cochrane, Mike Milinkovich of Black River-Matheson and Al McDonald of North Bay. Spacek said the “Northern mayors plan to inform Minister Bartolucci of the significant and widespread impacts that the proposed divestiture will have on Northern Ontario. This government owes more to the people of the North on this issue. We need clarity on the process and the details surrounding this decision.” Bartolucci announced in March that the provincial government would divest itself of the Crown corporation which provides freight and passenger rail services, intercity bus services and communication services in Northern Ontario." http://www.elliotlakestandard.ca/ArticleDisplay.aspx?e=3537437 "A Summit between leaders of Lake Nipigon and Ring of Fire North/South Alliance First Nations met on Saturday April 14, 2012 with Mayors of Greenstone, Nipigon, Hearst and Thunder Bay to demonstrate solidarity in their position that the opportunities and benefits of resource development related to the Ring of Fire remain in the area. A Ring of Fire Resolution supporting (a) Exton (between Aroland First nation and Nakina) as the preferred refinery site and (b) a north-south access route to Marten Falls was

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signed by six First Nations (Marten Falls FN, Aroland FN, Bingwi Neyaashi Anishinabeek FN, Constance Lake FN, Animiigoo Zaagi’igan Anishinabeek FN, and Red Rock Indian Band) and four regional Mayors (Greenstone, Hearst, Nipigon and Thunder Bay). Peter Collins, Regional Grand Chief, Union of Ontario Indians, Anishinabek Nation Council & Chief of Fort William First Nation participated by teleconference. Chief Collins and other community leaders unable to attend are also expected to sign the Resolution over the next few days. Chief Elijah Moonias of Marten Falls First Nation, on whose traditional lands the Ring of Fire chromite deposits are located, addressed the gathering held in Greenstone. Chief Moonias stated, “The companies want to come in and exploit the resources and leave nothing behind for local long standing benefits such as electric grid connection and roads access - both a boost to the local economy. By proposing to use diesel generators at the mine, Cliffs/Noront signal they are not interested in helping with infrastructure development nor will they support the smelter in a new location - to avoid environmental accounting they want to consider any new location.” Moonias went on to say, “We want infrastructure out of the development, a new powerline will do this. We have a company interested in studying this project in partnership with the communities. The Province should support this for environmental reasons over diesel, the Federal government should support this long range outlook - grid connection will eliminate costly community diesel generation systems. What we ask of Cliffs and Noront is to provide the opportunity to study this regional initiative until the final decision on the access corridor, smelter location and power supply is addressed, and that there is satisfaction from all parties that no alternative exists to what the companies are proposing,” said Chief Eli Moonias of Marten Falls First Nation. Chief Moonias concluded, “We have no patience with powering the mine site with polluting diesel generators. I believe the mining companies still do not understand that the minerals are located under our land. I have said before, if they wish to mine the ore, we want it processed in our territory. That means Exton, not Sudbury.” There was much discussion of the proposal to power the mine site with diesel. It was concluded by proposing to use massive diesel generators at the mine site, developers Cliffs/Noront are showing they are not interested in supporting regional infrastructure development. Renald Beaulieu, Mayor of Greenstone, thanked the Summit Chairs, Raymond Ferris and Wilfred King, as he welcomed the attendees. “It is very exciting to see so many First Nation community leaders and Mayors sitting and working together. There is strength in numbers. In the future, today will be remembered as the day when a huge step forward was made in the on-going partnership between First Nations and other communities. The Resolution we signed today, states the ferrochrome processing facility should be in Greenstone so that all people of this region can benefit from the jobs and the revenues generated. Cliffs suggests it wants to take the chromite to Sudbury. We say it should stay here for processing.” Thunder Bay Mayor Keith Hobbs stated, “To be clear, Thunder Bay supports the First Nations efforts to secure benefits from the Ring of Fire. We appreciate the efforts you have made to date, you have worked hard and we will help when and wherever possible.” Chief Sonny Gagnon of Aroland First Nation acknowledged the historic nature of the event and welcomed the involvement of both First Nation and municipal politicians. Chief Gagnon reminded the Summit participants, “We will not be treated like a third world country, where a company can walk in, take what it wants and get rich off our resources without giving back. We are still looking for a negotiated process with both orders of government to deal with the Environmental Assessment and each of the other issues and impacts that are going to happen here. Still the Federal Government ignores us. We don’t want to end up with our lands destroyed and that is what is going to happen if we keep going down this road. This Summit today shows that the people in the North are getting together and will force these companies to work with all of us.” Paul Gladu, Chief of the Bingwi Neyaashi Anishinabeek First Nation concluded, “Together, we have signed historic Resolutions. One clearly showing the expectations of the Region from the municipalities and the First Nations are shared in supporting a refinery in Exton and a north south route to Marten Falls. Together,

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we will make the federal and provincial governments and the mining companies understand this is our choice.” " http://www.huffstrategy.com/MediaManager/release/Ring-of-Fire-Summit/17-4-12/Summit-of-First-Nations-and-NorthwesternMunicipalities-shows-ali/2501.html http://netnewsledger.com/2012/04/17/first-nations-summit-in-greenstone-seeks-greater-economic-engagement-in-ring-of-fire/ http://ringoffirenews.files.wordpress.com/2012/04/1334669740_mediarelease-ringoffiresummitapril16.pdf or http://bit.ly/HO8PpW "A group of First Nations leaders have drawn a line in the Ring of Fire sand. Marten Falls Chief Eli Moonias says if companies want to mine the lucrative ore deposits found there, they’ll have to process it in Exton, Ont., not Sudbury. On the weekend the leaders met in Greenstone and, together with regional mayors including Thunder Bay’s Keith Hobbs, signed a solidarity agreement supporting Exton as the preferred site of a ferrochrome processing facility. The group also agreed they want the transportation route from the mine to run north-south through Marten Falls. Signees to the agreement included Marten Falls First Nation, Aroland First Nation, Bingwi Neyaashi Anishnabeek First Nation, Constance Lake First Nation, Animiigoo Zaagi'igan Anishinabeek First Nation and Red Rock Indian Band. In addition to Hobbs, regional communities signing off included Greenstone, Hearst and Nipigon. Fort William First Nation Chief Peter Collins is also expected to ink his name to the agreement in the coming days. “The companies want to come in and exploit the resources and leave nothing behind for local long standing benefits such as electric grid connection and roads access – both a boost to the local economy. By proposing to use diesel generators at the mine, Cliffs (Natural Resources) and Noront signal they are not interested in helping with infrastructure development nor will they support the smelter in a new location – to avoid environmental accounting they want to consider any new location,” said Marten Falls First Nation Chief Eli Moonias in a statement released early Tuesday morning. Earlier this month the U.S.-based Cliffs indicated it would continue to use Sudbury as its base case for the project, expected to create up to 500 direct jobs in the processing plant alone. Moonias, whose traditional land the Ring of Fire resides in, said they have several demands before the project should go ahead, mostly power-related. “We want infrastructure out of the development, a new power line will do this. We have a company interested in studying this project in partnership with the communities. The province should support this for environmental reasons over diesel, the federal government should support this long range outlook - grid connection will eliminate costly community diesel generation systems,” Moonias said. “What we ask of Cliffs and Noront is to provide the opportunity to study this regional initiative until the final decision on the access corridor, smelter location and power supply is addressed, and that there is satisfaction from all parties that no alternative exists to what the companies are proposing." " http://www.tbnewswatch.com/news/203215/United-front "The Harper Government today announced, as part of Economic Action Plan 2012, its plan for Responsible Resource Development, which will streamline the review process for major economic projects. The plan was announced by the Honourable Joe Oliver, Minister of Natural Resources, at Automatic Coating Limited in Toronto, which produces high-performance liquids and powder coating used on oil and gas pipelines in Canada and other countries .... The Harper Government will create jobs, growth, and long-term prosperity through Responsible Resource Development by:  Moving toward a “one project, one review” system for reviews of major projects by recognizing provincial processes as substitutes or equivalents to federal ones as long as they meet the requirements under the Canadian Environmental Assessment Act;  Ensuring decisions by the Canadian Environmental Assessment Agency on whether a federal environmental assessment

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is required are made earlier in the process (within 45 days); Setting timelines for hearings and assessments, namely, 24 months for panel reviews, 18 months for National Energy Board hearings and 12 months for standard environmental assessments;  Setting legally binding timelines for key regulatory permitting processes, including the Fisheries Act, the Species at Risk Act, the Navigable Waters Protection Act, the Canadian Environmental Protection Act and the Nuclear Safety and Control Act;  Consolidating the number of organizations responsible for reviews from more than 40 to three: The Canadian Environmental Assessment Agency, the National Energy Board and the Canadian Nuclear Safety Commission;  Focusing federal assessment efforts on major projects that can have significant environmental effects;  For the first time, introducing enforceable environmental assessment decision statements under the Canadian Environmental Assessment Act. This means proponents of major projects will have to comply with conditions set out in the decision statements or may face tough financial penalties. The proposed penalties could range from $100,000 to $400,000;  Requiring follow-up programs after all environmental assessments to verify the accuracy of the predictions regarding potential environmental effects and to determine if mitigation measures are working as intended;  For the first time, providing federal inspectors with the authority to examine whether or not conditions of a decision statement are met;  For the first time, authorizing the use of administrative monetary penalties for violations of the Canadian Environmental Assessment Act, the Nuclear Safety and Control Act and the National Energy Board Act. These penalties will be designed to address small contraventions quickly so that larger issues do not arise in the future. Further details on the penalties will be available once legislation is introduced;  The proposed penalties could range from $25,000 to a maximum of $100,000 for violations of the Nuclear Safety and Control Act, and the National Energy Board Act, while the range of penalties under the Canadian Environmental Assessment Act will be established through regulations;  Providing more than $35 million over two years for marine safety and $13.5 million over two years to strengthen pipeline safety, including regulations to strengthen the tanker safety regime and increasing the number of oil and gas pipeline inspections each year by 50 percent, from 100 to 150 inspections ...." http://www.nrcan.gc.ca/media-room/news-release/2012/45/6148 

".... The Government of Canada has a legal duty to consult when it contemplates conduct that might adversely impact an Aboriginal group’s potential or established Aboriginal or Treaty rights. This can frequently be the case with project reviews and decisions concerning major economic projects. Recognizing this duty, the Government in recent years has taken steps to improve how it meets its obligations to Aboriginal groups:  In 2007, it launched an Action Plan on Consultation and Accommodation, which included guidelines for federal officials on

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

consultations, as well as training on how to apply them; and In 2008, it began to introduce a whole-of-government approach to Aboriginal consultations under the Major Projects Management Office initiative.

The agreement will build on these steps and further integrate Aboriginal consultations into project reviews. Responsible Resource Development has an entire component dedicated to ensuring consultations are consistent, accountable, meaningful and timely. For example, it reinforces the Government’s approach of:  Integrating Aboriginal consultations into the new environmental assessment and regulatory processes;  Providing funding specifically to support consultations with Aboriginal peoples to ensure their rights and interests are respected;  Designating a lead department or agency as a single Crown consultation coordinator for each major project review;  Negotiating consultation protocols or agreements with Aboriginal groups to establish more clearly what the expectations and level of consultation should be in project reviews. Such protocols have been implemented in Nova Scotia and finalized in Prince Edward Island;  Negotiating memoranda of understanding with provincial/territorial governments to align federal and provincial/territorial processes and improve the involvement of Aboriginal groups, project proponents and government organizations. The federal government is working on finalizing such agreements with Nova Scotia and Alberta; and  Promoting positive and long-term relationships with Aboriginal communities in order to facilitate greater participation of Aboriginal people in the direct and indirect benefits of new resource projects. These measures will ensure that Aboriginal groups are more fully engaged in the environmental assessment and regulatory permitting process from beginning to end and that possible impacts on their potential or established Aboriginal or Treaty rights are given due consideration in decision-making. The legal duty to consult applies to Crown conduct that may have an impact on existing or potential Aboriginal or Treaty rights, whether or not there is an environmental assessment. All projects, including smaller ones, will continue to be subject to environmental requirements of relevant federal and provincial laws, regulations and standards and, in these cases, the federal government will meet its consultation obligations. The Government of Canada will also take steps to ensure that the legal duty to consult is fulfilled in cases where substitution or equivalency provisions are used ...." http://www.actionplan.gc.ca/eng/media.asp?mode=preview&id=5284 "The Prospectors and Developers Association of Canada (PDAC) welcomes the federal government's plan for responsible resource development announced today. "We commend the federal government for its goal of a system that provides predictable and timely reviews, reduced duplication, strengthened environmental protection and enhanced Aboriginal consultation," says PDAC Executive Director Ross Gallinger. "The mineral exploration and development industry needs an efficient regulatory regime that encourages investment by providing certainty and predictability for resource development projects," says Gallinger. "An effective regulatory system is a key factor in a company's decision about where to invest." The federal government's

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Responsible Resource Development plan also includes measures "to ensure that Aboriginal groups are more fully engaged in the environmental assessment and regulatory permitting process from beginning to end and that possible impacts on their potential or established Aboriginal or Treaty rights are given due consideration in decision-making." As an advocate for greater clarity regarding the Crown's consultation requirements, community engagement and project permitting, the PDAC welcomes this inclusion in the plan. "We look forward to hearing more about the series of measures aimed at enhancing consultations with Aboriginals, such as better integrating Aboriginal consultations into the review process and clarifying expectations and levels of consultation for project reviews," says Gallinger ...." http://www.marketwire.com/press-release/prospectors-developersassociation-canada-welcomes-federal-governments-resource-development-1645226.htm "A major overhaul of environmental assessment rules for big projects will create jobs and growth, the federal government announced Tuesday, sparking resource industry praise and fierce criticism from environmental groups. First signalled in last month's budget, the Conservative government said proposed new rules would encourage investment by avoiding wasteful duplication and setting strict time limits for project reviews. "We intend to focus federal assessment efforts on major projects that can have significant environmental effects, such as energy and mining projects," Natural Resources Minister Joe Oliver said. "Streamlining the review process ... will attract significant investment dollars and give every region of our country a tremendous economic boost." The plan calls for three organizations — the Canadian Environmental Assessment Agency, the National Energy Board and the Canadian Nuclear Safety Commission — to conduct reviews, down from 40 government departments that can currently be involved. Ottawa would defer to provincial reviews that meet national standards, and reviews would be limited to 12 months for standard assessments, rising to a maximum of two years. The necessity of a review would have to be determined within 45 days. Oliver said it would be "obvious" in many cases which projects would be captured under the new legislation, but gave the example of pipelines of at least 40 kilometres that can have significant impact nationally or regionally ...." http://ca.news.yahoo.com/federal-minister-expected-reveal-plan-speeding-project-reviews-120856147--finance.html

16 Apr 12

"Canada said on Tuesday it would streamline the way it performs environmental reviews on major industrial projects in a bid to speed the development of mines and pipelines, a move critics predicted could cause an environmental disaster. And in a policy change that could benefit the oil and gas industry, the Conservative government said it will strip key veto powers from the federal energy regulator and give itself the final say on approving major pipelines. The right-of-center Conservatives say the current regulatory system is too complex and lengthy and could threaten up to C$500 billion ($505 billion) of new investments in energy and mining industries over the next decade. "We have to compete with other resource-rich countries for fast-growing markets and scarce capital. And we must do it now," Natural Resources Minister Joe Oliver said in a speech unveiling the new rules. The federal government now will focus only on major reviews, handing over responsibility for some projects to Canada's 10 provinces, while ensuring each proposed development is assessed only once. Ottawa will also impose legally binding timetables on reviews, which in the past have taken up to seven years to complete. Once the new rules are adopted, an assessment will be limited to a maximum of two years. "We have immense resources, we are an energy superpower, we're a mining giant, and this can have an incredibly positive impact on the future prosperity and security of Canadians," Oliver told reporters after the speech ...." http://ca.news.yahoo.com/canada-cut-back-environmental-reviews-182301793.html Letter to the editor: "Re: "Sudbury expected to win Cliffs lottery" -- April 11. Your story regarding Cliffs' refinery decision declares

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victory on the basis of an interview with Mayor Hobbs who speaks only for the City of Thunder Bay. I speak for Greenstone. We will continue to advance our plan to expand the economic impact of the Ring of Fire across Northwestern Ontario, which includes the smelter being sited at Exton in Greenstone. This includes getting First Nations communities the access to electricity from the grid that they deserve. Sure, Sudbury has been the base case for a long time now, but there's a missing piece in the Sudbury equation: The aspirations of First Nations in the Ring of Fire area are not properly factored into the base case. Increasingly, it is clear that failing to consider the needs of First Nations will seriously compromise the long-term success of the Ring of Fire. If The Sudbury Star wants to say that Greenstone lacks the electricity for the refinery, than it should also be said that the Ring of Fire mine site itself lacks the electricity for mining activities. Clearly, a project of this enormity isn't going to take place with Ontario's current electricity infrastructure. Let's not forget the TransCanada pipeline travels through our community. Can the province that worked so hard to close its coal power plants, support a plan to use 50 MW diesel generation at the mine site for the next 50 to 100 years? The Canadian National Railway travels though our community. Transportation-wise Greenstone sits squarely and I would say strategically at the base of the Ring of Fire's north-south corridor. Yes, the same one favoured by Cliffs in its current infrastructure plan. I think it's a pretty good advantage that all of the chromite is set to run past our door. When I looked at the map last, it is hundreds and hundreds of kilometers closer than Sudbury. Even when you factor in the shipping of materials added to the refining process sourced from the U.S., Greenstone enjoys a significant cost and immense environmental advantage over Sudbury in transportation. Whoever said that Greenstone can't meet the workforce needs for a Cliffs refinery hasn't done their homework. Talk to any industrial human resources professional in the region and ask about the stampede when they post jobs. And stop discounting the workforce potential of area First Nations. On a head-to-head technical basis, Sudbury and Greenstone are competitive. But when Cliffs and Ontario factor in the endorsement of First Nations for the refinery at Exton, the advantage tilts in Greenstone's favour. We will continue to make that case. I know that's what the First Nations will expect to hear when the CEO of Cliffs speaks in Northwestern Ontario May 1. (signed) Renald Beaulieu Mayor of Greenstone" http://www.thesudburystar.com/ArticleDisplay.aspx?e=3534590 "The Municipality of Greenstone is not ready to throw in the towel in its battle for the Cliffs Natural Resources ferrochrome processing facility. Following the revelation last week that Cliffs has a deal to buy the old Moose Mountain mine property near Capreol — increasing the odds that the company has selected the site for its chromite refinery — Greenstone Mayor Renald Beaulieu has penned a letter to the Sudbury Star proclaiming that his town is still very much in the running for the plant and its 500 jobs. “We will continue to advance our plan to expand the economic impact of the Ring of Fire across northwestern Ontario, which includes the smelter being sited at Exton in Greenstone,” Mayor Beaulieu wrote. In fact, he says, Greenstone has an advantage over Sudbury because local First Nation communities want the refinery to be located in the northwest where they can benefit from the extraction of mineral wealth from their lands. “Sure, Sudbury has been the base case for a long time now, but there’s a missing piece in the Sudbury equation: The aspirations of First Nations in the Ring of Fire area are not properly factored into the base case,” Mayor Beaulieu says. “Increasingly, it is clear that failing to consider the needs of First Nations will seriously compromise the long-term success of the Ring of Fire.” At a press conference in Toronto last month, chiefs Eli Moonias of Marten Falls First Nation and Sonny Gagnon of Aroland First Nation said they want to see the Cliffs processing plant located on their territories. They also want that site included in the current environmental assessment of the Ring of Fire chromite mine proposal. Beaulieu agree that Sudbury and Greenstone are competitive on a head-to-head technical basis. But, he said, “when Cliffs and

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15 Apr 12

Ontario factor in the endorsement of First Nations for the refinery at Exton, the advantage tilts in Greenstone’s favour.” So, while some competitors are beginning to see the writing on Sudbury’s wall, Greenstone’s mayor continues to press the merits of an Exton refinery. “We will continue to make that case,” he told The Star. “I know that’s what the First Nations will expect to hear when the CEO of Cliffs speaks in northwestern Ontario May 1.” " http://insupportofmining.wordpress.com/2012/04/16/greenstonecontinues-to-press-for-ferrochrome-plant/ "MPP Gilles Bisson (NDP — Timmins-James Bay) says his party has presented the Ontario Liberals with an ultimatum in order to avoid another provincial election. The Dalton McGuinty government can vote to support the NDP’s budget motion by the April 24 deadline — or face the likelihood of seeing Ontarians go back to the polls. Bisson said the motions put forward by the NDP includes a plan to save the Ontario Northland Transportation Commission from divestment. A key concern is how dismantling the ONTC will hinder the potential for Northeastern communities to tap into the mining and economic opportunities being created in the Ring of Fire, within the James Bay lowlands. “We were extremely disappointed when Mr. McGuinty and Mr. (Rick) Bartolucci announced they were going ahead with the divestiture, which means only the lucrative parts of the ONTC are going to be taken over by the private sector, and the subsidized parts will be gone,” said Bisson. “The Ring of Fire is a huge opportunity for Northern Ontario. If the province took the position of helping develop infrastructure to the sites, it will reduce the cost of building the sites for the mining company and, we can say, in exchange they can process their chromite and nickel in Ontario and deal with the price of hydro in Ontario.” ...." http://www.elliotlakestandard.ca/ArticleDisplay.aspx?e=3534720 "Recently Ontario announced it had reached an agreement with God’s Lake Resources. Hurray! They were finally dispatched with and now we and the community can now breathe a big sigh of relief. With this latest move, the province added to the land withdrawal it commenced in early March. The total land area that has been withdrawn from staking and mineral exploration covers over 2.355 million ha of native lands in the Boreal Forest. It is an awesome achievement for KI and for all of its supporters, people just like you. We should remember that this victory is a result of more than 7 years of work and that community leaders had to go to jail to protect their ancestral lands from drilling in 2008. We thank all of our supporters over the years who sent emails, made phone calls to their local MPPs, or who participated in various protests. The biggest reason to thank you is that you showed you cared. You made a difference. When communities take a principled stand and conservation groups like ours back them up in the public interest with your help, great things can occur. It is my hope that KI’s young people will now be able beam with pride that their leaders and elders protected the homelands from mining. It is also my hope that Ontario and KI can begin a new chapter. Written by Anna Baggio, Director Conservation Land Use Planning, CPAWs Wildlands League" http://cpaws.org/blog/update-onmajor-announcement-in-ontarios-north Excerpt from “Fortunes Found – Canadian Mining Success” ( http://amzn.to/HQJonB ) ".... Mining the Treasure Trove (Ring of Fire) Excerpt - Geologists have two theories as to the origins of the metals that are driving the push to access the potential bounty of the Ring of Fire deposits. The area it covers may well be bigger than the Sudbury Basin. One theory has it that the volcanics in the great arc were there first and then the granite intruded, bringing up host rocks for the minerals. The other is connected with Continental Drift during the earth’s early history. In this line of thought, two separate subcontinents collided, and between the faulted contact between the two, mineral plumes brought up the minerals. More drilling in the granite should eventually settle the matter. In the meantime, the rare mix of metals waiting for harvest has excited more interest than any other mining boom in Canada in decades. One estimate of the value of the chromium alone currently known to be present is set at $30 billion. As diamond drills continue to define the different ore bodies, and geologists ponder each metre of core brought to surface, there is

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much debate as to how mining will be done and the way it will be brought to market. In an area where there is no infrastructure, as it is so remote from major highway and rail systems, transportation is a very real problem. To understand the situation, examine positions taken by the main players. Pioneer in the area Noront Resources sees as its transport link an all-weather road from Webequie to Pickle Lake, which is the most northerly community in Ontario having year round access to an all-weather road. From this point, its nickel product may have access to road and rail connections; several First Nations have signed on to this route as being preferred for their territories. The onsite projection is an underground mine with a concentrator. Waste or mine tailings would be stored underground to prevent contamination of ground water. Noront has the largest landholding, 117,000 hectares, and expects to fi nd more deposits in this huge area. The company has secured large investment support from a major Chinese steelmaker. Other original stakers Spider and KWG Resources have been joined in partnerships by giant North American steelmaker Cliffs Natural Resources. To get their copper, zinc, and chromium to market, KWG has a novel but costly approach developed by president Frank Smeenk. This would be a north-to-south railway 330 kilometres long from the mine site connecting with Nakina on the Canadian National Railway line. To this end, ground has been staked for a right of way, and test borings taken of the projected rail bed. The radar system LiDAR — for light detection and ranging — has been used along the projected route to survey the ground. As an imaginative sideline to this activity, a subsidiary company, Debut Diamonds, is testing the results of the boreholes to look for diamonds. Cliffs would be the operator among the trio and at present feels a northsouth road would be more economical. Its planning is the most comprehensive of the trio and features mining by open pit, with an adjacent concentrator. The ferrochrome product would go first by road to Nakina and then by rail to a more southerly location. Present thinking places the proposed site of the plant at Capreol, on the edge of Sudbury, or even Timmins. The Ontario Northland Railway has been suggested as builder and operator, should a rail link be constructed, but so far, funding for it has not been established. Probe Mines, in common with other firms that hold property in the area, has a prudent wait-and-see attitude. With ground in the ultramafic rock complex that hosts nickel, copper, and chromite, and a joint venture with Noront, the company continues to drill its properties but waits for decisions made by others, for it will be the dominant players that decide what system of transportation will be chosen, as well as eventual extraction methods. The province has set up an administrative body to handle all matters relating to the promising mineral developments in the James Bay Lowlands. This is the Provincial Ring of Fire Secretariat. Leader Christine Kaszycki — an assistant deputy minister in the Ministry of Northern Development, Mines and Forestry — is charged with keeping track of all the events associated with the northern development and has marshaled all the current data on the project area to date. In her layout of the mining sequence, the competing firms are still in the late exploration stage. Consultation with interested parties — not the least of which are the First Nations reserves that have traditional territory in the area, others being the mining companies and the government — ongoing environmental studies, permitting, and actual mine development will mean that likely none of the ore bodies will begin to be harvested until at least 2016. Provincial funds are available in the interim for training Aboriginal area residents and assisting all of the interested parties to forge relationships so that a working arrangement of trust may be maintained. The provision of power is another problem that will have to be solved before substantial development may be undertaken. KWG has a 28 percent stake in the chrome deposits and suggests private enterprise should set up a grid by building a series of hydroelectric dams fed by the rivers in the Lowlands, as Ontario Hydro power rates are considered too costly by the mining companies. The provision of electricity on a grid and not through costly diesel generators would hugely benefit the nine First Nations communities in the area. At first glance, the problems associated with accessing the minerals discovered in the Ring of Fire and bringing them to market might seem insurmountable. Transportation

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12 Apr 12

infrastructure costs will be huge; consultations with government agencies, First Nations groups, and environmentalists will be lengthy. The impact of weather on year round activity in the area may be significant. But North America is hungry for chrome, and the copper, zinc, and nickel deposits find a ready market. Then of course there is the distinct possibility of finding diamonds in the area now that the Victor Mine to the east is delivering high-quality stones; and little has been said about the presence of gold found in the deposit mix. In the past, the great mining camps of Northern Ontario usually grew without planning or immediate monitoring by the province. With the creation of the Ring of Fire Secretariat, the development of the vast potential of this large James Bay Lowlands location should give all stakeholders in the area fair representation. There is the prospect of enough chromium present in the ground alone for a century plus of mining, so the development will proceed. Two facts are certain: Many of the plans now being made to unlock this twenty-first century vast set of mineral discoveries will no doubt be altered before the first ore comes out of the ground. The involvement of both federal and provincial governments and expenditure of vast sums by both government and successful operators is also a given ...." http://www.republicofmining.com/2012/04/15/mining-the-treasuretrove-ring-of-fire-excerpt-from-northern-ontario-introducing-the-unknown-country-%E2%80%93-michael-barnes/ "Isolation often takes the blame as the source of many problems on remote reserves. But Chief Pierre Morriseau has decidedly mixed feelings about that. His Oji-Cree community 320 kilometres north of Sioux Lookout, Ont., is definitely remote. During the winter, an ice road connects North Caribou Lake to other communities in the lake-soaked terrain of northwestern Ontario. The rest of the year, it's fly-in only. But the Musselwhite gold mine nearby flies many of the local residents in and out every two weeks. On paper, that means jobs, decent pay and training. So even though official statistics show only 10 per cent of the population has graduated from high school, the band only relies on government money for 30 per cent of its revenue. "There's lots of people working. It gives people some hope," says Mike Jeremiah, home for a couple of weeks from before heading back to the mine for another two-week stint. But in practice, much of that money these days is spent on financing a prescription drug addiction that has affected up to half of the community's adults. They are addicted mainly to opioids such as OxyContin and Percocet. The prices are far higher than in the city, selling for about $150 for just one of the weakest pills, and up to $800 for the most powerful pills. Petty crime is rising. Children are missing school because their parents can't get up in the morning. The sparse nursing staff at the health centre is overwhelmed. "They (addicts) broke into my house a couple times," says Linda Kanate, whose son is an addict. "They have to have it." For Morriseau, the world of globalization, money and people leaving the reserve on a regular basis have led to the end of a way of life. "I have very mixed feelings about the mining," Morriseau says during a break from meetings in the band office, choosing his words carefully. He was speaking to reporters, federal MP Carolyn Bennett and Stan Beardy, the grand chief of Nishnawbe Aski Nation, which advocates on behalf of many first Nations in northern Ontario ...." http://ca.news.yahoo.com/decidedly-mixed-blessing-mining-jobs-near-remote-first-080017346.html "Treaty 3 has cautiously agreed to speak with 60 junior mining outfits who make up Miners United, provided the companies leave “racist” attitudes behind. Last week’s resolution at Grand Council voted the companies “will not be tolerated” in Treaty 3 territory, due to media reports describing their “revolt” against First Nations consultation. Following a conversation with the Ontario Prospector’s Association, Treaty 3 Grand Chief Diane Kelly said defiant and ignorant approaches to consultation would not be tolerated. “Those kinds of attitudes are not going to be tolerated by anybody. We’re not just wandering around in the bush looking for blueberries,” Kelly said, pointing to Miners United members’ public statements regarding unwillingness to look for arrowheads on behalf of First Nations communities. “It’s just fuelling the fire when there’s comments like that in their press release,” she explained. “We’re not against economic activity, we just want to make sure our rights are respected and we’re part of it.” First

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Nation consultation is a part of proposed modifications to the provincial Mining Act. Treaty 3 has its own Resource Law and Kelly urged companies to contact her offices to determine which communities could have interests. “We have rights and responsibilities to this land,” she said. “There’s very little input from First Nations with these regulations. I haven’t seen them yet. There has to be more of a partnership here because otherwise, we get situations like KI (Kitchenuhmaykoosib Inninuwug First Nation) and that’s not going to go away.” Garry Clark is the executive director of the Ontario Prospector’s Association and said he aspires to meet with Kelly face-to-face in the coming months after speaking with her on Tuesday. Clark was pleased to learn Treaty 3 was willing to serve as a point of contact for mineral explorers, who are exasperated from the uncertain provincial parameters of consultation and limited relationships with First Nations communities. “Part of what we’ve asked the government for is to give us an idea of what is consultation,” he said. “How do we meet consultation? We haven’t been given a guideline or an understanding of what meets consultation requirements. We’re talking about a bunch of entrepreneurial people who are used to working out of the book and on their own terms. If they’re not given the terms, we don’t know where to go.” First People’s Law released a statement Wednesday that the proposed regulations “contradict the fundamental principles of the duty to consult,” “deny (First Nations) constitutional rights,” and “would codify the state of affairs in the province.” Lawyer Bruce McIvor said the province is currently delegating consultation to mining companies, meeting with the First Nation afterward to ask if there are outstanding concerns and whether consultation has been achieved. He argued that violates the constitution. Instead of taking a government-to-government approach like those that have provided success and predictability in British Columbia and Manitoba, McIvor argued the proposed changes will perpetuate the status quo in Ontario. “What Ontario appears to do based on my experience, and what they seem to be intending to do based on the proposed regulations, is not engage in that government-togovernment process,” he said. “It’s not that there’s no role for the proponent to play. They have a critical role to play but it’s not to assume the responsibility to discharge the Crown’s responsibility to consult.” " http://www.kenoradailyminerandnews.com/ArticleDisplay.aspx?e=3531791 "In the aftermath of Ontario’s decision to buy out the mining claims of God’s Lake Resources for $3.5 million, NDP MPP Sarah Campbell came up with one of the occasion’s more memorable quotes. “Ontario may be the only province in Canada where you can make a substantial profit in mining without having to break ground,” Campbell said. Forget her obvious political bias, and the fact that Campbell was looking to score points off a political hot potato that the Liberals were forced to deal with. What Campbell pointed out – that a mining company had been able to make a substantial profit without breaking ground – may be the most longlasting and harmful precedent to come out of the whole ordeal. Since Ontario’s decision to pay GLR to give up its claims, a number of mining industry pundits have expressed concerns that because of the decision, First Nations will be increasingly emboldened to oppose development on traditional lands. Fasken Martineau DuMoulin lawyer Neal Smitheman told Mining News Weekly that it seemed Ontario had “capitulated” to KI’s demands. A different mining industry source, who remained unnamed, told the same reporter that it is going to be “a wild west out there, when it comes to mining companies that have a bounty on their head.” But those kinds of comments miss the point. KI was not the one who profited from its battle with GLR. The First Nation spent months of its own time and resources dealing with the controversy, and in the end its only victory was a retreat to the way things were before GLR showed up on its lands, uninvited and unannounced. Meanwhile the company walked away from the Sherman Lake claims – its only mining claim – with $3.5 million, despite having done limited exploration work. The odds are good that GLR made a sizeable profit in the deal with Ontario. The real worry with the outcome of the KI – GLR conflict is not that First Nations will start opposing more projects. Some First Nation opposition is inevitable when the current system continues to grant

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11 Apr 12

leases on traditional lands before any consultation work is done. The real worry with Ontario’s buy out of GLR is that small, rogue mining companies start to consider claim-staking a profitable exercise in and of itself. If conflicts between small companies and First Nations over mining claims continue to result in multi-million dollar payouts to the company in question, the economics of those conflicts start to look pretty good. That really would make northern Ontario start to look like the wild west. And meanwhile all the good, hard work on consultation and development with First Nations done by the many responsible mining companies working across the North would go out the window. The implications for the entire Ontario mining sector of Ontario’s buy out of GLR are vast. The mining industry pundits who worry about conflict are right, in a way. But it is not First Nations who will lead future conflicts. Irresponsible mining companies are much more likely to spark a fire. That is what the Ontario government should be concerned about. That is why phase two of the new Ontario Mining Act, set to be implemented later this year, has to get it right. Ontario cannot continue to leave the responsibility for consultation of First Nations in the hands of industry. It has to take its own responsibility to consult and accommodate seriously. It has to put a consultation framework in place that clearly sets out obligations and responsibilities. And it has to start consulting with First Nations prior to granting leases to industry on traditional lands. Otherwise, conflicts like the one between KI and GLR will keep on happening ...." http://www.wawataynews.ca/archive/all/2012/4/12/what-does-ontario-s-buy-out-god-s-lake-really-mean_22645 “@NorontResources Join Noront's team of experts at the Nibinamik Education Centre for our Open House today 1-4pm | #Mining #FirstNation http://pic.twitter.com/hHFBKcq9 “ https://twitter.com/#!/NorontResources/status/190459758036271104 "@NorontResources Congratulations to Daryl Wabasse in Nibinamk #FirstNation on the all time lowest Scoop Tram simulator score! http://pic.twitter.com/1SFB39JQ " https://twitter.com/#!/NorontResources/status/190513616204738561 "The consensus among Greater Sudbury's northern rivals is the nickel city has -- as expected -- won the marathon to host Cliffs Natural Resources' prized ferrochrome smelter. Thunder Bay Mayor Keith Hobbs made clear last week that Cliffs officials told him the company, long leaning toward the northeast, is now entirely focused on Sudbury. Cleveland-based Cliffs is the principal in the development of the Ring of Fire deposit in the James Bay Lowlands and plans to spend close to $3 billion to get its chromite project into production. About $1.8 billion of that is to build a ferrochrome processing plant. In addition to Sudbury and Thunder Bay, Timmins and Greenstone, the town closest to the minesite, were considered possible locations for the plant. In 2010, Cliffs announced its base-case smelter locatiwon was Moose Mountain Mine north of Capreol because of proximity to rail and hydro corridors and Sudbury's large, experienced workforce. The CBC reports Cliffs purchased the property last year. Hobbs predicts Sudbury will be made the official location this spring. Thunder Bay lobbied Cliffs hard for the smelter last fall, trumpeting its shipping advantages. However, Hobbs told www.thbnewswatch.com last week he expects Cliffs to give the nod to Sudbury in a matter of weeks. "I talked to Ron Nelson from NOMA and we both got the impression that Sudbury was going to be it," Hobbs said. "But you know, we still have to wait for these things, you still have to put your best case forward." Andrew Mitchell, a director of development for Cliffs Chromite Ontario Inc., told Thunder Bay Television the final decision will come down to electricity. "The key driver in the ferrochrome is power costs," Mitchell said. "That is one of the most significant operating cost components and it's also one of the things that takes the most in-depth negotiation with the suppliers." In Timmins, consensus is the eminent sale of the Ontario Northland Railway will sink that city's chances of attracting Cliffs' smelter. Greenstone, meanwhile, which has native leaders in the northwest of the province onside, can meet none of Cliffs' electricity, transportation or workforce needs ...." http://www.thesudburystar.com/ArticleDisplay.aspx?e=3529963 "Bold Ventures Inc. is pleased to advise that it has entered into a Memorandum of Understanding ("MOU") with Attawapiskat First

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Nation ("ATFN") to cover the initial drilling program of its Area 52,53,54 and 56 claim groups located within 100 kilometres of the area dubbed "The Ring of Fire" northern Ontario. The MOU allows for Bold's initial drill program in that area to commence while respecting the environment and the traditional activities of the local people and addresses benefits for the local economy and job creation. The initial diamond drilling program will consist of approximately 2000 metres of NQ sized core drilling. In late 2010 the Company staked the Area 52, 53, 54 and 56 claims to cover a number of high potential VTEM anomalies. Numerous anomalies were encountered with at least ten that are recommended for follow up drill testing. Three separate VTEM anomalies are favourably compared to the anomaly at Noront Resources Eagle One Ni-Cu-PGM discovery. Mr. Scott Hogg, a consultant and advisor to the Board of Bold concluded in his report dated November 23rd 2010 (which may be accessed by visiting the Company's new web site) that: "In general, anomalies within the Ring of Fire Area that have a significant time constant have proven to be associated with sulphide mineralization. The Eagle One nickel deposit had an associated time constant of just under 4 milliseconds ("msec") ...." https://secure.marketwatch.com/story/bold-ventures-signs-memorandum-of-understanding-withattawapiskat-first-nation-plans-to-drill-2012-04-11-83190 "There is a renewed sense of optimism about the economic future of our region which to a large degree is being driven by a flurry of activity in the mining and exploration sector, especially talk of large-scale mineral deposits in the Ring of Fire about 550 km north of Thunder Bay. Given the demise of the forest industry and the thousand of jobs that have been lost there, one would view these emerging new job opportunities with a sense of relief. However, surprisingly enough there is already talk of shortages of skilled labour. So, what is the reality behind the mining jobs? In order to answer this question, the North Superior Workforce Planning Board has commissioned a study by the Mining Industry Human Resources Council (MiHR) to forecast the number of jobs expected to be created in this sector over the next 10 years. Since the fortunes of the mining and exploration sectors are heavily dependent on the world market price of minerals, contraction or expansion in the global economy would have a significant impact on the level of activity including the number of jobs expected to be created. The forecast then looked at the jobs under three different scenarios: contraction (downturn in the mining industry), base-line (static growth projection) and expansion (positive growth projection). MIHR has done many such forecasts across Canada and the various provinces but a regional/district study was a first. This required them to take into consideration the expected higher level of mining activity in the region (between 3 and 8 major mining projects are expected to come into construction and production over the next 2-5 years), the highly mobile workforce (many skilled trades working in Alberta and other provinces), and local demographics/retirement age (average age in the region is about 3% points higher than the provincial average). To further strengthen their forecast, MiHR also conducted surveys with local employers and interviews with key industry informants. Taking all of the region-specific factors into account, the projected number of direct jobs that would be created over the next 10 years would be 1,100 under the contradictory scenario, 2,840 under the baseline and 4,150 under the expansionary one. The study results indicate that even under a good case scenario (no downturn in the mining industry), the number of jobs being created every year would be around 300-400. The occupations in highest demand will include trades and production occupations such as underground miners, millwrights, mineral processors, heavy equipment operators and electricians. This is not surprising given that many current projects are expected to move into production. Because of the older age structure of the workforce in the Thunder Bay District, employers will face challenges in replacing the significant loss of skills due to the large number of experienced workers that will be retiring. Of particular concern will also be the managerial and supervisory roles which require extensive working experience. In conclusion, the MiHR study provides decision makers in the Thunder Bay District with a better

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understanding of the emerging mining job opportunities but also the challenges inherent with matching the trained workforce required by a growing mining sector. I will cover the challenges in more details in future articles." http://netnewsledger.com/2012/04/11/where-will-the-mining-jobs-come-from-a-forecast-of-mining-opportunities-in-the-thunderbay-district/ "Custom Labour Market Report – Thunder Bay District Mining Industry" (34 page PDF) http://www.nswpb.ca/assets/files/CustomLabourMarketReport-ThunderBayDistrictMiningIndustry.pdf "Thunder Bay's Lakehead University is laying the groundwork to develop a centre of excellence in mineral exploration. With the mining scene booming in northwestern Ontario and Thunder Bay positioning itself as an industry service hub, university president Brian Stevenson said the time is right to academically support this rapidly growing sector. “We're building a case to establish a centre of excellence for mineral exploration and mining sustainability.” Though still in the discussion stage internally, Stevenson said it will combine the university's strengths in exploration and environmental studies with other elements to create an interdisciplinary program .... At its core is its popular geology department, but the program curriculum will involve input from faculty in engineering, business, health sciences, natural resources management and Aboriginal studies. “All around the mining industry there are a lot of secondary and academic programs that aren't just about extraction, but about exploration, environmental assessment and reaching out to Aboriginal people; the social and economics side of it,” said Stevenson. “We want to build a comprehensive, multi-disciplinary centre of excellence that brings all of our researchers together. That's the role the university can play in filling the gap between the Aboriginal communities and the mining industry.” Stevenson said he was engaged in similar initiative at the University of Alberta in supporting that province's energy sector. He cautioned that it's a mistake to assume that Lakehead intends to directly compete with other Canadian universities and start pumping out mining engineers. “We're not into the extraction part here, that's what Laurentian (University in Sudbury) does. The idea is that we should be complementing each other. Our goal is to listen to industry, the communities and develop the program within our expertise without trying to duplicate what other institutions in the country are doing.” He placed no timelines on how fast a program could be developed, but added it could come together “quite quickly.” “Whether we need support from industry or government, we'll know later on. But I think the province would expect us to take leadership on issues of supporting our economy in northwestern Ontario.” " http://www.northernontariobusiness.com/Around-the-North/120409/Lakehead-stakes-a-claim-toexploration.aspx "While Ontario's mining sector booms, the provincial government continues to struggle to develop a coherent and legally sound legislative regime that meets its constitutional responsibilities to Aboriginal peoples. In the wake of Wahgoshig First Nation's successful injunction against Solid Gold Resources, Ontario's Ministry of Northern Development and Mines is touring the province trumpeting new Mining Acts regulations that, according to Ontario, will clarify and bolster the fulfullment of the Crown's duty to consult Aboriginal peoples. Rather than alleviate tension between First Nations and mining companies, the proposed regulations risk increasing disagreements bto the detriment of both. This is the because the proposed regulations contradict fundamental principles of the duty to consult. The regulations would codify the current state of affairs in Ontario: the province delegates consultation to mining companies, leaving it to play mainly a supervisory and final adjudicative role to determine whether the company adqueately with affected First Nations. This approach falls short of what the law requires. The substantive aspects of the duty to consult cannoe be delegated - they must be fulfilled by the Crown. Furthermore, First Nations have a right to directly

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10 Apr 12

engage with decision makers who have the power to substantially address Aboriginal concerns and interests. Ontario's proposed new Mining Act regulations would deny First Nations these basic entitlements that flow from their constitutional rights. They will force First Nations to deal solely with mining companies, many of whom lack either the interest or capacity to address Aboriginal concerns. Ontario should address this issue by publicly confirming that mining company consultation is not intended to substitute for direct consultation between Ontario and First Nations. Ontario should further confirm it will enter into direct government-togovernment consultation with First Nations with the intention of substantially addressing their concerns and nterests including revenue-sharing and shared decision-making. Unfortunately, to date Ontario has consistently refused to make these commitments. As long as Ontario continues to delegate its constitutional obligations to mining companies there is little prospect that its Mining Act modernization efforts will create greater legal certainty in Ontario's mining sector." http://p.twimg.com/AqNYJP1CAAAyXxP.jpg:large or http://ringoffirenews.files.wordpress.com/2012/04/first-peoples-law11apr12.pdf or http://bit.ly/HU4kbU "City officials in Sudbury continue to wait for an official announcement on the smelter for processing ore from the Ring of Fire. But CBC News has learned that Cliffs Natural Resources has a deal to buy the old Moose Mountain Mine site north of Capreol from Sudbury businessman Bruno Gervais. The agreement is for $330,000 and was signed almost a year ago. City councillor Dave Kilgour said it's another sign that Cliffs will bring its plant to Sudbury, and with it, hundreds of jobs. "We had fully expected some sort of announcement prior to the end of the first quarter of 2012, which would have been the end of March,” Kilgour said. “So we're anticipating something rather soon." Cliffs Natural Resources declined to comment on the land purchase agreement and said it is still considering several locations for its chromite smelter." http://www.cbc.ca/news/canada/sudbury/story/2012/04/10/tby-cliffs-moose-mine-sale.html "Gorilla Resources Corp. is pleased to announce that it has executed a non binding Letter of Intent to conclude a Reverse Take Over (the "RTO") by acquiring 100% of the issued and outstanding share capital of CNRP MINING Inc ("CNRP") a private company incorporated in British Columbia, the controlling shareholder of which is Danny Wettreich. It is a term of the RTO that CNRP acquire from Castle Resources Inc ("Castle") all rights, title and interest to an option agreement (the "Castle Option Agreement") executed between Castle and Stratabound Minerals Corp whereby Castle can acquire up to a 70% interest in their 100% owned New Brunswick based Elmtree Gold Property. A further term of the RTO is that CNRP acquire from Green Swan Capital Corp. ("Green Swan") the option agreement (the "Green Swan Option Agreement') executed between Green Swan and Melkior Resources Inc. ("Melkior") whereby Green Swan can acquire up to a 70% interest in the mining areas commonly known as the RiverBank and Broke Back claims from Melkior. The Claims are in the highly prospective Ring of Fire area, and are located approximately 10 kilometres north of Noront Resources Ltd.'s "Eagle's Nest', and 10 kilometers southeast of Cliffs Natural Resources claims. Prior to the closing of the RTO, Gorilla will spin off to its present shareholders all its interest in certain mining exploration properties in the Yukon (the "Yukon Properties") ...." http://secure.marketwatch.com/story/gorilla-to-acquire-cnrpmining-in-reverse-take-over-2012-04-10 “@NorontResources JOIN US this Thursday in Nibinamik #FirstNation for an Open House on our Eagle's Nest Project | #mining” http://twitter.com/#!/NorontResources/status/189404976349589504 “@NorontResources Noront Resources Wes Hanson presents at the 10th Annual Wall Street Analyst Conference in New York today at 12:50." http://twitter.com/#!/NorontResources/status/189746890240303105 "@NorontResources JOIN US this Friday in Attawapiskat #FirstNation for an Open House on our Eagle's Nest Project | #mining"

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5 Apr 12

http://twitter.com/#!/NorontResources/status/189760901166014465 "The Honourable Joe Oliver, Minister of Natural Resources, today highlighted in a speech to the Thunder Bay Chamber of Commerce the Harper Government's commitment to supporting jobs and economic growth by streamlining the review process for major economic projects. "The Harper Government is focused on jobs, growth and long-term prosperity," said Minister Oliver. "Major economic projects in Canada are currently subject to long, unpredictable and potentially endless delays because of a needlessly complex and duplicative approval process. Streamlining this process for major economic projects will result in the creation of good, skilled, well-paying jobs." Economic Action Plan 2012 will provide fixed timelines for project reviews and assessments: -- Panel Reviews - 24 months -- National Energy Board Hearings - 18 months -- Standard Environmental Assessments - 12 months "Our Government recognizes that the existing system needs comprehensive reform," said Minister Oliver. "We will bring forward legislation to implement system-wide improvements to achieve the goal of 'one project, one review' in a clearly defined time period." ...." http://www.marketwatch.com/story/harper-government-is-committed-to-responsibleresource-development-2012-04-05 "A group of concerned citizens say the federal government wants to trash the environmental process. But Canada’s Natural Resources Minister says changes will make it more effective. Minister Joe Oliver was in Thunder Bay Thursday to highlight the government’s economic action plan and the importance of natural resources. He also spoke about modernizing regulations as a way to stimulate that sector, which he says could generate $500 billion in the next decade. But around a dozen protesters outside of the Valhalla Inn weren’t buying it. “Of course mining and resource development is important for Canadians but pulling all the oil and all the tar and all the metals out of the ground as quick as we can and selling them to foreign entities, it’s not the best way to develop economically and it’s a disaster for the environment,” said Paul Berger. In a brief interview with local media, Oliver said creating one environmental process and capping it at two years of review is enough. And the federal government will ensure that the assessment is complete, independent and based on science ...." http://www.tbnewswatch.com/news/201278/Environment-concerns "First Nation chiefs don't plan to sit on the sidelines without having a major say in how Far North mineral development unfolds in their territories. For years, Aroland First Nation Chief Sonny Gagnon used to watch heavily-laden logging trucks head south and wonder where the wood was being processed. This time he expects the manufacturing to stay, and he wants minerals extracted from the Ring of Fire to be processed or refined in his territory. That includes the one million tonnes of chromite concentrate that Cliffs Natural Resources wants to take offshore. “That is what we're targeting,” said Gagnon. First Nation leaders used the backdrop of the Prospectors and Developers annual mining show in Toronto to stake their own collective claims. At a March 6 Queen's Park news conference, Gagnon and Marten Falls Chief Eli Moonias issued a position paper outlining their concerns and expectations of the massive chromite and nickel deposits in the James Bay lowlands. They demanded a more rigorous environmental review of Cliffs' Black Thor chromite project and Noront Resources' Eagle's Nest nickel deposit. Both projects are undergoing separate federal assessments. The chiefs said mine approvals must not be fast-tracked at the expense of conducting a more-transparent joint panel review, rather than the comprehensive assessment now underway, a process Gagnon called a “paper-driven” exercise. Gagnon said his community of 325 is “pro-development,” but said the consultation process with First Nations is “inadequate.” When Cliffs stages open houses in communities like Greenstone and Thunder Bay, Gagnon said his members question why Aroland is excluded. “My elders are wondering how are they going to afford to go to these open houses if

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they're so far away. And the language they speak is not the language of our preference.” Aroland stands to be a major benefactor from a proposed transloading point for ore coming south by truck or rail from the Ring of Fire. The Exton railroad siding, adjacent to his community, is on the Canadian National Railway's main east-west line. Aroland is part of a lobby group with the neighbouring municipality of Greenstone in jockeying with Thunder Bay, Sudbury and Timmins to land a proposed ferrochrome processing plant being proposed by Cliffs. But before that ever occurs, Gagnon wants government support for First Nations to do their own environmental studies in lock-step with the fast-moving pace of industry. “If we don't have it, then we're forced to slow it down by any means that we can.” And if they're ignored, there will be no development. “We stand firm on that.” Cliffs Natural Resources has scheduled its Black Thor mine to be in production by 2015, while Noront wants to produce nickel by 2016. “We're being pressured by Cliffs around their project description on how they want to move and we have to act,” said Gagnon. “We're saying let's form this alliance and let's get moving.” Other chiefs in northwestern Ontario are also forming a united front in pursuing an east-west transportation corridor connected to the Ring of Fire. One day before Gagnon's press conference, four First Nation communities signed a pact in Toronto agreeing to work toward the eventual operation of all the supporting infrastructure, transportation and services for the mining companies. In a statement, Eabametoong Chief Harry Papah said controlling the corridor means training, employment and business opportunities for his people. “By taking control of our traditional homeland, we can ensure that our communities really benefit in meaningful and long-term ways from the potential development in the Ring of Fire.” Aroland and Marten Falls favour a transportation corridor that was planned as a forestry road before the Ring of Fire was known to exist. The chiefs said it eliminates a bridge over the Ogoki River, avoids passing through a provincial park and will provide spinoffs for the communities. The industry-proposed roads are on sacred ground that needs to be protected. “It's viable,” said Gagnon. “We know the land and we know where the portages are.” Gagnon said he's confident that a Ring of Fire railroad is an eventuality. “We are going to build it and own it, that's coming.” With their expectations outlined, Gagnon said the next step is to rally support from other chiefs and municipalities. “I want to walk hand-in-hand with industry to tell government this is how we want to see this developed.” " http://www.northernontariobusiness.com/Industry-News/mining/FirstNation-chiefs-make-statement-on-Ring-of-Fire-corridor.aspx "This notification is to announce the extension of the comment period on the Noront Eagle’s Nest Project Terms of Reference to May May 7, 2012. Please read below for further information about the Project. As part of the planning process for the Eagle’s Nest Project, a Terms of Reference was submitted to the Ministry of the Environment for review as required under the Environmental Assessment Act. If approved, the Terms of Reference will serve as a framework for the preparation and review of the environmental assessment for the proposed undertaking ...." http://www.norontresources.com/Projects/getDocument/NoticeofExtensionofCommentPeriodforTermsofReference-2012-0405.pdf/194

4 Apr 12

“@NorontResources Notice of Extension of Comment Period for Terms of Reference, please visit: http://ow.ly/a6BPH” http://twitter.com/#!/NorontResources/status/187971158258360321 "Mayor Keith Hobbs said the writing’s been on the wall for a year or more, and the message probably isn’t a good one for Thunder Bay. Hobbs was reacting Monday to news that Cliffs Natural Resources’ suggestion the mining giant is still working with its best case scenario location for a much-sought after ferrochrome processing plant and it's likely Sudbury will be made the official location. A decision could come in a matter of weeks. Hobbs called the decision disappointing, though hasn’t entirely

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given up hope the project and 500 jobs can be salvaged for Thunder Bay. “We wouldn’t be surprised by that,” Hobbs said. “The Northwest, NOMA and the City of Thunder Bay, we were all prepared for that. “When we went to Cliffs last year in Cleveland and met with them, they told us that when they found out the Kinghorn (rail) line was gone, that we dropped from base case to maybe second base case. So it wouldn’t be a surprise if it went to Sudbury at all.” Andrew Mitchell, a director of development for Cliffs Chromite Ontario Inc., said the final decision will come down to one factor – energy. “The key driver in the ferrochrome is power costs,” Mitchell said. “That is one of the most significant operating cost components and it’s also one of the things that takes the most in-depth negotiation with the suppliers. “So that will probably be the key thing we key on. There are other things such as jurisdictions that will factor in as well.” Mitchell said it is his preference to house the plant, which could be operational by the end of 2015, in Ontario. He also said they’re looking to the province to contribute to the infrastructure costs needed to make the mine feasible. Hobbs is still holding out hope that the Ring of Fire as a whole can be profitable for the city, noting Noront still has to build a processing plant of its own and is interested in Thunder Bay, adding Cliffs has suggested it might build a runway at the Ring of Fire site and transport miners and other workers to and from Thunder Bay. “We’re looking at ways to be competitive, still,” Hobbs said. “We’re not giving up this fight. And it is a fight. Sudbury is well-situated, but we have the port, you know, and if that Kinghorn line can somehow get rebuilt, then we’re set.” The mayor said the first indication Thunder Bay might not be in the running for the processing plant – along with Greenstone, which appears to have been shut out as well – was a year ago when he says Energy Minister Brad Duguid said the province was working on getting 300 megawatts of power to the Sudbury area for the FPF “I talked to Ron Nelson from NOMA and we both got the impression that Sudbury was going to be it,” he said. “But you know, we still have to wait for these things, you still have to put your best case forward. If you didn’t put a case forward, of course we wouldn’t be in the running for it.” Mitchell told Thunder Bay Television on Wednesday the U.S.-based company is working hard at the logistics of the location of the ferrochrome processing facility, but they aren’t in a position to officially say anything just yet. “We’ll be proceeding with a definitive feasibility study … and that will probably take about a year,” Mitchell said ...." http://www.tbnewswatch.com/news/200994/Sudbury-wins "Lakehead University is in the early stages of developing a centre focused on Mineral Exploration and Sustainable Mining Development. President Brian Stevenson said the university needs to support economic growth in Thunder Bay and the northwest. He said the program would differ from Laurentian University's existing Mining Innovation Centre. “What we're trying to do is train people for our region, research for the companies that are working in the Ring of Fire (in) northwestern Ontario,” Stevenson said. “[We also want] to complement what other institutions do, like Laurentian.” Stevenson said Lakehead's centre would bring faculty together to research mining and its implications from various perspectives, including geology, environmental studies, engineering, business, natural resource sciences and aboriginal studies. He said the centre would not only support the mining industry, but also communities affected by Ring of Fire development. "It's what kind of service and support we can provide to communities in northwestern Ontario ... in terms of social and cultural and historical (and) linguistic,” Stevenson said. “All the things that only a university can do in terms of research and ... training." He said he hopes to have a formal proposal for the centre ready by this fall." http://www.cbc.ca/news/canada/thunder-bay/story/2012/04/04/tby-lakehead-mining-centre.html "Maintaining infrastructure commitments and the addition of new smaller investment programs made the recent national budget positive in the eyes of the Canadian Construction Association (CCA). “We’re very happy to see that the government is sticking to its guns on ensuring its commitment to infrastructure continues, despite its effort to get its fiscal health in order,” said CCA president Michael Atkinson. Over the next two years, the federal government will spend nearly $12 billion to support provincial,

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3 Apr 12

1 Apr 12

territorial and municipal infrastructure through existing initiatives. The new infrastructure programs include $150 million over two years to repair existing community infrastructure; $99.2 million over three years to help with flood containment from last year; approximately $275 million to First Nations bands for school construction; and $330.8 million over two years to build and renovate on-reserve water infrastructure. The Building Canada plan expires in 2014 and in this budget the government said it is taking steps to continue its commitment to work with provinces, territories, municipalities and stakeholders on the development of a longterm plan for public infrastructure. .... The budget proposes investments totalling $165 million over two years for responsible resource development to create jobs while protecting the environment. Natural resources opportunities are plentiful throughout the country, including natural gas in British Columbia, oil and minerals on the Prairies, the Ring of Fire in Ontario, Plan Nord in Quebec, hydro power in Atlantic Canada, and mining in Canada’s North ...." http://www.journalofcommerce.com/article/id49540/-cca-likes-what-it-sees-in-the-latest-federal-budget "Mining and exploration will not have any direction if the provincial budget doesn’t pass, says the executive director of Ontario Prospectors Association. Ontario Finance Minister Dwight Duncan revealed the multi-billion dollar budget last week with the main goal to balance the books in five years. The budget will need some kind of support from outside of the Liberal party to pass. Garry Clark, executive director of Ontario Prospectors Association, said if the province heads into an election instead of passing a budget, then it the mining and exploration industry will be left without any direction. “If the provincial budget fails and if the leadership fails all that will do is cause some uncertainty in where we’re going next,” Clark said. “Our business is all certainty. We have to know that we can get on the land, we have to know where we can explore and we have to know eventually where we can mine. So certainty is the big thing for us.” The provincial budget also didn’t give much detail on what plans are being laid out for exploration, he said. The only mining project mentioned was the Ring of Fire. Clark said financially they rely more on what’s in the federal budget and the flow-through shares, which is a tax reduction that’s provided to companies for exploration. The program was extended another year in the federal budget ...." http://www.tbnewswatch.com/news/200678/Direction-needed,mining-and-exploration-officials-say Editorial: "IN their budgets this week Ontario and Ottawa placed much stock in the Ring of Fire mineral deposit here in Northern Ontario. The province is anxious for a big boost to an economy wasted by recession. The feds want business to drive the economy. Both singled out the Ring of Fire. But all is not well in the northern mining patch. First nations are demanding consultation. A legal “duty to consult” has failed in most cases to facilitate successful conclusions to aboriginal claims. Government can’t seem to break the logjam and while some companies have successfully negotiated agreements with neighbouring first nations, others are stymied — and annoyed. At the mining industry’s recent national conference in Toronto, a splinter group of some 60 junior companies called Miners United met. They are concerned about native demands for concessions and cash. Bands are charging for exploratory drilling and the price often tops $100,000. Junior firms say they cannot afford it. A new Ontario Mining Act would require exploration companies to file plans with the government and native groups, and seek permits before drilling. Many try talking but cannot make headway. Others say it’s up to government. Ontario paid one company $5 million to abandon its claim located far across a lake from Kitchenuhmaykoosib Inninuwug First Nation, then withdrew 25,000 square kilometres there from development. Last week, it paid another company $3.5 million to leave its claim around a former gold mine near KI. Chief Donny Morris says he needs time to delineate a burial site he himself estimates is roughly a kilometre away. It’s been four years since the first company was paid to leave. Matawa First Nations demand the biggest Ring proposal be subject to public hearings rather than an environmental assessment. This is getting out of hand. Miners are frustrated,

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governments aren’t able to act as brokers and bands’ demands are all over the map. Governments foresee big things in Northern Ontario, but first they must solve this riddle." http://www.chroniclejournal.com/editorial/daily_editorial/2012-04-01/bands-stymiering-plans

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