FWFN – THUNDER BAY OPPORTUNITY! Noront Resources seeks a location for a ferrochrome production facility in Northern Ontario to process Ring of Fire Chromite Ore

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Ferrochrome Production Facility

In 2012 Fort William First Nation (FWFN), City of Thunder Bay (CTB) and the Thunder Bay Community Economic Development Commission (CEDC) created a Mining Readiness Strategy (MRS) that has been a guide for our two communities

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Ferrochrome Production Facility

• Noront Resources is planning to develop a Ferrochrome Production Facility on a Brownfield site in Northern Ontario.

• It is anticipated this facility could operate for many years.

• Noront Resources are asking four communities (Timmins, Sudbury, Sault Ste. Marie, FWFN/Thunder Bay) to prepare a compelling case for locating the facility in their community.

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Ferrochrome Production Facility

The case or proposal should address the topics listed in the sixteen page RFP they sent us with sufficient information to express our case and to aid Noront to make an informed decision.

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North America’s Next Mining District COMMENTARY • 2007 Discovered Eagle’s Nest Ni-Cu-PGE deposit

• 2008 Blackbird Chromite discovery

• 2012 Positive Feasibility Study on Eagle’s Nest

• 2014 Ontario government committed C$1bn to Ring of Fire infrastructure development

• 2015 Amended “Terms of Reference” approved by Ontario Government

• 2015 Acquired Cliffs Chromite properties financed by Franco-Nevada loan

• 2016 Acquired 75% interest in MacDonald Mines

• 2017 Signed Exploration and Project Advancement Agreement with Marten Falls First Nation

• 2017 Noront is currently advancing:

• Updated trade-off studies

• Regional infrastructure plan

• Ferrochrome site selection

• Agreements with First Nations

• Eagle’s Nest timing

• 2 years of engineering/environmental/permitting following firm infrastructure plan

• 3 years of construction

RING OF FIRE LOCATION

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Regional Infrastructure Key to Development of the Ring of Fire • 2014: The Province of Ontario committed $1

billion for Ring of Fire infrastructure development

• 2015-16: The province, communities and industry collaborate on various studies and analysis

• 2017: Announcement by Ontario of funding for community-led access roads : E-W road proposed by Webequie and Nibinamik FNs will connect Ring of Fire to paved highway near Pickle Lake

• N-S road proposed by Marten Falls FN will access community and extend to the Ring of Fire to support chromite development

• 2017-18: Environmental Assessment and engineering work on routes

• 2019: Shovels in the ground

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DEEP PROJECT PIPELINE

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A World-Class Nickel Deposit and Chromite Resource

Noront Ferrochrome Production Facility Plan

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Benefits

• Material mined in Northwestern Ontario should be processed in Northwestern Ontario to its maximum value added state.

• Indigenous Employment (Matawa / Robinson Superior / Metis) – Mine / Transportation / Service & Supply / Repairs / Ferrochrome Processor.

• According to the 2016 national census Thunder Bay has the largest proportion of Aboriginal residents among major Canadian cities at 12.7%. Thus having the ferrochrome processor in Thunder Bay creates the opportunity to have maximum involvement of Northwestern Ontario Aboriginal Peoples from start to finish.

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• Employees Mine workers at Blackbird Chromite mine will need to live in local aboriginal communities and Thunder Bay. 300-500 employees Ferrochrome Processor in Thunder Bay will require the following number of employees

Stage 1- 296 Stage 2- 198 Total 494

• This number includes all administrative and support staff as well as full maintenance and operational capability. Use of contractors for specific annual maintenance outages and special skills will be extra. Perfect opportunity to employ: Matawa, Robinson Superior, Metis from the area in the process

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Benefits (cont’d)

• Capital Cost Mine $200 million Ferrochrome Processor $800 million to $1 billion Construction workers required to build the Processor , around 1000 workers over a 3 year period

• Increase the industrial tax base in Northwestern Ontario. • New industrial base to help with private sector contributions to Health

Care and Social Projects.

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Benefits (cont’d)

• Training of workers at Confederation College and Lakehead University

• Future Research projects at Lakehead University on mining of chromite and ferrochrome processor as no one is doing this in North America.

• Entrepreneurial Spinoff- We have a good support system for start-up companies in all our communities, so involving local entrepreneurs and students from the College and University in the Ferrochrome Industry will lead to new companies and more efficient ways of doing things in this new industry.

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Benefits (cont’d)

Benefits (cont’d)

• Expansion of Northwestern Ontario green power production and pumped storage capacity as the Northwestern Ontario ferrochrome industry is developed. Possibly use trucks and containers to haul biomass fuel back to communities from First Nation Forests for combined heat and power plants for communities and industries in the Ring of Fire.

• Attract other future mineral processing plants in Northwestern Ontario for minerals resources including lithium. We will start to develop a processing cluster for Northwestern Ontario raw materials.

• Attract more specialized contractors/engineers/scientists/researchers/service staff to service Northwestern Ontario’s ferrochrome industry.

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Ferrochrome & Stainless Steel Growth Chromite Concept • Chromite ore (FeCr2O4) is mined and concentrated then

processed into Ferrochrome (FeCr) • Ferrochrome is used in the manufacture of Stainless Steel (SS) • All Stainless Steel requires 12-18% Chrome (Cr) • Historic Stainless Steel growth from 1950 to 2015 has been

5.8% per annum • Projections of Stainless Steel growth estimated at 4-5% • Growth in Ferrochrome demand matches that of stainless steel • China is the major importer of Chrome ore and producer of

Ferrochrome

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What is stainless steel used for?

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North American Stainless Steel (SS) Production Targeted by Noront

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Thunder Bay

Introduction • Timo Haimi, Senior Process Metallurgist • Outotec Finland, Ferroalloys • Outotec technology company, designing and building new

metal processing plants • Here to help Thunder Bay CEDC in the technical details of

the Noront smelter case • History in Outokumpu Finland, as their technology

department

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> 40%

Chromite Mine Production 18

Block diagram of FeCr and Production Ferrochrome plant

Raw Material

Preheating Kilns Electric ARC

Furnace

Slag Ferrochrome

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Chromite FeCr2O4 [(Fe,Mg)(Cr,Al,Fe)2O4]

800 °C Fe2O3 + CO → 2 FeO + CO2

1200 ° C FeO + C → Fe + CO

1400 ° C Cr2O3 + 3C → 2 Cr + 3CO

1600 ° C SiO2 + C → SiO + CO

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Closed Submerged AC-Smelting Furnace 23

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Closed DC Smelting-Furnace 25

CO-Gas Utilization as a By-Product

Ferrochromium Preheating Kiln

Power production

Central Heating Plant

CO-Gas

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FeCr- metal ground casting or shotting into solid granules

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Inert FeCr Slag product used in road construction at City of Oulu, Finland

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Outokumpu The plant area and employment

• The plant area of Tornio Site covers an area of 1500 acres.

• Inside the plant area, there are 50 kilometers of roads and 10 km of pedestrian and bicycle routes.

• There are 2150 employees in the integrated production chain of Kemi Mine and Tornio Site.

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Outokumpu Processing Plant

Ferrochrome Processor

Outokumpu Processing Plant

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Ferrochrome Processor

A Google Maps image of the Tornio Site 34

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Outokumpu / Tornio Site, Finland

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Noront Ferrochrome Production Facility Plant

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Noront Ferrochrome Production Facility Proposal

Hydro One Transmission Map

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Legend

230 KW Lines

115 KW Lines

New East/West Tie 230 KW line

Environmental Assessment Process

The Noront FPF is at a very early stage of this process and will use a professional and inclusive methodology for the establishment of the environmental baseline, impacts and mitigations. The process will ensure that the key environmental risks, issues and concerns are identified, managed and mitigated.

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Environmental Assessment Process

Physical

Biological

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Physical

Biological

Environment Issues and Mitigation Measures ACTIONS BY NORONT GOVERNMENT REVIEWS PUBLIC REVIEWS

Write a Project Description Federal Environmental Assessment Agency. Outcome: Federal Guidelines for Noront Environmental Assessment activities.

Review period for public comments on Project Description

Prepare Environmental Assessment “Draft Terms of Reference” outlining how baseline EA will be done.

Ontario Ministry of Environment and Climate Change reviews and amends.

Hold Open House meetings in local communities to share plans and results with the public, and to obtain comments which must be responded to in the EA report.

Public notifications of Open Houses are provided in media (newspapers, bulletin boards, websites).

After collecting base line environmental data and meeting requirements of the Terms of Reference, write the Draft Environmental Assessment Report

EA Report is reviewed by Federal and Ontario government scientists and experts.

EA Report is available for public review and comments. Noront must address these comments

Final EA Report is prepared with any comments or actions from government reviews of the draft report and public comments

Final EA Report is reviewed by MoECC and CEAA. Once satisfied the EA is complete, a recommendation is made to the Minister of E and CC. Federal officials prepare an Environmental Impact Statement that the Federal Environment Minister will review and sign if satisfied with it.

Public review of final documents and comment periods.

Once the EA approvals are signed, Noront begins the other permit applications, like air emissions, water taking and discharge, power connections, and other applicable permits

Government experts review the permit applications and state any requirements for additional information.

Public reviews are part of most permit applications.

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Housing in Thunder Bay

1. Understand industry requirements early. Do not ignore the signals (is there one or multiple projects driving need? Timelines?)

2. Baseline your available houses, stock and available land/lots

3. Create a steering committee/advisory panel made up of all the key players: mining company, local government, provincial and federal governments, indigenous community, DSSAB and other appropriate agencies

4. Create a communication plan to educate developers, builders, lenders & trades of mine projects and key contacts

5. Create a housing plan with a variety of housing solutions including single family, apartment and low income options

6. Deal with construction phase and operational phase challenges and opportunities to maximize benefit to the municipality and indigenous communities.

7. Consider FIFO as a supplement to local construction workforce living/residing (in Thunder Bay) during construction i.e. an apartment block owned by the company or Indigenous Communities in Thunder Bay that when construction is over reverts back to housing in Thunder Bay.. Consider FIFO for construction phase of a project that supplements the local construction work force - a time of maximum personnel on site!

8. Work with all agencies and organizations who could be partners (major projects affect existing residents in community including real estate values)

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How to get the Ferrochrome Processor in Thunder Bay

1. Make a compelling case that processing for the Ring of Fire in Thunder Bay will have highest impact and economic benefits for Northwestern Ontario Aboriginal Communities then doing elsewhere in Ontario.

2. Demonstrate the assets Thunder Bay has already here: Port, Thunder Bay Terminal, 2 class one Railroads, OPG

3. Climate Change

4. The citizens of Thunder Bay & Fort William First Nation want to move forward to work with Noront.

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Questions?

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Contact us: Thunder Bay Community Economic Development Commission (CEDC)

PO Box 800 Suite 201, 34 Cumberland Street North

Thunder Bay, Ontario, Canada P7C 5K4

Tel: (807) 625-3960 Toll Free: 1-800-668-9360

Fax: (807) 623-3962

Email: develop@thunderbay.ca Website: www.ThunderBayCEDC.ca

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Fort William First Nation 90 Anemki Drive, Suite 200 Fort William First Nation, ON P7J1L3 Tel: (807) 623 9543 Toll Free: 1 (866) 892 8687 Fax: (807) 623 5190 Email: info@fwfn.com Website: www.fwfn.com