1June 2013

PUBLIC MEETINGS

WELCOMEGRAYMONT GISCOME PROJECT

Graymont is conducting an environmental impact assessment and consultation process to build a Lime Plant and Quarry in the Regional District of Fraser-Fort George at Giscome, BC.

We are at the beginning of this process and look forward to talking with you so we can design a project that will a good fit with the community.

2June 2013

PUBLIC MEETINGS

ABOUT GRAYMONT•A Canadian company with headquarters in Richmond BC

•60+ years in the lime business

•A leading producer of lime in North America

•18 lime plants and 1,500 employees in North America

•Significant investment in Grupo Caledra - the largest lime producer in Mexico

•Graymont is a family business. We take community seriously for the long term.

•We contribute to the many local communities that are home to our production sites. We make it easy for Graymont people to support local programs, projects, activities and events

•We consult with neighbours about our actions in their area. We strive to be a good neighbour.

3June 2013

PUBLIC MEETINGS

WESTERN CANADALIME SUPPLY STRATEGY•We see increasing demand for lime in mining, air and water treatment and highway construction

•We are in the process of building a new lime hydrating and distribution terminal facility northeast of Edmonton

•We plan to build a new, modern, greenfield lime plant and quarry in Western Canada

•Giscome, BC is the preferred location for the new lime plant and quarry

•The Giscome project will:

•provide a supply of high-quality limestone

•provide direct access to a CN Rail line for shipping lime to customers by rail

• complement our current network of plants

Lime Plants (red dot), Lime Terminals (yellow triangle),Offices (green square) and PCC Plants (blue square)

Increasing Lime Demand for Mining and

Environmental Treatments

New hydration plant and

distribution centre in

Edmonton

New greenfield plant and quarry in Giscome

4June 2013

PUBLIC MEETINGS

PROJECT OVERVIEW•Plant site and buffer lands are titled parcels

•Plant site was previously a CN Rail loading area and spur track

•The Quarry is located on BC Crown land where Graymont has mineral claims

•The Project requires a BC Environmental Assessment approval and RDFFG permits

5June 2013

PUBLIC MEETINGS

PROJECT AREA

EAGLET LAKE

Plant Site

Graymont Land Ownership

CN Rail

Limestone Quarry(Ultimate Extent)

Initial ExtentBateman Forestry Rd

Upper Fraser Rd

Giscome School

CN Rail Quarry

Giscome South Rd

6June 2013

PUBLIC MEETINGS

OPERATIONS•Phase 1 quarry would produce 600,000 tonnes of limestone per year

•Phase 1 lime plant would include one kiln and produce 198,000 tonnes of lime per year

•Sufficient limestone reserves for 50 years

•Employment opportunities are being reviewed but we expect a combination of direct and indirect employment opportunities of 25 at the plant site and at the quarry site

•Possible future phases would add up to 2 more kilns at the Plant site, and increase quarry production depending on market conditions

The project will use state-of-the-art modern vertical kiln technology. (photo is Grupo Caledra plant in Sonora Mexico)

A Graymont limestone quarry in Bedford, Quebec

7June 2013

PUBLIC MEETINGS

LIME IN THE ANCIENT WORLD•Lime is a natural mineral product made by burning the limestone rock or sea shells at a high temperature, and has been used by humans for at least 14, 000 years

•Lime was employed in the ancient world in a variety of processes including bleaching fabric, tanning hides, agricultural soil amending, glassmaking, and in making glues

•Aboriginal people as well as ancient Roman physicians used lime in different medical treatments

•Kilns were used to convert limestone to lime at temperatures reaching 1830°F. Nearly all early civilizations used lime as a stabilizer in mud plaster and floors

•Lime was produced in either a beehive oven or a simple vertical shaft kiln

•In the late thirteenth century, lime became widely used in agriculture after the advent of coal as a cheap fuel

•High profile and visible reminders of the value of lime mortar as a building material throughout history include the Great Wall of China, the Coliseum and Pantheon, and Michelangelo’s Sistine Chapel

Beehive Kiln

Simple Vertical Shaft Kiln

8June 2013

PUBLIC MEETINGS

VERTICAL KILNTHE BENEFITS OF A VERTICAL KILN

•30% savings in fuel.

•Less exhaust gas.

•Less Lime Kiln Dust (LKD) generated. 3% versus 10% of production rate.

•LKD can be re-injected into the vertical process.

•Less maintenance.

•More efficient in scrubbing sulphur from the fuel.

•Can run on multiple fuels, natural gas, coal, pet coke, & biomass oil.

Maerz Ofenbau AGRichard Wagner-Strasse 28CH-8027 Zurich, Switzerlandwww.maerz.com

stone charge

weigh hopper

combustionair

stone distribution

flap

level indicator

burner lances

shaft

cylindercooling air

suspendedcylinder

MAERZ® Lime Kilns Worldwide

discharge table

lime coolingair

lime discharge hopper

lime cooling air

lime receiving hopper

dischargetrap

fuel

lancecooling

air

exhaust gas to filter / stack

cylindercooling airring ductoutlet

cylindercooling airring ductinlet

crossoverchannel

reversible belt conveyor

rotary hopper

com

bust

ion

air

duct

Circular MAERZ® Kilnlime discharge

TYPICAL MAERZ VERTICAL KILN

9June 2013

PUBLIC MEETINGS

CONCEPTUAL PLANT SITE•Graymont owns the proposed plant site including approximately 1300 acres surrounding the plant site

•The majority of this land will remain in existing forest and hayfield uses

•The plant site illustrated is conceptual only at this stage.

•The plant site was previously used as a CN ballast loading area and is covered by rock

•Graymont will rebuild a former spur line that will serve the lime plant loading area

•Operations at the processing plant site will include the following processing stages:

• Thermally treating crushed limestone in vertical kilns;

• Loading and storing manufactured product, raw materials and fuels;

• Controlling dust and stack emissions;

• Managing wastewater, co-products and off-specification product; and

• Providing support and administrative facilities

Existing Conditions at Proposed Plant Site

10June 2013

PUBLIC MEETINGS

LHEIDLI T ENNEH FIRST NATION•The Quarry is on BC Crown land within LTFN traditional territory

•Agreement with LTFN is a key success factor for the project

•LTFN and Graymont seek a relationship of respect and mutual benefit

•A Memorandum of Understanding about the consultation process was signed in January 2013

•Graymont is providing financing for LTFN consultation activities and involvement in Environmental Assessment studies

•Outcome should be a “Mutual Benefits Agreement”

•Graymont and LTFN leadership will be discussing a range of potential economic relationships and benefits during the next few months

Hayfield and Limestone Hills near Giscome

Existing Railway at Plant Site

11June 2013

PUBLIC MEETINGS

PUBLIC CONSULTATIONGraymont recognizes public consultation as a meaningful and important aspect of project development and operations. We have a track record of success in accommodating public and community concerns in project planning and operations.

This consultation program for the Giscome Project will meet and exceed requirements under the BC Environmental Assessment Act and expectations of the Regional District of Fraser-Fort George. We intend to connect with the community and our neighbours to ensure accurate understanding and to provide opportunities for effective feedback to the Environmental Assessment rocess.

Consultation will occur throughout the Environmental Assessment and Regional District regulatory process with public meetings at a number of key stages:

• ApplicationInformationRequirementsandPre-ApplicationPhases

• ApplicationReviewPhase

• Post-Applicationandthroughoutthelifeoftheproject

Tools and techniques we will use to provide information and opportunities for input will include:

• Projectnewslettertoprovidestatusreporttocommunityatkeyphases

• Publicinformationandopenhousemeetings

• Advertisingofpublicmeetingsinnewslettersandlocalmedia

• Smallgroupmeetingswithneighboursandstakeholdergroups

12June 2013

PUBLIC MEETINGS

APPROVAL PROCESS & TIMELINE