2014 Natural Resources by Perspective

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Canada’s Strong Natural Resource Sector

anada’s exceptional endowment of natural resources forms the backbone of our national economy. This sector directly accounts for 20 per cent of our nation’s nominal gross domestic product and more than 50 per cent of our exports. It also directly and indirectly employs 1.6 million people and contributes $30 billion annually to governments to fund crucial social programs like health care and housing. Now is a pivotal time for Canada’s natural resources sector. We see opportunities to expand and diversify our export markets in Asia and Latin America as well as to solidify our relationships with our traditional trading partners in the United States and Europe. Canada’s a country of choice in which to do business and invest. We maintain an open, market-based approach to foreign investment, keep taxes low, have eliminated “red tape” on businesses and reduced the regulatory burden. At the same time, we are promoting free trade and encouraging innovation. We introduced Responsible Resource Development legislation based on a “one project one review” within a limited time frame for major natural resource projects. It also strengthens environmental protection and enhances consultation with Aboriginal peoples. There are great opportunities to invest in Canada’s natural resource sector, with 600 projects requiring $650 billion in capital in the next decade. Foreign investment in Canada’s energy sector remains strong, as Canada holds 60 per cent of the world’s proven oil reserves open to capital investment. Indeed, foreign direct investment in Canada’s energy sector has surpassed $150 billion.

Produced by Perspective Marketing Inc. 1464 Cornwall Rd Suite 5, Oakville, ON L6J 7W5 1-866-779-7712 info@perspective.ca www.perspective.ca Publisher, CEO Steve Montague VICE-PRESIDENT Ed Martin executive editor Bruno Ruberto Writer Ben Benedict

Canada is also one of the leading mining nations in the world, producing more than 60 minerals and metals and ranking at the top of global production of many key commodities including potash, uranium, nickel, zinc, cobalt, gold, and diamonds. Close to 60 per cent of the world’s publicly listed mining companies list on the TSX or TSX Venture Exchange. In 2012 they raised more than $10 billion, accounting for 70 per cent of equity raised globally in the mining sector. Our Government’s message is clear: we are a market-based, responsible and reliable supplier of natural resources and Canada is open for business. - The Honourable Joe Oliver, Canada’s Minister of Natural Resources

Perspective™ Natural Resources was produced independently of the Government of Canada. Contents are copyrighted and may not be reproduced without the written consent of Perspective Marketing Inc. The publisher is not liable for any views expressed in the articles and opinions do not necessarily reflect those of the publisher or the Government of Canada.

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Natural Resources Create Opportunity, Jobs And Wealth

atural resources are an important part of the fabric of Canada’s economy. This country has enormous natural wealth, from huge reserves of energy to massive tracts of forest and an abundance of minerals and metals. For generations, natural resources have brought opportunity, jobs and growth to every region of Canada. Natural resources account for 13 per cent of Canada’s gross domestic product and 50 per cent of the country’s exports. When you include the spin-off industries that provide goods and services to the sector, natural resources account for over 18 per cent of our GDP – nearly a fifth of our economy. The energy, mining and forestry industries provide over $30 billion a year in revenue to governments – money that supports critical social programs such as health, education and public pensions. That $30 billion is equal to about half of all of the spending by governments on hospitals in Canada last year. About 950,000 Canadians work in natural resource sectors, while another 850,000 people are employed serving those sectors. Add it all up, and close to 1.8 million Canadians depend on natural resources for their jobs – 10 per cent of all employment in Canada. Natural resources are poised to play an even bigger role in our future. It’s estimated that hundreds of major resource projects are currently under way in Canada or planned over the next 10 years, worth approximately $650 billion in investment. That $650 billion figure represents hundreds of thousands of well-paying jobs in every sector of our economy, in every region of Canada.

- Source: Canada’s Economic Action Plan www.actionplan.gc.ca

NRCan Plays Key Role

nergy is critically important to the Canadian economy as Canada is among the largest energy producers and the highest per-capita energy consumers in the world because of our climate and resources. Thus, the secure and sustainable production and use of our energy resources presents many challenges and opportunities for Canadians. Natural Resources Canada (NRCan) works with other government departments, the provinces and territories, and other Canadian and international partners to address energy needs and potential while considering new policies, practises, and technologies. NRCan’s expertise in the areas of energy efficiency, and energy sources and distribution allows us to provide useful energy resources and help Canadians benefit economically, environmentally, and socially from the secure and sustainable production and use of Canada’s energy resources. - Contact www.nrcan.gc.ca

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Benefits Of Canada’s Mining Sector Can Be Seen Throughout The Country

he mining industry is vital to Canada’s At a personal level, mining touches and quality of life. Mining operations improves all areas of the lives of CanadiWhen it take place in almost every province ans. Every day, consumers use products comes to mining, derived from the mineral resources and territory, and they have wider impacts on employment and communities Canada truly is a of the earth. From televisions and than other natural resource industries. telephones, to trains, cars and many world leader The many direct and indirect benefits of of the construction materials in homes, mining – jobs, training and skills developit’s hard to imagine life without the ment, new business opportunities, community products that come from our mineral development – are felt in every corner of Canada. wealth. Natural Resources Canada plays an essential The large-scale benefits of Canada’s mining role in achieving these and other benefits. industry contribute to the economies of developing A centre of Canada’s world-class mining knowledge countries, making Canada an important part of the and innovation, it conducts and supports research in international mining market. Increasing international advanced materials and processes, promotes sustainable demand is creating a huge demand for Canadian development practices, invests in green technology commodities. And when it comes to mining, development and is a centre of expertise on Canada truly is a world leader. global mining issues and opportunities.

Developing Green Technologies

he Green Mining Initiative (GMI), under the collaborative leadership of Natural Resources Canada (NRCan), brings together various stakeholders to develop green technologies, processes and knowledge for sustainable mining. GMI targets the development of innovative energy-efficient technologies required for mining to leave behind only clean water, rehabilitated landscapes and healthy ecosystems. It aims to improve the mining sector’s environmental performance, to promote innovation in mining and to position Canada’s mining sector as the global leader in green mining technologies and practices. Under GMI, research activities at CanmetMINING focus on the following five priorities: • Northern Minerals Development • Strategic and Critical Metals Processing • Energy Efficiency in Mining and Milling • Best Practices In Mining Environmental Management • Clean Water GMI is active in developing multidisciplinary projects with the mining industry, other federal departments, provincial and territorial governments, academia and stakeholders in related sectors. GMI will contribute to improve the Canadian mining industry through research, innovation and commercialization efforts.

• Cape Mudge Lighthouse in Quadra Island, B.C., is now high-tech with an automated weather-observing system and a solar-powered light, horn and videograph fog sensor.

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• With expertise in Toronto, Calgary and Vancouver, and supported by international offices in Beijing and London, TSX and TSXV have attracted more than 1,600 mining companies and almost 450 oil & gas and energy-services issuers, more than any other exchange group in the world.

Canada: World Leader In Listing Resource Companies C By Capitalizing on its abundance of natural resources, Canada has developed a financial ecosystem that services more public mining and oil & gas companies than any other marketplace in the world.

anada ranks among the richest countries in the world as a provider of raw materials. It is one of the world’s leading producers of zinc and uranium, as well as a major producer of gold, nickel, aluminum, lead, iron ore and potash. Canada also has the second largest reserves of oil in the world, after Saudi Arabia, and innovative Canadian companies develop world-class technology to extract hydrocarbons. Within this resource-rich environment, a world-class ecosystem of banks, investment firms, analysts and lawyers has grown to support resource companies. Global investors play an important role as well, and complement Canada’s institutional and retail investor base. As one of the most export-oriented economies in the G8, Canada has built and maintained an efficient, well-regulated financial services industry to help meet the demands of globally-focused resource companies listed on Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV). Companies around the world have recognized the strengths of Canada’s financial ecosystem. As a result, TSX led the world in new listings during the bleakest days of the global recession, from 2009 to 2012. Measured by the total number of listed companies, TSX and TSXV together stood first in North America and second in the world in 2013, as well as second in the world for new listings and seventh globally for total market capitalization.

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Welcome To The World’s Largest Resource Marketplace TSX and TSXV are home to natural resource companies at varying stages of growth. In the oil & gas and mining sectors, for example, listings include multinationals such as: • Suncor Energy Inc. (TSX:SU), Canada’s largest integrated energy company, with a market capitalization of almost $56 billion • Husky Energy Inc. (TSX:HSE), a global energy company specialized in upstream and downstream segments, with a market capitalization of $33 billion The sector also includes small to middle-sized companies such as: • Africa Oil Corp. (TSXV:AOI), a Canadian company with assets in Kenya, Ethiopia and Somalia with a market capitalization of nearly $3 billion • Platinum Group Metals Ltd. (TSX:PTM), a platinum exploration company with operations in South Africa and Canada, with a market value $744 million • Discovery Ventures Inc. (TSXV:DVN), an exploration company primarily focused on developing gold, silver and copper mineral deposits in British Columbia, Canada with a market capitalization of over $5 million The unique, two-tiered structure of TSX and TSXV gives companies access to capital at various stages of development. In the mining and oil & gas sectors, TSXV is home to junior companies, including exploration-stage companies without production or booked reserves. As junior resource companies fulfill their growth strategies, many of these companies qualify to graduate to the senior board. In the oil & gas sector, over 40 per cent of TSX listed companies have graduated from TSXV, while graduates account for nearly 50 per cent of mining companies on TSX.

Natural resource leadership

ith expertise in Toronto, Calgary and Vancouver, and supported by international offices in Beijing and London, TSX and TSXV have attracted more than 2,000 mining and oil & gas energy-services companies – more than any other exchange group in the world. These companies account for 56 per cent of the world’s mining issuers and 32 per cent of public oil & gas companies globally. In the mining sector, 45* per cent of all global equity financings by number and value were conducted on the two Exchanges, while the value of oil & gas financings represented 15 per cent of total equity capital raised globally in the sector in 2013.

* As of November 30, 2013

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Canadian marketplace, worldwide impact Resource Companies listed on TSX and TSXV are engaged in more than 8,000 projects on practically every continent in the world

he majority of natural resource companies listed on TSX and TSXV are based in Canada, yet many are headquartered elsewhere in the world and most have global operations. These companies are engaged in more than 8,000 projects on practically every continent in the world. Of the mining companies listed on the two Exchanges, they have undertaken projects in over 35 countries in Africa and are engaged in more than 1,500 projects in Latin America. Over 500 of these companies are operating in Australia, Eastern Europe, Asia and the U.S. Oil & gas companies on TSX and TSXV operate throughout the world, as well, with operations across the Americas, Africa, the U.K. and continental Europe. All of these companies have recognized the benefits of listing on TSX and TSXV. From access to a sophisticated, industry-literate investor base to extensive analyst coverage, natural resource companies on the two Exchanges can access capital within a stable, well-regulated and liquid marketplace. “We are extremely proud to be a premier listing destination and to rank among the world’s top-performing exchanges,” says Kevan Cowan, President, TSX Markets and Group Head of Equities, TMX Group. “We are fully dedicated to attracting new business and to providing the companies on our markets with the access to capital they need to achieve their objectives and help propel their business forward.”

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M3: MinesOnline.com Market Metrics a new, interactive valuation guide to global mining projects

n buying and selling resource projects, mining professionals can spend weeks gathering information on projects throughout the world. In many cases, they rely primarily on connections and networking. To help buyers and sellers in valuing properties, a new feature has been launched by MinesOnline.com, a website already proving valuable in connecting buyers and sellers of mining projects around the world. MinesOnline.com Market Metrics, or M3, is a unique interactive valuation guide that delivers historical data on recent deals involving gold, copper, nickel and iron projects, as well as comparative company peer valuations for companies listed on TSX, TSXV and the Australian Securities Exchange (ASX).

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“M3 provides strategic information to help value a project and analyze how peers would price an acquisition,” says Ungad Chadda, Senior Vice-President of TSX. Subscribers to the site can find summaries of international project sales in the last five years across four categories: exploration, development, operation and care & maintenance. They can also find the price paid for nearby projects, a helpful indicator of a project’s potential value. For investors, up-to-date peer company resource multiples help to determine how the market might value a project, contributing further to the business case for valuing a project, acquisition funding or raising capital. Visit www.minesonline.com for more information.

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By Jürgen Beier, National Mining Leader, Deloitte Canada

Mining Innovation: Traditional Sector Seeks Untraditional Responses • In recent years, commodity price buoyancy and spiraling shareholder demands compelled many miners to pursue volume at any cost. Now, amid declining commodity prices, mining companies are struggling to recover. If they hope to increase productivity and build shareholder value, they need to embrace innovation more aggressively. Deloitte’s sixth annual mining industry report, Tracking the trends 2014, shares strategies for responding to the following 10 trends: 1. The cost of contraction: mining productivity hits new lows.

To reduce costs sustainably, miners must improve their overall productivity, strengthen their management and reporting systems, use analytics to uncover underlying cost drivers and rationalize their supply chains. 2. Matching supply to demand: Market imbalances wreak commodity price havoc.

Amid falling commodity prices, some companies have slowed production. In light of long-term demand indicators, however, mining companies may benefit by restructuring their portfolios rather than mothballing projects.

3. Remaking mining: Exploring the innovation imperative.

To strengthen long-term operations, miners are rethinking the way they do business – adopting new technologies to enable mine design and planning, rethinking energy supply and embracing the type of innovation that will fuel change. 4. Finding funding: Debt up, deals down and juniors fight for survival.

As profitability slips, juniors in particular are struggling to access financing. Miners should consider alternative funding sources such as sovereign wealth funds, non-traditional stock markets and pension funds.

• To view the full Deloitte report, visit www.deloitte.com/ca/mining-trends 5. The project pipeline stutters: Record impairments call capital allocation practices into question.

To prevent future investment in marginal mines, companies need more robust project scoping processes, governance systems and risk and control mechanisms.

6. Power to the people: Local community demands intensify.

To gain community buy-in to their capital projects, miners must take a more strategic approach to stakeholder engagement by identifying key stakeholders, making appropriate community investments, developing local supply bases and sourcing local labour.

7. Resource nationalism spreads: Government relations marked by rising hostility.

With resource nationalism spreading to typically miningfriendly regions, companies must counter anti-mining sentiment by forming policy development lobbies, strengthening community support and developing relationships with stakeholders at every level of government.

8. Crackdown on corruption: Zero tolerance regulatory environment complicates compliance.

As tolerance for corrupt practices dwindles, mining companies must strengthen their anti-corruption monitoring processes by improving internal controls, conducting compliance audits and investing in enabling technologies. 9. Changing the safety equation: From zero harm to zero fatalities.

Fatalities in the sector remain high, compelling miners to adopt a more sophisticated approach to safety analytics. New techniques allow for pinpointing organizational behaviours that lead to severe safety incidents and adopting practices to improve safety performance. 10. A dearth of skills: The talent gaps widens into executive suites.

Although industry fundamentals are shifting, talent shortages remain real for miners, especially at the senior executive level. Closing the gap requires the adoption of standardized systems, new training environments and investing in the best people available – including executives and directors.

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Natural Gas

Canada is third-largest producer and exporter

anada is the world’s third-largest producer and exporter of natural gas. As part of a fully integrated and continental natural gas market, Canada moves its natural gas resources seamlessly across provincial and national borders, from supply basins to demand centres. Regional prices reflecting market forces, including transmission costs, are established within this market. LNG: This is simply natural gas in its liquid state. When natural gas is chilled to a temperature of about minus 160° C (minus 260° F) at atmospheric pressure, it becomes a clear, colourless and odourless liquid.

LNG is non-corrosive and non-toxic. The liquefaction process removes water, oxygen, carbon dioxide and sulfur compounds contained in the natural gas. This results in an LNG composition of mostly methane with small amounts of other hydrocarbons and nitrogen. As a liquid, natural gas is reduced to 1/600th of its original volume. This makes it feasible and economical to transport over long distances in specially designed ocean tankers. Once received, the LNG goes into storage tanks, is regassified, and delivered to markets.

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Canadian LNG Projects: As the North American natural gas industry moves away from importing LNG, Canada and the United States have a considerable surplus of regassification capacity. In 2012, Canadian imports of LNG represented less than 17 per cent of capacity and US imports of LNG represented less than 3 per cent of US regassification capacity. As of spring 2013, Canada’s only operational LNG terminal is Canaport LNG’s regassification terminal located in Saint John, New Brunswick. Canada does not have any operational LNG export facilities. However, as of spring 2013 there are six such facilities proposed: three in Kitimat, British Columbia; two in Prince Rupert, British Columbia; and one in Guysborough County, Nova Scotia.

EXISTING IMPORT TERMINAL 1. Canaport LNG - Saint John, New Brunswick PROPOSED EXPORT TERMINALS 2. Douglas Channel LNG - Kitimat, British Columbia 3. Kitimat LNG - Kitimat, British Columbia 4. LNG Canada - Kitimat, British Columbia 5. Pacific Northwest LNG - Prince Rupert, British Columbia 6. Prince Rupert LNG - Prince Rupert, British Columbia 7. Goldboro LNG - Guysborough County, Nova Scotia Source: NRCAN, Industry Websites

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Shale Gas

Key facts on new low-cost source of natural gas

hale gas is emerging as the new low-cost source of natural gas in North America. Here are some other facts: • In Canada, potential and producing shale gas resources are found in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick and Nova Scotia. Most of the current drilling and production activities are occurring in northeast British Columbia in the Montney and Horn River shale basins. • Natural gas is a relatively clean-burning, abundant and efficient source of energy. It has become a popular fuel for residential, commercial and industrial applications.

• Natural gas is an important transition fuel for a low-carbon economy, because it is cleaner burning than any other fossil fuel and is in abundant supply. Current research estimates that the natural gas supply in North America, largely in the form of shale gas, will last more than 100 years. • Natural gas offers the potential to replace fuels that produce more greenhouse gases (GHGs) and that are currently used for power generation, heating and transportation. For example, GHG emissions from natural gas combustion are approximately 30 per cent cleaner than those from oil and 45 per cent cleaner than those from coal.

• Technological advancements in drilling (long-reach horizontal well bores) and completion techniques (multistage hydraulic fracturing) have allowed commercial production of natural gas from shales, which has increased the long-term outlook for the supply of natural gas in North America. • Hydraulic fracturing has been used by the industry to safely stimulate oil and gas production in North American conventional reservoirs for more than 60 years. • Although shale gas development is a relatively mature industry in the United States (with more than 40,000 producing wells), shale gas is still in its nascent stages in Canada.

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New Brunswick Mining:

Historically Proven and Internationally Recognized

he province of New Brunswick has a longstanding history of mining, is a proven producer of world-class mines and consistently achieves global recognition as a leader among mining jurisdictions. New Brunswick’s diverse geology – rich in mineral potential including base metals, precious metals, potash and salt, as well as other industrial aggregates, peat, and hydrocarbons – is the foundation for its world-class rankings among mining jurisdictions. Earlier this year, the Fraser Institute again recognized New Brunswick as an industry leader by ranking it as the jurisdiction with the second-best mining policy in Canada and the seventh-best in the world in its annual Survey of Mining Companies. In fact, New Brunswick has consistently ranked among top jurisdictions worldwide since the start of the Fraser Institute Survey of Mining Companies in 1997. For the second straight year, New Brunswick was recognized in the top 10 jurisdictions internationally with the province ranked as the most attractive jurisdiction in the world for potential in mineral exploration and development in 2011-2012. In addition to a diverse geology and attractive mining policies that offer an extensive industrial development infrastructure, a comprehensive regulatory regime and a competitive tax regime, New Brunswick’s mining sector boasts a prime global location that is geographically accessible for exploration and home to a highly-skilled workforce and exploration incentives. Located on Canada’s East Coast, New Brunswick is closer to

Europe than any other seaport in the United States. The province is home to two year-round, ice-free, deep-water ports and hosts several industry-leading integrated couriers, making the province easily accessible to mining companies. New Brunswick’s network of forestry roads is another major attribute for accessibility to remote areas for mining exploration and development. Many modern and uncongested highways linking the province’s major cities to the rest of Canada and the State of Maine provide even greater accessibility for mining exploration and development. Almost 50 companies currently hold mineral claims in New Brunswick, many of which are actively exploring. Numerous important mining projects are currently on the horizon for

the province. In northern New Brunswick, the Caribou lead-zinc mine near Bathurst is progressing to a restart of operations within the next year. In central and southern New Brunswick, major deposits of tungsten, molybdenum, tin, antimony and gold have been located, and the Mount Pleasant deposit containing the largest undeveloped indium resource in the world is in the early stages of mine development. Additionally, the Sisson Project, a tungsten and molybdenum mine projected to be the largest mine in the province in terms of daily ore production is currently undergoing environmental review and could see construction start in the near future. The $2 billion expansion of the Piccadilly potash mine in the Sussex area is yet another of the upcoming mining projects slated for the province. With a diverse geology and longstanding history in mining and ongoing and upcoming projects on the horizon, New Brunswick is the ideal place for mining investment. Come learn what New Brunswick has to offer as a historically proven and internationally recognized leader in mining!

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Oil Sands Account For Most Of Canada’s Reserves

anada’s oil sands are a major resource within Canada’s energy sector, accounting for 97 per cent of Canada’s total oil reserves. Natural Resources Canada (NRCan) is committed to developing Canada’s oil sands and heavy oil resources in a sustainable and responsible way through advances in science and technology. NRCan’s scientists have a deep understanding of oil sands and heavy oil processes and strong fundamental science capabilities, and conduct R&D related to oil sands and heavy oil processing in order to reduce the environmental impact of production and produce cleaner fossil fuels. NRCan’s work is focused on reducing environmental impact related to air, land and water through research and providing funding for research, the development of novel and improved technologies, and providing scientific information and advice to government policy makers and regulators. We work on research initiatives in collaboration with national and international partners through standards boards, industry, government departments, consortia, provincial governments and universities. With our unique pilot plant facilities located in Devon, Alberta we are able to demonstrate the viability of our innovative technologies and evaluate technologies developed by entrepreneurs as well as those being considered by industry or governments. NRCan’s continued efforts in R&D will enable us to achieve our goals of making oil sands and heavy oil a cleaner energy option for Canada and ensuring Canada is receiving maximum value for the environmental costs of oil sands and heavy oil production.

Alternative Fuels • Ethanol is a liquid alcohol made of oxygen, hydrogen and carbon and is obtained from the fermentation of sugar or converted starch contained in grains and other agricultural or agri-forest feedstocks. In Canada, ethanol is made principally from corn and wheat. • Biodiesel is a diesel fuel substitute used in diesel engines made from renewable materials such as: plant oils (canola, camelina, soy, flax, etc.); waste cooking oil; animal fats; and potentially from cellulosic feedstock consisting of agriculture and forest biomass. • Natural gas is a clean-burning fuel, found in abundance in Canada as a mixture of gases in porous rock formations. It is extracted from the ground, processed to remove impurities and compressed to be stored and transported by pipeline. Canada is one of the largest producers of natural gas in the world. • Propane is a clean-burning, gaseous fuel that is pressurized and stored as a liquid when used in vehicles. When used as a vehicle fuel, it is pressurized, stored as a liquid and burned as a gas. Most of Canada’s propane is a co-product of natural gas production. About 85 per cent of Canada’s propane is produced at natural gas plants in Western Canada. • Battery-electric vehicles (BEVs) are powered by motors that draw electricity from on-board storage batteries, which act as an “engine” to propel it. Electric vehicles don’t produce pollution from the tailpipe or through fuel evaporation, which means they have great potential to reduce greenhouse gas (GHG) emissions and smog-forming pollutants. • Fuel cells generate electricity by electrochemically combining hydrogen and oxygen. On a life-cycle basis, they can produce zero or very low emissions, depending on the source of the hydrogen. Fuel cells are energy-conversion devices that utilize hydrogen and other fuels.

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Kenora is a city on the move!

he City of Kenora is a community aggressively on the move. The Economic Development Plan has three goals: job creation, increased assessment and population growth. The Plan builds on Kenora’s best assets: Lake of the Woods and its 14,522 islands, its location in the heart of the continent, on the Trans-Canada highway, access to CP and CN Rail, just two hours from Winnipeg, Manitoba and Centreport which make it an ideal business location.

For more information on Kenora contact: Jennifer Findlay, Economic Development Officer City of Kenora/Lake of the Woods Development Commission jfindlay@kenora.ca • 807-467-2127 • www.kenora.ca

Kenora is Ontario’s gateway to and from western Canada due to its location on the Ontario/Manitoba border. Kenora has a population of 15,806 and a service area of 57,000. Kenora and Lake of the Woods area is cottage country and a major tourism destination. These summer residents double the population in the summer months. Kenora is located in the heart of the mineral-rich Canadian Shield. Kenora’s location on the Canadian Shield offers many opportunities for the mining and mining services industry. A variety of minerals are present in the area including; Stone, Lithium-Feldspar, Iron, Molybdenum, Massive sulphides, Magmatic Cu-Ni, Platinum, Gold and Uranium. Kenora has high prospects with nine active mines and over 30 exploration projects in the area.

Kenora has recently completed a Mining Services Sector Profile for businesses interested in the area. A Mining Services Business Directory has been developed to assist mining companies to access local businesses quickly and easily. The Mining Services Sector Profile outlines Kenora’s business and labour force development advantages for mining companies. The Profile provides details about current projects, transportation routes, industrial sites, electrical power capacity, and labour force information. From the Mayor and the Council through to the city’s planning and development staff, the community maintains a business-welcome attitude and is dedicated to creating a business climate for a diversified, resource-based economy. The Planning and Development staff provide information from site selection to business introductions,

meetings with government agencies and access to northern Ontario funding. Recent investors and business owners describe Kenora as the land of opportunity due to the abundance of land development and business opportunities. Kenora’s outdoor lifestyle, recreational amenities and vibrant community help companies such as Weyerhaeuser’s Timberstrand mill attract and retain workers. Kenora has recently created a Labour Force Development group to work with business. The group includes training and education organizations as well as employment agencies. Confederation College’s Lake of the Woods campus in Kenora and Seven Generations Educational Institute’s Manidoo Baawaatig campus currently offer mining-related courses and have plans to expand their offerings over the next few years.

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Economic Driver: The Mineral Sector In Northwestern Ontario

he City of Thunder Bay and Northwestern Ontario are hosts to new world-class gold, copper, nickel, palladium, graphite, chromite and iron deposits. Current production from existing mines is one million ounces of gold annually. Twenty-five million ounces of new gold resources have been discovered in Northwestern Ontario. Thunder Bay, in partnership with the CEDC and Fort William First Nation, continues to work to prepare for expected mining growth in the region through the Mining Readiness Strategy (MRS), which provides a road map for Thunder Bay to become a major mining service centre. The MRS can be found at www.thunderbay.ca/ miningreadiness Mining companies are expanding or continuing to move closer to actual production in the region: • North American Palladium Ltd. (Lac des Iles) officially commissioned a new production shaft, culminating a $400 M mine expansion. The shaft will enable the company to increase its daily palladium ore mining rate. • Premier Gold Mines Ltd. (Geraldton) continues to explore its 7 million ounce TransCanada Gold Project. A Preliminary Economic Assessment (PEA) was released for the Hard Rock and Brookbank gold deposits. • Rubicon Minerals Corporation (Red Lake) completed the production shaft on the Phoenix Gold Deposit. Mill construction continues with the goal of gold production by late 2014 at a rate of 2,500 tonnes per day. • New Gold Inc. (Fort Frances) continues to advance the Rainy River Resources project to production. A positive feasibility study was released for the deposit.

Once complete, the environmental assessment will lead to construction in 2014 and production in late 2015, into 2016. • Goldcorp Inc. (Red Lake) is nearing completion of the underground railway (tramway) to access the five million ounce CochenourBruce Channel Gold deposit in Red Lake. Production from the Cochneour-Bruce Channel deposit is scheduled for 2015. • Stillwater Mining Canada Ltd. (Marathon) will release a new feasibility study in mid-2014 for the Marathon Copper-Palladium deposit. • Treasury Metals Ltd. (Dryden) continues with the environmental assessment process moving toward completion of an Environmental Impact Statement on the Goliath gold deposit. Treasury is working toward a feasibility study. The Goliath hosts 1.7 million ounces of gold; production is planned for 2015. • Zenyatta Ventures (Hearst) 25.1 Million tonnes grading 3.89 per cent graphite carbon is present at their Albany Graphite deposit. A Preliminary Economic

Assessment (PEA) will begin soon. Zenyatta was the top performing stock on the TSX Venture in 2013. Graphite of the spectacular grade contained in the Albany deposit has numerous high tech uses. • Noront Resources (Ring of Fire) is in the process of completing the environmental assessment to build the Eagles Nest nickel-copper mine, in the Ring of Fire. Noront has spent $200 million to date on exploration. • Rockex Ltd. (Pickle Lake) completed a positive Preliminary Economic Assessment for the 1-Billion tonne Lake St. Joseph iron deposit. • Bending Lake (Atikokan) is exploring development and technology options for their iron deposit. • Northwestern Ontario Mines produced $1.81 Billion of metallic minerals in 2013; that number is expected to grow annually over the next decade. Thunder Bay has a growing mining supply/service industry; we are logistically positioned to supply these sites.

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